New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-02-25
BRINGS SUBWAY TEST SUIT
Admiral Realty Co. Serves Conn.,
plant on City Officials.
WOULD HOLD UP CONTRACT
Object to Preferential Payment
to marlborough or Any Inter.
mingling of Receipts.

Members OF the Public Service Commits.
sion and the Board OF Estimate were
served yesterday with a summons and
| complaint in an action brought by the
| Admiral Realty Company to restrain them
from entering into any contract with
either the marlborough Rapid Transit
| Company or the Brooklyn Rapid Transit
| Company which would involve a prcferen-
| tial payment TO the companies or any in.
terminglng OF the receipts of the COM
pany aud the city in the proposed subway
! operation.
| An order to show cause why the city off,
I Gals should not be restrained from enter
! ing into any such contract was issued by
| Justice Marean In the Supreme Court
Brooklyn, yesterday. Ii is returnable be-
| fore him on Tuesday, when a somewhat
similar order granted by Justice Maddox
on the application of John r. Ryon will be
argued. Mr. Ryon's suit involves only the
Brooklyn Rapid Transit Company.
| The general impression yesterday was
that the Admiral suit was the test case
which. II has been said, financiers inter
ested in the new subways insisted must be
brought and decided Sbefore they would
1
| In the suit of the Admiral company 1t Is
asked that the city officials be restrained
\ as follows:
| From executing any contract which shall
provide that the corporation shall receive
! out OF the net earnings over and above OPP
| Grating expenses "a preferential return OF
an amount equal to the estimated net earn,
| InRs OF the existing system or preferential
return Of interest or income on the invest
ment of the operator beiore !ne
city shall receive or be entitled TO receive
| any return by way of rental or otherwise
upon any investment maze or 10 oe hi"ue
| by IT," ,.L ,oL
! companies which shall provide that any
corporation shall operate both city Duiis
| road and it's own road "in such manner
| that the earnings of the railroad or ran
| roads now owned by the CITY, or tn n
earnings of the railroad or railroads
owned by such other corporation or
partv shall be mingled and confused win
! the earnings of proposed rapid transit raii-
| roads TO be built and owned by the city, or
The combined operation OF all systems or
any norton thereof shall be retained py tne
oneratinp company or companies Delore
sny distribution OF net earnings by way OF
rental or otherwise shall be made oy the
| GENERATING company or party and the city
~ On such manner that net earnings from
the operation OF the proposed new raiiroains
~ the city shall or may be applied 10 MAKE ,k :
oa,d losses, IL any, in the operation OF the
souUr roaSs owned or operated by such other
cornorations or parties"
From taking any steps for the purpose OF
oxacuting. delivering or concentrating any
Contract for the operation Of rapid translt
Threads owned or TO be built and owned
by the city.
Isaac Wolf IL president of the Admlrai
Realty Company and Hays, Herschneid q
uo,f are its attorneys. II was this same
company that attempted 10 stop the begin
ming Of the work OH the Broadway-Lexins.
ton avenue subway last July. on the sEoun'