New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-10-03
ON THE STAND.
METROPOLITAN PRESIDENT TEsTI-
FIES REGARDING COMPANY'S
EARNINGS.

Albany. Oct. (SpeciaD.-The States attorneys
Deputy Attorney-General Conan and J. Newton
Fiero, cross-examined here to-day II. Fl. Vreeland
president, and Charles e Warren. the treasurer
of the Metropolitan Traction Company in relation
TO the value of that company: the cross-examina-
ton being a part of the evidence which is being
submitted to ex-Judge Robert Earl. of the Court
OF Appeals. as referee in the proceedings brought
by the corporations Of the State TO test the judg-
1rent Of the State Tax Commissioners in valuing
The franchises of the corporations under the Fran
chise Tax law
The corporations represented by ex-Gov-
ernor David B. HILL general counsel; ex-Judge
Charles r. Brown and ". H. Page, representing
the Metropolitan Traction Company; Frank H.
Plat, representing the Consolidated Gas Com
pany; William N Dykman, representing the
Brooklyn and Coney Island Railroad Company,
and William F. sheehan and Charles n. Collin,
representing the Brooklyn Rapid Transit Com
pany.
Mr. Warren the first witness. Mr.. Fiero
bent all his efforts to extracting from him a
statement that certain alleged declarations made
ITO the Tax Commissioners Of New-York in 1898 in
regard TO the value Of the property Of that COM
tpany Were official. Ex-Judge Brown in behalf
rof the Metropolitan Traction Company, objected
70 the admission Of this testimony. saying Mr..
Warren had appeared before the Tax Commits
eioners two years in advance of the time when the
'State Tax Commissioners appraised the value of
nts property MIR. Fiero then called the attention
sof Mr.. Warren to the fact that when the Metro
politan Traction Company acquired the Lexng-
Ton Avenue and Pavonia Ferry line 1t assumed the
payment of s. 10000 in bonds of the latter COM
pany, and he asked what was the value of the
5ranchise. Ex-Judge Brown objected to this ques-
zion. I am trying TO learn" said Mr.. Fiero,
'what this road obtained for the 100000 obli-
Eations it assumed" Then Mr.. Fiero said: WAS
Ahe franchise worth s5.OoO0e0?'
Il don't know" answered Mr.. Warren.
II think said Judge Earl. that il would be
an Irresistible inference that this franchise was
worth s5.6OO.0O0"
THE TESTIMONY OF MR. VREELAND
Mr.. Vreeland then cross-examined as to the
value Of the franchises of the Metropolitan Trac-
hion Company
when was the electrical system installed?'
asked Mr. Fiero.
THE expenditure began in 1894" answered Mr..
Nreeand.
Mr.. Fiero then said: THE cable system which
cost 100000 discarded and it also cost $780,
He0 to install electrical SYSTEM"
Tibet shows the enterprise of the company, -
kaid Fx-Judge Brown.
The loss really occurred this year." said Mr..
Nreeland.
Then ] think that the loss statement should be
stricken since it did really take effect until
snow said Mr.. Fiero.
This change of system began in 1894, and there
fore the exact period of time cannot be set down
when it completed; in fact, it is completed
yet" said Mr.. Brown.
The interest the cost of reconstructing the
systems should be considered" said Mr.. Vreeland.
Mr. Fiero then sought TO learn from Mr.. Vreeland
the profit of the Metropolitan Traction Com
lpany from the operation OF the Fourth Avenue
Railway but Mr.. Vreeland said he could give
1T. THE accounts are not kept separate from the
several roads, said the witness. THE gross earn
ings Of each division kept, but not of the sep
=arate roads,
Mr. Fiero then asked that statement be pre-
pared for him by the Metropolitan Traction Com
pany showing the license fees and taxes Of the
Fourtl-ave- road. which were paid by the power
company. Mr.. Fiero gave notice also that he
should ask similar facts in regard to the other
leased lines of the Metropolitan traction system.
Mr.. Vreeland said that as soon as railway was
kept giving account OF its legal expenses. That
was charged against the Metropolitan system as a
system. not by the Fourth-ave. other roads
specifically; That is one of the benefits OF con-
,solidation,' said Mir. Vreeand.
LINE SAID TO BE LOSING MONEY.
Upon what did you base your statement that
you leased the Ninth-ave. at an exorbitant rate?'
lit does pay now" said Mr.. Nreeland; 1T
only 1872 cents car a mile but 1t costs 231s
cents car a mile 10 operate it,
''Do you have any record Of cars Of other lines
running over Ninth-ave.T"
SO that you would receive a benefit which would
mot be noted in your accountsg =,
answered Mr.. Vreeland
WAS there an increase in the receipts of the
lSiXth-aVe. road after its consolidation
There a marked increase in the Sixth-ave.
line.'' answered Mr. Nreeland- -
What do you mean by the SiXth-aye. liner
II mean the road that starts at South Ferry
and runs variou. lines to Fort George.
teen street railway lines that were used by cars OF
the SiXth-aVe. line in running from South Ferry to
There was an agreement then that the financial
statements Of the metropolitan Street Railway
and submitted TO the referee at the next hearing
----~-----