Evening star., 1896-10-31
is IT THE TROLLEY?
MIR. Kane Sees a Threat Behind the
Air Motor.
THE LEXINGTON COMPANY'S PLANS
Delaying Matters Until a New Con-
gress Comes In.
BOND AND STOCK HOLDERS

DO you know of anything new in the
lexington and Belt situation?' inquired a
Star reporter of Mr.. T. P. Kane of the
met this morning.
well, no; nothing specially new" he re-
piled, but 1 read the statement in We'd
nesday's Star to the effect that better
feeling seemed now to prevail among the
ffnanciers interested in the affairs of these
roads. because Of the action of the court
on Tuesday last
Now, 1 understand the financers to
mean the bondholders, and, notwithstand-
ing the effort on their part, as evidenced by
the statement referred to- to pour Oil upon
the agitated waters as far as the present
contention in the courts is concerned, be-
tween the management Of these roads and
the bondholders, 1t Is wholly a matter of
pull Dick and pull Devil, and the public be
ID, with each of them.
'At first it was thought that the bond
holders and the minority stockholders were
working together for their common good
and that although known to be actuated
by motives of self-protection solely, the
public would be more or less benefited by
the success of their efforts. 1t now seems
however, that neither the interests of the
minority stockholders nor those Of the pub
lie, which are more closely allied with
InOSe OF the StOcknOluefS tnan with the
bondholders, are being considered by the
latter, and if any benefit comes to either
the stockholders or the public result
of the legal squabble for mastery now go
ing on between the management and the
bondholders. it will be more of an incident
of the latters efforts to protect their own
selfish interests than any purpose or desire
on their part to subserve in any manner
the interests Of the minority stockholders
or the public, except SO far as by SO doing
they may benefit themselves.
The University Stock Not Represented
"At the conference of the opposing coun-
sci held last Tuesday morning in the Of
fee of Mr.. Ridout, attorney for the rail-
way companies, at which the plan adopted
was agreed upon and subsequently sane
toned by order of the court, the minority
stockholders were not represented, and in
reply to an inquiry made Of one of the at
torneys for the bondholders as to what the
attitude of the bondholders was in the mat
ter. he said that their only purpose was TO
protect their own interests, and IL it be-
came necessary they would ask the court
for an order directing the sale of the roads
at public auction. In such an event. he
said, they would force the present owners
of the roads to bid enough for them to in
sure the bondholders against loss and en-
able them to get out whole
I'm other words it is not the intention
of the bondholders in forcing the roads to
be sold at public auction, Should it become
necessary to resort to that eXpedent, to
make bona fide bid for them, with view
to securing absolute control and improving
them for the mutual benefit of themselves
and the public, but simply to force the
present owners, who in no state of the
case would allow the roads to pass from
their control, to pay enough for them to
insure the redemption in full of their bonds
and payment of any interest that may be
due thereon. Then with the cash for their
bonds in their pockets they propose to step
down and out and leave the minority stock
holders and the public at the mercy of the
gang who have wrecked these roads and
who then will be in full control of them
1t was suggested, in answer to the
statement of this attorney, that their pro-
posed course would be all right as far as
the bondholderS were concerned, but what
became OF the interests OF the minority
stockholders and the public in the matter?
Oh he replied, they would have to look
out for themselves. We are looking only
after our own interests
"The same statement of the situation in
Wednesdays Star quotes a bondholder as
having said that it was an error to de-
clare that the minority stockholders of the
two corporations had been frozen out ex-
planning that the stockholders were the
owners of the properties, and that the
bondholders occupied the position Of hold
ers Of mortgages on the concerns; that
the properties needed improvement, and the
owners were naturally expected to make
It, Accordingly, he says, if the roads
were reorganized and a system of rapid
transit introduced the stockholders would
be assessed for the expense.