New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-08-22
WILL PASS Dividend.


T. ,5 hoo, remarked in Wall Street that at the
meeting of the executive committee OF the 1i''ei
borough Metropolitan company yesterday
some action might be taken regarding the DIVIDEND
~, tho rreferred stock but it announced after
the meeting that business of public interest hau
come IN That that dividend Will be passeu, anu
&C we'll the per cent dividend now paid on Aielio
oli4., Street Railway stock. is pretty plainly IN
dicated by the recent course OF the SECURITIES vi
che two companies as said in The Tribune several
DAVIS ago and is universally taken as d c0i 'a,''
b,, the Street A statement pubnshed yes'el uaS'
quoting August Belmont denying the rumor tlat
The marlborough Metropolitan dividend "oulu ''e
-. ms +be result of Il misunderstanding, IL Is
learned Mr. Belmont not having made any com
y,ent on that He did, however, uehS 10
there was any foundation for reports oi mn
ceivershin or reorganization for the interporousn-
Metropolitan company -
- tho Netropofitan dividend is to be sus-
nended except by means of a recelVershlp lor 'no
New York City Railway Company the coIPoi
tion of nominal capital which leases the Nleuo-
u+or system or a receivership for the Metro
- Securities Company. which owns the en-
| +ira stock of the New York City Railway Company
&c not understood in the financial district OUT 'hei
&c sorne reason for believing that way Out win
=, frd ,cithout recourse to the courts. The ef-
fo+ of the passing of the Metropolitans dividend
-, no the suspension of the ELECTROMAGNETIC
ronolitans dividend and the turning into the prop
.rtv of the entire amount OF the former $ dlN-
,iand ner cent year on the 9ZetWo capltal
eco or t.S sum tle part IiOI CAM"
nv the Metropolitan system is paid by the Metro
,oIitap Securities Company. practically the entire
capitaI stock of which is owned by the INTERIOR
oueh Metropolitan company; SO that the chieI haru
CHR, involved in the cutting off OF DIVIDENDS "oud
bo entered by the outside Metropolitan sharehold-
ars who now receive between $o0oVV ana S''V'o'o d
cor The marlborough Metropolitan preferred
stockholders also would he sufferers. of course Out
70 n smaller extent. individually, as they receive
only per cent year
II is generally believed that the Belmont interests
would be glad to be able TO divorce the INTERIOR
och Rarid Transit system which includes the
Manhattan. from the Metropolitan system whicii
for years has earned considerably less ahhuany
than I per cent, and which still needs many mn
lions for new construction work and 1t has been
reported with much positiveness that the present
merger was brought about in opposition to MI
Belmont's views and by the vote OF Ryan repre-
sentstives in the marlborough Rapid Transit
board But no declarations to that effect from
Mr.. Belmont and his friends have been reported
any authoritative source, and whatever their
feeling the subject. the probabilities are under
stood to be that the merger Will not be dissolved
The statement of II II. VreeIand, az the time
president of the Metropolitan Street Railway COM
pany experimenting the circular issued To the
company's stockholders in February. 1902 in which
they were advised of the leasing of their property
the 1nterurban Street Railway Company, now
the New York City Railway Company. and the
organization of the Metropolitan Securities Com
pany is interesting in view of the recent develop
ments Mr.. Vreeland said. in part:
IF our stockholders approve the plan now sub
mitted an unqualified guarantee will be afforded
10 the Metropolitan stock OF per cent, with addi-
tonai strength: First. by the immediate expendi-
ture of 100000 in improvements; second. by the
association of the Metropolitan franchises with
those OF the Interurban company, and. third by
the support OF 80 O000o Of capital incorporated
in the Securities company This is a guarantee OF
almost incaiculable strength. and from the day
on which II goes into effect the price OF Metro
poIltan stock IN the market can he measured only
IN the sum Of money that investors viii pay TOT
a security that will yield cents on the dollar AZ
par with as much certainty anything that lies
a., human calculation We transfer the
new company the floating assets of the MetropoI-
itan bonds stocks claims etc, equal in value IN
my judgment. when fairly realized upon-not now
hut in the future-to the full capitalization Of the
COMPANY