The daily morning journal and courier., 1907-10-02
MILLIONS WASTED BY RAILWAY GO. Startling Charges Made
 Against New York City Company by Attor- 1ey Jackson. DIVIDENDS HAVE NOT BEEN PAID No Attempt to Make Hold ing Company Live Up
 to Its Financial
 Agreement.

New York, Oct. 1.-Startling charges of extravaganza and neglect full management, or, if not that, fail ure to account for millions of dollars, are made by State Attorney-General Jackson in a petition fled to-day call ing for the appointment of receivers for the New York City Railway com pany and the Metropolitan Street Railway company, and also demand ing the dissolution of the New York City Railway company. The applica- ton for receivers was made to Justice Ford, of the supreme court, who is- sued an order for the defendants to appear in court on October and an swer to the complaint. Receivers for the New York City Railway company were appointed by Judge Lacombe in the federal court several days ago, and to-day the same receivers wore named in the same court to act for the Metropolitan Street Railway com pany. The New York City Railway company leases the lines of the Met ropolitan Street Railway company under a guarantee to pay I per cent. dividends on the Metropolitan stock. This dividend has never been earned since the date of the lease, and the attorney-general charges that the de- felt to date amounts to more than 10,000,000.
 The attorney general declares also that the Interborough- Metropolitan company, which absorbed the New York City Railway company in 1906, assumed all obligations of the New York City Railway company, and he sets forth that the New York City Railway company and it's directors have taken TO steps to force the h. terborough- Metropolitan company to carry out its obligations.
 The allegations limiting at fraud arc made in connection with tho compa- lny's construction account, the most sensational being that charge oi $509, 900 per mile was made for the rebuilding of certain crosstown sur face lines.
 It Is further charged that the Met
 ropolitan Securities holds all the stool
 of the New York City Railway com
 pany and that all six of the directors
 of the Metropolitan Securities, name.
 ly, Vreeland, Meade, Warren, Frank s
 Cannon, Oren Root, jr., and Edward W. Sayre, are directors of the NeV
 York City Railway company and tha
 Vreeland is president of both the Met
 ropolitan Securities company and tn, New York City Railway company Tht
 attorney general points out that 25 pc
 cent. of the capital stock of the Met
 ropolltan Securities company has no
 been paid In and he sets forth tha
 the subscribers to this stock are most
 ly If not all men of financial responsi
 billty, judgments against them, if oh
 talned would be satisfied He declare
 that If suit had been brought to recov
 CT this 25 per cent. there would hay
 been realized the sum of $E50000
 which would have become available t lmeet the obligations assumed by tn
 New York City Railway company, bu
 he charges that the defendants hay neglected to take any such action. Attorney General Jackson allege
 that the appointment of receivers fo
 the New York City Railway compan by Judge Lacombe in the United State
 circuit court was illegal; that the Unit ed States circuit court had no jurisdlC ; tion. The attorney general demand that the defendants be directed to pa
 all money and the value of all prof
 erty (which was lost and wasted by (
 through them" The defendants name , are Daniel B. Hasbrouck, DeC1iffor Moorhead, Fl. Vreeland, Richar Meade, Robert A. c. Smith, Charles F
 Warren, William Fahnestoek, Solomo Guggenheim, Ralph J. Anderson, jr
 and the--M Metropolitan Street Railwa | conlnanV