The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-03-03

To the ~stocthoidcrs Of the
METROPOLITAN Street Railway Company.

The Executive onncers OF your Company have
issued q notice 70 you OF a meeting 10 be held on
the 10th day Of March. 1907, for the purpose OF
securing the sanction OF two thirds OF the stock
holders to a proposed lease TO be made by the Mo-
ropolitsn Street Railway Company 70 the Inter-
urban Street Railway Company and an additional
Issue of tiiyo 900 Of bonds.
II Is proposed by the lease perpetualy 20 limit
the dividends Of the Metropolitan street Rail-
way Company 20 its stockholders to seven
per cent, which amount and no mora V y be
nxed By the lease and 10 be guaranteed oy q cor
poration whose assets are TO consist practically
Of the assets OF the Metropolitan Street Railway
Company. eighty per cent. Of the capital OF q new
Company Is generously accorded to you az par.
twenty per cent. being reserved for subscription
by the promoters OF this unexpected and uncalled.
for speculative scheme.
You are also asked TO approve OF the Issue Of On
additional mortgage Indebtedness OF ti.ooo.cco
OF bonds. which may be disposed OF practically
at the discretion of your leSsees.
In return for It's quick assets your Company 70
10 receive ~sufncient capital TO pay a floating debt
Of about S.0oO.o00. created. II Is said, In the pur-
chase Of Third Avenue Railroad stock. which to-
gether with all other existing obligations the stock
holders were informed we're fully paid out OF the
proceeds OF the last and very recent issue OF stock.
to which you assented. The remainder IA, II 10
stated, TO be applied principally TO change OF mo-
tive power Of existing horse car lines and for the
acquisition Of franchises In The Bronx OF uncsr-
tain value nj n price not disclosed.
Vague suggestions are limited az OF further In
vestments In other enterprises not essential In q
conservative view, and calculated 10 Jeopardite
the value OF the security upon which YOU are asked
10 depend.
We are stockholders OF record. and represent
many other large holders. Our stockholding in
terest has continued TO he maintained for more
than ten years. an investment justified. in our opin-
ion. by the certainty that this great system OF
railways In the second largest city In the world
would, within the next few years. reach and main
tain q dividend earning capacity far beyond seven
per cent.
II is in our opinion imprudent and undesirable
to exchange the certainty which we now possess
for the speculative possibilities which the pro
posed scheme holds out to you.
II the company has a legitimate or any hosting
debt. and II IL requires money for further improve
ments. we are confident that the stockholders
would. alter en- examination Of the Conpany's
actual CONDITION and needs. be ready and entirely
willing 10 assent to a further issue of stock al such
price as may be determined. or TO dispose OF some
OF its quick assets In order 10 raise any funds that
may be required.
Entertaining these views and believing they are
participated In by the majority OF stockholders.
we respectfully ask you to send US O proxy 10 be
used at the meeting for the purpose OF voting
against the proposed lease and increased bond
issue.
Mills building.