The sun. [volume] (New York [N.Y.]) 1833-1916, 1879-06-03
RAPID TRANSIr UNION


Owing TO the failure Of the Manhattan
Railway Company to obtain a quorum Of It's
stockholders at a meeting called for last Satur-
day. for the purpose OF acting upon matters
relative to the lease Of tho two elevated rail-
roads another meeting was called for today
Tho lease will be flied Tomorrow rs 1t goes
into operation on the 9th u June. and continues
from that date for ninety-nlne years unless Mt
any timc the Manhattan Company should de-
fault in the interest 1t guarantees upon the
bonds Of both companies. In that event tho
companies resume control OF their respective
properties.
One OF the officers Of the Now York company
said yesterday that very widespread and gem
eral misunderstanding prevailed relative to one
feature Of tho lease namely. the amounts that
tho lessor companies aro to pay to tho lessee
company. The consideration to the Manhattan
Company for the 1000 900 Of It's stock that It
Is to issue and divide equally brtween tho two
lessor companies Is t9,OOOOOQ or this amount.
$4,000 900 Is TO be paid In cnsh by the New York
company The Metropolitan Company Il to
pny the balance 50 500 200 i'm cnsh and az 300 900
In its own bonds. The Metropolitan nays the
greater amount ms It's ulant of roadway is. in
proportion f. the amounts named. ls.ss than
tan will use the $1,000. 900 to complete the con-
templnted structures of both ronds. 1t having
already assumed all outstanding contracts for
Tho 33'5OO0O0 OF stock which tho Metropol-
tan is y Issue 70 max" It's capital cquAl 10 That
Of the New York Company goes 10 the New YORK
Loan and Improvement Company. and the con-
silcrnton therefor IL the 1880 600 in cash that
tho Metropolitan Company has 10 pay over to
Manhattan Company.
The question that is now exciting good deal
OF interest Is as to who will control the virtual
combination OF the roads under the ensc Tho
New York l,oan and Improvement Company.
which has all along supplied tho funds for the
construction ~ tho Metropoltnn road. is 10y tho
lcnse formally cut on from that company II
has, however. practically boon tho MetrODOli-
tan Company II holds the larger part OF the
t3O0O.W- % STOCK is,uefhy the railroad COM
pany aa well rs it's bonds. having received
them in payment for construction, In
the Lonn and Improvement Company Will
become tho posscssor Of the traditional s3. 500. 900
~ stock that Is To bee issued 10y the Metropolitan.
Thu hitter company Is TO receive one-half ~ the
fl3OOOUUQ OF stock that the Manhattan Com
pany will issue. II il probable that the Metro
lis stockholders Of record. NJ the New Y ork
Company has done. but will hold II In lump
Tor tho benefit OF the stockholders. As hns burn
said. the holder OF nearly the entire issue " It's
stock is the Lpan and lmprov"ment Company
That company Will therefore. control half OF the
Manhattan stock. But several % the large
stockholders in the Loan and Improvement
Company are also large holders Of the stock Of
tho Now York Elevated liailr0nd Company. and
will receive their share under the pro rata di-
vision. OF the half Of the Manhattan Company's
stock that COOS 10 the New York Company. Ii
thus appears that the capitalists WHO Jointly in
vested $1,000 600 in tho capital stock stu'k ~
the balance Ot power in the Manhattan-the
managing company and the one whose stock
will ha the only speculative one OF the three
companies in interest