New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-27
THE TERMS OF THE LEASE
lNIERBOROUGH COMPANY GETS THE
MANHATTAN FOR 900 YEARS.


Inc persistent reports current during the last
week that the Manhattan Railway .-oupauv
was to be leased to the Interborough Rapid
Transit Company received official confirmation
yesterday afternoon, when the following state
Hent was issued by August Belmont president
OF the InteTbOrOugh Company:
The boards Of directors of The Trterbo~ougb
PaRIu P2 IranSlt Company and Of the Manhattan
railway Company met this afternoon for the
purpose or taking action relative the IeaS-
ing ot the Manhattan Railway Company to the
lnteroorough company. The lease will take
erect on April 1, 1908, to be for nine hundred
ana nlnety-nlne years. and tn cover all the
franchises and property of the Manhattan Rail-
way Company.
The rental from ApriI / 19a3 to January
l:"o' VIII be the net earnings of the Manhattan
company, not exceeding ! per cent. after Ian
y uary l. 1905, the rental will be : per cent per
ahhum on the stock of the Manhattan Railway
company, guaranteed by the Interb0ro1Igb
RAPID Transit Company. The Manhattan Rail
way Company stock is to be increased at once
20 ~ F'',-oVVuU Tor the purpose of completing
improvements already planned the present
stockholders of the Manhattan Railway Com
pany 10 have the privilege of taking the new
stock pro rata at par
Provision is to be made in the lease for the
ultimate increase. but not before three vaars
OF Manhattan stock 10 the total amount Of SfO-
UH,Ob, including outstanding stock and due
provision is TO be made for the apDIication of
the proceeds of the sale of the increased stock to
property.
per annUm to keep up the organization of the
Manhattan company, in addition 20 the dividend
rental, which shall be paid 70 the stockholders
ana the Manhattan stock will be stamped with
contract Of the InterborCugh company to this
The other details of the lease will be those
customarily adopted in similar cases The lease
viii provide security satisfactory TO the Manhat
rental
The boards Of directors Of both companies at
their meetings approved the general PROPOSE
tfons and have authorized their officers to pre-
pare under the advice Of counsel. lease which
viii formally be submitted the board and a
meeting OF stockholders for approval
WHAT MR. BELMONT SAYS
A similar announcement was issued by the
Manhattan Railway Company the only differ
ence between the two being that the Manhat-
tan statement does not contain the clause but
not before three years in the paragraph re-
lating to the ultimate increase of Manhattan
stock to S60OO000O. In speaking about the ar
rangement between his company and the Man
haitian, August Belmont said yesterday after
noon:
The directors of the marlborough Rapid Tran
sit Company have this day. after previous long
deliberaton and investigation, determined. for
reasons which appear TO them important and
controlling as affecting the interests not only
or the stockholders OF the company. but az the
city and OF the travelling public, lease tha
Manhattan system of elevated roads for period
OF 999 years on the terms given out this after
noon.
1t is believed that this plan. when perfected.
Will work out a prompt and satisfactory system
of 1nteTbOrOugh transit, both lessor and lessee
being thereby engaged in common effort -
stimulate increase and develop facilities for
transportation. rather than-as would have been
the case II the properties had remained sep
arate-beins engaged largely in the effort 10
divert traffic the one from the other
II is not intended by this ARA ngeu1eut that
any OF the plans for the development of the
1nterbOrOugh system shall he interrupted or de-
parted from In the mean while. however, before
TENS will work in harmony. Nor is iU intended
to dispense with anv additions which are de-
sirable for the Manhattan property. The pro-
posed authorized but unissued increase of capi-
tai stock of that company beyond the S55.20o.-
900 up to S600o00OO important part of the
plan. has been provided for 10 that end
1t is impossible in any brief statement 10 give
in detail the advantages whiCh-as the neSotia-
tions for a lease have progressed-have appealed
to those who will be practically identified with
the management Of the united system but these
advantages affect both economy OF operation
and convenience of public traffic. As I have
said, however, in coming To the conclusion ar
rived at II has been considered by the directors
of the marlborough company that they were
not alone charged with the duty of caring for
the best interests of the stockholders, but also
that they carried the responsibility of the man
agement and development of a quasi-muniCipaI
enterprise. and they have come to this decfsior,
with the conviction that they were acting for
the best interests of the city and the travelling
public. both for the present and the future
George J. Gould. president of the Manhattan
Railway Company. made the following state
ment:
l have seen the interview with Mr. RaIr,ont
and. far the Manhattan system is CON
cerned, agree with him that union of the
two properties brings about a conspicuolsIv
satisfactory solution of the rapid transit prob
lem of the metropolis, while at the same time
the advantages of a fixed guarantee bv a cor
pOratiOn of the character of the InterbOrough
Rapid Transit Company will be appreciated md
accepted by the stockholders OF this company
a large number of whom have. of course as
negotiations have progressed looking to this
lease approved OF the proposed plan
PURCHASE OF MANHATTAN STOCK
The precise amount of Manhattan stock which
has had TO be bought in the market for the pur-
pose Of assuring the success OF the plan Of Ieas-
ing the property to the InterborOugh company
is not yet known. 1t is accented by Wall Street
as fact that the Gould family are accustomed
to hold about 40 per cent OF the stock Of each
property in the management of which they are
dominant. but II is reported that In the case of
the Manhattan this 40 per cent may have rep
resented the combined holdings of the GouIds
and Mr.. Sage At any rate, il seems to have
been necessary for those interested in the COM
bination Of the elevated and underground rail-
way systems to purchase in the open market a
THE DETROIT AND CHICAGO LIMITED
Leaves Grand Central Station 400 p NJ arriving
chicago S:l5 next day. 2i-hour train via New York