New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1878-08-21

to many rumors; the principal one being that
his resignation was caused by DISPOSE
ton the part OF Samuel ]. Tden to dispose OF DIS
large interest in the company This rumOr was emphat
ically denied yesterday by prominent officer oil the
road who said "when Cyrus W. Field was elected
president he said TO the superintendent Three things
needful for the successful operation OF the road
safety cheapness and rapid transit Mr. Field insisted
that the road should be strictly on business prhcf
pies and he laid down rule that in the selection OF EN-
plOyes, fitness for tlfe position should be the
guide, no matter by whom they were recommended
Mr.. PeltOn's resignation unanimously accepted
Neither Mr Tilden Mr.. Peton, both CT whom nave
large interests in the company has attempted 10 dispose
of his interest indicated desire TO do So Tue COM
pany is doing large and profitable business, and VIII
pay regular dividends out OF its earnings Thousahds Oh
tons of iron for the road being turned out every week
I'm Pennsylvania and the road will be completed rs
speedily as possible"
The directors OF the Metropolitan Elevated Railway
Company making arrangements toplace ls bohds ON
the regular call the NewYOrk Stock Exchange, app:
cation having already been made to the secretary OF the
Stock List Committee for copy OF the rules pre-
scribed for such applications. one Of the rules
requires that every company applying for such pl
lege must file q true and detailed statement OF us
and funded debt for henfcrmaiion OF INVESTORS
The recent mortgages filed by the Metropolitan Con-
pany show that at meeting Of the directors ON July D.
IL was determined to borrow money upon hrst mort
gage at a rate not exceeding 100000, or 100000
sterling for each mile OF tie road built ana 10 DE D
and to issue first mortgage bonds, each bond TO De ior
81 600 gold or at the option OF the holder R2OO sier
ling TO mature Suy l. 1905 the interest to be at the
rate per year. payable on the LIST days OF Jan
uary and July each year. These bonds are secured by
mortgage upon - whole OF the company's railway,
constructed and TOT Noted, and all It's real estate,
rolling stock equipme.t, privileges and franchises,
which mortgage ia held by the Central Trust Company
as trustee One Of the agreements In the bonds Is that
no recourse is to had for their payment to the ndl
yidual liability Of any stakeholder Of enc company
II is also provided in the mortgage that should de-
fault occur in the payment Of the coupons the Central
Trust Company the written request OF the holders
OF one-thrd the total amount OF the bonds, may enter
into possession Of the road and receive the in
come tolls, freghts rents and profits and run the road
and after paying the expenses to apply the remainder
Of the profits toward the payment OF all the interest In
arrears without any preference whatever. Provision
Is also made for power OF sale by advertising In two
city papers respectable circulation, at least once
week for three months. The deed is executed by VIII
liam r. Garrison president, and John i. Body treas
urer Of the railway company and by II. +. spaulding.
president and H. p Babcock secretary, OF the trust
company.
At the same meeting Of the directors, on July 5,
authority was gwen 20 raise money on a second
mortgage az a rate not exceeding 100000 mile for
each mile OF road constructed 20 be constructed,
subject however 10 the first mortgage Tho trustees
and Charles G. Franckyn. The second mortgage also
specncally covers cOntnu mile Of double track
OF elevated railway completed and equpDed every two
miles OF track where the structure Is owned by tho
railway company common with the New-fofk Ele-
waited Railroad Company being taken one mile. The
bonds 10 be issued under the mortgage are OF the same
character the st mortgage bonds andare to mature
October /, 1913.
sURMisRs AS TO THE CoMPANY's OBJECT.
well-KnOwn elevated railroad officer said yesterday
These mortgages OF the Metropolitan Elevated Rail
way Company exceed anything that was understood by
previous publications, and show that the company has
mortgage Of 81 100000 a mile the entire twenty
miles Of road built and authorized TO be built, making
total mortgage OF S3OOOOO0o II is difficult to see what
necessity there Is for such enormous bonded debt,
when It well known that the estimated cost Of con-
strucion and equipment has boon placed by the builders
at s35OOOO mile, total OF 81, 100000 for the entire
twenty miles"
The road was built under q contract with the New
York Loan and Improvement Company, which to
receive II is currently reported, S2,lO0,0O0 mile for
building and equlpping the road, payment to be made
partly in cash and the remainder IN the stock and bonds
of the road This contract, It is said, was sublet ut
price not exceeding 100000 mile.
There has been considerable discussion in financial
circles in regard TO these largo mortgages and the
opiuion Is entertained by many that they made TO
protect the road from possible liens that arise from
the many law suits now pending and threatened for loss
to business and property value along sixthave. and
other hOroughares the line OF the road One Of these
suits was brought by large iron company In Massachu-
setts for 81 0OO growing out OF an alleged violation
OF con tract sde for furnishing the iron work. IL IL
stated that about the time the mortgages were author
that plan had been settlef upon by which the COM
pany would be protected from any possible judgment or
other Hens and II Is believed that tho mortgages were
made IN pursuance OF that plan Several good lawyers
would protect the property OF corporation es AGAINST
claims for damages for continuing nuisance or for
oVe or 1gents II was also stated that the mortgage
claims could only DO enforced BY foreclosure to insure
and that even then tho purchaser would take title sub
iect to existing claims and tudgmenn
proposed application to place the bonds Of the Metro
politan Elevated Railway Company on the regular
pany was In need Of money begin operations on the
east side OF the city and that strong efforts had been
success further stated that the present managers OF
the road were much disappointed In Its financial returns
could get back THEN inyesmens and fair proht rms
Would coon be made 70 place the bonds on the stock
list but he doubted II there would be ready sale ex-
Me- ocers aud counsel Of the Metropolitan Company
declined 10 furnsh any information on the subject OF
the mortgages, claiming that II was private matter
with which The public had nothing whatever TO DO
Cyrus W. Field. president OF tho NewYOrk Elevated
cided that on certain streets tue two roads should be
constructed IN common aud that aiter INC esdeg b
WORK nnsbed the east side By the Ne%YSr6
Elevated Company, Whlch puu the DIS anu a9scsseu
one-Iaf the cost the other company. "The mort
CAGES given by the Metropolitan Company" he said,
covered only tho half interest OF that road and ala not
affect the NowYork Elevated Company" In case or
foreclosure sale Of the METROPOLITAN Road at any time.
Mr. Field claims that his company wonld be III better
condition any other purchaser to take possession OF
the franchise sold. .-.-. u. -,
membero Of the firm Of Man Parsons stated yester-
day that t mad no against the Metropolitan Ee
yated Road. IL would apply, however, on behalf OF
resdens along line OF tho Now York Elevated Road
for an Injunction TO restrain the company
from running trains 20 the injury OF property.
owners mortgage on q road would stand ahe9d OF
Sny damags that might be obtained IN successful suits
AGAINST tho road unless II could be shown that the mort
gage was without value received OF made Ior e pnI
pose of preventing me recovery oi uhhhUe'' " "0'