New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1880-03-03
THE ELEVATED RAILROADS.

THE ELEVATED RAILROADS.
SUPPLEMENTARY REPORT OF THE SPECIAL ASSEM-
bly, COMMITTEE on RALBoADs-THE LEASES TO
THE MANHATTAN AND THE CONTRACTS WITH
THE LOAN AND IMPROVEMENT COMPANY ANA
LYzED-A NEw LAW RECOMMENDED.
ALBANY. March 2.-The following is the supple
mental report relating to the elevated railroads OF
the City OF New-Y0rk, presented to the Assembly
to-day:
The investigation of these roads was commenced be-
fore the committee pressure of time and the ne
ceesy preparing the report relative TO the general
subject Of the investigation made the appoint
mrnt Of subcommittee to complete branch OF The
investigation Accordingly Messrs. Baker Dugnd ana
Noyes were duly appointed that purpose They sub
sequently met the City Of New-Nork aud continued
the particular subject OF inquiry re erred To them
The elevated railroads in New-York, namely the
Metropolitan Elevated Ra'way Compa and lhe New
York Elevated Railroad Company, operated Dy the
me Nrw-York Elevated Railroad Company organ
lied December .. ISL with capital stock as BY char
IA MetrSp"iian Elevated Railroad COMPANY was
Incorporated under ne name OF me " per E%Sc3
1872, Win capital stock. as by charter o. TJooOVo
The LEASING COMPANY.
The Manhattan Railway Company was organized. as
appears by articles o. association, dated November
10 1875 and ed the Office OF the Secretary OF state
ID .cemser 20 1870 with capital stock Of S2O00o0O.
Of when 100000 only has been paid in. The last
named am bee M. under leases dsied May 20.
1879, the lessee Of me otner two comp9nes and u4ntr
SAID tn-es trpartIte agreement OF the same DATE
i tic, 49,, i've r,',is ,i agreed anon ter
g. 1879:
FIRST the principal OF ana interest The outstanl-
each company, es5OOooO; or IN the agcr gait.
$1,000 600; secoD., 10 guarantee ana nay I" me ~
iis ctptal of S05OoOOo, In 0uarteryeary payments.
the first 20 De pad January 1850 tmid, gaIanis
en,. Mo- fan ffg.t ID Us %
same amount upon nn equal amount Of STOCK, ana ai
the same dAtes as pcrnrd win mo Nt"-NorA Com
" ec1li-ariia .i.tai.ucuts ON lie Ist dtv oil J.uu-
aIy and Jus in year du ing he terms OF ~. re-
Fpreve olsesjnd is, fuI 800 years; hith. said ln-
haitau Comranv. %. further cons Iteration for o.
said leases a'-o agreed aud dd subsequently, issue
each a. sad other compan its bond for St5OO"oo
payabic On demand to q trustee named 10 etcn bond
fr The stocEhoder, of the respective companies, Fltl
authority o tAc trustees respect wells % Tee tr s"
u ry zee It, DID p, Incut foI the stock Of Hr Mlnha
4A Com pay al iaI, which bonds we're ST. OK hanged
WATERING STOCK.
This transsc 'ou apparently increased The capital
stock Of The Manhattan Company there S2,O0J.COJ
ttl 100000 thereof paid IN hy Just the amount o.
sad bonds, aggrel.itinE S1JCOo.OOO Thus by
stroa. OF ihe pen On the burden o. NitaINne this
si8o0o0o0 of Manhattan stock impo.'d upou
the pubic, from wuom the val !b.e ID ucl.-,
OF these. road. and hcir nights Of way
were derived, derived without compensation other tIan
Tie simulated payment O r crntof The earnings into
llc Cy Treasury. Here b., au organz 'tou, railroad
company having existence Up piper oEy, moi owuiue
OF operating rod Of read, never having set post
driven spike or moved suoycful OF dirt leasing two
contiguous roads and oF me leases giving these roads
addition giving 600 900 az bonds these roads
yer0,e INTO stock SI3O0OO0o of Tie cicarest water im
70 ts Transaction is legal then there is nothing
10 preXe1t Tue an,-em'h' OF lhe ORR Ce.iAl
aud Hudson hivei hnroad company from ORGANIZING
under any name and Win any named cap
aud Hudson River Railroad aud cuarantecing
The amount OF all ihg bonds ana ohlgaii2ns
aud .sung TO them IN todiuOu 91OO.OO 600 OF auy
other sum, the bonds Of the new company cOnveTu
b iut0 stock Of The nc" company a. thelr op on l.
such transactions are legal then mere can De hn pocc
tOn for stOckholders against stDc -watcrug rnn me
4. .-, h. ' h "a, a. s,rr eIc ~ ti,I
ano uo upon any principle Of law public policy ana
C i. snilsr transactions IN the iniure In our
"oa Inc iacIs brongl ont IN the inyesiicaon Of tho
Toost forcIblv The necessity for tc sey.rl' acts
and ,rrcodmeuts 10 existing statutes recommended
hy ua report dated January p, 1850. ana now
under consideration by honorable body.
LOAN AND IMPROVEMENT COMPANY.
Tie New-YoIk Loan and Improvement Company has
PLAYED an important part in affordug 70 the public the
present system OF RAPID transit The last named
usnv as organized and chartered by the 030h chapter
Of the laws OF 1870. amended By chapter No 44O OF
the laws 1871, and by chapter No 53 Of the laws Of
ncn Hao control and manaRe thes@ several compaDles
and now has capital OF T5OOOOOO In The Gaze Of The
ocs ana bonds we're transverse 10 the Iotn and In
rrv,fneut COMPANY aud the latter IN con stdcratfon
tercof agreed o. and ddunder subc0ntract let by 1t
build the road for In" former company, receiving
therefor OF the stock the metropolitan Company
r6J0JO and Of the bonds Of SAID company S,JOOOOO
IN abolition 70 the stock OF The Manhattan Company
SG5OOOOO; Ia the aggregate. S2l,5OOOOO which aggre
gale amount OF STOCK and bonds cost the Loan and Iu-
proyemeut C0mpany according TO tho testimony OF Mr.
sweet 80 G30,l47 90, leaving as the margin" the dit
The siock ana bonds oi the New-Yolk Elevated Road
alc the as he METROPOLITAN. namely. stock,
SO 500 900 bonds - 100000 total 100000. The
Gc,ua cost OF construction according to the testimony
81 dr. ewcel,ls TS.7lSO3s 20 leavng ~ ma fgln OF
S6281,9Gl -, and adGing the S6,5OOOOO derived OF
Manhattan stock shows Total SUN OF $12,760 9Gl n
Outside 81 aclua constfucuOn auuihg BOW the ABOVE
itcm of ST. ,sO0,SJ2 81, have the grand total OF
construction OF these roads W TINS grand tota much
seems be wafer" Inc companies claim that a
siderable portion il covered By legitimate discounts
securities aud by other proper Items But the principal
item, beng discount on bonds went into the hands OF
the stockholders themselves.
Mr. Brewster in MS testimony. explains how bonds
were discounted and u IS iair to presume thar no CON
from lie gentlemen who had all along furnished, not
operation these roads
SIGNIFICANT FIGURES.
In order that better understanding Of the situation
may be had your committee submit the following hg-
ures ETC., nv way Of recapltulalon
METROPoITAN ELEVATED RAILROAD.
Date ~ charter, 1872.
Gonds assumed By The Manhattan Co... 100000 90
81 900 900 90
Actual cost or road
Water discount on bonds etc....... o,30O,So2 81
NEw-YORK ELEVATED ROAD.
Date az charter, December g. 1871.
Capital stock PAID Observation-Disclosures. SG.5O00 600 90
BVuds ASSUMED by Manhatt 100000 90
OOVOOVO w
Actual cost OF road. S71003S 20
Water discount on bonds. ec....... 0,2o0.16l "A
MANHATTAN RAILROAD COMPANY.
Date OF charter, December 90. 1875.
Capital STOCK taIl 1000 90
We have the three companies capitalized as folowsi
Metropolitan Elevated .S15, 900 900 90
York Elevated $4,000 900 90
Manhattan. $4,000, 900 90