The sun. [volume] (New York [N.Y.]) 1833-1916, 1902-11-27
MANHATTAN LEASE AGREED ON
TOINTERBOR0I'GH co.. Sss YEARS,
Z PER CENT. GUARANTEE.
Impression In Some Quarters That an
Omnibus Traction Deal Is Foreshad.
owed With n. y. Central and Pennsyl.
vania Railroads % Ultimate Guarsntors

pany for a period Of 900 years was made
Yesterday after meetings Of both boards Of
directors:
The b )ard OF d rsctors OF the marlborough
Rapid Transit Company and the Manhattan
Railway Company met this afternoon for
the purpose OF taking action relative to the
leasing Of the Manhattan Railway Company
to the Interboroush company.
The lease viii take ed ct on April /. 1903,
to be for eee years. and to cover all the fran
chlses and property Of the Manhattan Rail
way Company
The rental from April I. 1908. to Jan I,
1903. will be the net earnings Of the Manhattan
company. not exceeding seven per cent fSi:
after Jan. 1. 1905. the rental will be seven
per centum t7s, per annum on the stock Of
the Manhattan Railway Company suar.n-
teed by the lnterborOush Rapid Transit Com.
pany. The Manhattan Railway Company
stock ID 70 be Increased at once to SS. 20O.o 600.
for the purpose OF completing improvements
already planned; the present stockholders OF
the Manhattan Railway Company to have the
privilege Of taking the new stock pro rata
at par.
Provision Is to be ma de in the lease for the
ultimate increase but not before three years.
OF Manhattan stock to the total amount OF
~ ooo. 900, inclu ling outstanding stock. and
due provision il TO be made for the application
Of tho proceeds Of the sale of the increase ed
stock to the further improvement OF the
Manhattan property.
The marlborough company will pay $40, 90
per annum TO keep up the organization OF
the Manhattan company. In addition TO the
dividend rental which shall be paid to the
& ss%psd With CONTRACT 81 the Interior.
tn. other details Of the lease will be those
sa. s sdHPssS s .seuay e. Satisfactory
TO the Manhattan company for the payment
The board Of director. Of both companies.
proposition and have authorized their officers
lease, which will have to be submitted 20 the
board and 70 meeting OF the stockholders
for approval.
The words "but not before three years.
in brackets. were In the statement given
out by the PETERBOROUGH company and
not in the statement given out at the
Manhattan ofices.
This statement was made by MI. Belmont:
The directors Of the Interborough Rapid
yioas long deiberstion and Investigation.
determined. for reasons which appear to
them important and co9,trollins az affecting
the compsny. but Of the city and Of the he
travelling public. to lease the Manhattan
system OF elevated roads for q period OF 900
years on the terms given out this afternoon.
~ Is be lieved that this plan W hen perfected
VIII wort , out prompt and satisfactory is
and Lessee being thereby ensa sed in a com
mon effort to stimulate. increase and de
wond have Ss hs
.nsa sed largely In the effort to divert trafIo
that any Of the plans for the dsveiopment
Or s'e% IN sSs be
howeyr before these extensions can be-
completed. the two. systems will work In
Win any additions which are desirable Tor
the Manhattan property. The proposed au,
.soSs 81 that S bsSond X. s
plan. hss been royidsd fer e nat end
give in detail the ADVANTAGES which as
The nesetistiops for lease have nrosressed
csny idsntiasd with the nasemsnt Of
-: united system; but these s:,,s advantages SS
however. IN coming to the conclusion arrived
at, II has been considered by the directors
not alone charged with the duty Of caring
for the best interests OF the stockholders
but also that they carried the responsibility
come 70 this decision with the conv lotion
81 hs city hs lin both
for the present and the future.
President Gould Of the Manhattan
Railway company. followed with this
statement
Ihave seen the interview with Mr. Belmont.
rNd. so far As the Manhattan system il con
cerned. we agree with him that union OF
the two properties brings about q oonspic;
transit problem Of the metropolis, while Mt
the same time the advantages Of a fixed
81 The interboro%sS Rspid o. Transit n sa"' Conn.,
many will he appreciated and accepted by
the stockholders Of this company. a large
,iations have progressed looking TO this lease.
approved OF the proposed plan
Besides its capital stock the Manhattan
company has out about $4,000 900 OF bonds.
II owns 3775 miles of double track road.
II has number Of franchises in The Bronx
which have rot been built on and may be
utilized by the subway people under the
new lease. The Rapid Transit Subway
Construction Company. which is con-
1900 900 stock; while the marlborough
Rapid Transit Company, which was formed
originally to own and operate the subway
on its completion. has capita Of SIS, 0OO. 900
common stock. The company has no
bonded Indebtedness. the only obligation
ahead Of the common stock being a pay
nent Of 81, per cent yearly on about S37.-
100000 TO the city, and a sinking fund OF
| per cent, the latter to commence Ave
years after the road Is in operation The
Brooklyn extension was furnished by the
marlborough company, AZ it was deemed
better to use It's capital rather than accept
further advances from the city,
While very definite stat ,,nents have come
from the other local traction companies as
we'll al from the Pennsylvania and New
York Central interests that they are not
concerned In any Manhattan deal, the
opinion was Expressed in several Wall
Street quarters Yesterday that the lease
to the marlborough company merely rep.
resents another step toward the carrying
out OF . general scheme. which is sure TO
come. Of merger 81 all the local tract ion
properties. In the opinion Of one interest
the Pennsylvania and the New York Central
companies cannot help but have a hand
In the Anal scheme Of combination This
interest said that It would not be at all
surprising II the ultimate result was the
use OF the Interborough company to acquire
tho various local traction lines with the
Pennsylvania and the New York Central
ultimately guaranteeing dividends on the
Interborough stock.
The point was raised in one Wall 81 oct
quarter that the marlborough Rapid Tran
sit Company, unless IL buys other proper
tea between now and the end OF the con-
tract period with the city OF sevent y-f We
years. will have no other property but the
Manhattan companys lease at the end Of
that time, tho subway reverting to the city.
40 that the economies and development
OF facilities mentioned by Mr.. Belmont
xa,tn he afTa ba nil nj ha