New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-04
THE DEAL NOW COMPLETED
ATLANTIC AVENUE SYSTEM LEASED 10
THE NASSAU ELECTRIC COMPANY.


TRANSACTIONS OF THE KIND IN THE HIS
TORY OF BRooKLYN-s5Oo.oO 900 TO BE
SPENT THIS SUMMER IN EXTEND
ING TRANSPORTATION
FACILITIES.
The lease Of the Atlantc-ave. railroad SYSTEM
to the Nassau Electric Company was completed
yesterday and submitted to the directors OF the
two companies for their formal approval The
approval Of the transaction is mere formality.
the lease to all practical purposes taking enecs
Yesterday The lease OF the Atlantic-ave sys-
tenn by the Nassau Company Is the consumma-
ton Of one Of the biggest railroad deals In the
history OF Brooklyn. and means the expenditure
of q great deal OF money in the coming summer
in extending transportation facilities into the
outlying wards of Brooklyn, and putting the
Nassau road on a practically even footing with
the Brooklyn Heights system. The Nassau people
will now be able TO take passengers from me
principal ferries and the Bridge to oil parts OF
the city for a single fare OF 8 cents.
As has already been announced. the lease now
requires execution by the directors aiter winch
a notice Of the action Of the directors WI" Do
given to each stakeholder. and following tnat
will be an advertisement in the newspapers FOR
four weeks calling fer a meeting to consider the
approval Of the lease. The lease covers hfty.
four pages Of printed m ter, and sets forth thas
the Atlantlc-ave. road has leased all the prop
erty franchises railroads. railroad routes. lease
holds real estate, lands reversions, rents, build
ings equipment personally and all future ac-
ouired franchises and so forth to the Nassau
road at the following terms OF rent: On July l.
1896, the sum Of $4,000; on January ], 1897. the
sum of SIS 900; on July I. 1897. the sum OF s'oVo
on January !, 1898. $4,000; on July l, 1885, tho
sum Of 500. 900. and thereafter on the first days
Of January and July in each year. the sum OF
100000 The lease is for term OF Sss years.
WHAT 1T INCLUDES.
The lease includes lines Of the Brooklyn. Bath
and West End Railroad, which has connection
with South Ferry; also the same railroad be-
ginning at Fifth-ave. and Thirty-seventh-st;
the Prospect Park and Coney Island Railroad
Company anc the South Brooklyn Railroad ana
Terminal Company. 1t IL agreed that the lessor
shall have full charge and control OF all actions
End proceedings whereby its right or the right
Il It's lessee under this lease may be called in
question. and that the reasonable expense in de-
Tending such suits shall be paid by the lessee.
But this provision shall not deprive the lessee
OF the right also to be heard and to defend
against actions and proceedings for the pro-
lection Of it's interests under this lease. The
lease also includes all the interests OF the At
lantic Avenue Railroad Company in the various
parcels Of realty which they hold throughout
the city, subject, Of course TO the mortgages
that are recorded against such parcels. The
lease also ,.lcludes all Of the Atlantic Avenue
Railroads rights under each Of Its contracts.
such contracts and obligations being assumed
by the lessee during the continuance OF the
new lease. Among these contracts are several
with the Long Island Railroad Company, under
date of March 26. 1877; March q. 1877; April 80,
1895; January -. 1894. 1t also includes a lease
OF the South Brooklyn Railroad and Terminal
Company. under date of November 81. 1893; one
with the Brooklyn and Brighton Beach Railroad
Company. under date Of May 49, 1894: with
the Prospect Park and Coney Island Railroad
Company. under date OF February l. 1883; one
with the Brooklyn Crosstown Railroad Com
pany. under date Of April T. 1874, and about
forty other contracts. leases and obligations
with various corporations or persons. made by
the Atlantic Avenue Railroad Company In the
course of its business from the date OF its or
ganzation up 10 the present time.
The Atlantc-aye. company sets forth for it,
part that the total bonded Indebtedness Of the
system does not exceed the sum Of $500 0OO
| The principal mortgages are follows: One
to the Brooklyn Trust Company. dated Septem-
Der 20 1884, and maturing October J. 1909
amounting 10 $500. 900, OF which $3.50. 900 is out
standing; one to the Brooklyn Trust Company.
dated April %. 1891. and maturing October !.
1881. amounting tc $1,000 900. OF which 81 1885, 900
is outstanding; one to the Central Trust Com
pany OF New-York. dated January l. 1894, and
maturing January l. 1894. amounting 10 $1,000 000:
one through the South Brooklyn Central Rail-
way Company TO Albert G. Mcdonald. dated
February /. 1884, and maturing on August J..
1897. amounting TO $l75000 Of which $4,000 Is
outstanding; one through the South Brooklyn
Central Railway Company 70 Clarence L. Bur-
nett trustee. dated August l. 1877. and maturing
August l, 1897. amounting to sl25,cOo; one
through the Brooklyn. Bath and West End
Railroad Company to the Title Guarantee and
Trust Company dated December IS. 1856. and
maturing January l. 1906. amounting to s25o.Ooo
and also mortgage - the same. amounting 70
$c50,OoO. maturing January l. 1916 one through
the Brooklyn. Bath and West End Railroad COM
pany to the Title Guarantee and Trust Company,
dated July /. 1891. and maturing June l. 1911,
amounting to 100000 OF which $4,000 is out
standing one through the Brooklyn, Bath and
| West End Railroad Company to the Franklin
Trust Company dated October g. 1898. and
ma turing October 1. 1888. amounting to $l0OOVoVs
OF which $44s.00 Is outstanding.
STIPULATION OF THE NINTH CLAUSE.
The ninth clause OF Article 10 Of the lease spu-
! lates that the Nassau Electric Railroad Company
WILL within one year from the date when this
| lease takes effect out OF Its own money and In
addition to any funds derived from the income OF
the property leased the sale Of any part there
| OF. expend in the improvement and betterment
Of the property at least the sum OF $500 O0O and
upon or before the execution OF this lease will
deposit 500 first mortgage bonds OF the lessee OF
! 81 900 each with a trust company as security for
the application Of the stated amount In improv-
ing the property leased. The lessee agrees that