New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-12
AFTER lNTER-MET NOW
JACKSON HAS NEW SUIT.
Says Combination Is WegaLOrder
to Shoe Cause Granted.


terday for permission to bring suit to dissolve
the Interborough- Metropolitan company the
ground that it violates the stock corporation law
and the anti monopoly law. Justice Platzek. in
Part II, Special Term of the Supreme Court is
sued an order to show cause that is returnable
on July 10. This with a copy of the petition
will be served on some executive officer of the
company to-day
This action is the outcome. in way of the
overruling by Judge Holt in the United States
Circuit Court of the demurrer entered bv coun-
sci for the "Inter-Met' in reply TO suit brought
| by Daniel w Burrow of Chicago stockhoIder
! VINO sought to have the merger set aside Judge
holt, in giving his opinion. said of the merger:
| IL Is dlf1cult TO see how monopoly could be
more complete" The Attorney GenersI said YES
.eruay mat the federal judges opinion made him
hopeful for his contentious, but said also that
ne mad planned long before this to try to break
up the Ryan Belmont combination.
The suit which Mr. Jackson now asks per-
mission to bring seeks the vaCating of the fran
chise and the annuIllng of tho corporate exist
ence Of the holding company which controls the
Ihterborough Rapid Transit Company. the Met
ropohtan Street Railway Company, the Metro
politan Securities Company the Manhattan Rail-
way Company and the New York City Railway
Company. He alleges that the Interhorough-
metropolitan Company organized "in pur-
suance OF the unlawful and illegal conspiracy
of Thomas F. Ryan. August Belmont Cornelius
u.
Minis Andrew Freedman. Thomas P. Fowler and
Gardiner NJ. Lane
This suit is only the latest of the rapid fire
actions Of the Attorney General On Wednesday
he entered suit to oust the Consolidated Gas
| Company from the exercise of the franchises Of
most of its constituent companies. Therefore
yesterdays action against the Interborough-
metropolitan came q surprise, since two big
! suits In two days is a record. for Mr..
jackson. Just at present moreover, his office
I in hn i ,0T,f,t 4
petitions against alleged monopelies.
MANY SUITS BROUGHT
on June Mr.. Jackson argued before Justice
Mccall. In the Supreme Court for permission 70
bring action to annul the charter of the Con-
solidated Gas Company, on the ground that it
was monopoly. While waiting for Justice
/ McCalPs decision he entered the second and
smaller suit against the Consolidated. Actions
are also pending against the Western Union and
Postal telegraph companies. the American lea
Company and the Bell Telephone Company. If
all Of them come to trial 1t will he AT about the
same time according TO the prospects of the
court calendars. A lawyer remarked yesterday.
on hearing of the latest suit: The Attorney
General and his assistants will be busy Kan
sas farmers in harvest time # they get what
they're looking for"
At the Office of counsel for the Interborough-
| Metropolitan Company last night. the news Of
Mr.. JaCkson's action met with the following
statement: President Shonts and counsel are
/ unanimously OF the opinion that the Vandity or
/ the corporate existence of the Interborough-
! Metropolitan Company will be upheld by the
/ appellate courts The Attorney Generals suit
| involves the same questions as have been raised
in the suit brought in the federal courts by Mr.
! Burrow At the present time until the papers
! have been served there is nothing more for us
! 10 say
MR.. JACKSON'S PETITION.
| Mr. Jackson in his petition. filed late yester
day afternoon. sets forth in detail the history
! OF the various surface. elevated and subway
| cnnpaui in the combination. together with
| that ~ the Metropolitan Securities Company.
| business corporation. The petition then sets
| forth:
The Interborough- Metropolitan company, which
| has ,,riev,fIrv acquired the absolute control and
| management of ali the railroads engaged In the
TRANSFORMATION Of passengers within the horoughs
| OF Manhattan and The Bronx was not organized
| under tho railroad laws of the State OF New YORK
and is not ameuabIe to the restraints ana "'nItd-
tions imposed by the railroad laws upon com
pauIss engaged in the business Of transportation.
! but the said company was organized uhotf Ihe
! business corporations law Of the state OF New
York for the sole purpose OF acquiring and con
trolling the stock Of all the corporations engaged
| In the transportation OF passengers within and
! throughout said boroughs and with the intent and
purpose of 'Geatlng monopoly in the business OF
transportation Of passengers and OF destroying
| petition the said trade business. and of con-
trolling without let hlndraEce or competition the
supply of transportation required by the nhabi-
tants of said borouEhs.
The said Interborough- Metropolitan company
/
! pay for the stocks of the various companies
gagged In the transportation OF passengers within
! the said boroughs, but organized solely for
tint purpose OF pooling and uniting all the stocks
| Of the said company under one sole management
and control. and carry into effect the unla wfu
combination conspiracy heretofore charged; that
| the said Iuerborough- Metropolitan company IL a
mere deposltary. custodian and trustee OF the
stocks Of the Metropolitan Street Railway Com
pany. the Metropolitan Securities Company and
the Interhorough Rapid Transit Company, in
change for which IL has made payment but
| simply issued against the its own stock and
! securities which in reality but beneficial GER
tihcates designating the interests. OF the various
holders in the unlawful pool or combination
| effected.
| CALLS CAPITALIZATION INSUFFICIENT.
That the total capitalization of the Interborough-
! METROPOLITAN Rapid Transit Company and the Met
ropolifan Securities Company was Respectively as
| follows to wit: Interborough Rapid Transit COM
pany S250OO0Oo: Metropolitan Street Railway Com
pany S520oOOO0: Metropolitan Securities Company.
$50 OnOOO0 making a grand total of the three COM
| panies, $l17.000000.
| That the Interborough- Metropolitan Company
had no capital sufficient to warrant the purchase
OF said stocks for money. original capital was
$1,000 1t thereafter increased its capitaza-
tion 550OOOO of preferred stock and 100000 eco
of common stock and issued collateral trust Ar per
cent gold bonds to the amount of S70.OOOOO. all Of
which issued for delivery to the holders of
stock in said various companies in exchange and
return for the deposit with the said company Of
| other shares of stock in the various companies
heretofore made, with the exception of IS 700 600
which was turned over 10 said August Belmont In
| payment of S2.250c00 in cash and his agreement 10
pay commissions. counsel fees and expenses OF the
| organization of the corporation
That the purchase. acquisition and control by
the Interborough- Metropolitan Company Of ma
jority Of the stock of the Metropolitan Securities
Company and the Interborough Rapid Transit
Company and Metropolitan Street Railway Com
ing a monopoly under the control o said Inter
! borough Metropolitan Company Of the trade and
| gF .tip1