New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1904-03-13
BREAK IN NJ. s. R. STOCK
DECLINE OF 4I-8 POINTS.
Belief an Street That Companys
Tunnel Plan Has Been Killed.

The weakness Of the stocks OF tho Metropolitan
Street Railway system the feature OF the
stock market yesterday. Metropolitan Street
Railway. which on Friday had lost 2h points,
yesterday suffered a further net decline OF as
points. closing within Il per cent OF the lowest
of the day at 1865. The dealings in this stock
about 1850 shares. were exceeded by only those
IN Pennsylvania. which is ''haf-stock." Met
ropolitan securities on sales OF 200 shares. suf-
fered net loss Of points, and Third Avenue
declined 2IR points. TO 117iR.
Various surrrises current 10 explain the
weakness Of these stocks which had depress-
ing effect on the entire market one rumor was
that some OF the holdings Of the late William
/, Elkins or the late William C. Whitney were
being disposed Of. but little weight was at
tached to this view. II was not believed that
any effort would be made to sell these holdings
in the present state OF the market. Another re-
port ascrfbed the decline in the Metropolitan
group 10 a realization by operators Of the fact
that the time was close at hand when the Met
ropolitan must begin 20 pay the guaranteed divi-
dend on the Third Avenue stock IlF 49,
politan street Railway Company on Aprtl .l5'
1900 leased the Third Avenue Railroad Com
many for n term OF 900 years. For the first four
wears which will end on April 13 next. the lat
ter road was to receive under the lease only us
net earnings above expenses and fixed charges
for the next two years. > per cent n year; Tor
the following four years. d per cent annually
and thereafter : per cent Although the Third
Avenue is not earning > per cent dividends on
SIS SIG 200 600 OF outstanding capital stock the
f,ct that a substantial majority of that stock
IS owned by the Metropolitan. which viii thus
9, effect nav over 20 itself the greater part Of
the guaranteed dividend. taken to signify
.t+ g was not the Third Avenue dividend con-
s,5eratjon which had caused the sudden depre-
,,..ior IN the market value Of the Metropolitan
shares.
Apo,be- explanatory rumor was that the city
,-s alou. 70 take steps to collect back taxes
fro-, the Metropolitan. The best opinion IN
Tho Street however. connected the decline IN
Nretrouolitan with the fact that the Metropoh-
tan ulan for building an underground road IN
this city which plan was presented Tort
I'll. or so ago to the Rapid Transit Commits
sion. had been killed at Albany by the de-
cision Of the Senate Cities Committee TO com
r,ra the Elsberg BILL which it is generally be-
1,avaa I'm Wall street cannot pass. with Senator
Whites rapid transit bills, which were sent 70
Albany nv the Rapid Transit Commission. and
which empower the commission to eXpend the
Funds for additiona! subway construction In the
Same way as that in which they have expended
the money used IN the building Of the INTERIOR
ough Rapid Transit Company's system
The combination OF the White and Elsberg
,,,eas as,,res into n new bill. II argued, meant
"a substance that the prospect OF obtaining at
.bis wears session Of the Legislature legislation
,,o,,,,, nossible additional tunnel construction
Gov New-York City was hopeless, and IT was
aid bv shrev-d observers that operators having
nolitical Affiliations might be readily supposed
% recognize in that situation a favorable occa-
-, so- n speculative venture in selling short
the Metropolitan stocks in the market