New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-16
KUHN, LOEB & co. WI7,HDRA w
NEGOTIATIONS WITH THE THIRD-AVE
ROAD BROKEN OFF-THE Elk
PLANTATIONS GIVEN.

The negotiations for the taking up of the floating
debt of the Third Avenue Railroad Company. which
have been in progress during the last month be-
tween the syndicate headed by Kuhn. Loeb & Co.
and the Third Avenue company's Board OF Direc-
tors, were broken off yesterday by the withdrawal
of Kuhn, Loeb & Co. The announcement OF this
fact the Stock Exchange. at about noon, caused
Third Avenue stock to drop from 1O2 to So. but it
subsequently rallied little, closing at T7s net
decline for the day OF 42 per cent. year ago it
selling at A2.
Kuhn, Loeb & Co. refused yesterday afternoon
to give any reason for their action. A member OF
the firm said that all statements would have to
come from the other side. "All care to say,
he added lis that the negotiations are off for good
far concerned
Edward Lauterbach, counsel OF the Third Avenue
Railroad Company, made brief statement, as fol-
lows
The withdrawal of Messrs Kuhn, Loeb & Co:
from their recent negotiations with our Board OF
clared by the Board on Wednesday. The payment
of that dividend was sanctioned by the syndicate
before the dividend was declared. The withdrawal
of the bankers had nothing to do either with
which there no controversy. II was question
Of finance entrey-a question, affecting the reIa-
1 am not at liberty to say whether or not 1t was
the underwriting commission which the syndicate
to get which caused the abandonment of the
negotiations
While it had been generally suspected for sew
eral days that some more or less serious hitch had
the signing OF the agreement had been put off
from day to day. it was said daily by representa-
tves OF both sides that there every probability
that arrangement would ultimately be consum-
mated, that the announcement made yesterday
by Kuhn. Loeb & Co came, after all. as a
surprise to the Street. Various theories were put
forth to explain the bankers decision. some OF
which referred to In Mr.. Lauterbach's state
ment published herewith.
The opinion most widely accepted was that the
a1,o,,1 nIo nfr diTGt m
because of dissatisfaction at the course OF the
company's directors in not having passed the div-
dend Wednesday. in view of the heavy unse-
cured Indebtedness which already amounts to
ST 100000, and Will within the next few months be
increased by amount variously estimated at
from S7OO0O0o to 100000. Others saw in the
syndicates step evidence of noncompliance by the
Third Avenue management with the rumored de-
mand by the syndicate that it be allowed to name
majority Of the Board OF Directors. Still others
were inclined to accept Mr.. Lauterbach's sugges-
ton that a solution of the matter might be found
to be a disagreement regarding the percentage OF
underwriting commission to be paid the syndicate
One thing seems certain. that Kuhn. Loeb & Co
will not any circumstances renew the negotia-
lions. The floating debt is widely distributed
among banks trust companies and insurance com
panies in this and other States. and it Is re-
ported on good authority that with view 10 saIe-
guarding their loans. these institutions may unite
I'm the naming of a creditors protective committee.
There were reports that Standard Oil interests
would take hold of the property but little credence
was attached to such gossip. The persistent re-
port that Metropolitan interests will eventually be
found in control of the road is more generally cred
tied.
In July last it voted to increase the capital
stock Of the company from $2 100000 to $+OOO0OOO
The new stock to be used. ii was said at the
to clear off the floating debt of A1OOOOOO and
to pay for the electrical equipment Of the sys-
tenn, and for the purchase of one or two tributary
lines or the $2S 100000 of authorized additional
stock 81 100000 was issued to stockholders at par
last November. The rest not issued and is still
in the treasury.