The sun., 1919-01-21
Calls Compn MES Helpless.

The companies have placed themselves
IN a position in which they cannot carry
out the powers and obligations con-
ferred by their charters. have brought
themselves into state of financial EN-
barrassment and inability to meet and
pay current and accrung debts and are
unable to make sllita Bile provision for
the expansion and future needs OF the
service. and have employed unfit and in
competent operatives OF trains, the petit
ton says, and adds.
by reason OF tho facts herelrbe:ore
set forth your petitioners verify believe
that a condition has arisen whereby all
Of the said companies have offended
against the State OF New York and the
public and have repeatedly violated The
provisions OF charters under which they
have been created. merged or CONSOLE
dated as the case ma be; that they
have violated provisions OF law and are
liable to be dissolved because of the
abuse OF their corporate powers; that
they have forfeited their privileges and
franchises by total failure to exercise
their powers AMI by the delegation there
Of TO others, and have done and omitted
TO do acts amounting in effect to a total
surrender OF their corporate rights, priv
ileges and franchises. and have assumed
to exercise privileges and powers under
terms thereof. nor by common law nor
statute.
"That because Of the foregoing II is
the duty OF the Acknowledgement on be-
half OF the people OF the State of New
York to apply 10 the Supreme Court OF
the State OF New York for leave TO bring
actions against all and several OF the
corporations hereinabove named. and
procure a judgment vacatiug their char
FAR IA az
ence upon the foregoing grounds. pur-
suant to Sections I3i, 1873, 1873. 1874. 1876
and 1876 OF Article VII. OF Chapter 2s OF
the Laws Of 1903. commonly called The
General Corporation Law OF the State OF
New York
No Clash with Receivership.
Mr. Otterbourg said that the action
would have no effect on the Federal re-
ownership and would not clash with It.
for the reason that the receivership is
for the properties only, and that the
charter Is really a license to do business
which can be revoked for cause
1.-The action to forfeit the corporate
c;iaI;;--S- cf ell TIE COMPARES toes not
mean forfeiture Of their property
rights" he said but II means that they
shall be declared legally dead and so
far as the State OF New York Is con-
cerneu Snall cease having power to Upcr-
ate the roads The Attorney General
must first secure permission from The
Supreme Court 10 bring such an action
That being secured the question OF
whether o5' lot they have so failed &c
exercise then charters IA - make then
liable to forfeiture can be determined
In an action triaplo before an ordinary
jury
THE now corporation must provide for
central control directly responsible e
the people for service. It will result I
the elimination Of all improper leases
supe rimposed rentals and 'watered stock
reminders Of a past decade OF cor
porate management. ODerating revenue,
will go directly TO the support OF op
Grating expenses and TO the adequat,
maintenance OF the system. Their,
should be no further absentee presidents
Of railroads. nor iutorcorporate financia
juggling such AS were disclosed in tn,
examination before Mayor Ilylan In con
nection with the accident which oc
cured asst November. There should b.
Go turlher possibility Of the evasion o
direct responsibility by officials II
charge, both Of operating the cara eafeI,