The sun. [volume] (New York [N.Y.]) 1833-1916, 1905-05-28
RECEIVER FOR HUDSON VALLEY
~ SUIT OF BONDHOLDER OUT
SIDE OF MERCHANTS Trust.

More Talk Here OF Large Fund to BE
Raised by Dr. Mum to Take Over tho
Trust Co.--Street Hears Rather In.
credulously That Goulds VIII Help.
BALLsToN, May 27.-Justice Henry T.
Kellogg has appointed District Attorney
Jarvis P. O'Brien Of Troy receiver OF the
Hudson Valley Railway Company on ap-
plication Of Daniel P. Halpin. MIR. Halpin
sued tho Hudson Valley Railway Company
and the Merchants Trust Company Of New
York to foreclose on forty-five bonds OF
the railway company which he holds and
which are secured by a mortgage given to
tho Merchants Trust, Company.
The receivers bond is fixed at 100000.
George r. Salisbury OF Saratoga is ap-
pointed referee in the proceedings to sell
the railway after it has been advertised
for six weeks. Justice Kellogg provides
that any bondholder or creditor who has
a lien may participate in the judgment.
The trust company Is the principal creditor.
the claim.
According TO Lawyer Duncan A. Macln-
tyre, who Is associated with William B.
Ellison as counsel for the Merchants
Trust Company, there is likelihood that
within ten days an offer will be made for
process Of formation. This syndicate, it
was asserted, would be prepared to raise
from IS 600 900 to 5000 600 with which to
take over the company, now in the hands
of receivers.
According to Mr.. MacIntyre, DR.. j.. P.
Mum, one Of the old directors Of the COM
pany, Is forming this syndicate. 1t was
Also stated by Mr.. MacIntyre that George
and Howard Gould were likely to be sub
soribers to it. Just why the latter should
want to take over company that had cost
their brother and sister already 81, 500 ,OOO
was not explained. but the statement was
made that DR.. Mum has announced that
the Goulds were interested In the plan.
The report that the Goulds were interested
in such q project caused expressions of
surprise, i not ncredulity. in financial
Is said to be to have the whole story Of the
companys financial methods laid bare
and somebody punished. Frank Gould
has been advised by his lawyers that the
loans made by the company on the Virginia
alleged creations Of Fishers were in fragrant
violation Of the State banking law. twas
learned yesterday that it was not until
Frank Gould went to get his deposit of
81 900 900 out in October, 1902. thai he first
DeCdIn6 dWblo OIL WIldI naO DceN gong on.
He was asked to wait a while. and couldn't
get any explanation. It was then that he
sent for his lawyers and they made the
demand for the books Of the concern, which
was refused point blank.
When Frank Gould made the offer in the
fall OF 1903 to raise syndicate which would
take over the trust company and Dust the
old directors, William B. Ellison, now counsel
for the company, was retained by Iangdon.
Clarke and some Of the other original direc-
tors to advise with them. There was
meeting one day which lasted four hours.
sell out. 1t Is understood that the man
whom Langdon got to purchase Frank
Gould's stock at 200 and thus got Gould
out Of the company was Edwin Hawley.
Mr.. Hawley was made president. but II Is
on record that in six months he offered his
his interest, which, II 1t was the Gould
holdings, amounted to more than 5000
shares, has not come out.
In addition to his other deals Director
Fisher also unloaded some Of his Rock
trust company as collateral for a loan
According TO one report this loan amounted
TO 100000. Fisher admitted yesterday
that a loan had been made to this company,
but ne said that it was only. $4,000, for
said. got twenty bonds and some stock.
The Rockaway Valley Railroad Company
Is a line 20 miles long running between
Morristown and White House, y. j.. the
gross earnings Of which are $ss, 900 year
and the net earnings nothing. Fisher ia
represented In the company by Lewis f.
Spencer, his stenographer who also figured
IN his Virginia Passenger and Power deal.
The Rockaway Valley road is pretty small
road as railroads go. but II isn't too small
20 have holding company attached. The
holding company is the New Jersey and
Pennsylvania Railroad Company. which has
the same officers. Fishers stenographer
teing secretary
ALBANY. May 37.,-Gov. Higgins gave
out to-day the following statement:
Il have received the petition of George
Won Utassy, verified Ma "a. setting forth
on information and belief certain acts OF
alleged misconduct on the part Of the Hon
+. D. kilburn, Superintendent Of Banks,
IN connection with the affairs and super
vision Of the Merchants Trust Company OF
New York. and praying that proceedings
Re had to determine whether said charges
are well founded to the end that the Super
tntendent be removed from office.
The accused officer has been superin-
tendent Of banks since the year 1897. He Ia
gentleman in whose honesty and up
RICHNESS Of purpose have the fullest con-
fdence. have furnished him with copy
statement, Of the official relations Of the
banking department with the Merchants
Trust Company during the past three
years, Upon receiving his statement I
iha determine what course to pursue