New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-07-20
LONG FOUGHT TRACTION
SUITS CLEARED AWAY
Court of Appeals 'DispoSes of
Litigation Resulting from
Street Railway Failures.
LOWER TRIBUNAL UPHELD
With Exception of Express
Company and Conduit Gases
NETS" 100000
Apportioned.

III, SIX opinions handed down yesterday
,,c United States Circuit Court Of APP
r.ols practically disposed Of all the It'll
aatiops which resulted from the failure of
,be Metropoliton Securities Company and
the other street railways holding or oper-
atiDg concerns Of this city and which have
besn before the federal court for five
years.
The decisions affirmed In substance all
~ the thirteen rulings made by the lower
court. modifying them In minor aspects
only. except the express company's APP
,sal" and that Of the National Conduit
and Gable Company, IN which the lower
court was reversed. The decisions were
rendered by Judges Coke, Noyes and
Ward.
The decree Of the lower court concern
ing an order obtained by the Metropolitan
street Railway Company directing the re-
ceiver Of the New York City Railway
Company to deliver to 1t the proceeds on
an action against the Metropolitan Sc
curiues Company, the Guaranty Trust
Company and others was upheld. The
Judgment In the action at law was for
the unpaid balance Of sum Of SS,0cO,CoJ
owed 10 the City company by the Sc
.prlties company under the contract Of
Nav %. 1907. The action In equity was
for the recovery of an amount alleged 10
have been wrongfully diverted from tho
capitsl Of the City company TO the treas
urv OF the Securities company. BotF
claims we're settled for a lump sum Of
$4,000 in cash and notes. and 1t re-
NAMED to determine in what proportion
that fund was to be applied to the re-
spective claims.
The special master and the lower court
determined that the cash and notes
sbosld be apportioned ratably between the
Judgment IN the action at law and the
claim in the equity action. The higher
court found this q fair method.
No Longer seasonable.
In regard to the contract requiring the
spplcation Of the $4,000 fund to the
Improvement of the property Of the Met
ropolitan Street Railway Judge Ward
said that IL had been made for the pro-
lection of the lessor as well az for the
lessee and that, inasmuch as neither OF
them had now any interest in the prop
erty II would be out Of the question 10
apply the balance Of the fund, II any 10
the Improvement Of the property at the
foreclosure sale.
He added that II would be equally out
Of the question to permit the City com
pany % keep such balance as part OF lts
state So much Of the fund as might
eone into the hands Of the receivers OF
the METROPOLITAN company, ne said, must
be applied either as payment OF the Doliu-
holders under that company's mortgage
Or the payment Of its creditors eeherall!'
In the matter Of the appeal presenting
the ousstion whether the losses incurred
IN orerating the leased railway system
during the first part Of the receive ships
should be borne by the estate OF the
lessor CORPORATION or that Of the lessee
Judge NOy.s held that the DEGREES ap-
pealed from should be modified 10 con-
form 10 the report Of the special master
and. so modified, they were affirmed
The appeal of the Metropolitan Express
Company on damages for breach OF con-
tract against the Metropolitan and CITY
companJes was sustained. The lower
court was reversed and the case remand
ed with instructions TO allow the claim
for nominal damages and for such sub
stantlal damages as might be established
upon further hearing.
S44,232 Conduit Award.
The decree Of the lower court was also
reversed in the case OF the National Gable
and Conduit Company, which had con-
tract 10 furnish the New York City COM
pany with 10000 feet Of lead covered
able, part OF which had been delivered
when the traction company became insol-
VEN. The Conduit company was granted
M,232 20.
The Second Avenue bondholders' ap-
PEAL brought a modification Of the de-
eres Of the lower court in providing for
an allowance Of the interest coupons be-
A. e fl