The Lamar register. [volume] (Lamar, Colo.) 1889-1952, 1907-10-16
THE KING OF
ALL FRAUDS
NEW YORK TURNS OUT GIGANTIC
SCHEME THAT CAUSES 9TH
ERS TO FADE AWAY.
S3S.365,000 THE SUM
ANTIQuATED EQUINE STREET
CAR SYSTEM INFLATED AND
SOLD IN THE DARK.

New York.-Amazing as was ths
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
| $1,000,O00, IL will be dwarfed by ex,
| posures to come. In similar syndicate
| operations the same coterie of finan-
ciers IN five transactions realized the
staggering total of $3S 1868. 900.
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 tho
Metropolitan Street Railway Company
| The Twenty-eighth and Twenty-ninth
| street car line never improved, and.
| using the same horse cars which It
| operated in 1896. was purchased by tho
syndicate for $4,000 and turned over
| to the Metropolitan for bonds and
stocks. which at the time of the tran
saction had par value of $3,OOO,00O
and a market value of $5.550,000.
The Fulton street line, similarly pur-
chased for 100000. was sold to tho
Metropolitan for securities of par
value of 81 100000 and market value
of $1,S5O,00O.
The Thirty fourth street crosstown
line was purchased for 100000 and
sold to the Metropolitan for securities
Of par value of 100000 and a mar
ket value of s2.300.000.
The Pavonia line, constructed at Il
cost of 81. 5O0,0 was sold to the Same
company for securities of par value
| of 10000, 900 and a market value or
| $1S,5OO,O0O.
The Columbus and Ninth avenue
| line, constructed at "A cost OF about
| $i5,O 900, brought securities of par
value of 100000 and a market valuo
| of $l1 100000.
| On all the transactions the summary
reveals the amazing fact that the in
| siders paid out $2,235,O00 for roadE
which they turned into the Metropoli-
| ton for securities of a par value OF 49,
| 900 900 and a market value of $41 .7OO.-
| 600 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 a share
! for the stock and 1920 for the bonds,
and 1t was at these fancy figures that
the looters parcelled out the stocks
| and bonds to the public and made
| quick realization in cash.
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 coterie OF
insiders that during the reconstruction
days and until the present have CON
| trolled local traction interests. The
| men are:
THOMAS F. RYAN.
| WILLIAM C. WHITNEY.
p. A. b. WIDENER.
THOMAS DOLAN.
| WILLIAM l.. ELKINS.
Whitney and Elkins are dead. their
| holdings having passed to their estates.
Taking the transactions in chrome
| logical order, the Twenty eighth and
Twenty-ninth street lines take prece-
dence. On September 80, 1896. this
line. bankrupt. defaulted on its bonds
and losing heavily. was sold at auction
Mt the real estate exchange. No. ii.
Broadway, for $4,000. The sale was
patched mp and an agent named
| Charles w Truslow acted as pur-
| chaser He really represented tho
Ryan interests, and Edward Lauter-
| bauch represented the sellers OF tho
bankrupt road.
The same day. II is a matter OF rec
ord, this bankrupt line. purchased Tor
$25, 900, was sold to the Metropolitan
Street Railway Company for $l,5OO.OoO
worth of stock and a similar amount IL
guaranteed FIVE per cent bonds. II Is
losing 100000 year.
The Fulton street line was purchased
in 1892 from Dady q O'Rourke. con
tractors. for 100000. AT that. they
we're allowed to make $lO0.0OO pront.
Five hundred thousand in bonds and
$500 900 in stock was paid Tor IL by INC
Metropolitan TO this syndicate. ina
line owns only thirty-nine miles Of
track. Il is still horse line and ioseS
$4,000 year.