New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-25
MERGER PLANS FILED
M'DONALD Il DIRECTOR.
Traction Holding Company IncOr-
porated zoitk SO 900 Capital.

a
and other facts concerning the new traction
holding company. was taken to Albany by
trusted messenger Of August Belmont yesterday
afternoon and filed in the office Of the Secretary
Of State Just before closing time.
The five directors of the InterbOrough-Me Metro
politan Company for the first year will be Peter
A. B. Wdener, Walter G. Oakman, James jour
dan. Morton F. Plant and John b. Mcdonald
Although the official statement has not yet been
made, 1t is understood from authoritative
sources that August Belmont will be the presi-
dent Of the holding company. There are $50
shares of capital stock of the par value Of 800,
Of which $4,000 is preferred stock and $4,000
common stock. The articles provide that the
duration of the company shall be one thousand
years. and that the principal place OF business
shall be in the Borough Of Manhattan
An official announcement was made last nlshI
at the office Of August Belmont & Co.. as fol-
lows:
This is the first move in the consolidatioh OF
officially taken. In many respects II may po
considered preliminary. II hXes' however - 10
name Of the new corporation the names t ba % as ,t
incorporators and the objects sought 10 De aI-
tained by the merger.
It was said last night by directors Of the
Interborough- Metropolitan Company that the
present earnings Of the lines concerned in the
merger are sufficient to meet the interest on the
$40. 600 900 Of AZ per cent bonds and the per
cent interest on the S52OOOOOO new cumulduFe
preferred stock, besides leaving large revenue
for dividends on the common stock or the con-
soUdated company. It was stated that the Net
ropolitan is now earning per cent on us So-'-
600 900 capital stock and the lntefOoIous"'
through the elevated and subway systems from
u to IA per cent on its S30OOOOOO capltal STOCK
after deductng the per cent guaranteed 10 the
,+rc1,bor5ars Of the Manhattan Railway Com
pany.
Statistics were offered which show that since
January / the gross earnings Of the INTERIOR
ough have increased more than 10 per cent
Passenger traffic is increasing daily, one partlc-
ular day showing 253OOO more passengers on
the elevated and subway systems than on the
same day last year. The opening Of the Fort
George division on March 1 will add greatly 10
the earnings of the InterbOrough. and within
year the Brooklyn extension will be in operation
with an average of 1T5.OOO passengers a day
The presence of John B. Mcdonald IN the
board Of directors Of the InterbOrOugh-Metropol-
itan Company is one Of the surprises which the
traction manipulators sprung at the last mo-
nent Until a few days ago Mr.. Mcdonald, who
won fame by building the present subway, was
| not in sympathy with the merger movement.
In fact he was about to become identified with
| ex-Controller Grout in a company which pro-
| posed to construct and operate opposition sub
ways Within a week II was expected that his
resigna .ion from the Metropolitan would be ac-
cepted and it was even said that It was already
in the hands of the officials of that company II
could not be learned last night what influence
had been brought to bear to bring Mr. Melon
old into line but the fact that ne is one of the
five directors for the first year is an indication
OF complete harmony.
Peter A B. Widener is another surprise in the
merger directorate. He has had great success
and experience in traction matters in Philadel-
phia and other cities, and. while he has been
interested in several of the New-York COM
panies. it was not known that he was TO have so
prominent a place in the merger.
Morton F. Plant is a director of the Inter
borough and of the Rapid Transit Subway Con-
structlon Company. He is chairman Of the
board of directors Of the Southern Express
Company. as well as a director in the Atlantic
Coast Line and other railway companies.
James JOurdan is the Brooklyn member Of the
directorate. He is interested I'm Brooklyn enter
prses from the Brighton Beach Improvement
Company to the Brooklyn Ferry Company. He
is a director I'm both the Interborough and the
Rapid Transit Subway Construction Company.
Walter C. OaIman is vice-president and di-
rector of the Rapid Transit Construction Com
pany and director i'm the Brooklyn Rapid
New-York City Railway Company. the Inter
borough Rapid Transit and other traction COM
panies.
It will be noted that three of the five directors
of the marlborough metropolitan Company are
prominent IN companies I'm which August Bel
mont is the ruling spirit. The fact that these
three directors are also prominent in the Rapid
Transit Subway Construction Company is sig
ni1cant IN view Of future subway construction
work.
officials OF the Interborough did not deny last
night that the new company was ready to pro-
ceed at once to construct and operate the Lex
ngton-ave. north and West Side south extern
sions Of the present subway system and TO put
I'm a third track the 3d-ave elevated.
renewed application to construct this third
track is likely be one Of the first steps taken
by the new company. The Interborough made
application TO the Rapid Transit Commission
for permission 20 build this third track some
time ago. No action was taken by the com
mission because the Metropolitan, through John
B. Mcdonald, announced that if the INTERIOR
ough received further elevated franchises it
would not compete for an East Side subway
line.
This contention is now a thing of the past
and the merger company promises not only TO
buiId the third track. but to enter any subway
cor,netitions that may be offered. Express
trains on the elevated now carry 10000 pas
a,,gers a day and the building OF a third track.
18th a resultant eighteen minute service from
tho CITY, Hall 10 The Bronx, would greatly in
,-rsase this travel and relieve the present sub
way 6eve1oDed yesterday that il it had not been
for the merger there was q long legal war IN
prospect between the lnteroorough ana the Met
rroroiitan over the building of future subways
Ths Interborough had determined 10 contest the
legality Of any grant 10 me 4!etIoIGl'al or new