Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1907-10-03
HINTS ATv.FRAup.
Sensational Charges Made Concerning
New York City Railroads.

New York, Oct. 2.-Startling charges
of extravaganza and neglectful man
agerlent, or if not that failure to ac-
count for millions of dollars are made
by State Attorney General Jackson in
a petition filed Tuesday calling for the
appointment of receivers for the New
York City Railway Co., and the Met
ropolitan Street Railway Co, and also
Demanding the dissolution of the New
York City Railway Co. The applica
ton for receivers was made to Justice
Ford, of the supreme court who issued
an order for the defendants to appear
in court on Oct. 3 and answer to the
complaint. Receivers for the New
York City Railway Co. We're appointed
by Judge Lacombe in the federal court
several days ago and the same re-
ceivers were namedin the same
court to act for the metropolitan
Street Railway Co. The New York
City Railway Co. leases the lines Of
the Metropolitan Street Railway Co,
under a guarantee to pay 1 per cent
dividends on the Metropolitan stock
This dividend has never been returned
since the date OF the lease and the at
torney general charges that the deficit
to date amounts to more than $4,000,
900.
The attorney general declares also
that the Interborough Metropolitan Co.
which absorbed the New York City
Railway Co. in 1906. assumed all obi
cations of the New York City Railway
Co. and he sets forth that the New York
City Railway Co. and its directors have
taken no steps to force the Inter- Dor
Cugil- metropolitan Co. to carry out its
obligations. The allegations limiting at
fraud are made in connection with the
comIany'S construction account, the
most sensational being that n charge
of $500. 800 per mile was made for the
re- building of certain crOsS-tOwn sur
face lines.
It is further charged that the Metro
politan securities holds all the stock of
the New York City Railway Co, and
that ali six of the directors of the Met
ropoitan Securities. namely, Vrcc-
land. Meade: Warren, Frank S. Can
non. Orcn Root. Jr., and Edward w.
Sayre are directors of the New York
City Railway Co. and that Vreeland
is president of both the Metropolitan
Securities Co and the New York City
Railway Co. The attorney general
points out that =" per cent. of the cap
ital stock Of the Metropolitan Secur-
ties Co. has not been paid and he sets
forth khat the subscribers to this stock
are mostly. if moi I'LL. men of financial
responsibility, judgments against whom
if obtained. would be satisfied. He de-
clareS that if suits should be brought
to recover this % per cent. there would
have been realized the sum of s7,50a,0o0
which would have become available to
meet the obligations assumed by the
New York City Railway Co, but he
charges that the defendants have neg
lected to take any such action.
Attorney General Jackson alleges
that the appointment of receivers for
the New York City Railway Co. by
Judge I.acombc in the United states
circuit court was illegal; that the
United States circuit court had no jul
risdictiun. The attorney general de-
mands that the defendants be directed
to pay ell money and the value of all
property (which vas lost and wasted
by or through Thorn" The defendants
named are Daniel Is. Hasbrouck. De-
Clifford MoOrehcad. Herbert II. Wee
land. Richard Meade. Robert a. c.
Smith. Charles II. Warren. William
Fahncstock, Solomon GugSenheim.
Ralph L. Anderson. Jr, ana the Met
ropolitan Street Railway Co.