New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-21
THIRD AVENUES NEW PLAN
ARRANGEMENTS MADE WITH ANOTHER
SYNDICATE
OFFERED TO FINANCE THE FLOAT
ING DEBT ON CONDITION OF
A METROPOLITAN LEASE

ING DEBT ON CONDITION OF
A METROPOLITAN LEASE.
Third Avenue stock had sharp decline yes
terday, and the announcement in the afternoon |
that arrangements for taking up the floating |
debt of the company had been made with a new
syndicate had little effect in causing rally from
the low level of the day This announcement
was made by William H Curtiss. treasurer OF
the Third Avenue Railroad Company, who said:
The committee appointed by the Board OF Di-
recIors I9r that purpose has entered into an agree
nish to the company sd 500 200 in cash and the
company has made an agreement with other par
ues py Whlch the company Will receive In addition
The terms upon which the transactions have been
to the stockholders
There was conference yesterday afternoon at
the office of ]. s. Bache & Co., who are inter-
ested in the syndicate which took over Henry
Hart's Third Avenue holdings. and Mr.. Curtiss's
statement issued at the close of the confer
ence. A significant feature the visit to
Bache & Co.'s office of Daniel F. Mcmahon, q
partner of John Naughton, Of Naugllton & Co.
who installed the electric equipment of the Third
Avenue road.
Mr. Curtiss last night issued an amended and
amplifed statement. follows:
AS chairman of the committee appointed for that
purpose by the Board Of Directors. l have entered
/
bankers. including two very large international
banking houses, and under the terms of the agree
| ment the bankers will furnish to the company the
pfa Of at b PER cent a6aT have haa also S9 @
tonal
The terms upon which these arrangements have
been made are in my opinion, very advantageous
captsl STOCK of the company nave decided TO o form
a corporation which shall lease the properties of
and at an annual rental sufficient to pay its fixed
charges and in addition thereto dividends upon
q 81 beginning 4 per tnme-
diately and reaching per cent per annum at the
thereafter In this connection the stockholders Of
the Third Avenue company viii acquire certain tain
deposit with a trust company satisfactory to the
0 in casS Which gaa stand as fund
foT the @ of the dividends % r
company in almost all Of to-days papers published
does the Third Avenue and has never
e2nsideTed the question Of taking It This
In the last thirty days j. PieTpont4 n Morgan g,, per
ganize the finances of the Third Avenue eDc company
on condition that the stockholders would consent to
guarantee to the stockholders per cent per annum
in perpetuity.
MR.. KEENE's HOLDINGS
James R. Keene also issued statement last
night freely admitting the truth OF the report
that he heavily interested in Third Avenue.
He says:
stoei; OF the third Aven1e Paiiroad Compafiy.
ha%e Gr made Info @ Z h In og f o 6a
period Of time and thoroughly secured The right
connection with any plan to place the company on
party to whom have loaned the money have we
therefore. in sympathy with his interest as well
this interest 70 any project or scheme that would
have taken great pains to inform myself
specting the value of the property of the company
after the most thorough investigation am salts
a when
best paying properties in the United States of
AWsFiGa WFi fav.r NAV ,o tho nronossa n,on for on
ceptable REORGANIZATION of the company, it will have
my earnest and thorough support.
Wall Street while it was inclined to accept
the statement that a syndicate had been
formed, could not learn that any agreement had
been actually signed by representatives of such
syndicate and of the Third Avenue Board of Di-
rectors. and bearing in mind the occurrences
preceding the collapse of the negotiations be-
tween the Third Avenue Board and the Kuhn
Loeb syndicate when the signing of binding
agreement was put off from day to day, and
finally made impossible by the withdrawal of
Kuhn, Loeb & Co., the Street took the view that
perhaps the troubles of the railroad company
were not after all yet ended. Among the houses
included in the syndicate said to be Yer
milye & Co. Heidebach, Ickelhemer & Co.. and
Hallgarten & Co, but the report could not be
positively verified That some of these firms are
at least Professionally of the syndicate. however
seems probable. William A Read, of Vermilye
& Co, when asked if it true that his firm
was at the head of the syndicate, answered. II
haven't anything whatever to say at the pres
ent time. Perhaps there may be something to
be given out in the course of few days. but at
present don't care to discuss the subject"
It is understood that recently as yesterday
the Third Avenue directors made another effort
to induce Kuhn. Loeb & Co. to reopen their
negotiations for taking up the company's float
ing debt, but that the bankers absolutely re-
fused to consider the matter again. 1t was re-
ported yesterday afternoon that the new syndi-
Gates plan contemplated the issuing of short
term per cent notes at SO less per cent COM
mission, these notes later to be funded with the
present outstanding bonds into a new mortgage
bond issue at %. less per cent There was
also talk of intention to dispose of $S 600 600
of treasury stock to be underwrittcn at par less
10 per cent commission. which would produce
the sum of $72OOOO0; and still another rumor,
which Mr.. Curtiss's later statement shows to
have been well grounded had it that there was
a plan for organizing a company, with capital
of $4OO0OOO to guarantee the payment of divi-
dends.
CREDITORS COMMITTEE INACTIVE.
The Creditors Protective Committee which is
pursuing policy of mastery inactivity. had an
informal meeting yesterday, but gave out no
news. The best information is that the Pro-
tective Committee is considering plan for
the relief Of the creditors, but that ii will he
held in allegiance for few days in the hope
that the directors of the road may find interests
sufficiently strong to finance the property
Thomas F. Ryan said last night TO a Tribune