Evening star., 1907-08-29
INFLATED assets CHARGED
FRANCHISES WHICH COST 81, ,2oo,-
600 SET TWENTY TIMES HIGHER
William A. Boland Brings Up Charges
for Public. Service Commission
to Investigate.

NEW YORK, August 29.-In the course
of its investigation into the local rail-
roads the public service commission Will
examine into the charges that have been
made against the Metropolitan Secu-
rites Company by Van Sinderen Lindsey,
counsel for William A. Boland, a street
railway operator, of n Nassau street. Mr.
Lindsey charges that the Metropolitan
company included among it's assets at a
valuation Of between $2OOOO.OOO and $50.
COZ, COO four franchises for street railways
In the Bronx for which 1t paid only 81, 200, :
600.
Boland and the Metropolitan company
have been at law for several years over
this sale of traction franchises. and only
yesterday Boland obtained from Justice
Guy in the supreme court an order con-
tinuing during the pendency of his suit in
equity a temporary Injunction restraining
the Metropolitan and eight other defend
ants from offering for sale at public auc-
ton on September the original contract
of sale which the Metropolitan company
gave to the Boland syndicate. Boland' 8
lawyer alleges that through this auction
sale the Metropolitan company is seeking
to escape a-lia:bility of $6GO,0OO and that it
Is able to do this only as the result of high
finance as Boland calls 1t.
What the Rights Cost.
Boland and six others Patrick H. Flynn.
James Shevlin, State Senator John McCar-
ty, State Senator Michael J. Coffey. P.
Frank keenan, and fred C. Cocheu. bought
the franchises Of the Peoples Traction
Company, the New York, Westchester and
Connecticut Traction Company, the Eden
wald Street Railway Company and the
North Mount Vernon Railway Company.
This was back in 1895 No tracks had been
lo;<l h,,$ ho
come active competitors of the old Huckle-
berry line controlled by William C. Whit
ney and his association. Finally Robert S..
Bussing, who, 1t is alleged, was Mr.. Whit
ney's financial agent, bought the franchises
from the syndicate for 100000. OF this
amount 100000 was paid in cash to Syn
dicator Flynn and the balance was to be
paid later. That sum of $6OOOO never has
been paid and Boland has taken the case
into the courts to get the money.
1t is its own contract calling for the pay
ment of the 81 100000 for the four fran
chises that the Metropolitan company had
advertised for sale on September 8. Law
yer Lindsey alleges that the treasurer of
the Metropolitan company, in connection
with this proposed auction saIe has sworn
that the contract Is not worth more than
500 now. Yet the same contract accord
ing to Lindsleys charges represented at
one time franchises valued by the Metro
politan at between $2O.OOO.O0O and 10000
tan's purpose in having the auction Is to
buy in its own obligation for a nominal
price and thus escape the $60O,OO liability.
Metropolitan Contract.
The Metropolitan holds the contract-its
own contract to pay 81 600 OOO-as collateral
to a note for s2oO. 900 given by syndicator
Flynn According to Lindsley's charges the
contract camp into the Metropolitans
hands in this Way Flynn went to the COM
pany and wanted to borrow some money.
The officers told him they could do moth
ing, but that he should go to Kuhn Loeb
& Co. and they would advance him $500 900
upon the assignment of the contract as col
lateral Lindsey charges that on the day
that Kuhn. Loeb & Co. obtained the con-
tract in this way they assigned 1t to the
Metropolitan company.
The franchises involved in the contract
have lapsed but Lawyer Lindsey alleges
that this was done purposely, the Metro
politan's object in acquiring the franchises
originally being to shut out competition.
Lindsey charges that his client knew moth
ing Of Flynn's loan from Kuhn. Loeb & Co.
at the time 1t was made. He says that he
went around to the Metropolitan office