New-York tribune., 1907-11-26
CHARGES M. S. R. PLOT.
WOULD DROP RECEIVERS.
Stakeholder an Suit focuses Mr..
Ryan and associates.

Charges that the receivership for the Metro
politan Street Railway Company and many oS
the subsequent legal entanglements in which
that concern is enmeshed part of a con-
certed plan on the part of Thomas +. Ryan and
some others to freeze out stockholders of that
railway and bring it cheaply and completely
within the grasp of the associates ere contained
in papers filed in the United States Circuit
Court yesterday by Wo!man & Wollman, at
torncys for Solomon H. kohn
Mr.. Kohn. stockhoder for several years. de
sircs the present receivers. Adrian H. Jolne and
Douglas Robinson. dismissed and independent
receivers appointed. He prays that he be al
lowed to intervene as defendant in the receiver
ship proceedings instituted by the Pennsylvania
Steel Company and the Degnon Contracting
Company to protect his interests. He says that
Messrs. Jollne and Robinson practically are en-
ployes OF Mr.. Ryan, that they are receivers
for both the Metropolitan and the New York
City Railway Company. and their functions as
receivers for the one prevent their exercising the
fullest care for the stockholders of the other.
The Morton Trust Company. also under the
domination Of Mr. Ryan. the petition declares,
is used as Mr. Ryan's instrument in the freeze
out plot. Foreclosure proceedings the mort
gage of the Metropolitan Street Railway prop
erty TO the trust company as trustee, which
were instituted recently, are part Of the gen
eral plan Mr.. Kohn's petition says. Most of
the f1nancia! transactions in which the Metro
politan has been concerned recently are harshly
criticised. including the Metropolitan Street
Railway Interurban lease, in connection with
which suit should be brought against Mr..
Ryan. the petition says for restitution of part
of s23.OOO.OOO
Mr.. Kohn. the complainant in the proceed
i,
334 West 72d street. He was formerly president
Of the Kohn Steel Works In 1901. his petition
declares, he bought 500 shares of Metropolitan
stock at no. the market price, urged thereto by
reason of reports published and sent forth by
Thomas F. Ryan and directors of the Metropol-
tan as to the enormous earnings of the COM
pany." This stock, purchased I'm open market.
Mr.. Kohn says he now believes the stock OF
Mr.. Ryan and associates. unoaded
suspecting public
In 1902, his petition continues Mr.. Ryan and
associates. for purposes of their own" con-
ceived the idea of leasing the Metropolitan to
the Interurban and lease of extremely doubt
full legality and validity" entered into BY
the terms OF this lease the Interrban took the
Metropolitan for 800 years. agreeing to pay
rental Of per cent yearly dividends on the
stock Of the latter company. Also it took over
ing to pay therefor s23.oOO.OoO. The petition al
leges that all Of this s230OO,OOo was not turned
over and that the directors and said Thomas
p Ryan have never properly accounted for such
part" as was turned over 10 them.
In connection with this lease the Metropolitan
Street Railway gave mortgage on all its prop
erty 10 the Morton Trust Company as trustee.
That company. too. was dominated by Mr. Ryan.
tho petition goes on The avowed purpose of
this mortgage was to substitute the bonds to be
issued Hereunder for the bonds then outstand-
ing Prior 10 that time Ryan and his associates
had been heavy holders OF stock: but they pro-
cured the petitioner and others ito purchase said
stock at enormous prices by making said state
ments and by declaring and paying dividends on
the stock of said Metropolitan Street Railway
COMPANY in excess of the earnings thereof and
by paying said dividends out of capital and not
out of earnings. and thus said Ryan and his as
sociates sold and unloaded nearly all of their
said stock on the public at enormous prices, and
have since become and are now largely interest
ed i'm the bonds OF said Metropolitan Street Rail-
way Company secured by said mortgage TO the
Morton Trust Company.
The receivers. according 10 the petition. on