The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1902-11-27
RAPID TRANSIT
WAR AT AN END
Manhattan Elevated Leased bA
the Inter Borough.
LEASE is TO RUN 999 YEARS
DETAILS Of THE AGREEMENT
AND OFFICIAL STATEMENT.

announcement was made today
that the Manhattan Elevated
Railroad company will be leased to
the Inter- Borough company, which is
10 operate the subway now being built,
TO take effect April l. 1903. The rental
from April /, 1903, to January l. 1906,
VIII be the net earnings of the Man
haitian company, not exceeding z per
cent After January !, 1906, the rental
will be per cent fiat, on Manhattan
stock guaranteed by the Inter- Borough
company. The Manhattan Railway
company will increase its stock to $685.
100000 for the purpose of completing
improvements. This is an increase of
$1000.000. The Manhattan stockhold-
ers will be given the new stock at
par.
Provision is to be made in the lease
for the ultimate increase of Manhat-
tan stock to the total amount of $780,
100000, the lease to be for period of
999 years.
Announcement Made.
The official announcement made by
the two companies is as follows:
The boards Of directors of the In
Peterborough Rapid Transit company
and of the Manhattan Railway COM
pany met this afternoon for the pur-
pose of taking action relative to the
leasing OF the Manhattan Railway COM
The lease will take effect on April
1, 1903 to be for 999 years and to cover
all the franchises and property of the
Manhattan Railway company
The rental from April l. 1903, to Jan.
!. 1896, will be the net earnings of the
Manhattan company, NOT EXCEEDING
per cent; after Jan. l. 1866. the rent
will be per cent per annum on the
stock of the Manhattan Railway COM
pany. guaranteed by the Inter-B Borough
Rapid Transit company. The Manhat-
tan Railway company stock is to be
increased at once to $50, 2O0.00O for the
purpose of completing improvements
already planned. the present stockhold-
ers of the Manhattan company to have
the privilege of taking the new stock
pro rata at par.
Increase of Stock.
Provision is to be made in the lease
for the ultimate increase of Manhat-
tan stock to the total amount of 500
100000 including outstanding stock,
and due provision is to be made for
the Application of the proceeds of the
sale of the increased stock to the
further Improvement of the Manhattan
property.
"The Inter Borough company will
pay ten thousand dollars (s10.OOO per
annum to keep up the organization
of the Manhattan company in addition
to the dividend rental. which shall be
paid to the stockholders. and Man
haitian stock viii be stamped with a
contract OF the Inter- Borough company
to this effect.
"The other details of the lease will
be those customarily adopted in similar
cases. The lease will provide security
satisfactory to the Manhattan for the
payment of the dividend rental.
THE boards of directors of both COM
panies at their meetings approved the
general proposition and have author
lied their officers to prepare, under the
advice of counsel. a lease which viii
be submitted to the board and to
meeting of the stockholders for aD-
prevail"
Reason For the Deal.
August Belmont of the Inter- Borough
company gave out statement this aft
ernoon in which he said:
THE directors of the Inter- Borough
Rapid Transit company have this day.
after previous long elaboration 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 the trav-
cling public. to lease the Manhattan
system OF elevated roads for a period
of 999 years, on the terms given out
this afternoon.
at is not intended by this arrange
ment that any of the plans for the
development of the Inter Borough sys-
tenn shall be interrupted or departed
from. Nor is it intended to dispense
with any additions which are desirable
to the Manhattan property.
George ]. Gould, president of the
Manhattan company. followed Mr.. Bel
mont's statement with the following:
Il have seen the interview with Mr..
Belmot and, so far as the Manhattan
system is concerned, we agree with
him that a union OF the two proper
ties brings about a cOnspicuously sat
isfactory solution of the rapid transit
problem of the metropolis, while, at
the same time, the advantage of
fixed guarantee by a corporation of
the character of the Inter Borough
Rapid Transit company will be appreei-
ated and accepted by the stockholders
of this company, a large number of
whom have, of course, as negotiations
have progressed looking 70 this lease,
approved of the proposed PLAN