The times., 1899-08-03

q.
The opposition manifested by some of
the holders of certificates OF Indebtedness
of the Metropolitan Railroad Company to
the action of the stockholders in meeting
on June last, and which was noted in
The Times, assumed legal form yesterday.
Fannie W. Wallace filed petition in the
Supreme Court of the District asking that
the railroad company and the Washington
Loan and Trust Company, the holder of
the second mortgage bonds be restrained
from releasing the bonds of the railroad
company from the lien Of the certificates
of Indebtedness held by the complainant.
1t is expected that many other suits of a
similar nature for the same purpose will
be filed against the railroad and the trust
company.
One of the stockholders speaking to
Times reporter stated that he had attended
the meeting called to authorize the making
and filing of the trust, but that no such
plan as the sixth covenant of the circular
issued contemplates was agreed to by those
present. The question had not been under
consideration and was not discussed The
object of the meeting, he said. was simply
to authorize the directors TO put ON record
deed Of trust to secure the two issues of
indebtedness certificates before the road
passed into new hands, In order to make It
impossible for the new company to ignore
these certificates or to put them behind a
large capitalization or rev Indebtedness
He further said that the presiding officer
Of the meeting of June had stated that
1t was not obligatory upon anyone 10 sur
render his certificate of Indebtedness until
maturity, and that this deed of trust did
not affect the holding of these certificates
or the right to retain them until they ma
tured.
THE circular astonished most of the
stockholders" he continued. 1T is fiat
contradiction of the statements made at
the meeting concerning its purpose and
the rights conceded TO belong to the stock
holders regarding the certificates. We must
now purchase our protection for our GER
tificates and must promise to sell out to
our protector at some inadequate sum as
the price of our protection. If we refuse
to bind ourselves to surrender our hold
ings at the bid of some combination we
shall not have the protection to which we
are entitled"
II was unlikely. he thought, that the
| stockholders would yield to the demands of
the company, or that many certifi .ates
would be presented to be stamped. The
directors, he said, had no authority to in
sert such language in the trust.
According TO the statement made by
the complainant her certificate is secured
by the second mortgage executed by the
company, and reeites that 1t will be due
and payable on June l. 1907. The railroad
company. however, stipulates that the
holders OF the certificates of indebtedness
similar TO that held by the complainant
must agree on or before August to sell
their holdings after thirty days notice
from the company for 120 per cent of their
par value with accrued interest; and that
the assent of the holders must be witnessed
by themselves in presenting them to the
Washington Loan and Trust Company for
the purpose of having them stamped by
that company.
Unless the court interferes II Is alleged
that the company will refuse the COM
plainant the benefit OF the second mort
gage after August .. and the Washington
Loan and Trust Company will release
the mortgage as to the complainant's GER
tifcate Of indebtedness. II is also asked
that the defendant be enjoined from in
any way interfering with the security OF
the certificate of the complainant under
the mortgage until by its terms it shall
be due and payable by its time limita-
ton.
The contract agreed TO at the meeting
of June ,, referred to. stipulates that the
railroad company shall have the right to
pay and discharge its two issues OF certif-
Gates of Indebtedness at any time before
their maturity upon thirty days ontiee to
the holder upon the payment of 120 per cent
for their par value and accrued interest.
Notice of this action was sent the certi-
ficate holders with the information that a
deed OF trust for S590,000 in favor of the
Washington Loan and Trust Company had
been placed upon the road This mortgage
was placed to cover the first issue of GER
tifcates of Indebtedness for $685. The
circular letter containing this information
sent to the stockholders also contained the
information that il they desired to secure
the protection of the deed of trust for their
certificates of Indebtedness that they must
consent and agree within sixty days after
the receipt of the notice that they would
receive payment for the certificates from
the railroad company at the rate OF 120 per
cent of their par value and accrued inter-
est upon thirty days notice from the rail-
road company OF it's desire to purchase.
In order to perfect this agreement it was
necessary for the holder of the certificates
to take them to the Loan and Trust Com
pany and have them stamped as follows:
''Subjec2 to payment on thirty days notice
at the rate Of 120 per cent on the par
value thereof and accrued interest at the
option of the railroad company"
In the event of this being done it was
agreed that the certificates so presented
and stamped or any certificates issued in
their stead would be protected by the
terms and conditions of the deed OF trust.