New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-09-06
SLOWS UP
PASSES USUAL Dividend.
Directors Fear Rigid Order from
Public Serrice Commission.

The first step in the readjustment OF tho
finances Of the local traction system was taken
Yesterday, when the directors OF the Inter-
ooroush-Metropolitan Company met and passed
the quarterly dividend of Ia per cent on the
preferred stock This action was taken ac-
cording to a representative Of the company.
because of the uncertainty as 20 the extent OF
the improvements which the Public Service
commission might order the company 70 make
on Its various subsidiary lines and the +igbr
ness OF the money market The only statement
gwen out by the directors after the meeting
was the following:
,, Inc ooard OF directors OF the Interborough-
metropolitan Company. at their meeting he'd
to-day. determined not 10 declare any di7-i5en5
on the coInpany's preferred stock for the cur-
rent quarter.
lie meeting Of the directors of the New York
OHy 11aA"ay Company, which had been sched-
uled to be held Immediately after the Inter
borough Metropolitan meeting vvas -os+,o1a5
until TO-DAY 1t was announced authorita-
tlvely that no action would be taken AT tha
meeting In regard TO the per cent dividend
On the metropolitan Street Railway Stock
wHich IS guaranteed by the New York City
fIdIl"ay Company. A representative OF the
company explained that the quarterly dividend
on this stock was not due until October Is. and
that consequently there was not any urgent
need OF acting it at present
ton Of the Interborough-MetropoIita COMPANY
in passing the dividend on the preferred stock
was construed as foreshadowfng similar action
by the directors Of the New York City Railway
Company If the guaranteed dividend on the
Metropolitan Street Railway stock IS passed II
Is expected that Clarence H Wildes and other
non-assenting stockholders, who are preparing
TO form a protective committee, may make ap-
plication TO have the company placed IN the
hands OF a receiver, although. under the terms
Of the lease action be taken against the
New York City Railway Company until rental
on the Metropolitan Street Railway Conpany's
shares has been IN default for one year
The Interborough-M Metropolitan Company may
be said be the holding company for all OF
the traction lines Of the boroughs OF Manhat-
and The Bronx. II owns nearly $4,000
600 of the S35 100000 capital stock OF the Inter-
borough Rapid Transit Company. which oper-
ates the subway lines and leases the Manhattan
| Railway Company, operating the elevated liness
| and IT also owns, in addition to more than 81
| 100000 Of the Metropolitan Street Railways
| S52.O0OO0O stock practically the entire capital
| stock OF the Metropolitan Securities Company,
| which itself owns all the stock Of the New York
| City Railway Company. lessee Of the MetropOli-
| tan Street Railway Company. The Metropoli-
| tan Street Railway Company. in its turn. con-
/ trolls the Third Avenue Railway Railway Com
| pany under lease. and guarantees payment OK
! dividends on its stock BY the lease Of the
/ Metropolitan TO the Interurban Street Railway
/ Company. now known the New York CITY
| Railway Company. the Metropolitan's holdings
/ OF Third Avenue stock. amounting 70 ma
| toritv. were transferred 70 the Interurban as
! part consideration for the advancing oy the
| latter corporation OF S23.OOo.O00 10 the Metro
politan: and it expressly stipulated thar
~
revocabIe in case OF failure Of the Interuroan To
| keep up the payment Of the per cent Sh'ii-1s''
| rental on the Metropolitan stock
| The heaviest losers as a result OF the passing
| NJ the dividend on the preferred stock VIII ne
the old shareholders OF Metropolitan Street Rail
wav stock who exchanged their guaranteed
| per cent shares for the 5 per cent cumulative
| nrafarred stock and common stock OF the inter-
| borough Metropolitan Company When the
merger was formed. early IN 1890. and the 9id
| NatropoHtan shareholders were asked 10 ue-
/ posit their stock. it was officially announce1
| that the ; per cent cumulative dividend would
| he Maid on the preferred stock from the oegln-
! Ming and that the outlook for a 1 per cent
| 6,,ids1d on the common stock was bright As
| . r,a-+ar OF fact however. the most that has
/ bAan earned on the cumulative preferred stock
l =, any wear was % per cent The DIVIDENDS.
| although not fully earned. have been paid and
The dffference charged 70 the profit and loss ac-
/ count.
| The nrafe-red stock Of the Interborough-Met-
| ropoIftan which closed at p on Thursday,
| dropped TO 25-s shortly after the opening OF the
| market yesterday. but advanced 70 2s12 tn1rne-
| diately after the suspension Of the dividend was
| announced. II closed at 2I1z. net gain OF one
half a point for the day
| F3v the passing Of the dividend on the pre-
| ferred stock that class now secures voting
mower. which under the company's charter IL
| withheld except in default OF payment OF clvi-
dends or unless the directors request the con-
| ferring Of that power. As the preferred stock
outstanding amounts 10 only S45.3SO.3OO. against
| 500 362 100 of outstanding common stock, now
ever. which is held by a voting trust composed
of August Belmont. w G. Oakman- Cornelius
Vanderbilt Thomas F. Ryan and P A d
y-tdener no significance would seem TO attach
10 the voting privilege now belonging to the
preference shares