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XVII. IN THE MATTER OF THE APPLICATION OF THE OSWEGO STREET RAILWAY COMPANY
FOR THE APPROVAL OF THE BOARD OF AN INCREASE OF ITS CAPITAL STOCK FROM $20,000 to $125,000.
September 15, 1891. The preliminary steps required by statute have been taken in this case, and at a special meeting of the stockholders held on the 19th day of August at the office of the company in the city of Oswego, 335 shares voted in favor of such increase and no votes were cast against it.
It appears from the reports of the company and papers on file with the Board, that the cost of road and equipment to date is $25,042.34; that the outstanding obligations are, stock, $20,000; bonds, $7,500. An affidavit of E. A. Van Horne, treasurer of the company, is filed with the Board to the effect that the purpose to which the proposed increase is to be devoted is to extend the road and equip the same with electric motive power; that the cost thereof will exceed $105,000, the proposed increase.
In view of the above facts, the Board deems that it is justified in approving and does hereby approve of an increase of the capital stock of the Oswego Street Railway Company from $20,000 to $125,000, and has caused its approval to be indorsed upon the certificates, as required by section 46 of chapter 564 of the Laws of 1890.
By the Board.
XVIII. IN THE MATTER OF THE APPLICATION OF THE BROOKLYN HEIGHTS RAILROAD
COMPANY FOR THE APPROVAL OF THE BOARD OF AN INCREASE OF CAPITAL STOCK FROM $150,000 to $200,000, IN ACCORDANCE WITH SECTION 9 OF CHAPTER 140 OF THE LAWS OF 1850, AS AMENDED.
October 5, 1891. The preliminary steps required by statute appear to have been duly taken, and at a meeting of the stockholders held at the office of the company on April 29, 1891, 1,492_shares out of a total of 1,500 were voted in favor of the increase. Inasmuch as the proceedings were all taken previous to chapter 564 of the Laws of 1890, the new Stock Corporation Law going into effect, the company assumes that under the saving clause of the latter act, section 71, the approval of the Board of Railroad Commissioners can be obtained as provided in section 9 of the old General Railroad Act.
The application sets forth that the petitioner's capital stock as fixed in its articles of incorporation is 1,500 shares of $100 each; that for the purpose of building and equipping its road the petitioner was compelled to borrow money, and to that end heretofore issued first mortgage bonds to the amount of $250,000 and income bonds not secured by mortgage and convertible into the stock of the company at par to to the amount of $75,000, all of which bonds are now outstanding; that the holders of said income bonds in April last agreed with the petitioner to accept in lieu thereof $50,000 in te petitioner's paid up capital stock, which offer was accepted by the petitioner, but inasmuch as the amount of its existing capital stock was insufficient to meet such conversion, the petitioner instituted the necessary proceedings to increase its capital stock for the purpose aforesaid.
While the Board generally declines to approve of an increase of capital stock where the outstanding obligations are in excess of the actual cost of construction and equipment, or where such excess would be brought about by such increase, the Board deems that this is a case where an exception can be made inasmuch as the outstanding obligations will not only not be increased but will be diminished $25,000.
The Board, therefore, deems that it is justified in approving and does hereby approve of an increase of capital stock of the Brooklyn Heights Railroad Company from $150,000 to $200,00, with the understanding that the increase of $50,000 is to be used to retire $75,000 of income bonds now outstanding.
By the Board.
XIX. IN THE MATTER OF THE APPLICATION OF THE NEW JERSEY AND New YORK
EXTENSION RAILROAD COMPANY FOR THE APPROVAL OF THE BOARD OF AN INCREASE OF CAPITAL STOCK FROM $60,000 to $75,000, IN CONFORMITY WITH SECTION 46 OF CHAPTER 564 OF THE LAWS OF 1890.
October 20, 1891. The preliminary steps required by statute appear to have been taken in this application, and at a meeting of the stockholders, at the office of DeForest & Weeks, 120 Broadway, New York city, September 30, 1891, 524 shares of stock, being more than two-thirds of all the stock of said corporation, were voted in favor of the increase.
From affidavits filed with the Board it appears that the actual cost of construction to date is $192,527.29; that the outstanding obligations, stock and bonds, are: Stock
The cost of construction thus appears to be about $12,000 in excess of the outstanding stock and bonds.
The secretary, H. W. DeForest, informs the Board that the object of the increase is to pay from the proceeds thereof, first, the sum of $12,527.29 to the New Jersey and New York Railroad Company for advances made for construction, and a further sum of $2,500, being the amount estimated to cover the purchase of additional property and right of way.
In view of the above statements the Board deems that it is justified in approving and does hereby approve of an increase of capital stock of the New Jersey and New York Extension Railroad Company from $60,000 to $75,000, and has caused its approval to be indorsed on the certificates, as provided by section 46 of chapter 564 of the Laws of 1890.
By the Board.
XX. IN THE MATTER OF THE APPLICATION OF THE NORTHERN ADIRONDACK RAILROAD
COMPANY FOR THE APPROVAL OF THE BOARD OF AN INCREASE OF CAPITAL STOOK FROM $450,000 to $840,000, IN ACCORDANCE WITH SECTION 46 of CHAPTER 564 OF THE LAWS OF 1890.
November 16, 1891. The preliminary steps required by statute appear to have been taken in this application, and at a meeting of the stockholders, held at Santa Clara, N. Y., July 6, 1891, 4,496 shares of stock, out of a total of 4,500 shares, were voted in the affirmative.
It appears from the report of the company filed with the Board, that it was organized in 1885 with a capital stock of $150,000; that on April 4, 1890, the road was consolidated with the Northern Adirondack Extension Railroad Company under an agreement of consolidation, filed in the Secretary of State's office April 5, 1890, and the capital stock was made $450,000, of which $300,000 were issued in exchange for the capital stock of the Northern Adirondack Extension Railroad Company under the consolidation.
The consolidated road is reported to be fifty-five miles long.
The financial condition of the road, as reported to the Board in the papers in this application, is as follows: Cost of road and equipment..
$1,245,461 09 Outstanding obligations: Stock......
$450,000 Funded debt..
77,000 Other indebtedness..
(In the annual report of the company for the year ending June 30, 1891, “ Other Indebtedness," as calculated from the balance sheet, is $677,382.12.)
It appears that there is a mortgage authorized of $825,000, which has not been issued, but which has been pledged as security for the repayment of $150,000 indebtedness incurred for rental of rolling stock. The Board is assured that if the applied-for issue of stock is approved, $150,000 of the proceeds thereof will be used to pay off this debt of $150,000, and the mortgage of $825,000 cancelled.
Under these circumstances, the outstanding obligations, stock and bonds, would be as follows: Old stock..
$450,000 00 New stock
390,000 00 Funded debt.
Inasmuch as this would be materially less than the cost of construction and equipment, the Board deems that it is justified in approving, and does hereby approve, of an increase of capital stock of the Northern Adirondack Railroad Company from $450,000 to $840,000, and has caused its approval to be indorsed on the certificates of the stockholders' meeting, as provided by section 46 of chapter 564 of the Laws of 1890, with the understanding, however, which is made part of this approval, that the mortgage of $825,000 shall be cancelled.
The Board is informed that of the proceeds of this stock, $125,000 are to be devoted to the purchase of new equipment, $150,000 to the payment of indebtedness of the company for the rental of rolling stock, as hereinbefore mentioned, and the remainder thereof, so far as the same will go, toward the payment of the balance of the debt, viz.: $550,000, for the original construction and extension of the road.
Ordinarily the Board would disapprove of the proceeds of capital stock being devoted to the payment of a debt incurred for the rental of rolling stock, but in this case the actual cost of construction and equipment is reported so much in excess of bonds and stock after the increase asked for is granted, that it would seem to be a proper case where an exception could be made.
By the Board.
APPLICATIONS TO SUSPEND OPERATION OF ROAD.
In 1886, chapter 605 was passed, providing that any railroad constructed and used principally for transporting lumber or ores during the summer months, or constructed and used principally for summer travel might cease the operation thereof, upon the consent of the Board of Railroad Commissioners thereto, having been first obtained. Under this law, the following applications have been made.
I. IN THE MATTER OF THE APPLICATION OF THE ROCHESTER AND GLEN HAVEN
RAILROAD COMPANY FOR PERMISSION TO SUSPEND THE OPERATION OF ITS ROAD DURING THE WINTER SEASON.
September 22, 1890. This application dated at Rochester September the 10th was laid before the Board at its meeting Monday, September 15, 1890.
A notice of hearing before the Board September the 22d was duly advertised in the Rochester press. No one appeared in opposition.
A similar application was made by the railroad company last year and granted by the Board.
It appears from the papers filed with the Board that the railroad is a narrow-gauge road of three feet six inches, about three and twothirds miles in length, extending from the city of Rochester to the west shore of Irondequoit bay; that its business thus far has been exclusively that of carrying passengers from the city to the bay during the summer months for recreation; that the road has no freight or express business; that the total receipts of the company from the 30th day of September, 1889, to the time of closing the road, amounted to $120; that the expenses of operation during the same period amounted to the sum of $750.
For the reasons stated last year (and the conditions do not appear to be changed) the Board deems that the road comes clearly within the provisions of chapter 605 of the Laws of 1886, permitting a rail. road constructed and used principally for summer travel to cease operation thereof during the winter season.
The law provides, however, that before the operation of the road shall cease the company “shall post a copy of such order so made by the said Board in all the depots of and at the termini of said road and publish the same in every paper in each town in any part of which said road shall be constructed, at least four weeks prior to the date of such suspension."
The earliest date at which such four weeks could expire would be the 20th of October. It is, therefore,
ORDERED, That the Rochester and Glen Haven Railroad Company shall be relieved of the duty of operating its road from the 20th