New-York tribune., 1902-02-15
HOLDING COMPANY FOR NJ. S. R.
LINE TO BE LEASED TO NTERURBAN CONPANY-
WHAT SECURITIES COMPANY is TO Do


The long expected plan for transferring the
! control of the Metropolitan Street Railway
| Company TO holding company was made public
/ late yesterday afternoon. at the close of a
meeting of the MetropoIitan's directors. held at
| the company's offices. No. 621 Broadway. The
| plan follows in general outline the forecasts
| published recently in the various papers. 1t
| provides for the raising of funds for improve
= ments, which it is figured will largely increase
! the earning capacity Of the Metropolitan lines.
| for Hquidating the unfunded debt of the Metro
! politan and refunding its present funded debt.
and for guaranteeing the payment of : per cent
! div dends on the S52000,O0O of Metropolitan
| stock.
/ AS was exclusively predicted In The Tribune
/ of Wednesday, the Metropolitan has been leased
! to the Interurban Street Railway Company. and
! the outstanding capital stock and other securi-
! ties of the lessee company have been acquired
i b. newly organized holding company, the
! Metropolitan Securities Company.
| DETAILS OF THE ARRANGEMENT
The arrangement is stated in detail in circU-
lar the stockholders of the Metropolitan Street
Railway Company. which is as follows.
Your directors have for some time had m under CON
approximately SZW6UW required 10 pay tne, un-
funded debt incurred In the purchase OF stock ot
,he expense of extending the electrical system to
upward of eighty miles Of Metropolitan INES stu
result, seemed desirable 70 avoid the' large in
would be necessary il the requirements were pro-
vided by the issue of additional stock. NesoJla-
tons indusurated by MtSsrS. huhn l1oe6 " 49, 20.
have resulted in proposition whleh not only meets
tages any other plan which has been con-
ent dividend RAT of I per cent per annum il
the Stockholders participation in the future
growth of the street surface IalrO Oh OH
city through The opportunity 10 subscribe tor al
Company thereinafter mentioned The new securi-
ties company will be in d more advantageous post
arrangements with respect 10 other Transportation
aiiording more comprehensye facilities for public
utHei IN the clIS 9t VoiI iract,rss bsys
under present condtlons; your GlreGIors itj~ dSe
accordingly acted tavoLaby upon Jne Pro-P1SlroH, -
is now submitted for approval - -,
The Metropolitan Securities Company has been
capital stock OF $5oooooo9 all Of which has been
underwritten par by Messrs. Kuhn Loeb & Co
conditioned upon the ratification of the lease herein
The Securities company has acquired all OF the
outsta nding capital stock and other securities OF
an e an5oIzed Sspa stock Of and owns
and Controls fra6chises for the construction and
mileage of streets in the Borough OF The Bronx
entered into between the Securities company and
tbe Secnries compsnv is To- nav into the treasury
OF the Interurban company az least SIS Ooo.Ooo in
stated. resolving in return stock Of the Interurban
at a rate not exceeding 1 per cent per annum The
agreement further provides that the Securities
curities that the interurhan company may here
B after issue.
AN AGREEMENT OF LEASE.
An agreement of lease has been entered into Sub
ject to the approval of stockholders between the
and the lnteIur3an company, as lessee. by the
do the following things. among others
=. ta) Assume the tixed charges Of the Metropolitan
Of its capital Stock payable ' q9artery: ter and
Cnl Pay S2Sto9ep into the treasury OF the Metro
securities liberated BY the payment of the un-
unproductive, said sum Of money TO be expended in
iquidatng the Infunded debt and in completing the
nG 10 Be- e as Feore 9I me for ip system
The stockholders Of the Metropolitan Street Rail-
su6cR I ps pae {S for ns an a4 e y t g@eg @ Of
the Metropolitan Securities Company equal to IS
tie IetropoSn P Street. Ps waT n rHe eag sGsE Of
10 say for Ss 10000 of such stock out OF the total
r5n is Biss ss9 S IL s9aasSson Nth The
secure an authorized issue Of SIS 10000 Of I per
about So are 10 b aeseeG 6G9RS 10 retire 95 ~n66 a66
refund the several issues (twepty- in ain OF
Of the Metropolitan system excluding the Third
Avenue lnes), as they respectively, mature. and
the existaE bonds as can be advantageousIy y ac cl
quired either by purchase or by way of exchange
the. agreement of lease, the Interurban Company
as lessee must pLoylde the interest upon the bonds
we'll all other nxed charges, without Impairment
Of the guaranteed annual payment Of per cent
upon the amount OF the capital stock of the Metro
! politau Street Railway Company AS most Of rhe
sxsting bonds bear interest rates ranging from
means OF the per cent refunding bonds TO eradIi-
age rafe Of Interest upon the companv's fpnGdd
debt The remainder of the refunding bonds not
reserved for refunding purposes are TO be issued
TO THE SOUTHWEST VIA ATLANTA AND