1. That a subpoena may issue out of this Honorable Court, directed to said defendant Bay State Gas Company, requiring and commanding it to appear in this cause upon a day certain and answer the several allegations in this bill of complaint contained, an answer under oath being hereby expressly waived. 2. That it may be adjudged and decreed by this Honorable Court that the said defendant was, at and before the time of the filing of this bill of complaint, and now is, insolvent. 3. That the said defendant Bay State Gas Company may be compelled to render a full, true and perfect account, under the direction of this Honorable Court, of all money, assets and property of whatsoever nature which have been received or owned by it since the date of its incorporation to the present time inclusive, and of the income thereon, together with all payments and all dispositions made by it of its moneys, assets and property of every nature and description since said date. 4. That it may be adjudged and decreed by this Honorable Court that, but for the illegal and fraudulent disposition of its assets by the defendant, its net earnings would have been sufficient to pay to your orator and other holders of said income bonds interest on the income bonds held by him and them as aforesaid, at the rate of seven per cent. per annum from the first day of May, 1893, to the present time, and that the defendent be ordered to pay the same to your orator and the other income bondholders, and that its remaining assets be divided among its creditors. 5. That for the purpose of preserving its assets of the defendant from further misappropriation, and for the purpose of recovering for its creditors so far as possible such portions of its assets as have been disposed of fraudulently and without consideration, one or more suitable persons may be appointed interlocutory receiver or receivers of the assets, effects and credits of the defendant, to preserve the same until the final decree herein, with all the powers conferred by Chapter 181 of the Laws of the State of Delaware for 1891, and such other powers in the premises as to this Honorable Court shall seem fit; and that said receiver herein be continued in the final decree to carry the same into effect. 6. That the said defendant and its officers, directors, agents, attorneys and servants may be perpetually enjoined and restrained by injunction of this Honorable Court from selling, alienating or in any manner disposing of any of the property, money, choses in action, securities, assets or effects whatsoever of the said defendant, or from removing from the District of Delaware or otherwise disposing of any documents, contracts, obligations, records, books, accounts or papers belonging to or in the possession or control of the said defendant or its officers, directors, agents, attorneys or servants, and that a preliminary injunction may issue out of this Honorable Court enjoining and restraining the said defendant, its officers, directors, agents, attorneys and servants in like manner until the further order of the Court. 7. That your orator may have for it other and further remedy in the premises as may be just, including its costs. And your orator will ever pray, etc. ANTHONY HIGGINS, ROGER FOSTER, Of Counsel. ANTHONY HIGGINS, Wilmington, Delaware. ([District] Court of the United States, District of Delaware.) WILLIAM BUCHANAN, AGAINST BAY STATE GAS COMPANY. STATE OF NEW YORK, SOUTHERN DISTRICT OF NEW YORK, Ss. CITY AND COUNTY OF NEW YORK, WILLIAM BUCHANAN, being duly sworn, says: I reside in the City, County and State of New York, and I am the complainant herein. Each and every allegation in the foregoing bill of complaint is true to my own knowledge except as to the matters therein stated to be alleged upon information and belief, and as to these matters, I believe it to be true. I hereby incorporate the foregoing bill into this affidavit and refer to the same with the same effect as if it were herein repeated` specifically and at length. Sworn to before me this 13th day of October, 1896. (Notarial Seal.) WILLIAM BUCHANAN. HENRY HIGGINS, Notary Public, N. Y. Co. FORM XIX.-FRIENDLY BILL FOR APPOINTMENT OF RECEIVER. [Re Metropolitan Railway Receivership, 208 U. S. 90.] In the [District] Court of the United States, for the Southern District of New York. THE PENNSYLVANIA STEEL COMPANY and) THE DEGNON CONTRACTING COMPANY, against NEW YORK CITY RAILWAY COMPANY, De fendant. In Equity. To the Judges of the [District] Court of the United States, for the Southern District of New York: Your orators, The Pennsylvania Steel Company, a corporation duly organized and existing under the laws of the State of Pennsylvania, and a citizen of said State, and The Degnon Contracting Company, a corporation duly organized and existing under the laws of the State of New Jersey, and a citizen of said State, bring this their bill of complaint on their behalf and on behalf of all other creditors of New York City Railway Company, defendant, who may hereafter join in the prosecution of this suit against the New York City Railway Company, a corporation organized and existing under and by virtue of the laws of the State of New York and a citizen of said State, resident in the Southern District of New York, and thereupon your orator alleges as follows: FIRST. That your orator, The Pennsylvania Steel Company, is a corporation duly organized and existing under the laws of the State of Pennsylvania and a citizen and resident of said State, and your orator. The Degnon Contracting Company is a corporation duly organized and existing under the laws of the State of New Jersey and a citizen and resident of said State. SECOND. On information and belief that the defendant was at all the times hereinafter mentioned and is a corporation, duly organized and existing under and by virtue of the laws of the State of New York and a citizen of said State, having its principal office in the City of New York, and a resident of the Southern District of New York. THIRD. On information and belief that the defendant, New York City Railway Company, was organized under the laws of the State of New York on or about the 25th day of November, 1901; that the defendant owns and operates certain lines of street railway in the Borough of the Bronx, in the City of New York, and also is in possession of and is operating as hereinafter set forth the system of street railways of the Metropolitan Street Railway Company in said city; that said defendant through ownership of capital stock also controls other companies owning other lines of street railway in said city; that the total mileage of the system of the defendant, including the mileage of leased lines and lines of companies controlled through ownership of stock, is upwards of five hundred (500) miles, and said system of the defendant embraces practically the entire surface traction system in the Borough of Manhattan and in the Borough of the Bronx, in said City of New York; that appurtenant to the railroads of said defendant are various rights, easements and privileges growing out of the same and connected therewith and the defendant has other franchises and easements and holds valuable contracts, including contracts for mail and express service. FOURTH.-On information and belief, that the defendant is in possession of and operates the main lines of its system under a lease bearing date of the 21st day of March, 1902, made to it by said Metropolitan Street Railway Company, by which said lease said lessor leased to the defendant the entire system of the lessor then owned or thereafter to be acquired by said lessor during the term of said lease, for the term of nine hundred and ninety-nine years from the date of said lease; that the system of said lessor so leased to the defendant embraced not only the lines owned by the said Metropolitan Street Railway Company, but also all lines leased to said lessor, embracing among others the lines of the Third Avenue Railroad Company, which, including as well all lines at the time owned as all subsequent additions, said Third Avenue Railroad Company, by indenture of lease, bearing date the 13th day of April, 1900, had demised to said Metropolitan Street Railway Company for the term of nine hundred and ninety-nine years from the date of said indenture of lease; that in addition to said lines of said Third Avenue Railroad Company, said lease made by the Metropolitan Street Railway Company to the defendant embraces the lines of the following companies theretofore leased to said Metropolitan Street Railway Company or its predecessors, by various indentures of lease: [Next followed description] and that by said lease, made by said Metropolitan Street Railway Company to the defendant, it is among other things provided that in case the defendant, said lessee, shall fail to pay the rent provided for in said lease as the same should accrue, and any such default should con tinue for the period of twelve months after written demand, and notice, the leasehold estate thereby created might at the option of said lessor be terminated. FIFTH.-On information and belief, that said defendant has an authorized capital stock of Twenty million dollars, of which there has been issued and is outstanding stock to the amount of Thirteen million dollars; that the lines of railway owned by said defendant are not subject to mortgage, but the lines embraced in its system are subject to the following mortgage indebtedness, which is now outstanding, the refunding mortgage of said Metropolitan Street Railway Company being, and being expressed to be, subject to said lease of February 14, 1902, made by said last named Railway Company to the defendant: That your orators are informed and believe that failure to meet the interest on such mortgage indebtedness, as such interest matures, will operate also as a default under the mortgage securing the indebtedness the interest on which shall so become in default, and render such mortgage enforceable. SIXTH. On information and belief that the defendant, since entering into possession as aforesaid under said lease from said Metropolitan Street Railway Company, has operated all the lines owned and leased by it as parts of a single system constituting routes over different lines or parts of lines, connecting separated lines over parts of intermediate leased lines or lines of controlled companies, interchanging equipment among the various lines and furnishing equipment as might be required to meet from time to time the varying requirements of particular lines, supplying power and using power houses, car barns and stations as seemed best for the effective and economical operation of the system as a whole, and also establishing a system of transfers between various lines and routes; that the defendant owns equipment to a substantial amount, which has been used over the system as vary. ing requirements of operation made necessary, without assignment to any particular line or lines; and your orators are informed and believe that many of the leased lines in defendant's system are without adequate equipment of their own; and your orators are further informed and believe that in many cases the motive power employed on leased lines or lines of controlied companies has been changed to electricity without supplying said lines with independent power houses or other independent sources of supply of power, leaving such lines dependent for power on other lines of the system. SEVENTH.-Your orator The Pennsylvania Steel Company alleges posi tively and your orator The Degnon Contracting Company on informa tion and belief that the defendant is indebted to your orator The Pennsylvania Steel Company in the sum of Thirty-six thousand eight hundred and thirty-one and 38/100 dollars ($36,831.38) for rails and track material furnished and supplied by your orator The Pennsylvania Steel Company to the defendant, at the request of the defendant, and for which the defendant agreed to pay your orator The Pennsylvania Steel Company said sum of Thirty-six thousand eight hundred and thirty-one and 38/100 dollars ($36,831.38) and payment of said sum has been duly demanded by your orator The Pennsylvania Steel Company from the defendant and payment thereof refused and the same is now wholly due and unpaid; that said rails and track material were so supplied to the defendant for the purposes of operation of its street railway system and to enable the defendant to comply with and fulfill the duty towards the public which the defendant as well as the respective lessors of the defendant, owed to the public, and to discharge its and their obligations, respectively under the franchises for the operation of their respective lines, and were used for the purposes aforesaid; that your orator The Degnon Contracting Company alleges positively, and your orator The Pennsylvania Steel Company on information and belief, that the defendant is indebted to your orator The Degnon Contracting Company in the sum of Eleven thousand one hundred and seventy-three dollars and twenty-seven cents ($11,173.27) for work and labor done for the defendant at the request of the defendant, for which the defendant agreed to pay your orator The Degnon Contracting Company said sum of $11,173.27 and that payment of said sum has been duly demanded by your said orator from the defendant and payment thereof refused and the same is now wholly due and unpaid. EIGHTH.-That your orators are informed and believe that since entering into possession of the premises demised under said lease made by said Metropolitan Street Railway Company, the defendant has expended large sums, aggregating more than Twenty million dollars, in making extensions, improvements and additions, and other capital expenditures, to and upon lines of its system including its leased lines and lines of controlled companies, and has so expended large amounts in the electrification of various lines theretofore operated by horses, and that said expenditure has greatly benefited such lines of railroad and enhanced |