The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1902-02-17
MILLIONS INVOLVED.
A Gigantic Street Railway Deal
in New York.

New York, Feb. lin the announce
! ment to the stockholders the directors
| of the Metropolitan Street Railway
| company state that an agreement has
| been entered into between the securities
| company and the interurban company
| (to which the Northern Mount Vernon,
! Westchester and Connecticut, Peoples
| Traction and Westchester electric lines
recently were consolidated), by the
terms of which the securities company
is to pay into the treasury of the in
terurban at least 500, 600, 900 in cash and
will receive in return stock at par and
debentureS bearing interest at more
than per cent. a year. The agreement
further provides that the securities
company shall acquire any further
stock and securities that the interurban
may hereafter issue.
If the stockholders of the Metropolis
tan ratify the lease, the interurban
company agrees first, to assume the
fixed charges of the Metropolitan Street
Railway company and Internationally
pay per cent. upon the entire capital
stock, and second, to pay $23, 100000
into the treasury of the Metropolitan
Street Railway company in return for
the securities liberated by the payn ent
of the unfunded debt and other assets
now almost entirely unproductive, said
sum to be expended in hquidating the
unfunded debt and in completing the
electrical equipment of the Metropolitan
system, and to be paid as required 1Or
these purposes.
The stockholders of the Metropolitan
are, under the plan, to be accorded the
privilege of subscribing at par for an
amount of the stock of the Metropol-
itan Securities company equal to IS
per cent. of the par value of the Metro
politan companys stock, which would
amount to $23, 400, 900 out of a. total issue
of $50, 600, 600.
1t was also announced in connection
with the plan that the Metropolitan
will create funding mortgage to Sc
cure an authorized issue of $65, 000, 800
of per cent. 100 year refunding bonds,
of which about $54, 00O, 900 would be re-
served to retire and refund the q is
sues of existing bonds secured by Len
upon various parts of the Metropolitan
system, exclusive of the Third avenue
line, as they mature, and also for re-
funding in advance of maturity such
of the bonds as can be advantageousiy
acquired by purchase outright or in
exchange for new refunding bonds. AS
to the bond plan, the directors made
the following statement to the share
holders:
by the terms of the agreement of
lease, the inter-urban company, as
lessee must provide the interest upon
the bonds to be issued under this re-
funding mortgage as well as all other
fixed charges without impairment the
guaranteed annual payment of per
cent upon the amount of the capital
STOCK OIL The metropolitan street fldlI-
way company. AS most of the existing
bonds bear interest at rates ranging
from to per cent per annum, it will
be possible by means of the per cent
refunding bonds to gradually accom-
plish substantial reductions in the av-
erage rate of interest upon the COM
pany's funded debt"
The incorporators of the Metropolitan
Securities company are: VIM. NJ. Bald
win Jr., Edward J. Berwind Paul d.
Cravat, Thos. P. Fowler, Geo. c. Haven, |
James H. Hyde, Augustus d. Julliard
and Mortimer L. Schiff, and the corpor- |
alton took the usual powers of such |
companies under the laws of this state. |
Its issue of sS0,00O.oO0 of stock has been |
underwritten at par conditional upon |
the ratification of the lease.
AS to the plans of the securities syn
dictate, President H. H. Vreeland, of the |
Metropolitan said:
1.-The stockholders of Metropolitan
have the right to secure control of the |
securities company, and it has been stip- |
ulated that the present operating man. |
agement of the Metropolitan shall con- /
tinue in charge of the system. There |
never has been the slightest idea of as
sociating the Metropolitan with surface |
in other cities. One half of |
the Metropolitan mileage below Fifty |
ninth street is still operated by horses /
more horse car mileage than there is in /
all the rest of the United States. This |
will be done away with.
1.-The new company gets the future de- /
velopment of the Metropolitan system |
beyond the payment of per cent on |
the Metropolitan capital, and beyond the /
payment of its full interest charges"
"rEn AN UII II kUED CTAnT