New-York tribune., 1900-05-18
THE LEASE RATIFIED.
METROPOLITAN TAKES THIRD AVENUE
FOR 900 YEARS-TO TERMINATE RE-
CEIVERSHIP-IMPRO
PLANNED

Stockholders of the Metropolitan and Third
Avenue railroad companies yesterday formally rat
flied the lease of the latter roed to the Metro
poitan system for a of 999 years The Met
ropoitan stockholders met in the morning at the
Gable Building. 1856 shares out of 44eoo being
represented. No votes cast against the rau-
fcation
: we shall take right hold of the road said
President H. II Vreeand after the meeting. III
will be solvent as soon the Third Avenue people
ratfy the lease this afternoon Application VIII
be made to the courts next week asking that the
receivership be terminated. Within a week from
to-day we shall probably be in possession or the
road
At another meeting convened Immediately after
the close of the first one proposition to increase
the Metropoltans capital stock from S4oo"eo 10
So 100000 submitted to the stockholders ana
determined upon without an adverse vote. Inc
additional cap,tal will be used in completing the
work of installing electricity upon all the lines OF
the company and in improving equipments
Mr. Vreeland read comprehensive statement 10
the Metropolitan stockholders, outlining the pres
ent conditions of the company, the outlook Tor the
future, and explaining the reasons which lnouceu
the leasing or the Third Avenue road MT Vree
land said at the outset
1t was in 1894 that the Metropolitan system
reached soehng y like its Its TACK it now
includes 22 mie % $50. It's ere sroSs @ g but it sue
ceeded in earning for its stock only $32s 600 IT'S
operating expenses being almost o. per fet M ross sls
earnngs Last year june 80, 1890 with oper- per
ted m n mileage 9Ry 80 wpfe Per sfn5 its
expenses IS 4OS, III o. its fixed charges were
Stockholders s247l65 miles of track operated
had Increased from 1sl miles TO to only }ndyn M e SEQ to
6oS56 and the percentage nd OF rs fsen from 90
per to 4S7 per cent.
Mr. Vreeland then proceeded to explain the terms
of the contract with the Third Avenue company
the additional mileage which would thereby De op-
Grated by the Metropolitan company, ana the terms
upon which the contract obtained Relating
these terms he said
It is proposed pay to the stockholders OF the me
Third Avenue company. in consideration OF TINS
lease. for the first four years whatever M may nS Sf
the net earnings of the leased hnes I9r lhe NJ NJ
years per cent upon the outstanuins @ cdpita e
per cent upon the outstanding capital stock, and
for the remainder of the term of the lease per
ment of the principal and interest of $5O,0Ooco
issue Of bonds by the Third H. FoHeen
millions of the bonds thus issued Will be retained f
the protection the funded debt of the d Third nod
Avenue that debt natures; and OF the SS3ooVVo9 @
betterments after the entire floating Indebtedness
100000 cash in hand. This sum will be sufficient
to complete the traction changes now In pr progress
tabiish the connections with metropolitan lines
vea $ SS6 M Geo M sgnnst he which it earned
as a separate line prior to the lease The e Eighth
Fourth Avenue viii earn ST. 10000 as against sSi5.
9l9 The Second Avenue will earn T450WO, as
against $70O023. We paying to the stockhod-
ers of the Twenty-third Street line fixed rental
of $1S6 500 IS per on its capital stock Ana
yet when we have paid this rental, have discharged
the interest on its funded debt and have paid its
taxes, no less a than 100000 comes into the
trea sury of the Metropolitan net income. The
Sixth Avenue line, running from the neighborhood
of the City Hall to Central Park. and there alb
ruptly terminating, conducted separately from our
system could never be of great value to its stock
holders But connected at Fifty-ninth-st. with our
Amsterdam-ave. cars and with our LeXington-aye' nave
cars. that the residents OF the great and grow
ing Side and of the thcklN populated sections
east of Central Park can swiftly and conveniently
reach the SXth-ave shopping district, its business
enables to pay an annual rental of sli5Oo and
all and the same time return to the stock.
holders of the Metropolitan 100000 in annual
profits.
Mr. Vreeland referred also to anticipated i'm
provements on the crOsstown lines. The expense
of removing and replacing pipe Instructions was
so great render the building of the under
ground crosstown system prohbitive. 1t was
pected that within a few weeks the Thirty-fourth
Street Crosstown line would be in operation by the
storage battery system and If this proved success
full the reconstruction of the remaining horse car
lines could be accomplished without heavy loss.
The stockholders of the Third Avenue company
met in the afternoon and ratified the leasing of
their line to the Metropolitan company 1271u
and none against it. No other business was