New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-20
KEENE IN THIRD AVENUE.
AN EXPLANATION OF THE BREAKING
OFF OF THE NEGOTIATIONS WITH
KUHN. LOEB & co.

nanv The fact was also established that the
Standard OH interests have not been and are
not now investors in Third Avenue stock, the
report that they were heavy purchasers of it
having arisen from the fact of the election last
month of William H. Curtiss, at that time pri-
vate secretary of William Rockefeller, treas
urer Of the Third Avenue Railroad Company.
Mr. Curtiss has since then severed his connec-
ton with the Standard Oil Company. Mr.
Keene said yesterday, quoted:
II have lent some money Third Avenue
stock at par, but l never bought or sold 100
shares of it in my life. The stock at par is
different from what it was at $40. The COM
pany's Indebtedness, I admit, is somewhat
greater than 1 believed the time advanced
the money"
The stock referred TO by Mr.. Keene 1t is
learned on good authority. is that of Henry
Hart In the recent panic in the stock market
Mr. Hart, who owned more than fifty thousand
shares of Third Avenue, found himself in need
OF financial assistance, il is said, and syndi-
cate was formed which. it was announced at the
time by Third Avenue interests took over
large part Of his holdings. The syndicate. IT is
learned from a trustworthy source. bought
S3eoOoO of the Hart stock at par though the
stock was then selling for 12O, and advanced
Mr.. Hart 100000 in cash additional, taking
as security twenty thousand shares of his stock
at par The syndicate received 6 per cent in
terest on this sum. and in addition had a call on
some stock good for one year at 125.
Mr.. Harris stock is now said to stand in the
name of prominent Stock Exchange firm,
which handled the deal for the syndicate.
FAILURE OF NEGOTIATIONS.
Mr.. Keene was leading member of this syn
dicate it is understood 1t is also understood that
Mr. Reene's virtual ownership of a large block of
Third-ave. stock was the real reason for the
ct T7Vea ,af~
ave- directors and the Kuhn-Loeb syndicate
for the taking up by the latter of the railroad
company's S17,00000O floating debt and pro-
Tiding for the payment of the additional mill |
ions of obligations incurred and coming due |
within the next year. Mr. Keene it is said |
objected successfully the plan. which pro- |
vided for the exchange of the notes TO be issued
by the syndicate for stock authorized but |
not yet issued, the company's unsecured |
debt il was figured would much exceed the !
amount OF the unissued stock, the transfer OF /
which 10 the kuhn-Loeb syndicate would have |
placed the latter in control of the Third-ave. |
property As far as can be learned the direc |
tors of the Third Avenue Railroad Company are |
not at present in negotiation with any impor- |
tant interests for taking care of the floating |
oept Ihere are various rumors afoat as to |
the reason which induced Mr.. Keene TO take an |
interest in the road. one being that there an |
intention TO his talents as a market force in !
advancing the price Of the stock 1t is a ques- |
ton whether Mr.. Keene is acting in the matter |
as principal or agent. AS already said ii is |
interested in the rehabilitation of the property
and explicit denial of any such interest on the |
terday.
H. II. vreeland. president of the Metropolitan
Street Railway Company, made statement last |
night concerning the report that his company |
was interested in the purchase OF the Third |
Avenue Railroad.
MR. VREELANDS DENIAL
81 have been persistently denying" he said. |
"for the past five years statements that we had |
bought would ultimately buy the control of |
the Third Avenue Railroad. Notwithstanding |
these repeated denias the story is again revived,
and the persistence Of it seems to have con- !
WINGED a number of people that there is some
truth in it. Since it's last revival have been
approached by personal friends and business
men who are interested in that property, most
Of them, they tell me, because they have been
led to believe that would ultimately take it
over. I think IL is due to them and the pub
lie generally add to my present formal denial
OF this report the reasons why we do not intend
to acquire any interest in the Third Avenue
property.
we do not purchase roads the net earnings of
which are not sufficient to pay the interest
their debt, have bought property
that gave prospect of future development.
The ownership of fully developed railroad do
ing all the business for which it has facilities
and that must the interest before stock
dividends TO be thought Of on a debt of
100000. at which figures the bankers place
the company's engagements, is attractive.
1.-THE Third-aye. property is fully developed,
and has been for the last six years its recent
change from cable 10 electric traction being
only effort to reduce the cost of operation.
!. Its future growth depends upon the DEVELOPMENT
NJ OF its local lines elsewhere than on Third-ave.
u in al the franchises that acquire, improved
and merged into the metropolitan system the
development has been unprecedented and is still
going on. In examining the various railway
properties In New-York prior to perfecting plans
for converting our own lines to electrical trac-
ton, and having in mind the future growth of
the transportation business on Manhattan
Island, the territory to which we have restricted
ourselves, made up my mind that neither the
roads now constituting what is called the Third
ave. system nor the Third-ave. line itself were
necessary 10 our development and have never
had any reason to alter that opinion, which re-
cent events have proved was amply justified
To the east and west of the main line itself
and only block distant, parallel ii from the
Harlem River south, and elsewhere are on
parallel Streets distributing universal transfers
over the whole system
Pending further developments the part Of
the larger interests in the road the Creditors
Protective Committee decided yesterday not to
formulate a plan for the present. The commit
tee will await further attempts to finance the
unfunded debt.
Allegations Of spoliation of the company by
certain insiders were again current yester-
day, the charge being again heard that the firm
OF Naughton & Co. whose Tammany connec-
ttons are well known, received really only
struction work done by il for the Third Avenue
Company, 65 cents out of every dollar of profit
going 10 the Third-ave. insiders" and only 80
cents to the contractors.
Thtrd-ave. shares were again sufficiently
active TO make them conspicuous in yester-
days stock market Some 1900 shares were
traded IN, the highest quotation being 9SH, the
lowest 9612 and the closing 9SA a net gain for
the day Of IA per cent.
ALASKA BOUNDARY DIFFICULTIES.