New-York tribune., 1905-01-13
MORE AMORY CHARGES.
Says metropolitan offer Is Not
Made IN Good Faith.

In communication filed yesterday with the
Rapid Transit Commission, William n. Amory,
who nearly two years ago brought suit for libel
against President Vreeland of the Metropolitan
Street Railway Company, opposes the applica-
tion of that company for a subway route. charg-
ing that it made the application in bad faith
The company. he declares. is struggling under
a condition which compels it to pay out as fixed
charges annually more than 81 per cent of it's
gross income without counting the charges for
taxes. 1t has not fulfilled it's promises, he
serts, in many cases which he instances, and it's
officers have made false statements His ma
terial has been taken mostly from official docu-
ments. he says, and he will be prepared to prove
the correctness of his figures. Mr.. Amory will
probably speak in protest when subway plans
for Manhattan Borough are taken up by the
commission for discussion on January 26.
Mr.. Amory declares that the Metropolitan
plans are not in accord with a comprehensive
scheme of rapid transit, that the company's
persistent violations Of the transfer law make
of little value its offer of transfer privileges be-
tween subway and surface lines. Such transfers
are valuable only in sparsely settled districts,
anyway, he declares. He continues:
The Metropolitan offer is not made in good faith.
For more than eighteen months past ia much longer
time than the public is Of Metropolitan In
terests have been negotiating with this commission
ior rapid transit franchises They began those
negotiations little while before Metropolitan stock
declined l in price to sszs-a stock which is guaran-
During large portion of this period, If rumor can
be depended upon, Metropolitan interests have been
tarboroug6, which If successfully negotiated con-
templated withdrawal of competitive bidding
the part of the Metropolitan.
For months past Metropolitan stock has been
arrangements We're going to be- effected with tSe
Interborough. 1 therefore state that Metropolitan
offers to this commission have not been made in
good faith. They have been using the commission
fba cats49w & 70 & pun hanGIai i enestnuts out OF
rangement which viii enable them to issue millions
of dollars OF new securities.
These interests are in condition to undertake
the construction and operation OF rapid transit
privileges. They are depending on the hope which
the rapid transit problem presents to pull them
TT, The New-YOrk City Railway Company, the leas-
through operation Of its railways in the year ended
June 80. 1904 the sum of 81 All al. and odd
$500 During the last six months of the year the
Nl5s Soe or at the annual rate of over s2 10000
say; $500 day. If franchise taxes had been in
cluded these losses would have been increased by
The Metropolitan company, to conceal its, true
dton % %SGnt@ainipg ma material h which are
tion to the Stock Exchange for listing bonds fur
nlsned 6aancs alan sheet purPorting TO describe the
out among assets and surplus profits valuation OF
nearly 100000. which Is wholly fictitious have
recently called the attention Of the Stock Exchange
been operated by the Mropoan oW T nar
five years and their losses from operation have ex-
The Third Avenue company has not earned the
interest it's bonds.
The surface lines are at present losing a far
greater number OF passengers to the Subway than
the elevated previously lost to surface lines Within
year, when tho full effect of the Subway cCmpe-
ution will be apparent. and If the Franchise Tax
law be sustained by the United States Supreme
Court the Metropolitan system may very likely be
experiencing total loss from operation amounting
10 So 100000 a year
The railways of the Metropolitan system owe to
the city OF New-York at the present time over
lO,OO00oO for taxes including interest charges
These unpaid taxes accommodating the rate OF
over A,250O00 year
They for paving expenses alone between
M,OOO,00 and S2.OOO,OO0 They have means of
paying this enormous sum OF money The com
panys financial condition that it is Obliged
TO sell S0O0OOO worth of its real estate (See daily
papers of September q. 19o4)
The needs OF cash have been great that the
proceeds OF SlOO000O of Metropolitan bonds issued
under the terms of the Interurban lease have been
misspent. The president and chief engineer OF the
company declared under oath and in a carefully
detailed statement that the proceeds of the bonds
were 10 be devoted to changing motive power on
exactly SeVenty-hve and nine -enths miles Of single
track railway still operated by horse power (See
their affidavit in an application to the Railroad
Commissioners Of March II, 1922
Insteed of spending the money in accordance
with these swoln declarations. but ten miles OF
these horse railways have been changed TO electric
roads. and the streets of this city are left encun-
bered with old fashioned rails over which are
operated ancient horsecars. which are exceedingly
dirty ani Of disreputable appearance