The sun., 1903-06-17
WHITNEY EXPLAINS THE LEASE
4 GOOD BARGAIN. NE SAYS, FOh
METROPOLITAN.
Manhattan Was wanted. but Was Lost d!
Delay Due to Obst cles Like the Worm-
ser Sliit-ThOn,as q. Ryan and Metro
pOIitan Securities Men TESTIFY.

William c. Whitney was the star witness
yesterday in the suit brought by lsidor
Wormser Jr, to break the lease OF the
Metropolitan Street Railway TO the Inter-
urban Street Railway Company.
Mr.. Whitney testified that he had been
interested in surface railroads in New York
since 1885, but that his interest had never
been a controlling interest. The part he
played in the negotiations for the lease
was that of stockholder and adviser.
When asked what he knew Of the standing
of the Interurban company and the men
connected with it, before the lease was
negotiated, Mr., Whitney said
"Ihad never heard OF most of the men con-
nected with that company and knew Moth
ing about its financial responsibility and
cared nothing about it. What | WAS inter-
ested in was its ability To carry out the terms
Of any contract it made with the Metropoli-
tan Street Railway. | became satisfied
OF that responsibility through the guaran-
Tee of the Metropolitan Securities Com
pany and the men behind it. and with the
guaranteed underwriting of Kuhn, Loeb
& CO.
STATEMENT by MIR. WHITNEY
What was your understanding of the
details of the plan by which tie Interurban
company was to provide 1000 900 for the
Me'ropoli,an Street Railway Company?"
asked Mr. Stickncy, counsel for Wormser.
-Iou cannot get all the facts Mr. Stick
ney, by pinnrg me down to questions and
answers If YOU want the facts, you must
lei me give YOU the story in my own way"
Il shall be pleased to haze you do so,
Mr. Slckney replied. and sat down Then
the witness proceeded and for half an hour
told his story.
The metropolitan system" said Mr..
Whitney, had a floating Indebtedness of,
$4,000 900 TO complete contemplated i'm
piUvemnnts You cannot understand the
motives which move men to a transaction
Of this character without understanding
the condition of the properties whose in
terests they are seeking to conserve. Mr..
Vreeland had been president of the Metro
politan for about ten years. During most
of that period Mr.. Root. Mr.. Ryan, Mr..
Wldener. Mr.. Dolan and myself helped him
TO carry the burden. From the day he
became president of the company until
about 1901 there was not a period that
Vreeland could not and did not have at
least one-third of the time of the men |
have mentioned.
vREELAND COULDN'T CARRY BURDEN ALONE.
But early in 1901 Mr. Nreeland was con-
fronted with new condition of affairs.
Mr.. Root had become Secretary of War
aud his time was taken up with official
duties l had practically retired from
business Mr., Dolan was taken up with
the affairs of the Municipal Gas Company
and other interests. Mr.. Ryan had become
very largely interested in great number
of enterprises, and Mr. Widener was occu-
pied with matters in which he was per-
sonally interested. SO it happened that
the men who had rallied to Mr.. VreelaEd's
support at every call. whose best advice
had always been al his command, had
dropped out and he was left alone.
He stood it as long Az he could and much
longer than most men would. Then one day
he told those who had been associated with
him that unless he got better support,
and quickly. he would resign. We were
I hen confronted with two problems to pro-
vide men to support the president or lose
him, and to provide money to meet the
needs of the company.
The needs of the future were very large.
The company had acquired many and
valuable properties, but these would be
burdens unless they could he improv we'd
to meet future needs Men. and strong
men, were needed to back up the president
so the proposition was more than a
mere financial proposition, and we took
It up with more than the financial end in
view. The needs of the Metropolitan were
men and money
GOOD BARGAIN FOR METROPOLITAN.
1T became known TO me that Kuhn, Koeb
4 Co. were considering the strengthening
the personnel OF TIE management. Know
their own proposition and the other one
of providing the company with the neces-
sary funds Those of us who had been
Interested in the management of the com
pany in the past insisted, first, last and
all the time. that the Metropolitan stock
holders should have their dividends guar
auteed to them.
we got that and we got more We got
the privilege of participating in 20 per
cent. Of the business upon which our divi-
Kuhn. Loeb 4 Co. demurred, at first, TO our
participating In the stock holdings of the
new company, but finally consented.
Il believe | might have consented to
the terms of the transaction with only
ne dividends guaranteed. but we got more.
and / am glad that our stockholders are TO
have the benefit of It. As result I'VE have
the money We need and we have brought
the support OF President Vreeland the
ongest body Of men who could have
been got together in New York
NEEDED THE BRONX FRANCHISES
But there is another feature of Ibis
lease The Metropolitan Company had
acquired many properties whose own
values were enhanced by the combina-
ton We acquired these propert les under
the syst EN- of transfers which now is in
vogue. This system has been carried so
far. however, that we are now CARRYING
more than half our passengers at q. cents
each. 1t was impossible for us to extend
this transfer system indefinitely with
out losing money But the gentlemen
who made this proposition to us came
with franchises in a district in which there