The sun., 1878-08-09
THAT 100000 MORTGAGE.
Two CORPORA TIONs MANAGING ONLY
ONE ELETITED R1ILWIY

Bonds Taken Ont of One Pocket and Put Into
the Other-Dr. Giibcrt Crowded Out-The
Loan aud Improvement Company. Method.
The filing OF second mortgage Of 5000, 900
by the metropolitan Elevated Railway Company.
following so closely the first mortgage Of
e6OO. 900. has excited much comment in flnan-
cial circles. and has boon varlousy Interpreted.
The stock spectators can only predict the pos
sibilities OF the future as not dollar Of the
bonds OF the road is offered for sale As is well
known. tho New York Loan and Improvement
Company is the builder and owner Of the road.
Uho stockholders OF the railway company and
loan company are the same mcn-large
,capithllstn and railroad mon, like William
X Garrison, George NJ Pullman. jose +.
Navarro Horace Porter. Henry NJ Alex-
Nnder. and others To these men DR..
Gilbert and William Foster Jr. the origin
ators OF tho Elevated road appealed for tho
capital to build ii, 1t was ihc old story Of such
enterprises; the road fell into the hands Of tho
capitalists, leaving Or. Gilbert. its founder n
petty stockholder without a controlling voice in
tho management The capitalists and railroad
snen who furnished tho money composed the
Now York Loan and improvement, Company.
and the latter corporation entered into n con-
Nract with the railway company two years ago
by which the loan company was 10 build and
equip tho road. A. security for the money in
vested. the railway company was to bond its
,entire property to the loan company The
original agreement called for two mortgages Of
S1150OO0 each, but the first was finally made
160OOOO and the second 5000 900
=, To outsiders the organization Of the New
,nork Loan and Improvement Company. with
the same set of directors that composed the rail
way company and tho subsequent mortgaging
of tho road 10 Mcssrs. Alexander n Francklyn.
two Of tho loan company's trustees had all the
AlpnaraQCo OF Credit MOltlltr trNusuttipn
lThe officers of the TWO corporations say. how
over. that the manner - building the road is
their own business. and all the public is con-
,GCrned in Is in getting rapid and cheap transit.
iIhey think the lubligcan iud no fault with the
road IN this respect. They further call attention
A. the fact that the loan company has bought In all
me stock oI the railroad oWpany. ana ihat the
- i, niu IL" ~, W nl'.' li'i'V uVi p''I put
on the market They have paid cash for every
ahing. aud have al tho money they need 20 push
She rOad To- comr'ciion. IN other words. they
claim that the building oi the road j. a private
enterprise backed 10y men Ql large resources
who do not call upon the public for any aid in
the work OF construction. Tie road will con-
tinue y give the public good -crvi .e. they say,
and II the public continues lis present liberal
patronage their investment viii br extremely
lprohtabo after paying seven per cent on the
Hast mortgage Of sgOOdOO
One OF the trustees oi the railway company
,said yesterday that thu road IL to be pushed ON
coward the Harlem river soon. Money is to be
raised as fast H. required and II II II necessary.
10 be- sven y oS s, 1 VeE n Gorgases & sa are
Gitude OF TIE sentcrptise. he said, the mort
WAGES OF .tlZVop,vpN ana SlNONViWO already
t9uthorzed are trinnE amounts our receipts
at present are ~ the rate Of sl2uu.uuU a year
our total running oNpel-rs less than 81 OOO a
luay. You can IND such a productive property
'anywherc. III our bonds were Put out on the
market you can see they would have an enor-
NOUS speculative value. ! tel. you the men who
own this road know what they are about. There
VIII be no wrecking Qi the roHd nor swindllng
oi shareholdcTs, Tor tho men who own the stock
are doing the building themselves
The mention of thc New York Elevated road
IN CONNECTION with the s9OuuuO mortgage has
en- g.
Two roads were practically managed in the
same interest The only connection between
tho two corporai.C rs appears o. le their joint
ownership Of tnn little strip u road along Pearl
street and the New BOwery. \ half interest in
this strip Is IN Dlulci IN the mortgage given by
The Metropolitan ruad 20 thu loan company.
The trustees OF both roads assert that the enter
Driscs are totally d.stin Z and separate.
Wall street knows and cares little about the
elevated roads. The stock has not been got hold
Si 10y the bulls and bears. and ~ stories are
1nandgement.