The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1892-02-26
NEW RAILROAD TRUST.
A Company Organized in
Newark to Control the
Horse Railways
of the State.
BIG DIVIDENDS GUARANTEED.
Secretary Tracy Among the Pro-
moters of the Scheme-Presi-
dent Thurst0n on
the Deal.
BIG DIVIDENDS GUARANTEED.
Special to the Jersey city Mews.


NEWARK, Dec. 26, 1s92.-One of the
greatest railroad deals in the history of
the State was consummated here yester-
day in the organization of the New Jersey
Traction Company. A. @. Keasbey pre-
sided, and Andrew Lemassena, Jr., acted
as Secretary. The organization papers
were executed and the corporation re-
tion Company. The capital was placed
at $500, 900, all of which is subscribed for
by the incorporators, and will be paid
when called for. The specified objects
were stated to be ''to purchase. lease or
acquire in any way the street railway
franchises aud property in the counties of
Essex. Hudson and U nion, and to equip,
extend. improve and operate street rail
wlays in those counties and between
the cities and towns of these counties
and other parts of the State" The
company guarantees the payment of all
working cost and interest to stock and
bonoholders on the terms made with each
company taken under their control. No
permanent organization was effected yes
terday, but this will be done next Thurs
day at four p. m, to which time the
meeting was adjourned.
SUBSCRIBERS TO THE DEAL.
The list of those subscribing is as fol-
lows, most OF the subscribers coming
from this city:-Benjamin f. Tracy.
Secretary of the Navy; John J. Water
bury, President of the Manhattan Trust
Company, of New York; Frederick
FreliDg George A.. Halsey.
John Kean. Jr., of Elizabeth; James
Smith, Jr.. Bernard NJ. Stanley, Gott-
Ward, Thomas Il. Kinney. Chandler w.
Riker. Peter Hauck, Franklin Murphy.
Elisha b. Gaddis, Thomas G. Barr, A. @.
Keasbey. Andrew LIE Massena, Jr.,
Henry Conger, S. S. Battin, John Fl. Bal
lantine, William Clark, and Edward e.
Denniston, Richard w. Clay and Ed
ward j. Moore of Philadelphia.
TERMS OF THE ARRANGEMENT.
The terms of the new deal are as fol-
lows:-The assumption and guarantee OF
the interest on all the bonded debt of the
Newark Passenger Railway Company
and the Rapid Transit Railway Company;
all dividends payable to the Rapid
Exed charges, such as The running
expenses, rents and interest on
bonds. and to guarantee divi-
dends upon the stocks of the Newark
Passenger Railway Company. beginning
with three quarters of one per cent. on
January l. 1892; one per cent on jan
uary /, 1894, and then increase one half of
one per cent. until January l, 1900, when
1t will reach four per cent. maximum,
aud thereafter payable half yearly at this
rate. The Traction Company will take
any excess of earnings for their COM
pensation for the risks they are to assume.
The dividends agreed to be paid by the
Newark Passenger Railway Company to
the Rapid Transit Company are 3-4 per
cent the first year, 934 per cent. the
second year and II 3-4 per cent. there
after.per year on about s500,o00 In ad-
dit1on to this. there is the interest
on the mortgage effected by the
Rapid Transit Company. A gentleman
who is copversant with the work of the
Newark Passenger Railroad Company
said this morning that the new deal
would effect gradual but total change
In the management of the Newark Pas
senger Railroad Company.
President Thurston on the Deal.