The Colorado statesman., 1907-10-12
THE KING OF
ALL FRAUDS
NEW YORK TURNS OUT GIGANTIC
SCHEME THAT CAUSES 9TH
ERS TO FADE AWAY.
S3S,365,ooO THE SUM
EQUINE STREET
CAR SYSTEM INFLATED AND
SOLD IN THE DARK.

New York-Amazing as was the
Btory of Anthony N. Bradys Wall and
Cortlandt streets ferry railway deal
with the Metropolitan Securities Com
pany, and the incidental loot of nearly
81 100000, it will be dwarfed by eD
posures to come. In similar syndicate
operations the same coterie of finan
ciers IN five transactions realized the
staggering total of $SS,365, 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 the
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 the
syndicate for $25,00O and turned over
to the Metropolitan for bonds and
stocks, which at the time of the tran.
saction had a par value of $3,000,000
and a market value of s5,550,000.
The Fulton street line, similarly pur
chased for 100000, was sold to the
Metropolitan for securities of paI
value of S1,000,000 and market value
of $1,S50,00O.
The Thirty-fourth street cross-town
line was purchased for 100000 and
sold to the Metropolitan for securities
of a par value of $2,000,000 and mar
ket value of $2,300,000
The Pavonia line, constructed at d
cost of S1,500, 900, was sold to the same
company for securities of IA par value
of $10,000,000 and market value OF
$1S,500,000.
The Columbus and Ninth avenue
line, constructed at a cost of about
$45000, brought securities of par
value of $6,000,000 and a market value
of $11,100,OO0.
On all the transactions the summary
reveals the amazing fact that the in.
siders paid out $2,235,000 for roada
which they turned into the Metropolis
ton for securities of a par value Of $22,
100000 and market value of SAL ,700,'
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 the stock and $120 for the bonds,
and it was at these fancy figures that
the looters parcelled out the stocks
and bonds to the public and made a
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. 1t 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. thef
holdings having passed to their estates
Taking the transactions in chrono
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
at the real estate exchange, No. IL,
Broadway, for $25 1000. 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, it is matter of rec
ord, this bankrupt line, purchased for
S25,000 was sold to the Metropolitan
Street Railway Company for $1,5000O0
worth of stock and similar amount II
guaranteed five per cent. bonds. 1t is
losing 100000 year.
The Fulton street line was purchased
in 1892 from Dady & O'Rourke, con-
tractors, for $160,000. AT that. they
were allowed to make 100000 profit
Five hundred thousand in bonds and
$500.00 in stock was paid for it by the
Metropolitan to this syndicate. The
line, owns only thirty-nine miles oil
track. 1t is still horse line and loses
SLh 400 a wear