New-York tribune., 1908-09-29
HORSE LINE RECEIVER
JOSEPH B. MAYER NAMED.
Petition of 2Sth and Goth Street
CrOsst0scn Bondholders Granted.

Joseph B. Mayer. of No. II Pine street. ap-
pointed temporary receiver of the Twenty-eighth
and Twenty ninth Street Crosstown Railroad Com
pany yesterday by Justice Gerard in the Supreme
Court. Mr. Mayer is practical railroad man. He
directed to give bond for $4,000. with the
understanding that if, in the opinion of the Attor-
ney General. circumstances demanded that larger
bond should be given it would be increased.
Attorney General Jackson had asked fo rthe
ceivership under the law providing for the dis
solution nsovent corpora and the petition
of John w. Haner ". c. Heppenheimef, A Merritt
Taylor. Horace A. Dean and Charles E. Lorley,
committee representing the owners of more than
majority Of the per cent first mortgage gold
bonds The trustee of these bonds is the Central
Trust Company. The mortgage given to secure
the issue of the bonds. which amounts to s1500.000
was given October l. 1896.
The line runs from 34th street and the East River
through 2Sth and 29th streets to Esd and the
North River. Prior to the making of the mort
gage. agreement made between the cross
town company and the Metropolitan Street Rail-
way Company by which the Metropolitan to
operate the road and pay the principal and interest
of the bonds secured by the mortgage, pay all the
taxes and maintain the transfer system.
This agreement continued during the cor
porate existence OF the two companies, and the
Metropolitan company operated the road until the
appointment of receivers for It in the United States
court The agreement then light and the
Metropolitan receivers asked Judge Lacombe in the
to operate the road He said they need not do so.
bat left 1t TO them decide The receivers decided
they could not operate the road and pay the inter-
est on these bonds and pay for paving contracts
and other expenditures. Judge Lacombe finally let
them rescind the agreement
Some time after these bonds were issued the
bondholders became alarmed as to whether they
would receive the interest and get their bonds paid
off at maturity. They advertised for the deposit of
the bonds with trustee to protect their interests,
and more than majority of the bonds were de-
posted with bondhoders' committee
Pending the application for a receiver, the fed
eral courts advised its receivers that they need not
continue to operate the road. but authorized them
to do so, temporarily for the accommodation of
the bondholders. All the stock of the crosstown
read is owned by the Metropolitan Securities Com
pany.
Last June the directors of the crosstown road in
formed the Central Trust Company that they had
been informed by the federal receivers that they
would withdraw from the operation OF the road
and stated that they would not be in position to
pay for the operation of the line and to pay the
interest the bonds.
On July 90 the federal receivers told the cross
town company's directors that they had elected to
cancel the agreement for the operation of the road
and that its temporary operation by them sim
ply matter of accommodation. The federal re-
ceivers further told the Central Trust Company
that September 80 they would wholly discontinue
the operation of the unless they received horses
to the value of $4,000, $500 pay for paving
pairs. stables for horses and storage for
The petitioners say that they have no means OF
raising the funds demanded by the federal receiv-
ers and that unless a receiver is appointed by the
state court great danger of the loss of valuable
property and franchises would arise if the federal
receivers abandoned the operation of the road
They showed that during the year ended March
80 last the gross earnings from cash fares of the
road amounted to S145226 Is and that the
operating expenses were S13o9lO 10, leaving the
tbo TDere wa a
further income of $780, but the taxes paid aggre-
gated s12S19 H. leaving net income. without pro-
vding for the interest Of the bonds Of only sOl A
"a real deficit of SI2,l92 52.