New-York tribune., 1879-10-16

| William X. GarrlsOD, a. 4. ue NaNarIo uh" DUH
jamin Brewster testified yesterday before the AS
sembly special committee railroad management
in regard to the organization of the rapid transit
companies. their stocks aud bonds the cost OF the
lines and the details of the consolidation. The
ouestion of low fares was also brought out. CHAIR
| man Hepburn remarkc as one conclusion from tho
testimony that there had been watering OF STOCK
on the Metropolitan Line TO the amount oi
SO 900. .O0O The Standard Oil Company was taken
up again at the close of the session.
TIE TESTIMONY.
| w. II. Garrison testified before the Assem-
bly, Committee that tho Manhattan Company OF which
he was president organized under the rapid iran
slt In W. and operated both tho Ncw1Ork ana MeuOpo
an Roads. Although the two roads were leased 10 inc
Manhattan Company January 81. 1879. The lease was
| not signed until May 20 Previous 10 that date the
Manhattan Company operated no road. IL hal some
| paid capital but what done with IL the witness
coud tell. Tie terms Of tho lease provided that
3 OOO 90 should be divided equally between the Me-
tropolitan aud New York Companies. Tho capital stock
OF the latter was 800 OOO aud Its bonded Indebted
ness a. 100000. II had still the right TO build above
the Harlem. The Manhattan Company did not intend
10 issue any bonds the witness understood
the matter Under tho original articles OF AS
sociation It's capital stock was TO be S2OoV.OVo.
This increased last Spring. The amount
paid in as called for by the Rapid Transit Act, was
capital stock was increased to Sl3,ooOO0O The
SO 800 900 received by the Metropolitan Company was
given 20 the New-York Loan and Improvement CoIl-
pany, which bult the road. The bonded issue of the
Metropolitan Company was SJ.3OO,OOO All OF the stock
10 bc issued had issued. and all except S3OOOOOO
or 81 900 bonds had been issued. To Mr. SteEnes
question as to what proportion OF the net earnings Of
the New-York Company had been paid into the City
Treasury Mr. Garrison replied Five per cent, ne
neve on s whole route. am speaking OF the past"
Mr. sterne-" How about the MetropolianP
They are required pay per cent OF the amount of
their dividends"
The actual cost por mile of the Metropolitan Road,
Mr. Garrison said was over 100000. The cars cost
So 100 each and the engines from $1,000 to $1,000
The road lad so engines and 15O The capital
stock Of tho Loan and Improvement Company was
$1,000 900 This capital was paid in by call as the
money was required. The whole amount was no, pa'd
in before the contract with the GILBERT Road Tic
Loan and Improvement Company made contract to
build the road, and tn be paid 20 much per nlle
part in stock, first mortgage and second mortgage
bonds. The company divided portion OF the STOCK
among It's subscribers. and put part OF tho DOnd on
the market The proceeds OF the bonds went 10 buu
more OF the Metropolitan Road The $65OO.OOO re-
oeiyed by tho Metropolitan mad not been distributed
The Loan and Improvement Company was composed
chiefly OF stockhoders of the Metropolitan Company.
Thus the Loan and Improvement Company held tie
original block Of stock and also the S65OOOOO received
by Metropolitan Company iuo '''
pany This still In the treasury OF the Loan
| and Improvement Company.
When crosse xamined by John j. McCook. counsel OF
the Manhattan Company MI. Garrison said that no dlFi-
dendg had declared yet On the redirect examine
ton MI Garrison said that provision had been made
10 meet the possible judgments against the company III
suits brought by pT0porty-Owners
Jos6 F. de Navarro was then called Before he began
his testimony the contracts between the Loan ana ln-
proyement Company and the Gilbert Road for the build
ing and OF the latter By The former were rc'd
by Mr.. McCOok
MIR. Navarro said that he became connected Win the
Loan and Improvement Company In the Fall OF 1870
lie WAS then IA director IN the Metropolitan The nom
inal capital stock OF the Loan Company was Sl0OOOO
s25 900 being paid In Its business was to build pubic
works. make loans. etc. The gentlemen VINO TOOK pos
session ~ the Loan and Improvement Company IN the
Fall OF 1878 dld SO with the intention OK constructing
the Gilbert Road taking in the stock or the latter
The stockholders OF tho Gilbert Road willing that
the company should build the road. The Gilbert Road
had then expended about S6jOO00.
AT New-YOrk or at Albany ." asked Mr. Sterne but
the witness was gnorsnt how it expended 1t sub
seauentIy appeared, however. that OF this S65O,OO0
100000 for Gilbert's patents. and $4,000 for
work done foundations Two years after the organ
ization Of the Loan and Improvement the men in 1t he
came Interested the Gilbert Road The witness said
paid from 20 cents 10 par for his stock before
the decision OF the Court OF fAppeas.
The consolidation, he ssld, was forced on the two
roads Of tho danger OF collision where was
intended the roads should Members of the Legis
nature said that the roads must settle tho difficulty them
selves and not let 1t come into the Legislature The
stockholders would have given anything to have
avoided the consolidation Nr. Navarro said that he
had great difficulty persuading tho members OF his
board TO advocate the change. He aud Hr Baird were
the only ones favor OF the consolidation. AT the time
of the consolidation 100000 OF the mortgsge on the
Metropoian Road was cancelled by the Loan company
the being that tho prodls IN TIE lease were
10 De paid Loan Company, under what lie called
the IrpartIte agreement
THE QUESTION OF LOW FARES.
The witness said that the question OF low fares had
been discussed somewhat He thought that neither the
public nor the road would no benefited by reduction
Of fares Tue risks Incurred great What do
you mean by risks I" asked Mr. EterEe. well, the
financial risk and otherwise. We might meet with mis-
hans II is new thing" But the structure has been
tested a. Yes but there never has been railway en-
crprse In the country capitalized 50 low as ours CON
sdering the risk" The assessed valuation of the city
had been Increased SlOoO00.00o 10y the road he said
This wac the roads return TO the city The original
rss WAS that tho would decide against the road
and that would nevertheless have 10 be
fulfilled. Commodore Garrison and George NJ. Pullman
were the only whom he could at first persuade
TO join hlm in the enterprise W. ii. Vanderbilt said
nat 30 would 20 up in order TO get on train
The witness thought that the value OF property Oh or
near eixth-ave. increased generally.
Tho ost of the Metropolitan Road was over 100000
p.r mile, exclusive OF interest He thought that the
ex pense would be 40 per cent greater now the road
were To built again The noise had decreased 30
cent since the rails had beer worn smooth. He said
100000 had been expended in experiments 10 do away
with smoke and cinders He thought that the road
would cost 81 100000 mile when everything was
connected on the fifteen miles Of the road
81 900 900 had already been spent by the Loan ana
Improve nent Company. The witness said that owing
m eo,y ex uerlments aud To other causos he couldn't
rve leiinite Information about tho dividends They
would be paid at rate OF 2is per cent for
very three months . -,
al These 600" said the chairman" VIII cover