New-York tribune., 1900-04-11
NEW THIRD AVENUE BONDS
KUHN. LOEB & co. TO TAKE Ss5.ooo,ooo
OF THE ISSUE.

The reports which have been current for some
time III: the Third Avenue Railroad Company
would issue new bonds TO the amount of at least
s3oon0o00 were definitely confirmed yesterday
when the official announcement made that
an issue of S500o0.000 had been authorized. of
which Kuhn Loeb & Co had purchased from
the company S35Ooooo0 on this announce
ment which was issued about noon Third Ave-
nue. stock rose rapidly lis. a maximum ad-
vance for the day Of ten points. The last SAFE
was at 115 2 net gain OF seven points, as COM
pared with Mondays closing quotation. and the
riEaI bid and asked figures were 1862 TO H.
The rev bonds 10 be l0o-year 4 per cent
first consolidated mortgage gold bonds, uncon-
ditionaily guaranteed to principal and inter
est by the Metropolitan Street Railway Com
pany. ard they not subject TO redemption
Kuhn. Loeb & Co. bought their S35,Noooo at
about par il is understood and it is the general
belief in the Street that these bonds VIII be
offered for sale at 104 10 105 The underwriting
for this issue has been heavily oversubscribed.
the offerings aggregating il is said. fully Sl2o,-
e00eo0. 1t is understood that subscriptions were
invited from ali the members Of the syndicate
formed by Kuhn, Loeb & Co. a few months ago
for taking care of the Third Avenue debt, AND
from few others. The proceeds of the sale OF
the present bond issue OF $50 100000 are to be
devoted to funding the floating debt of the COM
pany and 10 paying for the completion Of con-
struction work and for other Improvements
under way or in contemplation.
The remaining S15000oo0 OF the authorized
issue of sJ00e0eo0 is to be reserved to retire
the present funded debt Of the Third Avenue
road and the bonded debt of the subsidiary
companies amounting in all TO a little over
sI300Oo0, a margin Of about 100000 thus
being left The outstanding funded debt of the
Third Avenue Railroad Company consists OF
S5G0aooo first mortgage . per cent bonds. ma
turing in 1897. and the company has also about
s109.oo0 real estate mortgages The Dry Dock
road has outstanding issue of SS50,oDo . per
cent bonds due in 1872. and 81 100000 certif-
Gates OF indebtedness not subject to call, also
bearing > per cent interest and due in 1914. The
Forty-second Street line has 50. 100000 6 per
cent mortgage bonds. and the Union Railway
s2G9ao00 ; per cent. The other subsidiary
companies also have outstanding bonds.
The Boards Of Directors Of the metropolitan
Street Railway Company anG the Third Avenue
Railroad Company will meet to-day TO discuss
the subject Of the leasing of the Third Avenue
TO the Metropolitan.
Before leaving town last night H H Nreeland,
president of the Metropolitan Street Railway
Company. said concerning the scheme for fund
ing the Third Avenue debt that the providing of
go large a sum for the development of its fran
chises on a per cent rate put very different
aspect upon the question Of the roads future.
With that money some forty miles Of franchises
not yet built on-including the Kingsbridge
franchse-can be utilized The motive power
throughout the system can be generally
changed. and the net earnings on the property
greatly increased.
Il estimate" said Mr.. Vreeland that there ls
about SD .000,000 Of real present debt to be re-
tired. which funded at per cent calls for $3.50
GEO q year-that is what guarantee now.
can handle the Third Avenue road in conjunc-
ton with the Metropolitan system to earn
4 per cent on $4,000 600 in addition TO the pres
ent interest charges and if am given two or
three years TO develop the property there will
be handsome return for the stock.
Il have made all the figures and am prepared
70 recommend the lease of the property on
terms which will he favorable TO the stock. We
own so much OF the stock that a difference of
2 or 3 per cent on lease paid only on the
stock Of the minority holders cuts no figure at
all We anxious TO be fair and even liberal,
ought TO be. to the minority
An adjourned meeting of creditors and repre-
sentatives of creditors of the Third Avenue com
pany was held yesterday before Arthur II. Mas
ten. Standing Master in Chancery. There were
present A. II. Van Brunt, representing the
Creditors Protective Committee; Charles w.
Dayton representing Isaac A Hopper who has
the contract for building the Kingsbridge power
house: Charles H Johnson, representing the
John A Roebling Sons Company the Safety In
suated Wire and Gable Company and T. j
Cope d Co. of Philadelphia and ]. Woosey
Shepard, representing John p. Kane & Co, who
have contract for supplying building material.
Mr.. Van Brunt moved for another adjourn
ment, for the reason that Adrian II. Joline
counsel Of the Creditors Protective Committee
unable to be present to discuss the question
Of issuing receivers certificates. Mr.. johnson
opposed the adjournment He explained that he
represented between staeb.oD0 and 100000 IN
claims. and contended that all firms who had
furnished material and labor should be prefer
eHiial claimants
Charles w. Dayton agreed with Mr. johnson
In opposing the motion for adjournment. Mr.
Masten, however. oVerruled the objections anC
announced adjournment until April Ia, at i
o'clock.
In speaking of the affairs of the Third Avenue
MIR. Masten said after the meeting that he hat
that they coming In at the rate of abou
S2'ht,oeD a day. 1t would be impossible, he eX
plaineG, TO make any disposition Of the debt:
until il known how much they would
amount.
Receiver Grant a few days ago petitionec
Court. for permission to enter into contracts fo
the oveThauling and electrically equipping sixtl
OF the combination cars which were original,
fitted for the Third Avenue Railroad while
the cable working Judge Lacombe yester
day granted the petition. The receiver is au
thorized to enter into the necessary contracts a
a cost exceed S1,153 and borrow tn,
amount necessary pay for this work, and t.
issue his notes or other obligations therefor.
Attached TO the papers was communication
TO Receiver Grant from President Vreeland o
the Metropolitan Street Railway Company ap
proving the receivers application.