IV.

IN THE MATTER OF THE APPLICATION OF THE BUFFALO EAST SIDE STREET RAILWAY COMPANY FOR THE APPROVAL OF AN INCREASE OF ITS CAPITAL STOCK FROM $100,000 To $250,000.

July 23, 1889.

An application was duly filed by this company in August, 1888, for permission to increase its capital stock from $100,000 to $250,000, in conformity with section 9 of the General Act, being chapter 140 of the Laws of 1850.

The application was granted by the Board, August 6, 1888, for reasons therein set forth. (See N. Y. R. R. Com. R., Vol. 1, page 156.) The Board is now informed that said railroad having been formed under a special act, viz., chapter 774 of the Laws of 1870, wherein no provision is made for, an increase of its capital stock, even with the consent of the Board of Railroad Commissioners, that a question has arisen whether under such circumstances the permission is available. An amendment was passed to section 9 of the General Act by the Legislature of 1889, being chapter 426 of the laws of that year, in which the following words in italics are inserted, "In case the capital stock of any railroad company formed under this act, or organized and existing under the laws of this State," etc.

This amendment gives authority to the railroad in question to increase its capital stock with the consent of the Board of Railroad Commissioners. Such consent is hereby given, i. e., to increase its capital stock from $100,000 to $250,000, for the reasons as stated in . the report of the Board herein before alluded to, dated August 6, 1888, which is made a part of this report.

V.

IN THE MATTER OF THE APPLICATION OF THE ROCHESTER AND HONEOYE VALLEY RAILROAD COMPANY FOR THE APPROVAL OF THE BOARD FOR AN INCREASE OF ITS CAPITAL STOCK FROM $320,000 To $500,000.

August 1, 1889.

The preliminary steps required by section 9 of the General Railroad Act, have been taken by the stockholders of this corporation.

The company was organized January 14, 1888, for the purpose of constructing a railroad from the city of Rochester to the village of Honeoye Falls, a distance of between sixteen and seventeen miles. The capital stock was fixed at $320,000.

At the stockholders' meeting, held June 22, 1889, to vote on the proposed increase, it appears there were but one hundred and seventyfive (175) shares of stock represented, and, so far as anything appears before the Board, this is all there has been subscribed-only about sufficient to meet with the requirements of statute. The Board is informed, however, that reliable parties stand ready to supply the funds necessary to construct and equip the road, provided the permission to increase its capital stock is granted.

Since the organization of the company, estimates of the cost of construction point to the likelihood of the road costing not less than

$500,000. Affidavits to this effect from trustworthy engineers, including James E. Childs, Esq., formerly general manager of the New York, Ontario and Western railroad, and the Hon. Elnathan Sweet, formerly State Engineer, have been lodged with the Board.

This increased cost is attributed to the necessity of purchasing that strip of land known as "The Island," for the purpose of stationhouses, terminal facilities, etc., and to the requirements of the Superintendent of Public Works as to the construction of that portion of road along the line of the Genesee river feeder, such portion being upon State property.

For the above reasons the Board deems that it is justified in giving its approval, and does hereby approve of the increase of the capital stock from $320,000 to $500,000.

VI.

IN THE MATTER OF THE APPLICATION OF THE CROSSTOWN RAILROAD COMPANY OF ROCHESTER, N. Y., FOR THE APPROVAL OF THE BOARD TO AN INCREASE OF ITS CAPITAL STOCK FROM $50,000 to $150,000.

September 25, 1889.

The preliminary steps required by section 9 of the General Railroad Act have been regularly taken in this application.

At a meeting of the stockholders held at the office of the company on the 31st day of August, 1889, 470 shares of stock, out of a total of 500, voted in favor of the increase. No opposing votes.

It appears from affidavits of John N. Beckley, acting secretary of the company, and William C. Gray, a civil engineer, that the total length of the line of said railroad, as described in its articles of incorporation, is five miles, the franchise to construct which has been granted by the city authorities. It further appears from the affidavit of Gray, above alluded to, that there is a proposed addition to or extension of the line of 3,750 feet. George E. Mumford, president of the railroad, in a second affidavit, dated the twenty-first of September, affirms that there is still further extension in contemplation which, together with the previous extension noted, makes a total proposed extension of about five miles. The affidavit of Gray further states that it is proposed to build this autumn a few feet over three miles of double track, or a little over six miles of single track.

The estimated expense of construction and equipment of the portion to be built this fall is stated by Gray to be $147,967.95. In the affidavit of Mr. Mumford it is stated that there are to be added to this sums, either expended or to be expended, the details of which are given, aggregating $21,414; making the total amount to be expended this autumn, $169,381.95.

It is further estimated that the three miles of double track covered by the franchise granted, to be built next spring, will cost not less, including increased equipment required, than $20,000 per mile of single track, of $120,000. The total cost of the road, as thus estimated, would then be $289,000. For this expenditure the stock is to provide $150,000, the company issuing it at not less than par.

Mr. Mumford, in his affidavit of September the twenty-first, informs the Board that it is proposed to submit to the stockholders a proposition to execute a mortgage upon the road for $300,000; that the condition of the mortgage will be that the bonds to be issued shall not exceed in the aggregate $12,000 per mile of track actually constructed up to and including the six miles of track first constructed, including equipment, power station, car-house, etc., and that upon the extensions of the line beyond such six miles the bond issue shall not exceed $10,000 per mile of track constructed. Under the provisions of this agreement, the amount of bonds to be issued upon the 6 1-21 miles of single track proposed to be built this fall would be $72,280. Upon the three miles of double track, of six miles of single track, to be built next spring, the issue would not exceed $60,000.

The total issue, therefore, of securities upon the five and three-quarter or, say, six miles of double track road would be stock, $150,000; bonds, $138,280; total securities proposed to be outstanding, $282,280; to cover an estimated cost of construction and equipment of $289,000.

It is to be noted that the road under the security of a $300,000 mortgage, would have a balance of $167,720 of bonds which it might issue. The Board is informed, however, that it is not proposed to issue these bonds except upon the completion of extensions now in contemplation but for which no franchises have been granted, and not to exceed the amount of $10,000 per mile of track constructed. It was explained to the Board by Mr. Briggs, representing the corporation, that this mortgage was provided now to secure these bonds, so that at the time it was necessary to have them the road would not be required to issue second mortgage bonds which it might have great difficulty in negotiating.

CONCLUSIONS.

In view of the above facts the Board deems that it is justified in approving, and does hereby approve, of the increase of the capital stock of the Crosstown Railroad Company from $50,000 to $150,000, with the condition, however, which is made part of this approval, that the company will not issue more bonds than at the rate of $12,000 per mile of track first constructed, and at the rate of $10,000 per mile of track subsequently constructed.

VII.

IN THE MATTER OF THE APPLICATION OF THE SOUTH PARK RAILROAD COMPANY OF ROCHESTER, N. Y., FOR THE APPROVAL OF THE BOARD OF RAILROAD COMMISSIONERS TO AN INCREASE OF CAPITAL STOCK FROM $30,000 TO $100,000.

September 25, 1889.

The preliminary steps required by section 9 of the General Railroad Act have been regularly taken in this application.

At a meeting of the stockholders held at the office of the company on the 31st day of August, 1889, 285 shares, out of a total of 300, voted for the proposed increase. No votes were cast against it.

It appears from an affidavit of William C. Gray, that the total length of the line of said railroad, as described in its articles of incorporation, is three miles; that the proposed additions to or extensions of the line are in the aggregate about 5,000 feet. It appears from the affidavit of George E. Mumford, president, dated September 21st, that there is a considerable further extension of line of the company in addition to that described by Gray, aggregating some six miles in all. It is proposed by the company to build this fall two miles of road, or four miles of track, the expense for construction and equipment of which is estimated by Mr. Gray to be $104,563.96. In addition to the above, Mr. Mumford, the president, in the affidavit dated September, the 21st, affirms that $9,100 has been or will be expended, making the total cost of road to be built this fall, $113,663.96.

It is estimated that the two miles of double track, or four miles of single track, covered by the franchise granted, to be built next spring, will cost not less, including increased equipment required, than $20,000 per mile of single track, or $80,000. This would make the total cost of road and equipment, as covered by the franchise, $193,663.96. To meet this expenditure, the proposed increase of stock to $100,000, at par, will provide $100,000. The Board is informed in the affidavit of Mr. Mumford that it is proposed to issue bonds, at the rate of $12,000 per mile, on the first four miles of single track built, amounting to $48,000, and bonds to the amount of $10,000 per mile, on the four miles subsequently to be built, amounting to $40,000. There will thus be securities outstanding, as follows: Stock, $100,000; bonds, $88,000; total, $188,000.

Mr. Mumford further informs the Board that it is proposed to submit a proposition to the stockholders to execute a mortgage upon the property of the road for $200,000, to secure the issue of bonds. The case is similar to that of the Crosstown railroad, just considered. The terms of the mortgage are to be that bonds, not exceeding $12,000 per mile of track, are to be issued upon the first four miles actually constructed, and not exceeding $10,000 per mile upon the track afterwards constructed. The excess of the bonds authorized to be issued under the mortgage, is to be used for the construction of extensions hereafter to be made.

CONCLUSIONS.

In view of the above facts, the Board feels that it is justified in approving, and it does hereby approve, of the increase of the capital stock of the South Park Railroad Company from $30,000 to $100,000, with the condition, however, which is made part of this approval, that the company will not issue bonds more than at the rate of $12,000 per mile upon the first four miles of track constructed, and not more than at the rate of $10,000 per mile upon track thereafter constructed.

APPLICATIONS FOR CHANGE OF MOTIVE POWER.

I.

IN THE MATTER OF THE APPLICATION OF THE THIRD AVENUE RAILROAD COMPANY OF NEW YORK CITY FOR THE APPROVAL OF THE BOARD, OF A CHANGE

OF MOTIVE POWER FROM HORSES TO CABLE.

September 30, 1889.

A notice of intention to present this application was received by the Board July fifteenth, from Edward Lauterbach, Esq., counsel of the road. A public hearing was set down at the Chamber of Commerce in New York city, at 10 a. M., July twenty-third. Notice of the same was sent to the mayor, president of the Board of aldermen, commissioner of public works, corporation counsel, and wide notice was given by advertisement in several newspapers.

At the hearing the railroad company was represented by its president, Lewis Lyon, by various employees, and by Edward Lauterbach, Esq., counsel. The city authorities were represented by D. J. Dean, Esq., assistant corporation counsel. Numerous citizens representing various interests, such as different motive powers, were present.

The act under which this application is made, being chapter 531 of the Laws of 1889, amends section 12 of chapter 252 of the Laws of 1884, i. e. the General Street Railroad Act, and provides as follows:

"§12. Any street surface railway company, may in any case, operate any portion of its railroad by cable or electricity, or by any power other than locomotive steam power, instead of by animal or horse power, which may be approved by the State Board of Railroad Commissioners and consented to by the owners of one-half in value of the property bounded on that portion of the railroad as to which a change of motive power is proposed; and in case the consent of the property owners can not be obtained, then the determination of three disinterested commissioners, appointed by the general term of the Supreme Court, in the department in which said railroad is located, in favor of such motive power, confirmed by said court, shall be taken in lieu of the consent of said property owners. The provisions of sections three, four, five and six of the act hereby amended shall apply so far as applicable to such consents of said property owners and to the proceedings for the appointment and determination of said commissioners and the confirmation of said determination. It shall be lawful for any such railroad company to make any changes in the construction of its road or road-bed at any time rendered necessary by a change in its motive power."

The application of the company is a document of considerable length. It sets forth that due action was taken by the directors and stockholders authorizing this application to be made; that the consents of the owners of more than one-half in value of the property bounded on the streets, avenues and highways on which such change is proposed to be made have already been obtained as provided by