Daily press. [volume] (Newport News, Va.) 1896-current, 1907-10-02
Attorney General Asks for Re-
ce|Ver Tor New York City and
Metropolitan Railway.
MILLIONS NOT ACCOUNTED FOR
Dissolution of New York City Line
is Demanded, on Ground That De-
fict In Dividends Due Amounts to
100000, and That Company Has
Long Been InsoIvent.
(Dy Associated Press. J


charges of extravaganza and neshrdu
NEW YORK, Oct. f.=Startling
charges of extravaganza and neglect
1ni management. or If not that. fail
IRE to account for millions of dollars
a:e made by State Attorney General
jackson in petition filed today call
Ing for the appointment of receivers
for the New York City Railway Com
pany and the Metropolitan Street
Railway Company and also demanding
the dissolution of the New York City
Railway Company.
The application for receivers was
made to Justice Ford, of the Supreme
Court, who issued an order for the
defendants to appear in court on DC.
tober 3 and answer to the complaint.
The attorney generals action fur
Their complexities situation already
considerably entangled by reason or
the various inter-related corpora
lions which control and operate the
fractions lines on Manhattan Island.
Same Receivers Named.
Adrian III. Joline and Douglass
Robinson We're appointed receivers
FOR the New York City Railway by
Judge Lacombe in the Federal Courr
several days ago, and today the same
receivers We're named In the same
court on application of the company's
attorneys to act for the Metropolitan
Street Railway Company.
The New York Railway Company
leased the lines OF the ATetropolltan
Street Railway Company. under n
guarantee to pay Seven per cent on the
Metropolitan stock
Enormous Deficit
This ,,;vfIo,,a
ed since the date OF the lease and the
attorney general charges that the de.
ficit 10 date amounts to more than
Sio'oOO'Ooo. The attorney general de.
clares also that the marlborough.
metropolitan Company which All.
sorbed the New York CITY Railway
Company in 1906. assumed all obliga.
lions of the New York CITY Railway
Company and he sets forth that tho
New York CITY Railway Company ana
It's directors have taken no steps TO
force the Interborough- METROPOLITAN
TO carry out its obligations.
Fraud minated.
The allegations limiting Mt fraud
are made in Connection with the com
pany's construction account, the most
sensational being that charge of
$5o9,9OO per mile was made for the
rebuilding certain surface lines.
Attorney General Jackson alleges that
the appointment of the receivers for
the New York City Railway Company
by Judge Lacombe in the Uniten
ss:HSs,s Circuit 'c,i..'s a., !i,.,et, 6 al
demands that the defendants be III.
rected to pay back all money and
the value of all property (which was.
loSt and wasted by or through them. -
The defendants named are Daniel
IL. llasbrook. ID. T.. Clifford. Moorehead
Herbert Vreeland. Richard w. Meade
Robert A. C. Smith, Charles F.. War,
rem, William Fahnstock, Solomon
Guggenhcim, Ralph L. Anderson. Jr..
and the Metropolitan Street Railway
Company.
Company Long lna3Ivent.
The attorney general declares that
the New York City Railway Compa-
ny, the lessee of the METROPOLITAN
Street Railway Company, became in.
solvent shortly after the execution of
the lease of the Metropolitan Street
Railway Company, under the per
cent guarantee and has continued to
be insolvent ever since. The liabili-
ties of the New York City Railway
Company are stated to exceed its as
sets by approximately s1G,00O000
Continuing. the attorney general
says: THAT the defendants have I'M
lawfully disposed of assets and prop
erty of the defendant company: that
during the year 1902, defendants ex-
pended or claimed to have expended
$1,2S4. 300 for engineering and super.
intending expenses in changing mo.
tive power on less than As miles of
hot, a. Il.
rate of 100000 per mile; that if such
money was expended for any such
purpose the defendants were negligent
and wasted the funds in expanding
much more than n reasonable amount