New-York tribune., 1905-12-27
DETAILS OF MERGER.
BELMONT-RYAN PLANS.
PLANS.
Nee Holding Company to Take
OUer Eristing Stocks.

OUer Existing Stocks.
August Belmont and Thomas F. Ryan had a
,orp conference yesterday afternoon in Mr..
polTnont's office regarding the proposed Inter
borough- Metropolitan merger. which. The
tribune told yesterday morning, is to be accom-
usbed by the creation of a new holding COM
ronv 10 take over all stock OF the Interborough.
+be Metropolitan Securities and the Metropoli-
tan Street Railway Company. The conference
ended in complete agreement on details of the
merger
With Mr. Belmont and Mr.. Ryan at the con-
ference were Joseph s. Auerbach, of Mr.. Bel
rnonts counseli Paul D. Cravath. of Mr.. Ryan's
counsel: Jacob H Schiff, of the syndicate which
Ansnced the Metropolitan Securities Company,
and Andrew Freedman, who is said to have
brought Mr.. Belmont and Mr.. Ryan together in
the merger plan. At the end of the conference
the following official statement was given out:
MI Belmont and Mr. Ryan. after consultation
-virh their respective associates have approved q
plan for the union OF the Interborough and Metro
roitan interests which Will be formally submitted
to the stockholders Of the corporations involved
soon the lawyers have completed the necessary
of a new company which shall issue its securities
in acquiring the shares of the Interborough; Met
ties companies upon the following terms:
For every share Of Intereorough stock:
% ,6s spost 's Of ter 5 ssn S1
, s sRaTe Of Metropolitan Street Railway stock
NeN per cent cumulative preferred stock.--- 100
For every share Of Metropolitan Securities stock
SO SdS EsF eoa2ol sham Bn5s5 atoo s5
1t is confidently believed that the proposed ar
Tangement will not only be beneficial 10 the stock.
viii be advantageous TO the city and TO the public
II PoratoR faeiites in this city are already superior
n rapdity. comfort character Of equipment and
other city in the world. Yet they should be further
PPortunity now offered to cooperate harmoniously
with the city in providing for important extensions
boroughs of Manhattan and The Bronx
MADOo TUNNEL NOT INCLUDED.
The terms Of the merger, thus officially an
nounced. show that the securities of the Nc
Adoo company building the tunnel for trolley
cars under the North River are not TO be in
cluded in the merger, although Mr.. Belmont is
said to have been interested in those securities.
No mention is made of the arrangement for
community Of interests formed between Mr.
Ryan and the Public Service Corporation in
New-Jersey, but, The Tribune told yester-
day morning. the arrangement will be continued
BY Mr.. Belmont after the merger, when Mr.. Bel
mont is president Of the company con-
trolling nearly all the traction lines in Manhat-
tan and The Bronx.
The official announcement was interpreted by
men in the cftys financial district last evening
TO mean that, in providing for important ex
tensions and additions TO the facilities Of travel
friendly arrangements would be made with the
Pennsylvania and New-York Central for sub
way connections with the great Pennsylvania
terminal at 33d-st- and with the Grand Central
station at 42d-st- While neither the Pennsyl-
vania nor the New-York Central viii have
hand in the merger of the Interborough and
Metropolitan interests, they can make arrange
ments for community Of interests with the new
company.
Some well informed men said last night that
the merger would enable the New-York Central
to run local trains OF its Harlem and Hudson
River division through the subway TO South
Ferry after its electrical equipments and the i'm
provements at the Grand Central Station are
completed.
The effect of the Interborough- Metropolitan
merger on the building of new subways in Man
haitian and The Bronx was discussed yesterday
by men interested in the citys growth. and it
was said by some that an arrangement for the
running OF the New-York Centrars local trains
through the subway south of 42d-st- might de-
lay for years the building of subway in Lex
ington-ave-
CIRCUIT ON SUBWAY QUESTION
Controller Grout. discussing the subway ques-
ton. said yesterday:
certainly think that from business standpoint
Eubways independent of the Belmont lines would
ne profitable: line, for instance. through I'd or 50
ave or some street like those An independent
line could be all the way from The Bronx TO
P8Se6 soSn capitai w be- attracted by the business
possibilities of such system and will bid for II
The financial condition OF the city makes any
extensive municipal ownership impossible for three
but ali Of this is needed for improvements To Sc
cure any money for the construction of n1u-
amendment, and that will mean three years BY
that time there will be more calls on the city
treasury 10 be met
and subway transportation most baneful and
threatening condition for the city Of New-York
Eubways Belmont wants and his own
terms like the continuation Of the subway
z8d-st, down Broadway the city advancing the full
capital, and then a persistent demand for three
tracking and extending the obnoxious elevated
syster5 E1,ch q mono6olv means that we shall
travel the railroad man always desires, in cars
crowded 10 the utmost, and that no new subways
will be built compete with existing lines.
Unfortunately for Mr.. Belmont and fortunately
for the people such monopoly is too great and too
before the beginning of the new year a and in
dependent corporation will be formed TO bid upon
mission.
There is a tempting field for capital. Favor
ought be shown to any new company that Will
build subways with its own capital the subway
TO. become the property Of the city at the end OF
the lease; especially if such new COMPANY VIII VII
nind Itself not to lease any other road or De
leased by any other road to permit majority
Of its stock to become the property Of any holding
tons would prevent the repetition by the
company Of what Mr. Belmont has done
So far city concerned. II VIII ahead
and perfect its plans for the new subways that
have been laid out. so that when the courts have
passed upon the constitutionalty Of the law vest
IL VII he in q position to invite bids