New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1883-03-27
RAILWAY INTERESTS.
THE COST OF THE ELEVATED ROADS.


MR. NAvARRo's TESTIMONY BEFORE THE RAILROAD
CoMMssIoN-wHY THE IMPROVEMENT COM
PANY WAS FORMED.
The State Railroad Commission met again
yesterday morning at the Chamber OF Commerce TO III
vestigate the cost OF constructing the elevated roaos
Tho three members OF the Commission were present anu
John D. Herman presided jose T. Navarro was the ony
witness examined. He submitted In evidence ue'au
statement Of the cost Of that part OF the Metropo'
road which the New-York Loan and Improvement COM
pany had built.
Mr. Herman stated that the Commission wouin nave
experts verify Mr. Navarros statement by an e1anina
ton OF the Loan and Improvement company DOo"
Mr. Navarro testified that he was at first director III
that company and was afterwards its vice-pres'ueh.
and finally its president. The Loan ana Improvement
Company had constructed fourteen or fifteen OF inc
eighteen miles of the Metropolitan road The contract
for the construction was made on March H. 1876 when
the road was called the Gilbert Elevated Railroad Inc
capital OF the Gilbert Elevated RAILROAD COMPANY
amounted TO $500 900, and the witness was the geSs
stakeholder The capital OF the Loan and Improvement
COMPANY was 100000. OF which 25 per cent was at
first paid in The entire amount was paid IN soon aiter
the work Of construction began The company was or
ganzed for the purpose OF building the Gibert ETC
waited road In the of the construction Oh tha
road its stock and bonds assigned to the Loan anu
Improvement Company as payment Tor the "oIA W.
When the agreement made between the Me'ropoF
it0n, Newly rk ana Manhattan Eiefh'eu "H'Ai'"
panes all the securities OF the Gilbert or Metropolitan
road had been absorbed in that the Loan and
Improvement Company. The bonds were sold by tne
latter company to different bankers and captaHs.s;
They amounted $s,5o0,OoO, and the sum Vi
1872, 3Os 20 realized from their sale A., Navarro
The stock Gilbert Elevated road ME- e. oaE 6
said amounted to S6500000. OF thus stock S6'VOoVpo
was dis rbuted among the stockholders, ana tue ht
mainder $780, 1000. was sold All OF thus latter % ~
was disposed OF to outside PERSONS ana the sum
1927 AGO 90 realized from the sale The tot9 cost
~ the road to the Loan and improve
10, A
$37137S6 From this 1t was necessary 10 ueucI w
interest on the capital employed In consructluE to
line This interest amounted 20 about SoOOVOU coon
after the full amount Of the Loan aud improvement
stock Increased to 81 100000 aud was all PAID up
These payments had been made In anticipation OF
ing profit from what was received rom te III
tan road. The Loan and lmproyenent COMPANY, % %
tanned the $10,0OO.0OO expended IN consnruot.
by Increasing lts stock to $30oOOoo, ny sois V h
bonds OF the Gilbert road received 1of pay % ~
using its own credit to borrow money. Many lnulfiu
ual members of the company advanced money aiso; -
After TIE arrangement was made hetWeeh lne -hetIo
polran. New-YOrk and Manhattan Companies the pay
ments from the Metropolitan Tor construction caio
Through the Manhattan to the Loan and Improvement
COMPANY. Mr. Navarro stated that ne acteu iOr 10
Loan and Improvement Company III securIs W. ,J,n
strucon contract with the elevated ROAD H .h,h
Foster IT, acted for the elevated road euu not
that Mr. Foster had any interest IN the Loan anu im
prOyement Company at that time, out no Vptalueo a
large interest aIter the conf VIC the
thought that he himself ana Mr. Foster conuoueu ,no
stock Of the Gi0ert Elevated road Mr. Navarro atei
ward said that he dla not act LOT the loan ana %
explain why the metropolitan or Gilbert lie Valed Io
could Duild line without the heip OF
COMPANY especially some OF The large stOckuoluoIs
of tine construction Company also largely inter
ested in tine road. Mr. McCook coanse Iol tne
Loan and Improvement Company explained INC POlhV
by saving that tue Loan AM Improvement Company
wished 10 secur all the profits 10 be gained. -. 49,.
The chairman of the Commission ANNOUNCED lnht tlS
Manhattan Company had sent statement OF what hau
extended constructing It's roads, AID tAat an expert
would verify the statement