New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-12-26
TRACTION DEAL IN AIR
MIST BE PUT TO VOTE.
Metropolitan Securities Director
Sans Stockholders 4re Protected

THAT the deal between August Belmont and
raonas F. Ryan last week did not bind all the
s,rectors and stockholders of the two great
t-act,on combinations of Manhattan to a mer-
car was made plain. by information given TO The
-rr,hune yesterday by a large holder Of Metro
-ol,tan stock who was director Of the old Met
-opolitan Street Railway Company and is di-
-,ctor Of the Metropolitan Securities Company.
--hfe # is expected that the deal will be con-
s-r,ed. there will have to be meetings Of the va
Sous directorates and stockholders to confirm
~ because the merger will mean the wiping out
~ the stock Of several of the large corporations
ard the creation Of a holding company
while Mr. Ryan no doubt, is the holder of a
controlling interest in the Metropolitan" said
7ba Tribune's informant, he has acted in a way
90 nrotect all the other stockholders and enable
thero to 90 into the merger sell their stock at
sts fuII value as they choose. Among the Metro
,oiitan stockholders are several conservative
men who might not want to have their holdings
merged with Interborough stock in a general
holding company. but believe they will make
M opposition to the merger plans, since they can
have the choice between taking new stock or
selling outright
are not holders Of Metropolitan Street Rail-
xev stock protected against a merger II they
choose TO oppose it?"
the Metropolitan
many was merged in the New-York City Rail
road Company through the Metropolitan Securl-
ties Company all the Metropolitan Street Rail-
way stock was guaranteed to pay per cent
year. The plans for the present merger are to
have all Metropolitan stock that is exchanged
FIR stock of a new holding company guaranteed
m nav ) per cent year. Holders Of Metropoli-
tan Street Railway stock however, will receive
IN exchange additional stock Of the new COM
many sufficient TO make up the difference. II the
stockholders do not want to keep the additional
stock the new company viii take it over at par.
Does this mean that the Metropolitan Secur1-
ties Company, the New-York City Railroad
Company and the Metropolitan Street Railway
Company will cease to exist?'
erYes. it means just that. There will be new
holding company to take over all the properties
involved. including those Of the marlborough.
viii the new company assume all the con-
tracts as well as take over all the properties OF
the Metropolitan"
Certainly"
What effect VIII the merger have on the ar
rangements for a community OF interests be-
tween the Metropolitan and the Public Service
Corporation in New-Jersey?"
THE ARRANGEMENTS will have to be carried out
by the new company"
What will be the effect on new subways In
this city7"
It believe that the public generally viii De
benefited by the merger, because the controlling
company Will have all the subways under one
management. It viii be possible, also. to have a
perfect system OF transfers between the sub
ways and the surface lines in Manhattan and
The Bronx"
who Will be president Of the new COM
pany?"
Mr.. Belmont, Of course It is probable. how
ever that MI. Belmont VIII take into the direc-
torate OF the new company some OF the Metro
roiItan directors and that some Of the executive
officers of the New-York City Railroad Com
pany Will go to the new company
viii Mr. Ryan be a director in the new COM
pany?"
Il doubt it Mr.. Ryan is more valuable as a
fnancier than as q director. He has so many other
interests to look after that he probably would
not care to be burdened with any work in con-
nection with the management Of the new COM
pany. Tt is more probable that his interests in
the new company will be represented by a d.
rector whom he may name"
What will be the name Of the new COM
pany?"
I do not think II has been selected yet. There
is much 10 be done before the merger can be
completed. There will have 10 be advertised
meetings Of the directorates and stockholders OF
the various corporations TO be merged, and all
the directors and stockholders will have to con-
firm the action to be taken before the merger is
settled There will be plenty of time for select
ing q name