The state herald., 1907-10-18
The KING OF
ALL FRAUDS
NEW YORK TURNS OUT GIGANTIC
SCHEME THAT CAUSES 9TH.
ERS TO FADE AWAY.
S3S.365,OOo THE SUM
ANTlQuATED EQUINE STREET
CAR SYSTEM INFLATED AND
SOLD IN THE DARK,

New York-Amazing as was the
story of Anthony N. Brady's Wall and
Cortlandt streets ferry railway deal
with the Metropolitan Securities Com
pany, and the incidental loot OF nearly
100000. 1t will be dwarfed by eo
posures to come. In similar syndicate
operations the same coterie of fnan
ciers in five transactions realized the
staggering total of $3S,365,000.
All the transactions were along ex.
| actly the same lines as the Wall and
Cortlandt street ferries deal, and the
loot was secured by plundering the
Metropolitan Street Railway Company.
The Twenty-eighth and Twenty-ninth
street car line never improved, ana
using the same horse cars which IL
operated in 1895, was purchased by ths
syndicate for s25.0O0 and turned over
10 the Metropolitan for bonds and
stocks. which at the time of the tran.
saction had a par value of $4,000. 900
and a market value OF $5.55O,000.
The Fulton street line, similarly pur
chased for 100000. was sold to the
Metropolitan for securities OF paI
value of 100000 and a market valua
of $1,S50,0O0.
The Thirty.fourth street cross.tovn
line was purchased for 100000 aud
sold to the Metropolitan for securities
OF a par value of $4,000 900 and a mar.
ket value OF s2.30O.000.
The Pavonia line, constructed az
cost of $1,500,O00, was sold TO the same
company for securities OF par valus
Of Sl0.000.000 and market value oi
SIS. 500, 900.
The Columbus and Ninth avenue
line. constructed at cost OF about
$4,000, brought securities of par
value Of s6,O00,000 and market yalu,
OF sil, 100000.
On all the transactions the summary
reveals the amazing fact that the in,
siders paid out s2,235,000 for roads
which they turned into the Metropolt
ton for securities of par value OF S22.
900 900 and market value OF 3il 100.
900. At the time these transactions
were taking place the stocks and bonds
had been marked up to where there
was an average price of $3.50 share
for tho stock and sl20 for the bonds,
and II was ut these fancy figures that
the looters parcelled out the stocks
and bonds TO the public and made q
The men involved In the syndicate
were the same TO whom Anthony N.
Brady referred TO in his testimony be
fore the public service commission on
Tuesday. II was the little coteris u
insiders that during the reconstructlon
days and until the present have con
trolled local traction interests. Tha
men are:
THOMAS +. RYAN.
WILLIAM c. WHITNEY.
=. A. ID. WlDENER.
THOMAS DoLAN.
WILLIAM l.. ELRiNS.
Whitney and Elkins are dead. theh
holdings having passed 20 their estates
Taking the transactions In chrono'
logical order. the Twenty'eighth and
Twenty.ninth street lines take precs'
dence. On September 80. 1896. this
line. bankrupt. defaulted on It's bonds
and. losing heavily. was sold at auction
ut tho real estate exchange. No, IL.
broadway. for $4,000. The sale was
patched up and an agent named
Charles W. Truslow acted as pur
chaser. He really represented the
Ryan interests. and Edward Lauter'
bauch represented the sellers OF the
bankrupt road.
The Same day. Il is matter OF rec
ord. this bankrupt line. purchased for
SIS. 900, was sold 10 the Metropolitan
Street Railway Company for tl.5OO.Ooo
worth OF stock and similar amount II
guaranteed Ave per cent. bonds II 10
losing 100000 year.
The Fulton street line was purchased
In 1892 from Dady a oRourke, Goa
tractors. for 100000. At that. they
were allowed to make 100000 proit,
Five hundred thousand In bonds nnd
$500, 900 In stock was paid for II by the
Metropolitan TO this syndicate, The
line owns only thlrty.nino miles ot
track. Il Is still horse line and losss