Waterbury evening Democrat., 1907-10-10


 Contributed Stockholders Money.
 New York, Oct. 1o.-The American # published story to the effect tha
 amazing as was the tale of Anthon, ' N. Brady's Wall and Cortland stree < ferries railway deal with the Metro x politan Securities company and the in a cidental loot of nearly S1000.0OO it vii be Gwarfed by exposures to come. It was learned that in similar syndi cate operations the same coterie o1 financers in five transactions realized the staggering total of $3S,465,000. All of the transactions were exactly along the same lines as the Wall and Cortland street ferries deal, and the money was secured from the Metro politan Street Railway company. The five transactions in which this almost unbelievable sum was taken swing around the acquisition by the Metropolitan of the Twenty eighth and Twenty-ninth street line. the Fulton street line, the Thirty-fOurth street crOsstown line. the Lexington avenue and Pavonia line and the Columbus and Ninth avenue line.
 The Twenty-eighth and Twenty-ninth
 street line. never improved and using the same horse cars with which it op~ erated in 1896. was purchased by the syndicate for $25,OOO and turned over to the Metropolitan for bonds and stock U-bj1h ot hn nf tba iron
 action had par value of $3,00O,OOO and market value of $555O0OO
 The Fulton street line, similarly pur- chased for $160,OOO was sold to the Metropolitan for securities of a par value of S10000OO and a market value of $1,S3O,00O.
 The Thirty-fourth street crosstown line was purchased for $100,OOO and sold to the Metropolitan for securities of a pair value of $2.OOOOOO and a mar ket value of $3,7OO.OOO.
 Made $17,ooo,ooo on One Deal.
 The Lexington avenue and Pavonia line, constructed at a cost of $1,5OO,- 900. was sold to the same company for i securities of par value of $1O,OOO,OOO and a market value of $1S,5OO,00O. The Columbus and Ninth avenue line constructed at a cost of about $450,000, brought securities of a par value of S6,OOO,OOO and a market value of $11, 100000
 On all the transactions the sum- mary reveals the amazing f; ct that the insiders paid out $2.235, ,OOO for roads which they turned into the Metropoli- tan for securities of a par value of 22,00OOO0 and market value of $41,- 100000. At the time these transac- tions were taking place the stocks and bonds had been marked up to where there was an average price of S25o q share for the stock and $120 for the bonds, and it was at these fancy fig ures that the frenzied fnanciers par celed out the stocks and bonds to the public and made quick realization in cash.
 The men involved in the syndicate were the same to whom Anthony N. Brady referred in his testimony before Abt BubllI Stl NlSt It lS the little coterie of insiders that during the reconstruction days and until the present have controlled local traction | interests. The men are Thomas r. | Ryan. William C. Whitney, r. A. R. Widener. Thomas Dolan and William | l.. Elkins
 Contributed Stockholders Money.
 Through checks. vouchers and letters | put in evidence at the investigation of | the heInterborough-Metropolitan by the commission it was revealed that Au- gust Belmont head of the traction trust and prominent in the National Civic federation. received S15,000 from the Metropolitan Securities company in 1906. He applied it to investigation work of the federation. Ii also was shown that the stockholders, directors and executive committeeman of the securities company never authorized such payments. Thomas F. Ryan guaranteed S20.O00 of the company's funds toward the money needed by the National Civic federation in it's investigation of municipal ownership. Following that. H. H. Vreeand. presi- dent of the securities company. paid the money over to Belmont in three in stallments of 5000 each. Belmont paid it to the federation. That the payments never had been authorized by the stockholders. directors or exec utive committeeman was testified to positively by Edward W. Sayre. sec retary and treasurer of the securities