New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-07-12
AFTER INTER-MET NOW
Continued from First Page.

ness of transporting passengers in the boroughs
! of Manhattan and The Bronx. On these premises
Mr.. Jackson's document declares:
First-That the said ACKNOWLEDGEMENTS
Company has offended the provisions of law under
| which it created.
Secondhand the said Interborough-M Metropolitan
Company has violated provisions Of law, whereby
1T has forfeited its charter and become liable TO De
| dissolved by the abuse of it's corporate powers.
He ends by asking the Supreme Court to grant
permission to bring suit for a Judgment "vacat-
ing the charter and annulling the existence Of
said corporation" adjudgng that the purchase
and control by the marlborough Metropolitan OF
n majority of stock in the various subsidiary
companies is IN violation OF law; adjudging the
transfer of such stock Illegal and void. and ad-
Judging that the officers and directors and stock
holders of the Interborough Metropolitan be for
ever enjoned from doing anything for the main
tenance of the alleged monopoly
The state charges that August Belmont, rep
resenting the InterbOrOugh Rapid Transit Com
pany and Thomas F. Ryan. controlling major
ity of stock in the Metropolitan Street Railway
Company and the Metropolitan Securities Com
pany together with their associates 'contrving
and intending unawfully" to restrain trade and
create a monopoly, entered into an unlawful
combination and conspiracy in December, 1905
He cites proof of this the statement issued by
Messrs. Ryan and Belmont at that time, in which
they said:
Mr. Belmont and MI Ryan. after consultation
with their respective associates, have approved a
plan for the union OF the InterfbOrough and Met
ropolitan interests. which will be formally sub
mitted the stockholders Of the corporations IN
volved as soon as the lawyers have completed the
necessary papers. The plan contemplates the or
eanization of new company which shall issue its
securities in acquiring the shares OF the INTERIOR
ough- Metropolitan Street Railway and METROPOLITAN
Securities companies upon the Following tefnS'
For every share of Interborough stock
New collateral trust Az per cent bonds Sc
cured by the deposit of 1nterborough stock $500
New common stock ............ ~
For-every share of Metropolitan Street Railway
stock
New cumulative preferred stock..........-. 100 g9
For everv share of Metropolitan Securities
stock with SIS per share paid: G.
New common stock OBSERVATION-DISCLOSURES o.
Taking this announcement by the hnancierS
mentioned as evidence, the complaint declares
that the marlborough Metropolitan company
was organized as holding company under the
business corporations law. The Attorney Cen
eral says that some time about January i'VO
an agreement was entered into by all the de-
PENDANTS to take up stock and bonds IN the SUP
sfdiarv companies in exchange for stock ana
bonds in the marlborough Metropolitan. Ihus
Mr. jackson has built up his charge that the
holding company should be put out or business
The decision of Judge Holt which is believed
10 have a bearing the outcome OF the present
action was handed down last Monday in the &C
ton brought by Mr. Burrows, who has l4oo
shares Of stock in the Metropolitan securities
COMPANY He set forth about the same facts
as MI Jackson has collected. The "Inter-Met
lawyers interposed demurrer TO Mr.. BuTowss
action on the ground that, even If such were the
facts they did not constitute a monopoly Judge
Holt. however. in overruling the demurrer, said:
II Is difficult to how the monopoly could be
more complete. BY II every street railroad ana
every elevated and subway railroad In the Dor
oughs Of Manhattan and the Bronx are combined
in ono management and control. II Is as absolute
a monopoly OF the means OF transportation OF pas
sengc~s In New York as can he imagined. No man
can go up or down town IN New York without
using one Of those roads. unless he walks or takes
a carriage.
Mr. Rurrows's action will therefore come TO
trial Should he win IT, the effect would be the
same on the Interborough-M Metropolitan as that
sought by Mr. Jackson.