New-York tribune., 1907-10-09
RECEIFERSHIP OPINION.
JUDGE Lac0mbe Finds No Collision
IN 4CtiOn.


Judge Lacombe made the receivership for the
New York City Railway Company and the Met
ropotan Street Railway Company permanent yes
terday setting forth in the of a long Opin-
ion that thee had colusiOn in the legal
sense between the companies and the creditors
applying for the appointment of receivers He
hid that there might be excellent for
conhnng the case TO the state courts, but that
there We're no reasons for denying the of the
federal courts TO the applicants because of a
hlIhity OF opinion between the companies and the
compainants. The opinion, in part follows:
The suit at bar was brought by two general cred
recover several thousand dollars for materials and
LOT work labor and service Both complainants
dent of New York -
There is no colusion apparent in any legal sense
a. is, OF course, manifest that compainants and
oefendant were entirely in accord and arranged
federal court and that the avePments OF tho be b
no Sioucd 1 De admitted by the answer But there
oI another state nor any misrepresentation or dis
tortion of facts to mislead the court On the con-
1rary, examination of the books shows that the
iIhaHclal i situation is precisely such averred
IL was suggested by counsel that these are state
the sfat i that Their properties are located in
stdLe 10 De operated under state laws. that
tbo tsases on them were made in the state. that
Tor conducting any receivership which may be re-
CURED that the administrative detail OF conducting
attention to it most irsome and iaborious that in
s4 s4e Ssate the work OF supervision be divided
one TO attend to it All these may be verv - good
controversy and all that its determination entails
INTO the state courts. but they will not Justify anv
with controversy wRc6 the consfnp who sd comes ts
EVe o en- MIN the right to bring before that
me dne reasons for allowing It to intervene as a party
property were sufcienty set forth in he memo
randum filed on October l. Having taken it's en-
conditions which left it poweriess to recover the
same tor q year the receiverEhip left II wholly
re obi iiQafiO md
tS 10 Dc scIearly the duty of the court which has
against execution while receivers handle and dis.
A decree will therefore be entered in the usual
FORM directing the receivers 10 ascertain the In
vigorously any collectble claims and 10 apply for
further Instructions from time TO time; mean while
5afY %Y H retain he Rssen of the property and
The controlling element in the operation OF the
property by tho receivers will be the circumstance
that such property is devoted 10 the public service
the service already performed by the roads must
be kept up and improved upon so far as may be
fortunately relIeved"at least in part~from the
m 6Tden & %f deTsng h PbG eToe @ e
That body is making careful and exhaustive IN
scribe various changes IN construction equipment
operation devised and adapted TO secure better
Commission will be carried out by the receivers 80
far as the income from operating the roads WIZ ~
borrow money in order to complete such changes s
quently, when it is known just what those changes
Next in order are certain fixed charges IN tho
of rentals agreed to be paid for the use Of
ing due on various mortgage bonds OF such roads.
which. by the terms OF the leases the New fork
Failure to pay one of these items in the case Of
any nf tba ToaG can avail themseves
II would seem to be to the public interest, be-
ers beng OF sG TH bH St the City railway when reee
were appointed should be opeTated ed as UNI,
a one TO be decided until investlgaton ana exueri-
ers as viii give an accurate and complete view
of the situation For the present; sn ,ne
This viii not include the rental to the Third
month a clause in the lease by that road provides
that that TsnaSi cannot be ayeed Of for months
Long before that time SToent M I'm eepp Go Gsn aVe
such enlightenment as 10 the whole situation as
ali questions as to payment Of all these Items Of
rent and mortgage interest Before default Is made
the due October Is to the metropolitan Street
fGe Sacts bearng ON the question and asking in
stTuctions and day viii he be- hysd g., on NV which d not not
terested Including the Public Service Commission
heard as 70 the most equitable and the wisest course
be pursued. Until further order the receivers VIII
sent carry out the arrangements by which the
New york CITY RAILWAY company operates certain
East 0i B1oad%ay & battery and the Union RAILWAY
ant ~ the highest standing to make an irvestlga
rior Of the books and papers and also an expert
engineer OF like standing, not heretofore connected
with these roads TO make a thorough investiga-
ton ~ their physical condition. so that the re-
ceivers may be able to prepare exhaustive re-
mort as TO the liabilities and assets condition of
the property and cost Of operation.
Ali pendIng suits against the New York City
Railway Company or the metropolitan Street Rail-
way Company which were begun before the receiv
ers were appointed may be prosecuted 10 1udg-
ment thus liauida ting the claims
II will be advisable for all such claimants. whose
suits not yet tried TO file q claim with the re-
ceivers stating that II Is in litigation and when
there has been liquidation of the amount by
verdict and Judgment or by compromise approved
by this court they can file an amended claim, In
any case. however. II plaintiff wishes Jury trial
the decree in way prevents his bringing suit
against the and llqudating the amount
by Judgment II the suit had been begun before
receivership. When liquidated 1t will rank with
the claims already I'm suit
For damages resulting from the operation OF the
road by the receivers the injured party may o
course cue the receivers in any court he pleases
without asking leave from any