New-York tribune., 1907-12-28
WILL REDEEM COUPONS.
Kahn, Loeb s Co. Offer to Pay In
terest ON Third AUe. RailWay Bonds.

Kuhn Loeb & Co announced yesterday in a lotter
addressed to ]. n. Wallace. chairman Of the bond
holders committee of the Third Avenue Railroad
Company their willingness TO redeem at face value
the coupons representing the semi-annual interest
due on January i on an per cent consolidated
mortgage bonds which should be deposited with
the committee by March L The letter reads in part
follows:
Company is likely to default in the payment OF the
interest due January ! next upon its first con-
the bSndholdeSs' committee Of which you are
charrhan will not by that date have completed mp s
results Of which examination must be known be.
as sfs to hs Saae Of s
committee can consider Any plan for the ssnabli M
termined inasmuch as most OF the bonds of the
above issue were placed by us-at time when
n,ents of the highest rank-to offs Offer to purchase at
s ss's from
committee before the first day OF March next
holders may not suffer for lack of opportunity for
fun investigation and in order that through our
Reesi1s their S '9a Hn eondOn the
ad Is As hehas Of oy our ne now
Kuhn, Loeb & Co. sent out all the bondholders
a supplemental and explanatory letter. saying that
this paymen. would be made on bonds deposited
with the Central Trust Company subject to the
bondholders' agreement
There are outstanding ss7,56o0oO Of these bonds.
which are part OF an authorized issue of S00oo0oO.
the remaining s1244000O being reserved TO take up
various prior liens In December. 1900 Kuhn. Loeb
g. Co placed most of the bonds which sold
a, ,o,lh and accrued interest The closing price
YESTERDAY was 4sla At the time the bonds were
brourh, ont there was an equity behind them of
s1oo 900 600 on the basis of market prices then rui
ing In a letter addressed to the bankers at the
time. n. H. vreeland, president of the Third Ave
nue. Railroad Company and the Metropolitan Street
Railway Company. said In part:
7, Is estimated that after the completion of the
electric equipment now in progress. and with the
ecnnerti0n with the Metropolitan Street Railway
Company the annual net earnings or the Third
Avenue hallway Company will be at least s. 900 600
which together with the surplus earnings of the
ths pesults O. the last fiscal year would provide
net earnings Of nearly SeSNooo to meet fixed
60 6nn ooS in all inclusive of the issue of the new
~er cent bonds. The Metropolitan Street Rail
wav Company guarantees unconditionaily by in
Sorsement the principal and interest of the Third
AVanue railroad per cent bonds.
rt. offer Of Kuhn, Loeb C Co.. as already noted
.xtends only 20 bondholders who shall deposit with
tba committee their holdings before March l. so
that the total amount of the payment which the
banking arm has obligated itself TO make cannot
no aceuraeIy estimated. Meeting the coupons on
all of the bonds would involve the payment of
s75l 200 The coupons have no preference over the
bonds so that the firm in Offering to buy the
coupons would seem to stand to lose considera-
bic amount. since the bonds now quoted at TN
Ger So The offer excited favorable comment in the
financial district. where II regarded as in the
nature Of discharging moral obligation"