New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-02-01
ADVISE In. EXCHANGE
REPORT ON INQUIRY.
Investigating Committees Statement
-MOre Time on Net" assessment


After all but the holders of 1880 shares Of Met
ropolitan Securities Company stock had paid in
the s25 a share demanded by the third call, which
was due on Tuesday the trustees of that company
granted ten days extension those who are still
delinquent. 1t developed the same time that a
committee Of stockholders had. at The company's
request. made examination Of its affairs The
statement Of the company's finances demanded by
those opposed TO the terms Of the Inter Met
merger also made public
i was said by traction officials that the response
bty Of turning in the majority of the Metropolitan
Securities stock before March ! in exchange for
"Inter-Met." securities rested with Mr.. Ryan and
his associates. Mr.. Belmont and his PETERBOROUGH
following have already delivered the stocks. which
give controlling interest in their part Of the
merger An Interborough official declared that
Ryan would have difficulty in handing over a
majority OF Metropolitan Securities stock and that
the merger would undoubtedly go through.
Up TO closing hours yesterday S7,ll6.375 had been
paid into the Morton Trust Company a result of
the third % per call on the Metropolitan. This
means that 2S4G55 shares of 10000 have the
call H II. Nreeldnd, president OF the company.
IN a formal statement issued yesterday said that
the ten days extension in payment granted
the request and suggestion OF De Haven & Town
send. Strong Sturgis & Co, and Van Emburgh &
Atterbury. the stockholding firms who have been
Investigating the companys affairs.
This Investigating committee discovers that one
half Of the amount paid in by stockholders of the
Metropolitan Securities has already been absorbed
By its obligation 10 provide the New-York City
Railway Company with funds to pay the guaran-
teed per cent Metropolitan Street Railroad
stock They say that large additional amounts
will be required for this purpose time TO
come. The deficit Of the New-York city Railway
for 1866 excluding the franchise tax was 81 95s OoO
and the prospects that il will not ~ much
less this year
The Metropolitan Securities Company up to De
cember 81 last had received N5Ol4 30 from sub
scrpuons TO its capital stock s. Ce 3s9 in mar
ket appropriations Of securities purchased II paid
out nearly s.5ao00n for operating deficits and pro
vided for q franchise tax OF 81 250OD It expended
in construction franchises and property. including
the outstanding capital stock Of several corpora
tions. $4,000, It shows balance of 81 04 ST. IN
vested IN securities.
The report Of the committee goes on 10 say:
Il will he observed that the unexpended assets Of
the Metropolitan Securities Company consist large
~ OF Investments in and advances TO subsidiary
companies embraced within the Aetrop0litaH st
with that system. While these DC
portant for the protection OF the Metropolis sys-
tenn. they cannot be regarded saIable avail
able for current purposes II is therefore apparent
would have been necessary FOR current require
ments quite without regard 70 The merger plan.
the METROPOLITAN Securities Company that the
course Of time not only the per cent upon
Metropolitan Street Railway stock but also sur
METROPOLITAN Securities Gompany win be required
good deheiis before it Begins to earn proht upon
us Investment ana manifestly the metropolitan
Securities Company assumes ali the risk OF the
New York Gly ,Raiiway CompaIy.s earnings suffer
ing from additional subway competition, from IN
creased taxation or from any other cause.
cur ecTe sS % PS 1ane Of
non-assessable common stock OF the Interborough.
Metropolitan company In exchange for a share Of
Metropolitan Securities stock. upon which $75 has
new company is entitled to the future profits Of
oughs Of Manhattan and The Bronx after provid-
payment Tor the lnter6orough stock ana the dlvl-
bends on the preferred stock issued in part pay
Tbe new common STOCK viii accordingly get the
b9n Of 2f i y Whr IN that }9 Toh be-
upon the elevated and subway lines or upon the
The operation Of the properties together will result
in very large increase .t IN profits beyond what
tinue 70 be operated separately ~.
,oIitnn securities stock greatly improve their po-
sition and their chances for an adequate return
for the new stock upon The proposed basis TO say
no. tn 5aV the final cali OF So share upon Metro
Dolitau Securities stock.
The Metropolitan Securities factions which are
onnosed 10 the merger did not find the statement
ss+isfving They pointed out that the statement
OF finances consolidated one OF the Metropol-
ran Securities and the New-York city Railroad
oor,,a,,ies and that II could not be considered
Il
satisfactory answer 10 their demand for a Metro
noyitan Securities statement one of the stockhold-
a ,oin,ed out that while s. $50 9ce given the
| 49,, of the New York City Railroad for 1905 no
,nsrtion Was made OF the 10000 dividends collect
| Cd annually by the metropolitan Securities Com
| many from the Third Avenue. Central Crosstown
"a second Avenue roads. All Of the assets and
,,conoe Of Metropolitan Securities must II needed
he applied 10 the per cent guaranteed diVdehd on
,h 90 900 600 stock the Metropolitan Street Ran
nv unless the lease Is broken and the property re-
,urpea 10 the railway shareholders
| A rumor from Philadelphia that August Belmont
IA a grin on the traction system or the quaker
| or was denied yesterday at his Office
| ,rbe curb has recently been busy with the STOCK
| OF the Manhattan Transit Company "hich mas
ov,rleted it's purchase OF terminal sites ana Will
shortly begin work the Manhattan size. II con
80 +bo nerpetaal franchise OF the New-York and
| tsrootlvp railroad which runs from PARK 10" ana
! A,n-st "a the Brooklyn Borough Han. An entire
| tlock az Fulton and Furman SITS, IN brooklyn Is
| satd ~ have been purchased as terminal
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