New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-01-27
BELMONT. MERGER HEAP
ITS CAPITAL s225, 100000.
Big Profit Erpected to Accrue tC
NezC President.

100000. OF which S55.OOOO0O IS in > per cent
cumulative preferred stock. S1OOGGOOOO COM
mon stock and S7OOOOOOO AZ. per cent collateral
trust gold bonds. The present holders % se-
curities in the companies about to be merged
will receive the new securities in proportion 10
their holdings For each share OF Interborough
Rapid Transit stock, 500. for each share OF
Metropolitan Street Railway S155 and for each
share OF Metropolitan Securities. S93 81
All Of the common stock viii on its issue bs
deposited under voting trust agreement for a
term Of years subject 20 termination in the dis
cretioE Of the voting trustees. who will be Au-
gust Belmont. Walter c. Oakman Thomas F.
Ryan Cornelius Vanderbilt and Peter A B.
Widener. When the details OF. the organization
have been completed. August Belmont viii be-
come permanent president OF the Interborough-
| Metropolitan Company. as was told several days
ago exclusively in The Tribune succeeding
| Walter G. Oakman. who was elected temporary
| president on "Wednesday
An arrangement has been made whereby Au-
gust Belmont & Co subscribe for 100000 OF
the preferred stock OF the company at par. for
/ which they will pay cash The company will
also receive So. 100000 OF the common stock and
| agrees to pay into the treasury S225OOOO in
| cash and pay all expenses in connection Win
/ the company's organization
| The announcement OF the foregoing details
/ followed meeting yesterday morning OF a COM
nittee representing the stockholders OF the In
| terborough Rapid Transit. the Metropolitan
/ Street Railway and the Metropolitan Securities
| companies. Edward J. Berwind was chairman
! OF this committee which included Andrew
/ Freedman. Thomas P. Fowler. Gardiner " Lane
| and Cornelius Vanderbilt This committee has
i been formed on behalf OF the holders OF tho
| stock Of the three companies who deposited their
stock on or before March l. 1906 or such later
/ date as the committee may determine to fszus
the securities OF the InterborouEh- NIetrop0lita1
| Company.
Under the terms Of the agreement IL is. r.
| quired that two-thirds Of the entire outstanding
| stock OF the InterbOrough Rapid Transit Com
pany. twO-thirds OF the entire OUTSTANDING stock
| Of the metropolitan Street Railway Co~parv
! and one-half Of the entire outstanding stock OF
I the Metropolitan Securities Company shall be
| deposited with August Belmont & Co or tha
| Morton Trust Company. As soon as tvo-thireIs
Of the stock is deposited the agreement viii
| authorize the Interborough- Metropolitan Com
pany TO issue the securities.
/ August Belmont. as permanent president VIII
/ have unusual powers. He will shape the policy
| Of the company in all future operations. and will
| fully exercise all the powers that have been
hitherto vested in the management OF the cor
| porations. The details OF the stock issue are
as follows:
The Preferred stock is to be entitled TO Prefersn
I j,
l. April 7, July I and October j. aud is 20 be- pre-
ferred stock s6afI D5r T7,e ,-ofiT -,s- ~s 800
| as IN said certificate provided. and in OF de-
| fault in the payment OF dividends thereon and 50
preferred stock cannot be increased without the
consent OF the holders Of tVo-thrds IN amount ot
ne preferred stock al the time outstandius. and
tHTt % no & S[oGk having prior rights can he c.eated
/ der a trust agreement with the Windsor Trust
SImPPsPy s P as as tTgsJee by the Plede and tepos- o.
thereforl which NAV Ie ecoyire5 h- H. O cITv
pledge at the rate Of $1,000 in bonds for each i've
70 mature April l. 1856 to bear Interest at The rate
abe ser7iSTn1sIi m aII-- uni u pm 3 45 II l2 pay
| principal and interest to he payable i'm the civ
/ fnensss without de5IctfoT for an y- "--tT l 5I .
United States or any State. COUNTY or muricip,Ifrv
! therein They are 70 be coupon bonds for SIJol
each with The privilege OF registration prin-
/ and registered bonds msy be made f1tcrcranEeabIs
| unaer regulations to be prescribed by the trust
! Holders OF the stock Of the above named companies
| agreement. sell their stock for SECURITIES 6f tt-
,For For each share Of stock OF Inter6or7ugh Rapid
era trust bonds % the amount OF Ss1 and t0-lrr5,
/ stock trust certificates. 500.
| For each share OF stock II metropolitan Street
hRailway IA Company preferred stock Co The amounl
For each share Of stock Of NTeJropoII-ar Sa,rrf-
/ ties COMPANY with SO per share paid. common
Scrip will be issued for fractional amounts %
or dividends.
STARTS WITH CLEAR BOOK
The subscriptions Of August Belmont & Co.
will permit the new company TO start OF with
S5,25OOOO in the treasury. as well as q clear
book on all expenses. such as corporation fees,
transfer taxes. banking commissions state
charges of all sorts. the compensation and
charges OF counsel and committee II was
stated last night that roughly figuring the COM
mon stock at 6O. the SS,1OOOOO which Belmont
takes over. would yield S5.2UoOOO. and give the
purchaser $195OOOO for profits and expenses.
The first plan proposed for the merger was TO
have an underwriting syndicate composed of
some OF the strongest firms IN Wall Street take
over any common stock which The public de-
sired 10 sell at a figure which would have
yielded large returns 10 the bankers. The first
proposition was TO give for each share OF Inter
borough stock two 4ls per cent bonds and SO
worth Of stock OF the InterborOugh- -AIetropoIira-
Company The holders OF Metropolitan Street
Railway stock We're to receive in return a > per
cent preferred stock at par and 500 worth Of
the common stock OF the new company.
BY saving the profits which would have gone
TO an underwriting syndicate and by keeping ex-
penses Of the merger down as much as possible
IT was decided that an additional 10 per cent "A
the common stock could be allotted 20 the stock
holders Of the Interborough Rapid Transit Com
pany. Metropolitan Street Railway Company and
the Metropolitan Securities Company
In arriving at the value OF the securities Of the
corporations due regard was paid 20 the present
and future earnings of every company when
acting Independently as well Of their mar