New-York tribune., 1907-10-02
RECETVERS FOR N. S., X.
Judge Lacombe Signs Order to IN
cLude Properties.

Judge Lacombe. In the United States Circuit
Court, signed order yesterday extending the re-
ceivership OF the New York City Railway Company
include the many properties of the Metropolitan
Street Railway Company The order made on
the application OF J. Parker Kirlin. solicitor of the
Metropolitan company. who said that the finances
OF the two companies were closely united that It
was necessary 70 the interests Of the stockholders
and creditors of the Metropolitan company that the
two be administered Jointly Judge Lacombe thea
appointed receivers OF The Metropolitan company
Douglas Robinson and Adrian II. Jone who
receivers OF the New York City Railway Company.
This rccciyership predicted in the financial
district when the New York City Railway Com
pany's friendly receivorship announced. Little
doubt exists in Wall Street that these two
ceivershps viii b. FOLLOWED by one for the Third
Avenue Railroad Company. leased by the Metro
polItan.
About the same time that the receivers we're be-
Ing named by Judge Lacombe Attorney General
Jackson was before Justice Ford in the Supreme
Court asking that receivers be appointed for both
Of the companies. His application was made
separate grounds regards the two companies
In the first application against the New York City
Railway Company he said that the insolvency Of
the company had been admitted in the federal
courts and baslng his action on Section l7S5 of the
State Code. he demanded that receivers be ap-
pointed To wind up the affairs OF the company and
put IL out Of existence. In the second action
against the Metropolitan street Railway Company
the Attorney General asked FOR receivers obtain
an accounting from the board os directors and to
find out whether til directors had diverted the
companys funds 70 other than legitimate purposes.
In his motions the Attorney General argued that
the appointments of receivers for the New York
city Railway Company by Judge LaCombe
illegal. 2nd that the United States Circuit Court
had Jurisdiction over the case. He asked that
the defendants he directed to pay all money and the
value of the property (which was lost or wasted
through them" The defendants named Dan
iel G. r. Hashrouck u. c. Moorehead II. II. Vree-
la \ Smith.
Charles L. Warren. william Fahuestock. Solomon
Guggcnhelm. Ralph l.. Anderson, jr., and tho
Metropolitan Railway Company.
The Attorney General charged that the manage
mcut Of the two companies had either wasted al
most So 10000 had not accounted for sum-
amounting to A.3956S7. This charge was made IN
connection with entry the company's books
for the year 1902 amount lg to that sum for laying
rails. lie said that this sum, amounting to about
| 100000 mile $4,000 a mile in excess OF what
! it should be. 4 further charge that the de
! PENDANTS reported 10 the State Railroad CummiS-
| sion June 80. 1901. that the amount due from
the subsidiary companies that date was $22i5,-
59S ana that the following year the balance from
tho companies of June 30 stated to be $5245,5Ss
the defendants have never accounted FOR the
difference Of 100000" said the petition OF the At
| torney General Further charges were made by
| the Attorney General among them one that the
company said that $J09S0 mile was expended for
| changing racks on crosstown lines.
After hearing the motions Justice Ford issued
| an order that the defendants appear tomorrow
| morning to show why the motions should
| not be granted In both cases.
The petition for receivershp of the Metropolitan
company In the Federal Court said that the suit
| against the New York City Railway Company, re-
! Gently brought, "A general creditors suit insti-
| tuted by the cOmpainants as creditors. 1t
stated that in the contract between the Metropoi-
| tan Street Railway Company and the Interurban
which operated only tho surface lucs under
| the control Of the New York city Railway Com
pany il was agreed that If the lessee failed to pay
rentals and other charges the lease should expire
| Then followed a list of the funded indebtedness
now outstanding of the roads.
| The quarterly dividend Of IL per cent due
| the Third Avenue Railway stock should be paid
| October Il and action thereupon should be taken
| by the directors of the Metropolitan in the near
| future. In this the company has followed the
| precedent set by the New York city Railway Com
| pany. a peculiar incident in connections with the
confession of bankruptcy of the Metropolitan Street
| Railway Company the fact that the company
| had deposited funds with the Morton Trust Com
! pany for the payment OF the October coupons on
| it's Sl6O00OO0 per cent refunding bonds, and the
! trust company paid these off as they pre-
| sented. Even after the court had named the re-
| ceivers. it stated at the Office of the trust
| company that the coupons still being paid