New-York tribune., 1879-05-24
STOCK ISSUES AND GUARANTEES.


STOCK ISSUES AND GUARANTEES.
ARRANGEMENT CONCERNING FUNDED DEBT-PRo-
VISION FOR COMPLETING THE LINEs-THE DIvI-
DFNDs.
Full details of the lease of the elevated railroads
to the Manhattan Company have not yet been
made public. Officers Of the Ncw-York and
the Metropolitan Companies refused yesterday
to made known all the conditions OF
the agreement. The original stock of the
Manhattan Company was subscribed for by promi-
nent members of tho two companies. 1t is said that
the organization of the Manhattan Company has
been maintained, and that its buildingrghts under
it's charter have not expired. By the terms OF the
agreement with the Manhattan Company the
funded debts Of the New-York and Metro
poitan Companies will be equalized. On
both roads the funded indebtedness is limited
to 100000 mile. When the extensions
shall have been completed, il Is said that the lines
of the two roads will nearly be equal in length
The funded debt of the entire line is restricted to
$17, 100000 for both companies.
In regard to the terms of the lease, Fl. r. Bishop,
director, on the part of the NewYork Road, of the
Manhattan Company. SAID yesterday:
"The Manhattan Company guarantees to the
companies the payment of the interest on the funded
debts and an annual dividend of per cent on the
capital stock of both companies. In addition
it will issue to each of the two companies $6,5OO-
600 of its own stock. On this stock it will pay dv-
dends when earned. The issue of the $13,-
100000 of its stock to the two COM
panies is partly at least on account OF the
payment to it of about so 900, 900, or $1OOOO,OOO
This sum will be paid in equal parts by the two
companies and is to be devoted by the Manhattan
Company to the completion of the lines The pay
ment is not therefore, bonus to the companies. The
New-York Company has its share of this sum ready
for immediate payment The stock Of the Manhat-
tan Company which it will receive then. is there
fore clear of any expense TO the company"
Mr. Bishop declined to say whether or not the stock
would be distributed among the stockholders OF
the New-York Company, bat said that 1t would re-
main for the present under the control of the COM
pany. The distribution of the stock and the
dividends that might be earned aud paid on 1t
would be the subject of future arrangement.
"The excess of the net earnings of the Manhattan
Company Mr. Bishop continued, q over the fixed
interest and dividend charges will be distributed,
| suppose, in dividends on the stock of tho
Manhattan Company. 1t belongs certainly 10
that company. All future contracts for the
purposes of construction will be made on
account of that company, which VIII haye
the supervision of the operations or the roads.
The building right under baa the NOT ehar5sr eSr
pred. The organization has l been maintained,
and the rights preserved. Tho line is mainly
coincdent with the East Side route OF the
Metropolitan Road II diyerges, think, at twenty
third-st.. ard extends from there directly down
The stock of the Metropolitan is held it is under
stood by the Ncw-YOrk Loan and Improvement
Company. The stock Will be made equal to that OF
the New-Yorl1 Company, $4,000, 600. On this the
Manhattan Company guarantees an annual dlyi-
dend of 10 per cent. 1t also issues TO Inc metro
polltan Company an equal amount OF its own stock.