New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1879-05-29
THE RAPID TRANSIT LEASE.
CONFIRMING THE ACTION TAKEN.


CONFIRMING THE ACTION TAKEN.
ADDITIONAL DETAILS OF THE srocK-TRANsFERs
AND PLANS.
Another step was taken Yesterday in consum-
mating the leasing of the New-York and Metropoll-
tan Elevated Railroads to the Manhattan Com
pauy. the stockholders Of the Metropolitan and
Manhattan Companies confirming by unanimous
vote the execution of the leases. The stockholders
of the New-York Company are to vote on the mat
ter Saturday. In the meeting of the Metropolitan
stockholders yesterday every share OF stock ISSUED
WAS represented General Porter and G. NJ. Pull
man. who were absent, having sent on proxies
After ratfyng the action of the officers ana dlrec-
tors in executing the lease, 1t was unanimously
voted to increase the capital stock OF the
company from $3,000.000 TO S6.5oO'OOO
After this meeting the Manhattan Company
met, there being present Directors Bishop and
Fiske and Vice-Presdent Guilford, OF the New
York Elevated Jose L. de Navarro, of the Loan ana
Improvement Company, President Garrison and
General Manager Baird, OF the metropolitan Road,
and David Dudley Field. J. j. McCook, Grosvenor
p. Lowrey and Charles T. Stone. attorneys for the
various interests After confirming the acts OF the
officers in executing the lease of the elevated roads,
il was resolved to increase the capital stock from
$500. 900 to S13, 100000, for issue TO the two
elevated companies. -,
An officer of the Manhattan Company said last
evening "The report that the Manhattan Com
many cannot issue stock for S13,000,00O is the
merest nonsense Before the leasing OF the roads TO
the Manhattan Company was ehected the iegai
opInions of Porter Iowrey. SOren & Stone, Alex
ander g. Green and David Dudley Field were OBJ
tanned and they all agreed on the validity or the
proposed working arrangement. The law PROMPTS
n consolidation of parallel and competing roads,
and this prevented what was first suggested ana
the present arrangement was carried out under
law which permits the inter-leasing or roags' inc
.l,,- ,t.I, no
the Harlem In the present il is In law single
leasing of the elevated roads to the Man
haitian Company, as each road maintains It's sepa-
rate organization and operates under its charter or
rapid transit commission grant. Another law per
mits companies engaged i'll constructing. complet-
ing and maintaining railroads TO increase their cap
ital stock if the gnal amount Is insufficient for
those purposes The Manhattan Company having
leased the uncOmpleted New-York and Metropolitan
Roads with guarantee 10 finish them and TO carry
out existing contracts is now corporation Gu
gagged in constructing, completing and maintaining
railroads, and under the law II has power to IN
crease its capital stock in this case to 100000.
"Thc Metropolitan Company had second mort
gage of $750,OOO mile, of which about $4,000
900 had been issued to the New-Y0rk Loan and
Improvement Company, which was also entitled TO
about 81 500 900 more for additional construction
on the East Side As the,New-York Road had only
one mortgage ii was decided that the Metropolitan
Company should cancel its entire second mortgage.
which on the completed line would have amounted
to SO, 750,000 This has been cancelled, and the
Manhattan Company Is to furnish funds TO com
plee the roads, for which $13 900 900 of convertible
bonds are be issued These will be at once delivered
to the two roads IN equal amounts, and they VIII
have the option Of converting them at any time
into 10 per cent guaranteed Manhattan stock. The
two elevated companies will start with an equal
amount Of SO, 800, 900 each of Manhattan bonds.
for which they can get Manhattan stock. The
shares of the Metropolitan Company will go in
block to the New-YOrk Loan and Improvement
Company. while those of the New York will go to
the stockholders. and as of the New-York
Loan aud Improvement Company now hold New
York Elevated stock it virtually controls the Man
haitian Company"
1t was stated yesterday that every shareholder OF
the Loan and Improvement Company will be enti-
tied to PIC shares of Metropolitan and 2lG shares of
Manhattan stock, 4l3 shares, which IS equal to
1888 33, half III Manhattan and half In Metropoli-
tan stock, on every share of Loan and Improvement
stock.