New-York tribune., 1907-10-09
arit.es in case the same are so pur-


action of the stockholders OF the Metropolitan
Street Railway Company upon said lease. The
cent Per annum for all advances made hereunder
be in a position TO assure 10 the Interurban COM
pany the necessary money to enable il TO carry
fopoiitan Street Railway Company. the bankers
guarantee that the entire unssued capital STOCK R
par. and that p per cent shall be PAID in Upon
ratification of said lease. hereinafter provided
The obligation OF The bankers under this agree
which the subscribers shall pay . per cent on the
scriptions 10 the stock Of The Securities company
shall. however. be conditioned upon an agreehe,ht en-,
Metropolitan Street Railway COMPANY. IN form
the stockholders OF the latter company before May
l. 1902 and upon the acquisition by the Securities
company Of all the stock and debentures which
the InteTurb2n company may issue ,.,s -.
the approval of said lease aforesaid, that S23-
10000 par value of the stock OF the Securities
ers Of the Metropolitan Street Railway Company
registered upon the books OF that company as OF
~ the Metropolitan Street Railway Company. and
ali such stock As Is not eT5srrbed for m6on such
offering. The responsibility of the bankers To
cease when the BANKERS shan fiie With the Secnr
i nes CoInpsy nst ei subscribers approved by me
have agreed with the bankers "a take such of said
stock as shall not be subscribed for by. the stock
holders of the Metropoltan Street Railway Com
pany upon The offering aforesaid.
& As compensation for the services TO be rendered
and in consideration Of the covenants TO be per-
formed DE the bankers. as heTen PROVIDED. the
curities COMPANY agrees to pay the bankers the
sum Of one million five hundred thousand dollars
ment to the securities company OF the first install
ment upon the subscriptions TO its capital stock.
The securities company shall also assume and pay
sll legal and other expenses incurred or which may
Ton with the matters herein referred 20.
Mr.. WINS also promised yesterday TO produce
facts of interest in connection with the uses
Of the fund referred TO IN the last clause OF the
agreement. He referred to the testimony taken
in the Wornlser suit. all of which would have
TO be brought before the commission. he said.
ANOTHER AGREEMENT.
Following that. Mr. Twins presented yet an
other agreement. this time between the Metro
politan Securities Company and the Interurban
Street Railway Company. It was dated Feb
ruary Il. 1902. and provided for the lease OF
the Metropolitan lines. the payment OF the S23.-
10000 and the subscription by the Metropoli-
tan Securities Company for So, 10000 par
value Of the stock Of the Interurban and S15.-
100000 debentures TO make up the S23 600 600
This S15000000 of debentures Mr. WINS inter
tected, was sold at 90 with the resultant dis
count Of 81, 10000. which up to last year con-
tinued 10 appear I'm the books Of the company
as an asset
Mr.. Ivins then called Mr.. Brady 10 the stand
and began 10 ask him about the Wall & Cort-
landt Street Ferries Railway Company The
witness said he never had been an officer of the
Fulton. Wall Street & CortIandt Street Fer
ries Railway Company. but had been president
of the Wall & Cortlandt Street Ferries Railway
Company. which succeeded It. According TO the
reports to the State Railroad Commission, Mr.
WINS said, It was organized June 20 1885.
Edward Carney. now dead being president.
with an authorized capital stock Of $780,
e1. Up 10 1885 there no further record;
and in that hp uo.a do +l,as
ord Of any kind had been fled with the COM
mission save the name and statement. BY 1892
the records had been amplifed by funded
debt paid. S450,Ooo." In 1894 the record showed
2 capitalization Of 100 funded debt $780,
N'; cost of road and equipment. s11s7,7o0
Il will state to the commission" said Mr.
Ivins, that there never had been and there
never has since been rail laid, no road built.
never made a report"
Then Mr.. Ivns returned TO Mr. Brady's con-
nection with the road. Mr.. Brady testified that
he Individually bought the franchise. stock and
bonds. intending 10 build the road as he con-
sidered il "one of the most valuable franchises
existing in the city to-day. He did not build II
because of William c. Whitney's objection TO
his crossing the river.
Mr.. Whitney thought 1 ought not to come"
he explained ~ was interested at that time in
the brooklyn Rapid Transit Company. and he
~iiDNeAh hiGl 4 ousnl not TO be interested
this side of the river. as il might create some
friction and interfere with the friendly relations
that existed between Mr.. Whitney and his asso- j
cistes and myself and after a number of IN |
teryiews with Mr. Whitney I finally consented |
TO turn the securities over TO him at what they |
had cost me-"
SECURITIES COST $4,000
The securities cost him $4,000. he said and
he turned them over to Mr.. Whitney at cost /
He did not explain what pressure Mr. Whitney
brought to bear to force him out OF this valu |
able franchise. He held the securities for two |
or three years. he said, before selling them.
Mr. WINS then presented 20 Mr.. Brady Met !
ropsolitsn Securities Company check for s965
COZ i9. dated May %. 1902. Accompanying this
was memorandum stating that Il was in paw
nent fo- the securities in question
Nov, you say that what you received was
s2500o0?" asked Mr.. Twins.
About that amount"
You acknowledge, nevertheless the recent
by you OF a check for S965.607 ~? That makes
difference Of about s71ik6OO. Now. Mr.. Brady.
what did you do with that S715,O00?"
Several months previous 10 the time OF this
transaction had sold TO Mr.. Whitney this Wall
and Cortlandt street and Liberty street ferries |
road" said Mr.. Brady. THE time that elapsed |
between the time that had sold il and the time
of this transaction. my recollection fs was taken
up by his attorneys examining the title and
going through the usual forms"
Who his attorneys"
i think Paul d. Cravath was one That
transaction-those things l know very little
about because they were in communication with
the attorneys OF the Wall & Cortlandt Street
Ferries Railroad Company rather than with me:
II was matter not Of business, but of legal
character On the day before the transaction