New-York tribune., 1907-09-25
DECLARED LNSOLTENT IN
T.. S. CIRCUIT COURT.
Douglas Robinson and n. II. Jotlne
Named-H'W Not Rctard
p. S. C.,s UOrk.

ship for the New York City Railway Company
lessee of the surface traction lines in Marlhat-
tan and The Bronx.
Adrian H Joline. lawyer and director IN
many large enterprises. and Douglas Robinson
brother law of President Roosevelt were
named as receivers. and each qualified in you
600 bond. The action is understood 70 De d
friendly one. undertaken with the consent VI
-he traction corpanv's lawyers. In its answer
TO the complaint of the creditors the company
admitted insolvency. and joined in the PRAYER
for receivership-
What the result of this reoeivership VIII be
., the r7,,,ch tangled financial relations Of the
transit con1panies in New York City was a suo-
iec- for the liveliest speculation last night
To-edicted for many weeks. the receiNcrshlp
came as no surprise TO the financial sectioh' pu'
railroad men. including those most Interested
refused 10 express any opinion on the future
developments in this case Dissolution oi the
merger and the reorganization of the New YORK
City Railway Company separate concern
were one scheme which was on the lips Of many
in the Wall Street section.
PUBLIC WILL BE BENEFITED
suoh 4 reorganization would have to be
worked out BY the receivers acting largely IN
conjunction with the Public Service Commis-
sion. Lawyers who have made a special study
.
ton for receiver largely TO the work done nE
the commission in the investigation conducted
by William NJ WINS before Chairman WILCOX
The exposure there of conditions within the
transit company. characterized by some as a
probe which would destroy property and unset
tie credit rather than serve any good enc
thus will result easily and quickly in relief
from crowded cars, straphanglng ana Ihofeu
evils in the opinion of these lawyers, since the
lie IN
mandates OF the commission as the bankrupt
company certainly could not
No feeling of resentment exists among the
LAWYERS for the transit company because ol
this receiversnip. One of the companys coun-
Sc, declared yesterday that the receivership was
inevitab BILE. and the heads Of the traction concern
had known il for long time. The work OF
the Public Service Commission did not hasten
the receivership unduly. and this man ex-
pressed his belief that by no stretch of irnaSi-
nation could any blame rightfully be imputed
10 the commission by fnanciers whose stock
haTpened 10 drop few points in value
Meantime the appointment of receivers will
not interfere in any way with the investigation
under way by tine commission. Mr. WINS de-
clared Yesterday that the receivership would
relieve the commission of much burdensome
work in determining the precise relations OF the
various companies within the New York City
be passed on judciaIly- AS to all features Of the
;ror;--z dealing with overcapitalizaton and over
bonding together with the quality of service,
rf7e work of the commission will be pressed
xo nrohability exists that any clash between
commissioners and receivers will result IRON
the continuance of the inquiry, no matter INTO
what field it is carried Delaney Nlcoh ana
Mr.. Twins said they thought the recelVership
,.orld make no difference in that respect. The
SHT a
federal court, while the commission Is state
hodv will require the submission of any issue
-aised 70 the federal courts, but harmony oe-
tween receivers and the commission is expected
.1-c,-ST RFINcNT's STATEMENT.
aur7Ist Belmont said: The recefVershp u
the New York City Railway Company in no way
Affects the solvency of the Interborough- Metro
.o,,,an or Of the Interborough Rapid Transit
ror,nauy and 1t cannot be too positively stated
,bs, a receivership Of either of those two COM
nsnies has at no time ever been considered Inc
Interhorough- Metropolitan Company has no
doh, ercent its issue of Az per cent collateral
,r,,s, honds. secured by lnterborough Rapid
Transit stock and about ss,000000 Of collateral
-o.es representing advances made TO the sur
face system under the agreement entered INTO
last Nav which then contemplated an do'al'ce
aggregating s15.0o0.000. The lnteroorough-
A5etronolitan Company has over s6,ooo,0oo or
cash IN bank
The actual results Of the operation Oh the sui
face lines during the last year and hah nave
disappointed all expectations, with the result
,b.+ .rere has been such large decline in the
earnings Of the New York City Railway Com
many tina, there is no immediate prospect Of Its
being ahle 20 earn its fixed charges or 10 pro-
cure the very considerable of money
which will be required for the Improvement of
It's lines Accordingly, the board of directors or
the Interiorough- Metropolitan Company has
determined that it is not wise for the INTERIOR
ouyf-A Metropolitan Company TO make further ad-
vanoes 20 the street surface system
I'm The interest of the public. as well as OF
every one Interested in the securities of the va
riols companies. il Is clear that a comprehen-
sive readjustrnent should be effected promptly in
order that the essential improvements may be
-rsade as quickly as possible. The receivership
is a long step in this direction
Thomas Byrne. of Byrne & Cutcheon. No
~ Broadway went before Judge Lacombe TO
make application for a receivership. behalf
Of The two creditors named AT the same time
t,eLancey NicoIi. Paul d. Cravath and James J.,
ouackenbush. general counsel for the New York
City Railway Company appeared. The proceed |
.ags we're formal. The bill OF complaint was
filed. the railroad conpany's lawyers filed their
answer admitting the allegations, and the Judge
ISSUED his order for the recevership and named
-he receivers. II wa= all IN a few min
ut.s snd the receivers. who had soon
after the lawyers qualified. gave the required
bonds and TO the offices of ting, transit
system.
UNABLE To MEET DEBTS
The complaint fled by the creditors recites the