New-York tribune., 1907-08-17
NAY PASS DIVIDENDS.
prrFTTERSHIP POSSIBLE.
Prmor of Coming Reorganization of
Local Traction System.

5r,, Of - points yesterday in the price OF
,,.ro-,oitar Street Railway stock. following
:. -.,cr, sepere decline in Interborough-M Metro
- common and preferred. gave rise TO a
- general belief that the q per cent guar
-,.,. dividend on Metropolitan would not Iorg
,;r,,e 10 be paid. well as that the 3 per
-, sivdend on Interborough- Metropolitan pre-
ed RoGId soon be suspended.
c5,cs the Interborough- metropolitan merger
49, effected Metropolitan Street Railway has
..ses 70 be 81 active stock. Only four hundred
..-ss were sold yesterday. one hundred shares
.arb going at 30. 4s, 4sas and "a. the last fig
.-os representing net decline of "A points from
- r,osing price or the day when previous
.-.usac.,ons in the stock had last occurred.
-,.,,- six weeks sgo. and a shrinSaee of ODD
points from the hlsh RECORD ieNei o. -oS touched
n March. 1929
-se Metropolitan Street Raiiwa:' Company was
,,.ses in February. 1892. for per cent annual
s;-a5eud on its stock. 20 the Inte-urban Street
,D,u.av COMPANY now the New York City Rail
~ COMPANY the entire capital stock OF which
: ouned bv the Metropolitan Securities Com
amy Incorporated liz the same month. The
ys,ropolitan has for several years earned much
,sss than per cent OF its capital stock, the
sveraSe being estimated at between and 81
,er cent and as the New York City Railway
ronpany has not the resources necessary for
-,sk1ng up the difference between the amount
sarned and the amount required under the guar
sutse 10 be paid in dividends that difference has
hesn supplied by the Metropolitan Securities
raauany In the traction merger arranged in
rsas practically all Of the s3o,oo0.000 capital
s,ock of the Metropolitan Securities Company
and about sss, ,e0o 600 of the Metropolitan Street
Railway Company's $4,000 600 stock were ex-
changed for securities of the Interborough- Met
ro,olstan Company. Dividends on the Metro
rolitan Street Railway stock amount 20 $500 oo0
2 wear. Of which stockholders outside Of the
Inferbcrough- Metropolitan Company get about
ssno006 the rest going 10 the company and
bting more than enough 70 pay the present an
rual per cent dividends on its $50. 600 900 pre-
.erred stock. amounting so.75o.0oo.
With the prospect confronting it of being
6ered by the Public Service Commission to make
expenditures TO the amount of several millions
r. dollars for improvements. the Interborougil-
Metropolitan management is understood to feel
that dividends on the preferred stock should be
suspended. and also 10 be desirous OF finding a
way Ct suspending the payment Of the Metro
poiitan Street Railway dividend and turning
hack into the property the entire sum earned by
the street railway system. But to accomplish
the latter purpose would involve the abroga-
fcn II the lease Of the Metropolitan TO the New
To,k City Railway Company, and it is reported
that the placing of the latter company IN the
bands Of &. receiver, as means of securing the
cancellation of the dividend guarantee, is under
disrussiou. The minority stockholders of the
Metropolitan. Il Is assumed. would oppose the
application for receivership the cutting OF
Of their dividends would represent a loss 10
them Of 100000 year; but as the resources
Q, the Metropolitan Securities Company are
steadily diminishing. I'm consequence OF thc
drain for making good the yearly deficit in the
Netropolitar,s guaranteed dividend. il is ar
-ued that within a few years at the furthest
The gusrsntee would become ineffective through
that cause.