The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1902-11-27
THE LEASE OF THE
MANHATT TAN LINE
Taken by the lnterborough
for 999 Years.
AN INCREASE OF STOCK
New Shares Amounting 10 Seven Millions in
Value viii be Taken by the Manhattan
Stockholders at Par--TEe Official
Announcement.
(By the Associated Press.)

by the Associated ProSS.1
New York, Nov. 26.-The official an
nouncement was made today that the
Manhattan Elevated Railway Company
will be leased to the Interborough Com
pany, which is to operate the subway now
being built, to take effect April 1, 1908
The rental from April l. 1903, to January
/. 1906, will be the net earnings of the
Manhattan Company, not exceeding per
cent After January 1, 1906, the rental
will be per cent fiat, on Manhattan
stock guaranteed by the Interborough
Company. The Manhattan Railway Com
pany will increase its stock to s55, zoe, 900
for the purpose of completing improve
ments. This is an increase of about
S7,000,0O0. The Manhattan stockholders
will be given the new stock at par.
Povisior is to be made in the lease
for the ultimate increase of Manhattan
stock to the total amount of $50 900, ,000.
The lease is to be for a period of 999
years.
The official announcement made by the
two companies says:
1.-THE other details of the lease will be
those customarily adopted in similar
cases.
''The lease will provide security salts
factory to the Manhattan Company for
the payment of the dividend rental.
''The board of directors of both COM
panies, at their meetings, approved of
the general proposition and have author
lied their officers to prepare under the
advice of counsel lease which will have
to be submitted to the board and to a
meeting of the stockholders for ap-
prevail"
August Belmont, of the Interborough
Company, made the following statement
this afternoon:
''The directors of the Interborough
Rapid Transit Company have this day
after previous long deliberation and in
vestigation, determined for reasons which
appear to them important and controlling
as affecting the interests not only OF
the stockholders OF the company, but
of the city and of the travelling public
to lease the Manhattan system of ele-
waited roads for period of 999 years
on the terms given out this afternoon.
'It is believed that this plan when
peri acted will work out prompt and sat
isfactcry system of interborough transit,
both lessor and lessee being thereby en-
increase and develop facilities for trans
portation, rather than-as would havo
been the case if the properties had re-
mained scparate-beng engaged largely
in the effort to divert traffic the one
from the other.
''It is not intended by this arrange
ment that any of the plans for the devel-
opment of the interborough system shall
hn ;nfo fod or tod In
meanwhile. however. before the exten-
sions can be completed, the two systems
will work in harmony Nor is it intended
to dispense with any additions which are
desirable for the Manhattan property.
The proposed authorized but unissued in
crease of capital stock of that company
beyond the s55, 600 up to $6o.000O00,
an important part of the plan, has been
provided for to that end.
cit is impossible. in any brief state
ment. to give in detail the advantages
which-as the negotiations for lease
have progressed-have appealed to those
who will be practically identified with
the manag cement of the united system,
but these advantages affect both economy
of operation and convenience of public
traffic. AS have said, however in COM
been considered by the directors of the
Interborough Company that they were
not alone charged with the duty of car
ing for the best interests of the stock
holders, but also that they are carrying
responsibility of the management and de-
velopment of a quasi municipal enter
prise and they have come to this decision
with the conviction that they were act
ing for the best interests of the city and
the travelling public both for the pres
ent and the future
George ]. Gould. president of the Man
haitian Company. followed Mr.. Belmont's
statement with the following:
Il have seen the interview with Mr..
Belmont, and so far as the Manhattan
system is concerned, we agree with him
that a union of the two properties will
bring about a conspicuously satisfac-
tory solution of the rapid transit prob
lens of the Metropolis, while, at the
same time. the advantage of a fixed
guarantee by a corporation of the char
acter of the Interboroughh Rapid Transit
Company will be appreciated and accept
cd by the stockholders of this company,
a large number of whom have, of course,
as negotiations have progressed looking
to this lease, approved of the proposed
plan"