New-York tribune., 1909-11-28
FRANCHISE SALE UP
CORPORATIONS FIGHT.
InJunctions against Controller
Latest MOre I'm Battle.

Fighting 10 the last ditch. the great cor
porations in arrears to the city for special
franchise taxes since 1870 are resortng
Z" injunctions 10 prevent the Controller
from selling their franchises at the adver-
tsed sale on December q
The Controller is telling the delinquents
that he viii accept part payment on the ar
resrs. but that he will not give more time.
and that II the major part of the arrears
is not paid on or before sale day the prop
critics will 60 under the hammer.
George W. Linch. receiver Of the Sec
ond Avenue Railroad yesterday served on
tho Controller an injunction granted by
Justice Mccall ordering him 10 show cause
Vhy he should not he restrained from sell
ing the Second Avenue Railroad The COM
rany owes the CITY s62579s 50 and ac-
crued interest Of about $500. 600 The Con-
troller has requested the Corporation tToun-
sci to appear before Justice Mccall on
Monday and tell the court that the city has
given ample time 10 the companies and that
he wishes TO go ahead With the collection
Of the arrears
Davies Stone & Auerbach. for the receiv-
ers Of the Metropolitan sent letter 10 the
controller last week asking for postpone
ment Of the sale Of their road. In the mean
time the company Is parleying and pay
Ing. The New York & Harlem Railroad
city Line Company owes the city sasa-
80 AZ. Tho company had offsets which
brought its net indebtedness down 70 $3.50
600 Last week it paid over $500. 600. with
promise that the remaining $3.50. 600 and
interest would be paid at an early day
The Central Park. North East River
Company. one Of the 5ath street lines. owes
the city 100000 in arrears Last week
the company sent for it's bill, with a prom
ise that II would be paid next week
Receiver F. W. WhitTidge of the Third
Avenue system is an almost daily visitor a
the Controllers office. He offered a fat
N.ooo.coo I'm settlement OF the company's ar
rears about year ago. and the Controller
refused il This company on it's three
lines, owes ;l.73l 225. besides accrued inter
est running from 1870, or a total Of about
s2,5oo,o0. The Controller says he will get
most Of it,
The Consolidated Gas Company owes IS
sSo,75s in Manhattan and s475.7as I'm The
Bronx. OF a total Of more than 10000.
plus about $4,000 interest Counsel for
the company have twice been OF the verge
OF paying very large instalment on this
debt but have backed out at the last min
ute and returned TO the main Office for ad.
vice
The Controller said Yesterday that unless
he was stopped by court orders ne would
sell more than s3Oco.0oO worth OF arrears
I'm the week of December .. and ne said he
had no doubt that every dollars worth OF
the claims was collectible
The city asks for bid on the amount Of
arrears on a carrying on percentage basis.
The city itself on the day of sale will offer
TO pay u per cent interest on the arrears.
The public and the company. II Il chooses.
can bid this figure down as low as possible,
the lowest bidder getting the claim The
city then begins a new bookkeeping trans
action on account Of the arrears item I'm
less the full amount OF arrears is paid over
on January the property is then sold the
same as under foreclosure proceedings
Absolute ownership can be acquired n the
original owners do not pay up arrears and
interest carrying charges by the end OF
three years
The Controller SAYS that while he is will
ing 10 do anything in reason and accept
partial payments of gOodly proportions. he
will not postpone the sale Of the properties
unless halted by a court order