New-York tribune., 1902-02-15

the coniectures and sIrmises concerning our plans
or two IT Vas Impossible for me to correct these
-enatijTe statements on nv part might have i'm
perilled the very interests which, in behalf Of my
has been The SLIGHTEST idea OF assoriating the Met
ropolitan with surface railroads in other cities.
The plan outlined in the communication to our
about the city of New-York. It looks TO present
metropolitan stock .hree great advantages. each
contribnting strongly 20 It's value-hTst, a %ider Ger
whereby such srfahgements With With respect to other
NeW-1ork transportation systems as may hereafter
hecome desirable be more easily effected than
WHAT IT CONCENTRATES
Put into the briefest compass this plan contem-
plates the leasing Of the existing ropolitan prop
critics to the Interqrban Street Railway @ SoinP3sn5 pam
a corporation which now possesses extensive IRAN
chises in and above The Bronx territory; the stock
he in great part owned by the Metropolitan securi
Ties Company, which will pay into the treasury OF
liquidate the unfunded debt of the Metropolitan
trical equipment: ali the fixed charges of the
Metropolitan to be assumed by the Interurban.
potsn stock an annual dividend of per cent; the
scribe at par for $23, 10000 of the stock of the
Securities company. amounting in all TO S0,oooo0,
nued in ohage Of the system and To
have control Of the expenditure of the fund for the
5,n our experience % has been proved again and
attractive TO investors In the acquisition of the
roads now operated by have frequently
per cen The sto Of ali hf sneR 3
on about per m eent bag and a so bgh are 6e
prized by investors that only in Very small
holders approve the plan now. submitted an un-
gTonoIit eaTtee VII ne aQrued 10 S,;si 1hS Mel
strength; first by the immediate expenditure Of
cation Of the metropolitan Franchises with those
o 5ne m s1 pa m mC9nany and tiTd by fs
~ me secuTlues company. Inis Is. guarahtse
Gay on whcS it e0es 6to effect pf be pTce Of
nred 6o IN k the sum IN t Of t money a ian Ga
VIII pay for a security that will yield cents
anything that lies in human calculation.
HOW PRESENT EXPENDITURE WILL BE
APPLIED
The advantage derived from having our immed-
ate wants provided for without the necessity OF
the volume Of securities is of signal import
is pay off the Indebtedness caused by the pur-
chase of the Third Avenue road and 70 change
the traction on certain Me;ropolitan lines from
horses to electricity OF the money heretofore
system there is still uneXpended and now avail
able more than 100000 our arrangement with
an e additiona i5a' Of cash % with which to COM
plete the electrical equipment OF the Metrob0I@tan @
20 straight into the development of Metropolitan
without the issue OF a single new security -
consideration the company for the oblga-
tions it assumes? In the first place the new COM
p2ny gets tnt future GeNelOHIneil lS Mrtiokoii-
tan Street Railway system beyond the payment Of
per cent upon the Metropolitan capital. and be,
yond the payment of its fun interest charges, and
my estimate Is that when these moneys have been
expended upon the property which provided
for by the new capitalization. the surplus earnings
Of the property will alone make the stock OF the
new company good investment In ADDITION 10
that, we transfer 10 the new company the float
claims, etc. equal in value. in my judgInent when
fairly realized upon-not now: but in the future
that If these estimates Of mine are correct the
m 4 Ep he new rOrk e.
fore have insisted that up the extent of about
50 10000 Of the investment in this new corpora
ee raised FOR the future uses OF the Metropolitan
participate, II they desire, in the investment.
WHY THEY ARE NOT SOLD.
or course the question srises Why not IT'S sell these
"a tbst ;s ,5.b reea-5 -, ,,s+ ~ tia,,, +,,, ne
not in condition, for Immediate sale, and. with
10 such an extent that it is better to hold them
The Third Avenue Railroad STOCK Ss Soe,5 Of
which is TO be transferred TO the company,
security until our management of the property
shows hcw absolutely secure an investment in this
property. A lot Of these stocks which are trans
sold now without dismemberfrg the property
Stockholders, therefore Of the Metropolitan Street
Railway Company voting for this lease should
understand that the privilege of taking the stock
in the company is in my judgment important
Tue other important feature Of the transaction
which ought to comment upon is that about one
nth of the new Capitalization is taken at by
ntude. and circumstances are such, that some
move OF this sort is in my judgment absolutely
necessary for my stockholders, and I do not want
ngureheads with me want gentlemen who have
got their money invested, the same have. A
few men have built up this property, but there is
been in the past one-half of its mileage below
hoTsecar mileage than there is in all the rest
The proposition now submitted 10 our stockhold-
ers has come TO US from gentlemen who have pro-
foundly investigated the whole matter who believe
anG by them % TeT RaTe ms 4e beE ~6o e3Reef to
IN such a way to enable them to carry out this
10 be in the interest Of the pubic and Of these
properties Once assured Of obtaining lease Of
whole OF the Securities stock any part it that
sisted upon for the benefit of our existing stock
holders has been satisfied.
We are thus associating ourselves with strong
10 US, and are securing to ourselves the opportu-
70 the fullest extent possible, but of engaging in
,oTcher1 berea boufs as II NAV he present4S in ibn
public requirements Of the future.
PURCHASE OF THIRD AVENUE STOCK.
be was forcIby presented to my mind when
bought the Third Avenue stock. There was then
ion and but for the indiVdnsi cooperation Of one
or heretofore identified with company
tained property which Is now so important and
valuable a part OF our system 1t had to be done
II the arrangement now proposed is approved by
tbemseiyes in NV opinion in much stronstr nnsi i
ton in every respect than they have been be
the assurance Of a transportation system inteiii-
gently worked out upon plans that will grow the
city grows and meet its requirements promptly,
safely and completely.
In answer TO questions from one and another
of the score Of newspaper men who had as
sembled 10 learn the result of the directors
meeting, Mr. Vreeland said that the plan for
transferring control Of his company was the