New-York tribune., 1905-12-24
ALL IN ON MERGER PLAN
RELMONT, RYAN AGREE.
stockholders to Receioe Equal
Participation" in Deal

with the first break in the official silence
-,,cb has surrounded the Belmont Interborough
,,chese Of the Ryan control OF the Metropoli-
A., system came the intimation yesterday that
,b. Iuterborough would have to buy out not only
Mr. Ryan but his associates. and any other
tockholders of the Metropolitan who wished TO
.su Refusing TO confirm the announcement Of
,he sale Of his stock holdings. Mr.. Ryan Off
tally declared for equal participation on the
,art Of evely other stockholder. Mr.. Belmont
1nsctaIIy expressed his aoQuisscence in those
conditions
The following official announcement was mads
so- Mr. Ryan:
Before leaving this morning to spend the
christmas holidays in the South. Mr. Ryan said
he had statement to make concerning Inter
ho-ough-M Metropolitan matters. except that
rian Involving either the Metropolitan Street
galway Company or the Metropolitan Securities
company would be oonsummeted without af-
sording every stockholder equal participation.
The statement was shown to August Belmont
He gave out the following:
When shown Mr.. Ryan's statement Mr.. Bel
mont confirmed 1t, but refused TO discuss the
matter further
Aside from this meagre announcement, every
one concerned in the transaction kept silent
Only four men in all Wall Street. 1t was said,
knew every detail Of the observation-disclosures
Beluort and Thomas F. Ryan and their law
vers Paul D. Cravath and Joseph s. Auerbach-
The financing of the merger. which the Ryan
statement announced was the chief subject OF
interest in financial circles. It is generally be-
lieved that holding company Will be formed
which may in it's operations interfere sadly with
many Of the present Metropolitan arrangements
The breaking of many leases. it is believed. will
ne made necessary by the reorganization which
the Belmont regime will put into effect It is
generally conceded that cut n the dividend on
Metropolitan Street Railway to per cent will
be made but Wall Street thinks that the Inter
borough's guarantee Of per cent should be pre-
ferred to the Metropolitan Securities Company's
per cent guarantee.
Further conferences were held yesterday
morning Mr.. Belmont and Mr.. Ryan and their
LAWYERS held a meeting at which, it was be-
ieved. final details of the purchase Of the Ryan
stock were completed At this meeting. it was
reported. J. Pterpont Morgan was present Mr..
RYAN went TO his home, in Virginia, for the
Christmas holidays. Mr.. Belmont is to go to
North Carolina Tuesday.
STOCKS SHOW UNSETTLED CONDITIONS
The stocks of the various interests showed
the effect of the unsettled conditions. Inter-
borough opened at 2S5, but went to 257A, clos
ing at 2S61h Metropolitan Strest Railway
opened at 12e and fell promptly TO 1864. closing
at 127K. Metropolitan Securities was weak 1t
opened at s25s and sold down to 79A. Third
Avenue stock furnished the surprise. Begin
ming at 1925, it made swift rise to 40. Be-
fore the close it fell off TO 1876.
The effect of the consolidation OF all city
transit systems in Mr. Belmonts hands will not
mean that the marlborough will discontinue its
subway plans. it was said yesterday. The plans
may be changed considerably however. AS
practically the only possible bidder on subway
routes, Mr.. Belmont viii be able TO build sub
ways where they will not Interfere with his
present ines-perhaps even where they might
not relieve the present congestion on those lines
10 any appreciable extent
The Belmont people quite willing 10 carry
out the plans they submitted to the Rapid Tran
sit Commission. Particularly II they can get the
contracts they Will be glad TO build the Lex
ington-ave. line north to connect with the pres
ent subway at 42d-St., and the subway soutn
important one, because 1t VIII connect tne
present subway with the new Pennsylvania ter
minal and the North River tunnels. ~
II is expected that the Sd-ave. subway VIII
not be built for r.any years TO come at least.
An East Side subway has been the demand Of
that congested section of the city for several
years The consolidation seems to have killed
all prospect OF it. Some of those interested IN
the proper extension Of transit facilities are
wondering If the Interborough will revive now
its attempts to build g third track along the
ID and 3d-ave. elevated lines. ..-
The streetcar system, a losing proposition for
the RYAN interests, can be made a profitable IN
vegtrnent for the Interborough railroad men
system. Mr. Belmont, it is believed, has been
working out such details. transfer system
between elevated subway and surface lines
would distribute the business thoroughly 1t
was said that the surface lines would not get
the long haul" traffic on which they have lost
money. The improved conditions in the cars
because of this lessening OF congestion. un-
doubtedly would give an opportunity for more
short haul" traffic at a good profit
When the details OF the financing Of the Dig
merger are completed, Mr. Belmont VIII begin
70 consider a REORGANIZATION of the Metropolitan
system, II IS believed, probably eventually con
sol!dating the operating department OF these
Ines with his present .Interborough manage
rnent-