New-York tribune., 1901-12-17
A RECEIVER ASKED FOR.
A sTOCKHOLDER SAYS THE JERSEY CITY
WATER SUPPLY COMPANY HAS
NO FUNDS TO CARRY
ON BUSINESS.

,,..;,, has heen made for receiver
for the Jersey City Water supply ool"panS ~
which was organized to build the water Pi1
for Jersey City under an assignment ~ ~
cononany of the contract awarded 10 Fa'itoA -
FIvnn of Brooklyn, the chief stockhoiuei AZ va
water company. The application was iiidue ~
y7iI1iaro ReIden. a broker, and brother of henry
FaeIden who has been conspicuous for years III
endeayoring to form company to supply water
.. 1arsey ctv William Belden, the applicant
,.i,,s TO hold S124OOO of the Jersey City water
crn,lv cornpany's stock His application sels
forth that the company is fnsolvent, ana tha'
it has suspended it's ordinary business for WANT
of funds to carry it on. Inc apphcatioH D
made to vice-C Chancellor Emery, VINO mas HAeO
the hearing for Tuesday of next week l ms az
ton surprised the officials Of jersey CltS' al
though it has been known for several months
that the company has been unsuccessIuI IN Sc
curing loan of 50. 100000 for which 1t hao oeeh
neeotiatine. and work had been practically
stopped for almost year
Edlow Harrison. the engineer for MI Flynh'
said Yesterday: These proceedings will amount
n nothing. I don't believe receiver will De
srpointed Mr. Flynn ana his company are an
right He will raise in due time the loan nesoeo
TO complete the water contract for Jersey C1ty. CCy
The contract will be executed and Jersey CITY
will get all it has contracted for.
The Jersey City officials however, are as
The contract was executed with Flynn on eoo
ruary 2S 1899. for a water supply OF oooooVVo
gallons daily, with rights lands. easements, EFT.
to increase the capacity OF the storage reservoir
to a supply of 100000 gallons The price was
ST 595 600 The work was to have been COM
pleted on February % next The water 3n company
wes ORGANIZED in May, 1890 and 81 900 900 worth
of stock was issued Flynn retained oS9So'oJo
worth Of stock, and the remaining SGooo worth
was distributed among the other members OF
the company-Frederick c. Cocheu, Michael j.
Kennedy. Nicholas K. Conoly, now dead Jon1
McCarty Louis H. Mehl Henry Belden ana
William Edwards, who were maze directors.
This company was to issue bonds TO the amount
Of Sc 500 600, bearing interest at per cent.
The company deposited on dsd its G0ntTacs far
penalty Of $500 cay for every day the work
was delayed beyond the time fixed
The first obstacle encountered was after 2 Wolh
had been prosecuted for four or five months
The contractor under his agreement had guar
anteed the city full flow of the Rockaway River;
The Morris Canal Banking Company aimed
that It was entitled to draw from the Rocka way
River under its franchise from the state An
effort was made to induce the legislature 10
pass a bill cancelling the charter of the canal
company now controlled by lease by the Lehlgh
Valley Railroad Company but the measure was
defeated. An act was passed, however, author-
izng the city to amend Its contract so as TO
overcome the objestion of the canal company
and after delay of several months the contract
altered under an agreement that the con-
tractor would secure by purchase, legisa ton or
suit the rights Of the canal company in the river
This change was made, it was represented
that the claim or the CdnaI company Hdu 4IlISI
fered with the water companys securing the
loan of 81 100000 for which IT had been nego-
tiatng, and that as soon as the contract was
amended the loan would be made. The company
has not secured the money.
What occasioned surprise is that William Bel
den. who not in the company at the time
OF organization. has acquired in the last two
years S124.0O0 Of the water supply company 9
stock The city is now supplied under a tenn
porary contract by the East Jersey Water Com
pany. at $50 million gallons. and is consum-
ing about 30000.0OO gallons DAY. This con-
tract expires next October, but the company
has signihed It's willingness to renew it. The
East Jersey Company. 1t is said. has received
or will receive from Mr. Flynn SflO0OOO to
waive its rights and interests to the waters of
the Rockaway River.