The evening times., 1899-02-02
ELECTRICITY ON THE
ELEVATED RAILWAY
TO ABANDON STEAM POWER
Plans for Changing the Motor Work
the ''L" Roads in New
York.

New York, Feb. 2.-Important action
was taken yesterday by the board of di-
rectors OF the Manhattan Railway toward
preparing for the equipment of the road
with electricity. To George Gould the
president, was practically given full power
to decide what system shall be adopted,
although he is expected to report his con-
clusions later to the directors and they
will formally pass upon the plans.
A still more important procedure report
ed was that the decision was not to ask
any outside fnanciers to put through the
deal, which will call for the expenditure OF
from So 000, 600 to SIS 600 0O0. AS recently
stated, George Gould conferred with j.
Pierpont Morgan with reference TO floating
| the securities. Mr.. Morgan is said to have
cabled his answer a day or two ago as to
just what he would do and on what terms
1t was partly to discuss this matter that
the meeting of Manhattan directors was
! called.
III was impossible to learn on Just what
terms Mr, Morgan was willing 10 under
write the new stock-for ii is stock. not
bonds, that the company intends to issue
! Dut IL Is said 10 have been decided by the
directors that it is not necessary to ask
| outside help in financing the deal.
! According to one of them the stockhold-
! ers would probably be glad to get the new
! stock at par. Some of the directors want
! ed the stock allotted at less than par ex-
! planning that ii had recently sold at 90, but
/ the law of this State precudes such a
| transaction.
| They thought that the law might be
1 eYaded by allowing the stockholders a re-
/ pate, or commission, at the time of deliv-
! cry lt is considered likely, however. that
I the stock will be allotted at par and if
! the stockholders do not care to avail them
/ selves of the privilege syndicate will
/ De made up 10 take the balance of the
STOCK at par in return for some sort of
/ gift as privilege whereby the law may
/ be eTaded
! II was learned yesterday that the de-
! talls of the plan have not been definitely
/ settled, and it will require another meet
! ing to determine the methods of financing
the scheme. According TO one account he
syndicate was TO get the stock at % IL.
! but this was denied in toto
I George Gould declined to talk about the
matter after the meeting, and most of the
directors were eyasive as TO Just what had
/ been done. Russell Sage said he thought
; the new stock would be allotted among
! the stockholders al less than par. although
Z done in regard TO the sale OF the new
/ stock. AS for Mr. Morgan's connection
with the deal Mr.. Sage would say little
I and he did not deny that il was still pos
sibie that Mr. Morgan would take a hand
! in it.
According TO Mr.. Sage it will probably
! require SIS goo, 600 of new capital 10 euuin
! the elevated lines. He said that il is not
! yet certain that electricity viii be used
Notwithstanding the prevailing belief that
! Mr.. Gould has made up his mind that this
/ is the best motive power and that what
/ Mr.. Gould decides upon will probably be
adopted
/ Mr.. Sage said last night:
The board simply gave President Could
/ the power TO go ahead and ascertain which
! was the better power, electricity or com =
| pressed air We did not determine to elec-
! trize the road. The board did not deter
! mine on any motive power.
| The board was unanimous in having the
! new stock issued TO cover the improvement
/ taken by the stockholders. instead OF being
/ taken by outside syndicates. In short We
/ thought it would be good idea 10 have our
stockholders form a syndicate in this mat
! ter themselves, and if there was anything
/ to be made out of it the stockholders would
make il themselves. j. p. Morgan wanted
some of the stock, as did some other peo-
! pie but we decided TO raise the money
/ among ourselves.
Whatever the new motive power costs
( that amount will be raised, and, as l said
| before, it will all depend on what the plans
| call for. 1t cannot be stated now what in
round numbers it viii cost as it is not yet
! determined what motive power to use.
! While electricity appeals to most people
! it is really wonderful what remarkable ex-
! periments have been made in the matter
! of compressed air, and some claim it is far
! less expensive than electricity.
We have left it all TO President Gould
| and after he has thoroughly investigated
| the matter he will call the board together
| give his choice, his reasons therefor. and
! they will be approved. The financial ar
| rangements have all been agreed TO. Sc
there will be nothing but TO go ahead and
| let the contract