The sun., 1907-08-28
SAYS MET. INFLATED VALUES
FRANCHISES WHICH, COST -, eOO.-
OOO SIT ~ TINES As HIGH.

Wuliam 4. BOiand Strings Ip Charges for
Public service Commission 10 InVestI.
gate says Also Road II Trying 10
DOdge Paying sBOO.OOO Debt.
In the course Of its investi cation into
the local railroads the Public Service
Commission viii examine into charges
that have been made against the Metro
politan Securities Company by Van Sinderen
Liudsley. counsel for William A Boland.
street railway operator. OF 81 Nassau
street Mr Lindsley charges that the
Metropolitan company included among
its assets at q valuation Of between $20.
900 600 and $50. .OO0. 900 four franchises for
street railways in The Bronx for which II
paid only si.2O0.OOO. :
Boland and the Metropolitan company
have been at law for several years over
this sale Of traction franchises. and only
yesterday Boiand obtained from Justice
Guy in the Supreme Court an order con-
tinuing during the pendenoy OF his suit
in equity q temporary injunction restrain
ing the Metropolitan and eight other de-
fendants from Offering for sale at public
auction ON September S the original con-
tract OF sale which the Metropolitan COM
pany gave to the Boland syndicate, Bo-
lands lawyer alleges that through this
auction sale the Metropolitan company is
seeking to escape liability OF $500 200 and
of or high fnance Hs 60 u ss BoisDd % calls IL L '
Boland and six others. Patrick II: Flynn
James Shevlin, State Senator John McCerty.
State Senator Michael J. Coney, p. Frank
keenan, and Fred c. Cooheu, bought the
franchises Of the Peoples ut Traction Com ont
Connecticut Traction Company. the Eden
wad Street Railway Company and the
North Mount Vernon Railway Company:
This was back in 1895. No tracks had
been laid, but the syndicators threatened 20
Huckleberry line controlled by William G..
Whitney and his associates. Finally Robert
s. Bussing. who il is alleged wac MIR.
Whitney's financial agent, bought the
franchises from the syndicate for 81 900 900.
OF this amount 81 900. 900 was paid in cash
to Syndicator Flynn and the balance was
to be paid later. That sum of 5000 900 never
has been paid and Boland has taken the
case into the courts to get the money
II in it's own contract calling for the pay
ment OF the 81 .e00.o 900 for the four iran
chises that the Metropolitan company
had advertised for sale on September ).
Lawyer Lindsley alleges that the treasurer
OF the Metropolitan company. IN connection
with this proposed auction sale. has sworn
that the contract is not worth more than
to Lindsley's charges. represented AZ one
time franchises valued by the Metropolitan
at between SO. 900, 900 and $50, 1000.
The lawyer alleges that the Metropolitan's
purpose in having the auction is 10 buy
in its own obligation for nominal price
and thus escape the 5000 900 liability.
The Metropolitan holds the contract
it's own contract to pay ST. .oOO, ,0O0-as col
lateral 10 a note for 500 900 given by Syndi-
Gator Flynn According to Lindsley' q
charges the contract came into the Metro
politan's hands in this way. Flynn went
to the company aud wanted TO borrow some
money The officers told him they could
do nothing, but that he should go to Kuhn,
Loeb n 90. and they would advance him
$500 900 upon the assignment Of the con-
tract as collateral. Lindsey charges that
ON the day that Kuhn, Loeb Co. obtained
the oontrect in this way they assigned IL
to the Metropolitan company.
The franchises involved in the contract
have lapsed, but Lawyer Lindsley alleges
that this was done purposely, the Metro
politan's object in acquiring the franchises
originally being to shut out competition.
Lindsley charges that his client knew moth
ing Of Flynn's loan from Kuhn Loeb Go.
at the time it was made. He says that he
went around 20 the Metropolitan's Office
after the advertisement for an auction
sale was published and offered 500 for the
contract, but they refused to take il.