Page:Federal Reporter, 1st Series, Volume 10.djvu/430

 418 PEDEEAL BEPOBTBB. �in said suit, praying that the Manhattan and the receivers be directed to deliver over to the New York its railways and other property. The petition alleges that the Manhattan owes the New York for gross rental, dividend rental, and interest on mortgage bonds |465,000 and bas not paid the taxes assessed on the New York for 1879 and 1880; that the New York owes no debts except its first- mortgage bonds to the amount of |8,500,000, and claims for dam- ages and taxes which the Manhattan is bound to pay, and bas a con- siderable cash surplus on hand; that the Metropolitan owes first- mortgage bonds to the amount of $10,818,000, and second-mortgage bonds to the amount of $2,000,000; that the netearnings of the rail- ways of the New York for the last two years have been more than enough to pay the interest on its bonds and dividends of at least 10 per cent, to its shareholders, but the net earnings of the railways of the Metropolitan have been barely enough to pay the interest on its bonds; that the dividend rental paid to the Metropolitan, for the six months prior to July, 1881, bas been paid out of the earnings of the New York ; that the indebtedness of the Manhattan to the New York is increasing every day, and the railways of the New York and the Metropolitan are now run at the expense and risk of the New York; that the structures and rolling stock of the New York and the Metro- politan have not been kept up to the standard required by the tripar- tite agreement and the leases, and the falling oii in this respect bas been greater on the New York railways than on the Metropolitan ; that the Manhattan bas kept up the structures and rolling stock of the Metropolitan better than it bas kept up those of the New York; that a considerable number of the engines of the New York have been sold by the Manhattan, which bas neither replaced the same nor paid the proceeds to the New York ; and that the New York, if it got back its railways in their present condition, would have to pay a large sum to replace its rolling stock and structures in the state in which the Man- hattan took them. This petition was brougbt to a hearing before Mr. Justice Westbrook on the fourteenth of September. No decision on it being made, the New York, on the thirtieth of September, pre- sented a supplemental petition, praying the same relief, and setting forth that sinoe the default of the Manhattan in not paying to the New York the various sums of money which were due on July 22d, 90 days have elapsed, the last day of the 90 being September 29th ; that none of said moneys have been paid except $50,000, paid before the former petition was brougbt ; that on the twenty-ninth of Sep- tember the New York demanded of the Manhattan and of its receiv- ��� �