The times., 1899-06-12
STOCKHOLDERS view A
COVENANT WITH ALARM
The Metropolitan Railroad
Deed of Trust.
Board of Directors Said to Have
Acted Without Authority.
Extract From Printed Circular Is
sued by The Compnny-The Ger
tificntcs of Indebtedness.

A printed circular was mailed Saturday
by the Metropolitan Railroad Company to
its stockholders notifying them that deed
of,trust had been filed for record binding
its property and franchises to secure the
two issues Of certificates of Indebtedness,
series A and B, amounting to $500. eco
This action was the result Of the authority
conferred upon the directors OF the COM
pany at called meeting of the stock
holders held on June g. The particular
terms Of the agreement under which the
railroad company pledged its holdings. and
to which the special attention OF the stock
holders is called. is embodied in the fol-
lowing extract from the circular letter
mailed to the individual holders of certifi-
Gates Of indebtedness:
It is further oovsnan,ed and agreed that the
railroad company shall have the right to pay and
discharge the said two issues OF certificates Of
indebtedness at any time before their maturity
upon thirty days notice, on payment Of one
hundred and twenty per oentum u20 per cent?
OF their par value and accrued interest.
notice bearing even date with this deed OF
trust shall, simultaneously with the recording
thereof, be issued and mailed by the railroad
company each one Of the holders Of the said
certificates OF indebtedness, so far as the names
and addresses OF such holders are known to the
railroad company, notifying them and each Of
them Of the execution Of this deed of trust and
that each and every Of such holders If he
or they desire 10 secure the protection Of this
deed Of trust must consent and agree within
sixty days from date of said notice that he or
they viii accept payment for the same from
sara railroad company. upon the notice herein
after provided for, at the rate Of hundred and
twenty per cent C20 per cent on the par value
thereof and accrued interest. and that he or they
must, in order TO show his or their consent TO
accept such payment, present such certificates
10 said trustee within said sixty days which
trustee shall thereupOn stamp on the face Of said
certificates the words Subject to payment on
thirty days notice At the rate Of l20 per cent on
the par value thereof and accrued interest at the
option Of railroad company" whereupon all such
certificates so presented TO said trustee and stamp
ed as Aforesaid, and all certificates issued in lien
Of any certificate 50 presented and stamped shall
be protected by all the terms covenants and con-
diiions Of this deed of trust And il is further
covenanted and agreed that all holders OF said
certificates who do not present the same as afore-
said. and have the stamped as aforesaid with
in the period Aforesaid, shall be deemed and con
sidered 10 have waived and forfeited all claims
TO the security and provisions of this deed Of
trust, and said trustee shall at the instance Of
said railroad company release this deed Of trust
Is 70 al such certificates which have not been
presented and stamped
in the event that the railroad company shall
elect To paw OF and redeem said certificates af
the price and on the terms and conditions herein
stated, 1t shall give notice of its election and
readiness to redeem and pay off said certificates
az time 10 be named in said notice, at the
Office OF the said Washington Loan and Trlist
Company, by publication thereof Ut least once a
week IN at least daily newspaper published
IN the city Of Washington, d. c. the first pub
licstion thereof TO be least thirty days before
the date mentioned in such notice as the time OF
payment, and shall also at the same time and
at the date OF such election mail notice OF the
time when and said place where said certificates
OF indebtedness will be redeemed to each and
every holder of the said certificates of indebted
ness hereinbefore mentioned, SO far as the name
and address OF such holders are known to the
said railroad company.
The time tor presentation for the payment and
redemption OF said certificates shall continue for
the period Of twenty days after the date named
in said notice of the railroad company when
payments shall begin.
After the expiration OF the time fixed by the
aforementioned notice for the redemption and
payment Of said certificates Of Indebtedness. and
said additional period OF twenty days for presen-
tsiion and payment, IL shall be the duty of
the trustee herein named, at the request Of the
railroad company, 10 execute proper release to
sasd railroad company from the operation Of this
trusi OF each and every certificate of indebted
ness which shall not have been presented for
payment as herein provided, and also each and
every certificate Of Indebtedness which has been
redeemed and paid.
In respect Of each and every certificate of in
dehtedness which shall be presented for payment
under the aforesaid notice this deed Of trust
shah remain in full force and effect until the
same arc fully paid
Some opposition has already developed
in regard to the above quoted covenant of
the deed Of trust, which shows an agree
ment on the part OF the stockholders to
sell out to the company their holdings of
these certificates upon thirty days notice
at 40 per cent of their par value and &C.
crued interest. and the condition is i'm
posed that unless this agreement is made
and reported within sixty days to the
Washington Loan and Trust Company
and the present certificates stamped with
the consent OF the holders, the holder will
forfeit all security under the deed Of trust.
One Of the stockholders speaking to n
Times reporter last night, stated that he
had attended the meeting called to au-
thorize the making and fling of the trust,
but that no such plan as the sixth covenant
Of the circular issued yesterday contem-
plates 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 a deed OF
trust to secure the two issues OF indebt-
edness certificates before the road passed
into new hands, In order to make It i'm
possible for the new company TO ignore
these certificates or to put them behind
q large capitalization or new Indebtedness.
He further said that the presiding officer
of the meeting OF the Sd OF June had stated
that il was not obligatory upon anyone to
surrender his certificate OF Indebtedness
until maturity. ana that this deed of trust
did not affect the holding OF these certih-
Gates or the right TO retain them until they
matured.
THE circular will astonish most OF the
stockholders" he continued. 1T is a fat
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
certificates and must promise TO sell out to
our protector at some inadequate sum rs
the price OF our protection. If We refuse
10 bind ourselves TO surrender our holdings
al the bid of some combination we shall
not have the protection to which we are
entitled"
1t was unlikely, he thought. that the
stockholders would yield to the demands Of
the company, or that many certificates
would be presented to be stamped. The
directors, he said, had no authority 10 in
sert such language in the trust.
WOMEN SERVE as OXEN