New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-10-10
BRING SUIT TO REOPEN
MET. REORGANIZATION
BondhoIderS of CroSStOWn Rail-
road Want to Protest
S1,50O,000 Issue.

An attempt TO reopen the reorganization
of the Metropolitan Street Railway Com
pany and its subsidiaries into the New
York Railways Company was made yes
terday when a suit in equity was brought
against the companies and the Central
Trust Company of New York in the fed
eral District Court by the bondholders
OF the 18th and 10Th Street Crosstown
Railroad Company. The purpose OF the
suit is TO protect the $l,50o.Op bonds OF
the crosstown company which were guar
anteed by the Metropolitan when the
Metropolitan took the road over. In no
Abraham 5. Gilbert, OF No. g Exchange
Place counsel for the plaintiffs said the
foreclosure Of the Metropolitan by Its
bondholders In 1911 was brought about 10
eliminate all liability for the guarantee
of the bonds OF plaintiffs as well as other
liabilities Mr.. Gilbert said that the de-
cision OF the Supreme Court of April y,
1913, in the case OF Boyd agt the North
SIN Pacific Railroad. in which Foyd'
as a bondholder. had a contingent claim
against a railroad that was "A part OF the
Northern Pacific system, furnished prece-
dent for the suit against the Metr1po!i-
tan. BOYD began suit n 1851 and kept II
up until after the reorganization of the
Northern Pacific. when he got decision.
Among the plaintiffs IN the present case
are John W Hamer, of the Penn Mutual
Life Insurance Company, OF Philadelphia;
w. c. Heppenheimer. OF the New Jersey
Trust Company. Hoboken. y j.; \. Mer-
rift TAYLOR. Horace 4. Doan and Charles
Z. Loxley.
On the basis Of the Metropol:ans
guarantee of the plaintiffs bonds the
bondholders in February. 1910. obtained
in the Supreme Court Of New York County
deficiency judgment for N.7i5,3i4 p. IN
the suit Of equity brought yesterday they
asked that the transfer of property
assets, etc. OF the old Metropolitan com
pany made at the time OF its reorgln-
ization in 1911 be declared void and The
property thus returned TO the Metropoi-
tan sold under the direction of the court
10 satisfy the deficiency judgment
According 10 the plaintiffs, the Metro
politan promoters-T. r. Ryan, p. i. Is.
Widener and William l.. Elkins, Of The
Philadelphia traction trust-gave Edward
Lauterbach, counsel for the 18th and 2y,h
Street Railroad, t75 900 TO foreclose on the
company after they had paid $4,000 for
their half-hnished road. Afterward Lau-
teroach and the traction ring agreed 10
issue $4,000 in stocks and bonds and
give $4,000 10 Lauterbach and his clients.
all Of which were to be guaranteed. An
alleged aldermanic lobbyist got $1,000
OF the bonds for services rendered &C
cording TO the plaintiffs
The Metropolitan it is said marketed
its share of the bonds in Philadelphia at
ll5 Lauterbach disposed Of his share
in New York and vicinity for ll5, also.
Meanwhile, not a dollar had been spent
on the road, and the Metropolitan was
operating it with its own cars.
The last known quotation of the 18th
and 18th Street Crosstown Railroad bonds
was at 3. An application is now pend
ing before the Public Service Commits
sion to sell the physical holdings Of the
railroad to the Third Avenue Railway
Company. which is willing to buy 1t as
feeder.
The Central Trust Company is made
defendant TO the suit on d technicality,
inasmuch as il refused TO bring the suit
for the bondholders.