New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-06-07
ICE TRUST GETS A STAY.
SHOW CAUSE WHY THE PROCEED
n

Justice Smyth granted a stay in the Ice Trust
proceedings before Referee Myer Nussbaum, in
the Mutual Life Building. yesterday. together
with an order TO show cause why the entire
proceedings should not be stopped The order
was obtained on Saturday last.
Ex-Judge John F. Dillon, counsel to Controller
Coler. later in the day sent Mr.. Coler an
opinion with reference TO the petition of William
r. Hearst to have the leases for city docks
with the Ice Trust declared void because, as is
alleged Dock Commissioner Murphy and Mayor
Van Wyck are stockholders in the American
Ice Company holding that the facts stated in
the petition are not sufficient to justify the
Controller in granting Mr.. Hearst's request.
Controller Coler said last night that he would
abide by the opinion of his counsel, and de-
sist for the present least, from any action
against the Ice Trust.
The Controller on June received the appli-
cation from Mr. Hearst. who made sworn
statement to the effect that on April 20 1899,
Mayor Van Wyck held two thousand five hun
dred shares of Ice Trust stock and that Au-
gust % Of the same year Dock Commissioner
Murphy held one hundred shares. This he held
TO be in violation of the provisions Of the city
charter and he requested immediate for
fixture Of the lease OF docks by the trust. If
the Controller had vacated the leases it would
have done away with several actions lately
brought in the courts. IN
DOCK LEASE FORFEITURE DENIED.
Ex-Judge Dillon in reviewing the application
and the law says in part:
AS respects the power and duty Of the Controller,
the exercise of which is sought by MI Hearst the
which any such person is or becomes interested
shall the option of the Controller, be forfeited
and void" The history well the language OF
this section, shows that the purpose of its enact;
by collision between its officers and persons CON
afirmed as an matter Of law that merely because
person holds shares of stock In corporation ne Is
corporationis Contracts and not his and in making
them the corporation acts through its officers and
through its stockholders. The far reaching
the city in its operations is necessarily obliged to
make contracts with many Corporations or aie b aD
made leases of its docks and ferries to the Penn
Lackawanna and Western. Erie Jersey CentraL
ions II such leases or Contracts We're valid when
made ii was never Intended by Section 1888 of the
upon the contingency that city officer should &C
eure shares Of stock IN snch no
city officials by simply acquiring few shares OF
naaGe and benecal to BOTH parties to it similar
err aPpy o TO SGPd is proper t oces
for the furnishing Of articles and supplies for the
is the Controller given 10 declare II forfeited
and void simply because some one or more OF the
corporation which has contracted TO furnish the
do no; wish TO be understood expressing the
opinion that circumstances might not exist under
make city official interested in contract between
Of section 1888 Of the charter since the facts Of
this case require no opinion on that subject.
stated was made 70 prevent frauds upon the city
or @ nr aRf of Section 1 h
OF your powers which is that all such contracts in
at the option of the Controller, be forfeited and
void This power vas given TO the Controller for
he cif q ! q
made by the proper department or officer of the
6n the to ho % P a o % fniH his
is 4enehe91 70 the Gi5g or tG
10 the city
said a Petition ii s Of Mr. Hearst are not safcient to
Justify YOU declare void and forfeited
ICE TRUST CASES AT ALBANY
Mr.. Guiterman. Of the firm of Einstein &
Townsend counsel for Mr.. Hearst. disap-
ronted when he heard Of ex-Judge Dillon S
opinion.
L am afraid that Mr.. Dillon did not give the
case the careful examination its Importance
warrants" said he, FOR Judge Daniels. of
the most competent jurists this State pro-
duced. held in 1875 that the law prohibiting
city officials from having connection with cor
porations having business dealings with their
departments is clear and explicit"
Referee Meyer Nussbaum, OF Albany. was all
ready yesterday TO go with the proceeding in
stituted by the Attorney-CeneraI looking to a
cancellation Of the permit under which the Ice
Trust does business. when De Lancey Nicoll
counsel representing C. W. Morse, president of
the company, presented the order granted by
Justice Smyth already referred TO. 1t is alleged
by the lawyers for the complainant that Justices
Chase, Chester, Herrick and Andrews each de-
ciined 10 grant the order At the hearing YES
terday William H. Burke. secretary Of the Dock