The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1901-07-01
FIFTH AVEN UE STAGES.
Vice Chancellor Hears Some
News in the Electrical
Vehicle Case.

Some interesting information for the
travelling public of New York was given
in the Court of Chancery this morning
during the hearing of the application OF
Benjamin Meyer to restrain the New
York Electrical Vehicles and Transporter
ton Company for leveling an assessment
of $40 per share on the capital stock Of
the company. During the argument 1t
was announced that the company which
controls the Fifth avenue stage line, pro-
posed to equip that line with electric au-
tomobile stages and do an express busi-
ness in connection with the Metropolitan
Street Railway Company The case was
opened by Mr.. Williamson of the firm OF
McCarter, Williamson and McCaater OF
Newark, who read the bill of complaint
in which Mr. Meyer sets forth that he
owns 400 shares of the capital stock OF the
company which was organized February
q, IS99 under the laws of New Jersey
The capital stock was placed at $3.50, ,O0o,-
O00, 10 per cent of which was paid in. The
main business of the company is the OPP
Grafton of electric cabs in New York City
and in Buffalo, and its only assets are the
lease of a building at Fifty-ninth street
and Eighth avenue, and a number of
electric vehicles and franchises for stage
routes.
The company's vehicles proved popular
and have been doing profitable business,
the cemplainants charge, and the ten per
cent. assessment was not necessary and
the money would be used for the selfish
and individual ends of a few capitalists
who control the corporation. The bill re-
iterates the charge that the company was
doing prosperous business and had
enough money in its treasury to meet all
legitimate demands 1poR It. e there VIZ 8
necessity for the assessment it must
have been caused bl some mismanage-
ment of the company which needed in
vestigating at the hands Of the Court.
Mr. Meyer also charged that the direc-
tors refused to make any reports of the
company S affairs or show what they have
done with the money paid in All Of this,
it was claimed, deprecated the companys $
stock so that it was now selling for 81 per
share, whereas not long ago it sold for
$50 per share.
Mr.. Henry S. Page, of the New York
Bar, read the answer of the company with
it's supporting affidavits. The company
claimed that its officers have always
given the stockholders all the information
they desired and offered to allow Mr..
Meyer to examine the books but refused
to allow an expert to examine them. The
company had used all the money paid in
for the purchase of vehicles and equip
ping stations for charging them with cleo
tricity, for the purchase of the capital
stock of the Fifth Avenue Company, for
the exclusive right to sell electric vehi-
cles in New York and for experiments in
batteries and equipments. In this manner
it had expended $2,350o00. The money to
be raised by the new assessment was to
be used in substituting for the present
stages on Fifth avenue, automobiles of
new and attractive type.
Mr.. Page also read an affidavit by the
President of the company which set form
the number of vehicles owned by the COM
pany in New York and Buffalo. No prop
erty was bought for more than its value
"A large sum was spent in experimenting
with batteries and the company mad final
ly secured one that would drive the vehi-
cies three times faster than the old ones,
although much lighter. The company, he
said. was about to establish an express
business in connection with the Metro
politan Street Railway and needed money
to provide the equipment. ,,
The Vice Chancellor after hearing the
pIeadings, dismissed the order without
prejudicing the rights of the complainant
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