New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-22
THIRD AVENUES DEBT.
DETAILS OF THE LATEST PLAN FoP
TAKING IT UP.
CREDITORS NOT REsPONsTvE-TH NEW
SYNDICATE NOT YET DIscLosED-IN-
COME AND FIXED CHARGES

Careful inquiry yesterday failed TO disclose
the identity Of the syndicate Of eminent bank
ers' mentioned by William H curtiss. treasurer
q the Third Avenue Railroad Company. as hav-
ing entered into an agreement with him TO fur
nish many millions OF money TO his company
and the best information obtainable was to The
effect that not only had no agreement been
actually signed, but that even the completion NJ
the syndicate for taking care OF the railroad
ooupanys big unsecured debt was dependent
upon the result OF examination not vet
finished by VermiIye & Co
The outline published in yesterdays Tribune
a the reported tentative plan for financing the
Third Avenue debt was ascertained Yesterday TO
have been substantially accurate. as is shown
by the following form Of subscription blank
which vas issued yesterday:
Messrs- vermlIye & Co. New-York CITY.
Dear S-rs- Ne understand that you and your as
s. 5 Of he n8ts az ne 6iSa TO purchase a
rCa6 the same 10 run for fb-a 49, venue Rail
c~tt -lereoI 70 bear interest rate OF : psr
-- ~ % y "a yeo-e al the option of the com
s1a- = secured by nrst mortgage upon ali the
I-eIeIy OF me railroad company. upon which
such proposed first mortgage shall sIso Co.. 10
owned by the Third Avenue Railroad C6mnanvNin
p Guar ne stocks Of the Union Railway Com
read Company: The stock n the 1I val Eatl
Plains ana Mamsroneck Ra Iroad of the Yonkers
leal--eaa togInpanE- and more than two-thirds of
Vie ard s. Nicholas Avenue Railroad Company
$40 52ies are 10 Be sold ny the company at 96,
company ] p-r cent Of the face value or the same
syndicate Il Is also proposed before the maturitr
O ne notes. 70 issue first consolidated mortgage
company now Owned or beTeaf-r % he sc0 0 T
ny IT, form 70 be approved by the syndicate man
sEe-s n mounts sufficient 10 pay S22Jooo00 Of
terred 10. which consolidated bonds 10 be Of
faTe5 for sale by the syndicate managers and the
commission cf Per cent thereon paid by the
-oa1 company 10 the managers Of the syndicate for
t1zr services n making public issue Of said bonds
- en- sr ee+4 i ~ n me - eo5{ " o. ~cn men,
cate managers as compensation for their individual
The sad notes shall contain provision emitting
the holder thereof TO prior right 10 subscribe for
SAID coIlSoldalet- ponds provided the syndicate
public advertisement offering the same for sale of
rlenrs for said notes TO be made by IN such
55ealS end - a. sIca tines as the syndicate
notes Of the Third Avenue Railroad Company. as
slaI also receive ! per cent and the part Of the
Co-npa7y v hen issued by you and your associa;
bear 70 the total amount OF bonds so TO be issued
IN consideration OF the formation by you Of
1890 - re .SrA I9soC OF q ,.t aLeu ne
cay 81 % se 70 Sa1 e Te1sTenGe Is Is
subscribe for the amount Of said notes set opposite
a. such times and in such instaIrnents as they
nay De called upon by you; moneys 70 be paid 10
e trust company TO De designated by the syndicate
managers
AN INTERESTING PROVISION.
Al interesting provision OF the above form. II
xiii be noted, gives the note holders "a prior
right 10 subscribe for said consolidated bonds"
and ii learned yesterday upon excellent
authority that Howard P. rockingham, who
places most Of the time and call loans OF the
banks and trust companies on the Stock Elk
has zF=F- Tod of he a
conpany's creditors with the object Of getting
them 70 agree 70 exchange their notes for bonds,
but that he found few favorable responses.
Five per cent yearly interest the SO, 100000
note issue would be equivalent 10 an annual
fixed charge Of S1,125.0OO. in addition 10 the
$4,000 represented by the 5 per cent interest
q the 5000. 600 Of outstanding bonds. a total Of
81 $4,000 on So, SOC. 600. The total net income
q the Third Avenue Railroad Company and the
companies controlled by IT, as shown by the latest
annual reports Of the several lines, and exclud-
ing the $3.50 900 interest on the Third Avenues
funded debt is about 100000 This showing
IS not entirely accurate, for the Third Avenue
company does not own the entire capital stock
o. the Forry-second-st- road The total def
cheney Of that line for the year ended June 30,
-5g9 was S126.062. so that, assuming that the
Third Avenue owns only two-thirds Of its stock,
600 may be added 10 the total annual net
rrat sum s1.292 600 against total fixed
charges Of 81 3T5. 900. Il may be assumed that
----a The completion Of the electrical equipment
NJ me whole system its earning power viii be
materially increased, but. according 10 compe-
tent observers, fully 100000 more must be
expended on improvements before the company
VIII b. n 4 position 10 earn anything, and an
other IS 100000 will be needed for the compile
ton Of the great new power house and for other
purposes. Besides the unsecured debt, which
Al last accounts was admitted 70 be S1I.0oooO0,
Il is said there are unfunded obligations which,
however. are secured by collateral, amounting
70 more than S4.O0O,Oo0. these two sums repre-
senrinE the dent 70 take up which the S22,ooo,oo
note issue is proposed.
Nj CurtIss IN MS statement said that he had
IA De ARRANGEMENTS with other parties who Will
furnish 10 The company the sum Of $1.O0O.OOO
additional" This sum corresponds with the est
mate already mentioned Of the amount required
fer immediate further work on the Ihlro ave
nue. cOmpany's lines. and II IS UNDERSTOOD il
Wall Street that II was proposed 10 raise II Dy
Z sale OF s. .0yBOO0 treasury stock at par less 10
Der cent commission The law does not permit
the issuing OF stock Al less than par ana
there - good a--tnOrity for saying that the law
vers cf the interested parties are not at all sure
that me issuing Of new Third Avenue stock 10
h uuderwritten a. par less 10 per cent coInHlls-
sion would not be Illegal
SEVERAL CONFERENCES HELD.
T vas admitted late in the afternoon that sew
eraI conferences had taken place in the day be-
tween some Of the largest stockholders Of the
road and representatives Of the projected syndi-
care These conferences. so far as could be
learned developed nothing Of public interest, and
no further information Of formal or official
character was given out by either side II Is
sr-nifca-t fact that one Of the banking houses
which on Tuesday had by its silence conveyed
f-e ir7rression thar II would be a member OF the