New-York tribune., 1905-12-23

Aug,s+ FeIn,ont has acquired control OF Iue
Metropolitan Street Railway system pS pu
chase of the holdings of Thomas T. ny an
purchase was arranged at conferences he'N
this week Details of the transactioh nav
to be worked out by the two interests anu
the Belmont and the Ryan peopie
rnent on the situation
The price paid the details of the 1iieI e VI
1nterborougfI and the Metropolitan systems, 'iio
--oo+,csI features of the operation OF the hheS'
OIL v,era subjects of speculation in wan o'lee'
or5 railroad circles yesterday. No onlclal en-
lightenment came. 49,
OF one feature alone was everybody e"0
this deal placed August Belmont at the le"u %
the greatest street railway combination Which
the history of city traction records. Manhattan
and the greater part of The Bronx ana west
chester will now be absolutely at the MERCY VI
Mr. Belmont who controls the surface roaus'
the elevated system and the present subways-
Even Brooklyn eventually will fall into Mr'
Re1monts hands 1t is predicted, with all the
vast territory of Queens and Long Island which
is tributary to the borough across the river
For the present it is officially declared the
Frooklvn Rapid Transit system does not figure
in the merger.
This ACQUISITION of the control of the Metro
politan system places Mr. Belmont at the head
of city traction lines whose tracks approximate
six hundred miles in length. In a year. IL Is
estimated these lines will carry one Dillon pass
engers whose fares Will amount to SoO.OOOOoO.
This Capitalization of all traction interests in
cne company-practically in one man-will lay
the city at his feet, helpless. In case of a
strike like the recent Interborough affair 1t
was pointed out last night, the people of this
CITY will be entirely without transit facilities.
During the last strike on the elevated and sub
way it possible to fall back on the over
worked surface lines, strike now would In
clude the surface roads, too. and would tie UP
the city absolutely.
Just how this tremendous traction combination
will be effected was not made known officially
Authoritatively it was declared that Mr.. Bel
mont had purchased Mr. Ryan's holdings of the
Metropolitan stocks. With that statement came
the report semi-of1cially-th holding COM
pany would be formed which would take over
the Metropolitan securities. Hints were heard
that the Metropolitan Securities Company itself
would be used in the merger, but interests allied
with Mr.. Belmont denied this. 1t is considered
extremely likely that Interborough stock
will be issued in exchange for stock in the Met
ropolitan Securities Company, thus taking over
the much complicated list Of Metropolitan
stocks and putting the ACKNOWLEDGEMENTS
credit behind the Metropolitan Securities Conn
panys guarantee of I per cent on the stock of
the Metropolitan Street Railway.
TRACTION STOCKS BOOM ON NEWS
In the last two or three days Wall Street has
heard again the of repeated story of the merger
of the two competing interests. Because of
these reports, the traction stocks have been
active, Interborough selling up to 29O. high
record on Thursday. Early yesterday the stories
came in such definite shape that all the traction
stocks even the shares of the Brooklyn Rapid
Transit, rose nightly.
Interborough on the curb, SCARED to 2401a.
METROPOLITAN Street Railway opened at 126 and
rose to 1907 1t closed at 125s sales of 1872 500
shares The reaction was attributed to the sup
posed official announcement of the merger. Met
ropolitan Securities which closed at 1915 on
Thursday. rose to S61k yesterday. Manhattan
Elevated stock sold at 1881, rise of liz points
over Thursday.
The transfer of the Ryan stock was agreed on
at a conference held last Monday night ii was
said yesterday. Various conferences between
the two interests had been held previous to that
and conferences between Mr. Belmont and Mr.
RYAN and counsel have been the order ever
since Mr. Belmont closeted with various
directors of the Interborough all the afternoon
Mr. Ryan consulted with Paul D. Cravath. his
lawyer. all day. Late last evening conference
was held in Mr.. Ryan's office. at which Mr.
Belmont Andrew Freedman, director of the
Interborough who also is interested in gas
properties with Mr.. Ryan, and Mr.. Cravath
Nobody would say word in confirmation or
explanation of the purchase.
Whether Mr.. Belmont or Mr.. Ryan made the
first proposal to the purchase of the Ryan
holdings is point enshrouded in mystery. For
years the report that one side had purchased the
others interest has appeared periodically in
financial circles. only to be denied with en-
phasis and gravity by each interest.
M Of course is
property. while the Metropolitan has not earned
its dividends for several years and in the last
year was gravely hurt by the opening of the
RET MONT NOW IN POST