The sun., 1897-08-18
TRACTION GOING TO QUIT.
DUAL MAN.fG BMENT OF THE STREET
RAILROAD LINES TO UEASE,

Traction stock TO He Exchanged Tor That OF
tho Metropolitan street Railway Company
"Donbie Taxation" I" Given Ono OF the
Causcs or This sinpI,ncation or system.
A meeting of tho stockholders Of tho Metro
politan Traction Company has been called for
Sept. IA to pass upon the method resolved on by
the directors for winding up tho company and
distributing It's assets. These assets consist OF
tho entire capital stock, $50 100000, Of tho
Metropolitan Street Railway Company and
other property and securities valued at about
$6.ooo,o00. which can readily be exchanged or
converted into securities capable of distribution
The capital Of the Metropolitan Traction Com
pany Is OF tho samo amount as that Of the Street
Railway Company and each traction stock
holder will receive in exchange for his stock an
equal amount OF the street railway stock, share
for share, and In addition further securities to
the amount of 20 per cent Of tho par value Of his
stock.
In his circular announcing the intention to
wind up the company, President vreeland says
that tho Metropolitan Traction Company has
substantially accomplished the object Of Its or
ganixation by uniting In one system most of the
surface railroads OF tho city. The advantage de-
rived from this union has, he says. led to tho
enactment of statutes under which the same re-
suits may now be directly accomplished by
consolidation, purchase of stock, and leasing,
and under this authority all the properties
making up the system have been concentra ted
in the Metropolitan Street Railway Company.
He says that as the stockholders OF the traction
company the real owners OF the property,
thore is no reason why they should not receive
the street railway stock representing II and at
the same time be relieved OF the burdens Of dou-
BILE administration and very heavy double taxa
tion.
AS to the burden Of double taxation to which
President Vreeland REFERS the complaint OF the
the Metropolitan Traction Company and tho
through their dual organization, seeking eN-
emption from tax. One company claimed eX-
emption on personal property on the score that
the bonds II issued were debt. which should be
made an Offset. The other company set up that
because 1t guaranteed the payment OF tho same
bonds, its guarantee was an obligation that en-
tit lod it to O similar exemption.
The Metropolitan Street Railway Company
was assessed for only $3.50. 600 personal prop
erty in 1896. The assessment of the traction
company was also comparatively low. The Tax
Commissioners instituted an inquiry this year
and found that tho Metropolitan Street Rail.
way Company was claiming exemption for
about Sl2.5oo.000 OF bonds issued by the trae-
tion company and guaranteed by the M street rail.
way company. The exemption OF this amount
was granted to the traction company, which was
assessed for only $332. .4S5 personal property.
1t was dlsallowed in the case OF the railway
company, which was assessed for $l4.493, ,9+6
personally.
Tho question which will most interest tho
city is II the consolidation Of the two companies
before the tax is due and payable will free the
railway company Of the tax.