New-York tribune., 1905-12-23
BEL MONT is TRACTION KING.
Interborough Head Acquires Ryans Interests in Metro
poltan and Has City at Mercy.
ROTH SIDES REFUSE TO CONFIRM DEAL.
Rrokn Rpd Transit MergAu the Traction Stocks Rise Violently
May Be One Big Holding Company.

subway belonging to its rival. Mr.. Belmont. IL
is known. for long time has been willing even
eager to purchase the Metropolitan but has re-
fused to purchase at the prices demanded by
those In control of that property The state
ment was made last night that the price which
Mr. Ryan would get for his stock holdings would
be considerably less than what he demanded a
year ago. when with John B. Mcdonald in the
Metropolitan Securities Company, he entered the
subway field
AT that time interests allied TO the Belmonts
said that if the Metropolitan obtained subway
contracts it would experience great difficulty in
obtaining the money necessary to carry them
through Badly put. the opinion of one traction
man was that Belmont had received an offer OF
the Ryan holdings. or had ELECTED one which he
considered reasonable. and had completed the
deal with his customary suddenness.
Mr.. Belmont refused to say So however. Seen
at his office he would make no statement what-
ever regarding the purchase Of the Ryan stock.
Later, it was said. official statement regards
ing the transaction would be made from his Of
fee. Three distinct hours were set for the issu<
ing of this statement, but last evening. after
conferences with directors Of the Interborough
and the Ryan people, Mr. Belmont still refused to
say anything.
BOTH SIDES REFUSE CONFIRMATION.
At Mr.. Ryan's office every one was non-com-f
municatve and inclined to treat the story OF the
sale lightly. Mr.. Ryan himself. seen with Paul
D. Cravath. his counsel. asked if he would
say anything about the sale OF his stock to Mr..
Belmont.
81 will not" he declared promptly though he
smiled. Mr. Cravath also declined to say any
thing.
Herbert H Vreeland, president of the Metros
polftan. also declined to talk about the situa~
tion.
"You will have to see Mr.. Ryan" was his
: comment.
Wall Street, in speculating the details of
the consolidation of the two systems which will
follow Mr.. Belmont's purchase. commented much
on the opinion expressed by a we'll known
| banker. that holding company. controlled by
the Interborough. would pay per cent on Metro
politan Street Railway stock This stock now
has a guarantee of Z per cent from the Metro
poIitan Securities Company, holder of the stock
| of the New York City Railway Company, which
controls the leases of the Metropolitan Street
| Railway Many argued that there was way
! to avoid the payment of this per cent without
| subjectng the management to suits by minority
| stockholders 1t was considered possible that a
! test case might be made this point. the
| owners of the control defaulting in this pay
| ment as means toward doing away with the
various leases controlled by the Metropolitan
Securities Company.
A report was heard that Kuhn, Loeb & Co
would fight the consolidate and another that
stockholders of the Third Avenue road were
likely to raise objections.
The Metropolitan system is a complicated or
ganizatiOn. The Metropolitan Street Railway
holds leases in most cases for 999 years. on
various electric and horse lines which it oper-
ates The New-York City Railway Company,
organized as the Interu@rban @ 10 on November p.
ropolitan Street Railway system. The entire
capital stock of the New-York City Railway
Company is held by the Metropolitan Securities
Company, incorporated on February IA, 1902
The capital of that concern is nonlinally $780,
ooRUJ esSe DIr the 0 MswYor % 9 city RWaV fR W. system
which it leases the METROPOLITAN Securities
Company owns all the stock of the Peoples
Traction Company and the New-York West
chester and Connecticut Company and $3,319, 200
Of the stock tR OF tRe y RaWy
lease the Metropolitan Securities Company con-
trolls the Union Railway Company in The
Bronx
METROPOLITAN SYSTEM LOSING MONEY.
The Metropolitan system at present is not con-
sidered a paying property. In 1902 the z per
cent guaranteed dividend was not earned by
s272.13S BY 1904 the annual deficit was 1896
Ill and for the twelve months ended June so
last it was 81. 796. .942. In the mean time some
S3OOOOOOO floating Indebtedness has been
ated by the New-York City Railway Company.
The recently issued statement Of the New
York City Railway Company for the quarter
ended September 80 showed that while the COM
pany had carried 100000 more passengers than
wear q deficit of S246 2S2 was reported On June
20 the proft and loss deficit amounted to S7S2-
545 On September 80 last the deficit of the
New-York City Railway Company had been in
creased from S782 5S5 to S5OO5.S25.
The Interborough Rapid Transit Company is
much simpler organization It formed in
1902 for building and operating the subway. On
June l. 1908, it leased the elevated system for
800 years, guaranteeing 6 per cent dividends. and
an additional per cent, If earned until Janu-
airy l. 1905 and after that date a straight per
cent dividend the outstanding Manhattan
Railway stock A year ago the Manhattan stock
was placed on a guaranteed per cent basis,
thus forestalling the provision of the lease.
TTON no - AMID n NTTV