Cameron County press. [volume] (Emporium, Cameron County, Pa.) 1866-1922, 1902-03-27
a FIGHT IN COURT.
Merger of New York's Street Railways
Is IsInvOIved--IEisto of the Case.


New York, March 22.-Argument
was heard by Justice Gildersleeve in
the supreme court Friday in the pro-
ceedings begun by IL. Contente and
by i. and S. Wormser to restrain the
proposed lease of the Metropolitan
street railway to the Interurban
Street Railway Co. Both actions are
based on the claim that the action
contemplated, which was ratified at
meeting of the stockholders on
Thursday, is illegal and fraudulent
in that it involves the transfer of
the earnings of the Metropolitan sys-
TEN to persons other than the stock
holders of the company.
1t is also contended that the priv
ilege given to the Metropolitan stock
holders to subscribe for stock of the
Metropolitan Securities Co., which it
is proposed shall operate the system,
was in effect bribe to secure the APP
proval of two-thirds of the stock
holders, and is a violation of the
rights of those who do not approve
the scheme. The argument was
|. opened for the plaintiffs by Tread
well Cleveland.
Mr.. Cleveland recited the principal
points of the agreement between the
Metropolitan Street Railway Co. and
the Interurban Railway Co. He said:
This little Interurban Co. with
100000 capital assures a : per cent.
dividend on $52,OO0,0OO worth of Net
ropOlitan stock. The giSt of the plan
is this: To this little railroad is to
be leased all the great property of
the Metropolitan and what is it to
pay? Twenty-three millions. What
is it they receive? | assert that the
Metropolitan has in it's treasury to-
day $13, 100000 of unpledged secur-
tiles. 1t also has $l1,O0O,OOO of bonds.
The lnterurban is to pay $2j,000,
600 on the installment plan, when it
can. In return the Metropolitan
turns over to the Interurban $4,000
600. The Interurban is to guarantee
the stockholders of the Metropolitan
per cent. dividends. The Metropol-
itan, according to shrewd men, is
good stock In ten years it will be
vastly more valuable. The stockhold-
ers will thus be juggled out of their
earnings on the long years of pros
perity before this concern. This is a
ity before this concern. This is a
bold, remarkable plan by which a
small band of Wall and Pine street
gentlemen hope to get hold of an
enormously wealthy property"
Mr.. Cleveland contended that the
Interurban Co. was merely blind to
enable the Metropolitan Securities
Co. to get hold of the Metropolitan
road
Mr.. Guthrie in reply declared that
many of the statements made by Mr..
Cleveland were without foundation.
Every step in tins matter has been
taken at the advice of eminent coun-
SELL he said There may have been
mistakes of Judgment, but these were
not the fault of the stockholders"
Mr.. C~:thrie said that at present
there were so miles of New York
streets on which were run horse cars.
Under the new system the motive
power in these streets would be
changed to electricity. Mr. Guthrie
declared that last year the Metropol-
itan system had been operated at n
deficit of $4,000. He contended that
the directors had the interest Of the
small stockholders at heart when
they came to consider the financial
situation. Mr.. Guthrie then went
into the history of the lease of the
Metropolitan system TO the Inter
urban. He said that the whole mat
ter had for its singlencss of purpose
the protection of the Metropolitan
Street Railway Co. stockholders.
There was no community of interest
between the Metropolitan Railway
Co. and the Interurban. They had en-
tirely different directors and officers.
Judge Gildersleeve reserved his de-
cision.