New-York tribune., 1900-04-12
THE THIRD AVENUE LEASED
THE METROPOLITAN TAKES IT OVER
FOR 800 YEARS-COURT AUTHOR
IZES IMPROVEMENTS

The Third Avenue Railroad Company was
leased yesterday for term OF 999 years to the
Metropolitan Street Railway Company at a
Joint meeting Of the two Boards of Directors of
the two corporations held at the Metropolitan
offices. The lease becomes effective on formal
ratification Of the action OF the Boards of Dlrec-
tors by the stockholders of the two roads at
special meetings to be called. The Metro
poltan guarantees to pay the Third Avenue
stockholders during the first four years of the
lease the net earnings of the leased property.
whatever they may be; for the two succeeding
years : per cent the Third Avenues stock
OF S16ooo0oo; for the following four years @
per cent, and thereafter Z per cent yearly. The
meeting which lasted about two hours was at
tended by nearly all the directors of the two
boards H. H. Vreeand who is president OF
both companies presided at the meeting, and at
its close made the following statement for pub
lication:
The announcement in reference TO the action OF
That was that Kuhn Loeb & Co were TO take
SS5e0Oo bonds OF an issue OF S00OooO on Ihlrd
up the underlying securities as they matured: and
would guarantee the principal and interest or the
bonds. Yesterday the Third Avenue Company ac-
boards met Jointly today. The Third Avenue Rail
road Company asked the Metropolitan company
The Metropolitan company naturally asked what
law one railroad company can guarantee the bonds
of another company only by. the traffic arrange
Inent Of lease. Their proposition to US was in the
form Of lease. and their proposition was formally
the Third Avenue Railroad Company would lease
10 the Metropolitan company the, the Third ooo Avenue
Owing TO the uncompleted state of the Third
Avenue property the Metropolitan company con-
sidered that it would take three or four years to
t ho Trd IN h
lease first TO guarantee the principal and interest
pay TO the Third Avenue company for the first
of the Third Avenue system We're above its OPP
Grating expenses and fixed charges-taXes, etc:
ai @ @ stock OF OF the T Third I Avenue % company ny the fo
Il m to oq ten TO n paY for PER the Of 6e
term Of the lease 70 pay per eent-that is on the
is SIC oo0G0 This proposition is subject to the rat
hcation OF the stockholders of both companies
President Vreeand added that the proposition
OF the Third Avenue company signed by
Walter S. Johnson chairman Of the Board Of
Directors of that company. He also said in
swer to questions that the subject Of the dis
charge of the receiver Of the Third Avenue road
was not discussed at the meeting.
Third Avenue stock which had touched 124
earlier in the day, declined sharply on the an
nouncement OF the terms of the lease, as It had
been rumored that dividends would be guaran-
teed from the outset In the last hour the stock
sold down TO 113. closing at III. a net gain for
the day of per cent.
Acting on the petition OF the w NaSHlilSlOH
Heights Taxpayers Association for the immedi
ate completion Of the construction work in Am
sterdam-aVe., which request had the indorse-
Inent Of N. c. Starrett, chief engineer of the
Metropolitan Street Railway Company. Hugh
J. Grant receiver of the Third Avenue Railroad
Company yesterday petitioned Judge Lacombe,
of the United States Circuit Court for permis-
sion TO enter into contracts for the finishing
UP of certain improvements.
Judge Iacombe late in the afternoon signed
the necessary order and authorized the receiver
60 borrow the amount necessary to pay for the
work upon the completion and issue his notes
or other obligations therefor. There are three
orders. The first directs Receiver Grant to en-
into contract with Naughton x Co for
the completion of the construction work in Am
sterdam-ave. from One hundred and -sixty-frst-
81. hundred and -ninety y-fourth-st., in
cluding the changing of the Love system
from One-hundred- and eighty -seventh-st. to
One hundred -and-ninety -fourth-st., and the
laying of a double cross-oVer at One-hundred-
Observation-Disclosures all at a cost not to ex-
ceed SI9.6S4.
second order directs the receiver to enter
into contract for the purchasing and drawing
into the ducts from e-hundred sixty
frst-st to One-hundred- and ninety -fifth-st. of
6S $40 feet of insulated wire, at a cost not to
exceed 93 cents a foot. The receiver by the
third order is authorized and directed to en-
ploy the necessary engineers to superintend and
do the required engineering on this work.