New-York tribune., 1905-12-28
NEW TRACTION TRADED
cOMHON STOCK At 60.
Transit Improvements To Be Has
tened Through Merger.


The Broad-st curb market yesterday. It did not
take the statistical experts long figure out the
market value Of the stock the terms proposed for
merger It said the best authority that a
svndicate. made up of August Belmont & Co. Kuhn,
7oeb & Co. and ]. P Morgan g. Co, had been
sorn1ed to underwrite the common stock at 60 The
value placed on the stock in yesterdays dealings
-zas about that figure.
The new common stock sold down from 65 to 5SSs
I'D then back to 60 About $500 shares were traded
N. The new preferred was bid up to 1O5 and back
% ioo and the bonds changed hands high as
q The transactions in the new securities were, of
course when issued
metropolitan Securities was affected most in price
of the three issues involved IN the traction merger
II sold around 76 loss of points from its close on
ruesday. Interborough, which is placed on a 9 per
cent basis. plus the value of what it receives in
cannon stock. was not particularly active, but 1t
soI5 down from 237 TO Zs. net loss Of rs points
metropolitan Street Railway also scored a loss
Fortv-fve thousand one hundred shares were trad
Cd IN end it closed at 1244. net loss for the day
of zs points
Nothing of definite nature could be learned
Yesterday as TO further details of the merger
August Belmont was of town. and others who
nav or may not be interested would not say much
osfcalIy. It said definitely. however, that the
new interests in control OF the traction systems
are manning TO go right ahead with the building
Of subways and the extensions to the rapid transit
system as planned. fast franchises can be
obtained and the necessary prelEninaTies arranged
This will mean that within a reasonably short
tine the Lexington-ave. and the West Side subways
viii be begun.
WILL GET NEW LINES EARLIER.
The neace between the warning factions in the
local traction situation thus that Man
haitian and The Bronx will get the rapid transit
facilities proposed about three years earlier than
expected.
the Belmont interests involved the power of the
Board Of Aldermen and the Board of Estimate IN
the granting of franchises. 1t was the intention of
both sides TO fight this matter to the bitter
end it has been learned. and the matter would
have been carried the Supreme Court OF the
United States before either side would have given
in This would have taken fully three years, ana
would have held up the preliminaries Of all rapid
transit extensions for that time
II can also be stated that the new control will
start 10 work at once to build up better as well
as a paying system of surface, subway and ele-
vated transit out Of the three systems now COM
bined. The figures that show the traffic of the
three systems all points will have to be got by
actual count before plans be made for sys
TEN of transfers from Ine 70 another at inter
secting points. When these figures are got the
experts will start at work the problem Of find
ing out how this traffic be transferred, and
then carried after being transferred, the differ
ent lines.
Whether the Belmont control of the new cc1n-
panv is to be secured through voting trust as
exists now IN the Interborough whether he has
recently acquired enough Metropolitan stock 10
give him control fn the exchange is not revealed
OF the s1S5 10000 and preferred stock only
s31 $1,000 viii go to Interborough stockholders,
while the Metropolitan stockholders will receive
s52 or 600 preferred and s26 900 common.
S-soaoeoa while s25 600 will TO holders OF Met
ropofan Securities stock It IS generally expected
that a voting trust will be formed.
L is fntinated that H. H. Rogers will take
large investment interest in the company, but
will have no direct connection with IT.
The new company according to the terms offered.
VIII have to be capitalized with s70Oo000o 415 per
cent collateral trust bonds. S52,O0000o preferred
stock and SSS 600 900 common stock, making total
Of 2o5o00,ooo
TO UNDERNEATH STOCK.
The banking syndicate formed to unde-write the
stock will take. it is said such amount of common
stock as Metropolitan Street Railway Company
stockholders do not receive in connection with the
exchange of their securities for the preferred
and common shares. In case any shareholder OF
the Metropolitan Street Railway Company does not
care to exercise his option of receiving one share or
new preferred stock and $50 in new common stock
for each share Of Metropolitan Street Railway
Company stock, cash will be given at the rate Of
$50 a share for the common stock, together with
e share Of preferred. In other words at his
option. he may receive share of cumulative pre-
ferred : per cent stock and $50 IN cash for each
share Of Metropolitan Street Railway Company
stock. II VIII be observed that the cash which he
nav receive represents the difference Of S2 a
share between the per cent old guaranteed stock
and g per cent preferred stock for period OF
fifteen years. The exact amount of new shares
to be issued has yet been determined, as 1t Will
depend upon the amount of old stock turned in
under the merger agreement
The plan OF combination and exchange OF Sc
curities was generally commented on favorably IN
local banking circles yesterday It is pointed outthat
while the new preferred stock is technically not
guaranteed per cent issue, It practically amounts
the same thing. it has back OF 1t the Inter
borough Rapid Transit Company, and according TO
information received from trustworthy sources
there ia absolutely no doubt that the preferred
issue Will begin paying dividends from the start
and the combined earnings of all the lines Will De
more than sufficient to maintain dividends at the
per cent rate.
The best information on the earning power OF
the present subway Is official statement cover
ing the period from its opening. october ~ As''
70 September 90 1905. This period lacks only TWEEN
ty-seVen days Of a year
In that time the subway division had net earn
ings and other income Of s2607.616. and surplus
over charges of a.55s.cS7. Estimating that this
surplus would have been greater by one-eieVenth
for the full year, the earnings may Dc taken at
n,Na0co annually. The other figures in the follow
ing table are surplus earnings for the fiscal year
ended June 30 1905
aantszztsa afr3sis csroeis ovsf par
Nss7G ssntSg s,v t.a; ;y.t learned on Met
EopoAtAn stoczl. '..' ---'' - -
TOts .,nn-..t toorns OF merged properties sos 0o6
Charges.
Interest on s7oooocoo IA per cant collateral ,zo nm
Dsvids6s On s5a 600 900 per cent preferred ~.
steck %oVOOVo
Tuta snal requirements Of oompany. IS $780, COO
The foI1ovtne tsbls shows the stock and bond
Obligations Of the new merger, the welfare or
which depenSs on the Belmont management;