New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-11-22
TRACTION MERGER RUMORS
TALK OF ABSORPTION OF MANHAT-
TAN BY SUBWAY COMPANY
CLOSE OBSERVERS FAIL TO SEE WHAT
WOULD BE THE OBJECT OF SUCH
CONSOLIDATION.


a CONSOLIDATION
One of the most battling mysteries which Wall
Street has had presented to it in years for solu-
ton has been the occasion of the movement in
Manhattan Railway stock this week. The pre-
vailing belief. insisted upon positively in some
quarters is that control of the Manhattan is to
pass has already passed to the InterborouSh
Rapid Transit Company. the corporation which
Is to operate the subway railroads now under
col struction. No confirmation of this report,
however could be obtained yesterday from any
interest prominent in either corporation. George
J. Gould. Alfred Sl1itt. president and vice-presi-
dent respectively of the Manhattan Railway
Company declined to comment upon any of the
rumors affecting their property.
August Belmont president of the INTERIOR
ough company, was seen he was leaving his
office at the end Of the day. When asked if he
would deny the report that the Interooroush
was to lease the Manhattan, he answered that
he would not discuss it at all.
A man who represents the most prominent
interest in the marlborough company, declared
with some asperity that there was no truth
whatever In the published accounts of deal
with Manhattan, but added that If he found out
the director who alleged to have given a
published interview in regard to the matter,
either that director or he would leave the board.
"A director of the Manhattan Railway Com
pany'' was quoted by a Wall Street news bu-
saying: Il have positive knowledge
that any deal has been made for the transfer
of the control of that company to the INTERIOR
ough or any other company, but am convinced,
from what I do know and see, that some ar
rangement has been made by powerful interests
concerning the holdings of Manhattan stock by
George j. Gould and the Gould family, and that,
such arrangement having been made, the people
after the control of the road have gone into the
open market and have bought enough addi-
tional stock to assure them such control"
On the other hand 1t is significant crcum
stance that men who from their associations
would be presumed to know the facts either
declare that they are without information as
to the plans for the disposal of the Manhattan
or fatty express their incredulity over the story
that the subway company has acquired the
elevated system. What these financiers ask,
would the Goulds have TO gain by surrendering
their virtual control of the Manhattan, a prop
erty which Is now earning per cent and pay
ing In dividends per cent, and which it is
confidently expected will within the next year
or two be earning 10 per cent? And what far
reaching benefit be derived. they further
ask. from the combination of two long haul
systems which are practically parallel and COM
petng, when there is no rate cutting which is
to be stopped by combination and no advance
of fares can follow combination?
In all the talk about the Manhattan and the
Interborough there has been kept in mind by
Wall Street the possibility that the Metropoli-
tan Securities Company might loom up as
factor in the situation. That that corporation
Is not at present concerned in negotiations for
the acquisition OF the Manhattan is known. 1t
is nevertheless confidently believed by many
students of conditions that the leasing of the
Manhattan by the observation-disclosures the
long haul systems OF this borough and The
Bronx-will in the course Of time be followed
by the passing of the marlborough and the
Manhattan into the control of the Metropolitan
Securities Company which, through its owner
ship OF the Interurban Street Railway Company,
controls the Metropolitan Street Railway Com
pany a combination of all the surface railways
Of Manhattan and The Bronx. The charter of
the securities company gives the company the
right TO take over control of companies owning
or leasing elevated roads. underground roads.
tunnels. tunnel railroads and bridges.
The interesting fact became public yesterday
that II. II. Vreeland had some time ago been
elected president OF the Metropolitan Securities
Company and of the InteTurban Street Railway
Company succeeding head OF the latter cor
poration Thomas =. Fowler, who had been tenn
porary serving as president, and also that
William l.. Elkins had succeeded Mr.. Vreeland
Company, an office now carrying with it few
duties.
II was reported yesterday that the Manhat-
tan Railway Company would probably soon is
sue Sl2OOOO0O additional stock, bringing the
total capital up to $6O0OOOOO the issuance of
this new stock, presumably at par. representing
valuable rights for the stockholders. The
last increase of stock. $1S,OOO.OOO. was voted in
March, 1899, and it was announced at the time
that the proceeds of S1OWOOOO of this stock
would be applied to meeting the expense of
electrical equipment of the system 1t is now
said that the completion of this Improvement
will require several millions more. and that
considerable part of the reported new stock will
be used for this purpose.
Manhattan stock sold high 1915 and
low as 1895 the Stock Exchange during the
morning session yesterday. The demand for the
stock was comparatively light. The highest
point reached in the afternoon was 1924, and
it closed at 151, net loss for the day OF 11a
points
The feature of the curb market the bid
ding for stock OF the Interborough company,
both the full paid and the 10 per cent paid.
Offerings were meagre. however and in the
first hour only sale reported-hfty
shares-the price being 100. an advance of
points from Thursdays close. Subsequently 100
shares were sold at 1211a.
CORNELL's 1000 FRESHMEN.