New-York tribune., 1908-07-28
IOVERRULES CREDITORS
NOTIONS TOO VAGUE.
Judge Lacombe Files Ans7Cer to-
Fort Committee Petition.

An answer to the petition of the Fort credI,o-,p
ccu,rnfttee of the New York City Railway CON-
pany for relief in the action brought by the Penn
syivanis Steel Company and the Degnon Con-
.rsctins Company and also the foreclosure sui.s
begun by iI5s Morton and Guaranty Trust CON-
panies was lied yesterday before Judge Lacou1bs
in the tia,ted states Circuit Court. He said their
requests were -toO vague and general and de-
MED the motions. Judge Laeombe handled ths
various prayers follows
tCg. THat II - seter mined and ordered that III,
leass made bet~eer the Metropolitan Street Rail.
way torpsry and the InterI-ban Street Railway
:,tnT r. 5er,.csd void and contraTy to p1b, 1}1l
polio. .1.trs 4Tres and fraudulent; and
nection wsl- So a fis.d;ng
~ Is nn5 c-r1 9@Csrs S1T the court IN grant sue5
relief suh.marsiy Cn notion The questions ara
suit 70 wmc5 eli sa,rtiss interested shaTl5 ~
CA. frat the Fort credifors' COMMITTEES. who
above named .FeoGsylyana Steel and Degnon
Contrasting companies versus the New York Cfty
vens in the sits brought BY tbs Morton and Guar
snty Trust cS:nps ne1 trustees ''1dsr the mort
Compap, logically this motion Also should =
cented since tney az hUt elIeSe-t Sre0tors OF the
principal defendant IN these suits. Since. however
they are purRosing to attack the validity Of the
mortgage trustees would Of course be made par se
ties it would be a saving OF 9i.as and expense to
same relief by cross bin in me foreclosure suits
Tney will therefore. Be aIiowed intervene soeiv
gu. aj,y tsss.es which T7ay be raised thsreon
% and p. u vas ccersde5 o.. The argument
lessor ard lessee wc::Id practically aminars thsss
5y-ayers s5r cslfef t- 6ppor.uDity os being rsprs
receivers VII, sscII-e all ~ moving party is sn-
r. ThaT u re secreei tnat All claims ror IN
:':-!ss A-d damsges reszlti7< from the operation
y he coat frgrl Fehruary lse2, tc September 3
-Si. ~ paid pr5r Z" any mortgage, rental or fred
<Aa sis'i.a- 1lctinn vas heretofore made
s.1fi dss-.eI ia q 1873, Z IS again denied for
10 reasons stated u tba former memorandum
- sad ~ TSe5e .'rsye-s too vag1le ana
general to ca!' TO- any discussia- They denied
rfsposing Of the applications made 5y ne Eight,
and Ninth Avenue Eafroad companies. containing
arc1ns other matters suggestions that the books Ia
kept by she federal receivers as to snow seua-
rateIy and distinctly the income from ard expense
of operating the tNo ines. ard nat whatever profit
was maze taerefron- be kept separate and dis
tnct to rne-t Whatever claims the petitioners might
make under .he leases. Judge Laconbe fled this
memorandum.
The fustalme-sts of rental overdue and unpaid
when these applications We're made have since been
as fn the effect uo@o the ease Of The
ment by the ISssee Of he franchise taxes accruing
Which mas teen adjudis>zt4a The cornpany has 80
far prevailed. the referee hninz that there should
be substantial ssductiOn III the amount Of the
lax 1fanifesty the litigation was undertaken N
good faith and for the best interests Of both lessor
Whe.her under these circumstances there has
Dof he c9nEf5e-ei eease upon the aTz5T1eTt Ss
titioners expressly isCIsmed any wish the pres
ent time TO rs-enter for ccvenant broken That
would be the logical belief II their contention bs
sound TIE two roads are parts OF a unitary sys-
tenn which only be such BY using the
receipts m proSt4ole fractions OF the system TO
maintain Iniforr1 service non profitable frac-
tions.
The request that the books be 50 kept TO
show separately and distinctly tie income from and
the expense Of operating these two lines Is one
which the is quite willing grant. Il IL be
practicable. There are difficulties IN distributing
items Of income and expenditure which can be
relieved only by some agreement between al par
e IL f-ra TO ~ FH06
apportfonrnent- The books and present method OF
accounting will be open 70 petitioners or 70 any eI
perts they may send TO devise system calcI-
lat % what they want When such
system is devised and has been submitted 70 and
considered by the experts for other interests the
court viii then consider whether il shall be put
In force