New-York tribune., 1908-04-24
ALL WATER. SAYS RYAN
STE4M RAILROAD STOCK.
That Is, 81 Per Cent Represents No
Cash Paid In, He Explains.

=, -hst IS per cent Of the stock OF the railroads
- this country is all wa1er?
7 mean 70 say" replied Mt Ryan deliberately.
.,nst q per cent OF the stock OF the railroad
,-s+iors N this country never cost dollar. Up
= Ks there 8 dollar paid in ST Paul,
Northwestern. Omaha or any other OF these rail-
o.5s The Union Pacific built with bonds
- cot 3 land grant worth sos0eoo from the gov
lament besides
-7o-,er1 later he expanded that statement by
s-4-r. y mean that p per cent OF the railroads
--h+n the iast-these great speculative years that
O.. have had has put UP sfocks-in the last ten
.-e'ye wears il has been easy 10 raise money
.,-lze and bonds but ~ 1855 q per Of all
.As-7 railroads and OF all industrial corporations
- -7ss country never put dollar their stock
,v-<-- little organization expenses that
,,s-ez @o- few shares of stock in the beginning"
~- P-a-'s statement IN regard TO traction af
@.-s II this CRY had Just been read the grand
-, r- NJ Jerome. showing that S42.otooo In cash
,,5 s---s-'v been Paid for the total outstanding
ay issue of s. On 0b0 OF the Metropolitan Street
rz-rva-- company. d percentage OF s -
- -re-- voEr experience these matters
ga * s. cash paid il for every 800 in stock is
-g-sur.-rslc' asked Mr.. jerome.
II * sad NJ. Ryan.
II voa took these roads as they stand today
ez,s NJ Jerome. including the roads that have
rse- -eo-cz15zed and supposed 10 be put on 4
>o-,-5 -zsls taking them whole both in steam
s-s surface railTosding. would $50 S in cash for
80 snare ot Slao par-woUld that be large per
ce--sEe g CASH
= large percentage exclaimed Nj RYAN
-,<t-e-y pe- cent Of them haven't had anything
Ho- o-ly -ha- hut n the organization that took
-fz-e from lal 70 l9o1 yhey assessed these stocks
and gaze bonds"
No TRUTH N IT~-MoRAwETZ.
victor lforavetz e director OF the Atchison road.
<si5 when toId O. Mt. Ryans testimony: There is
- ----a = l. We have not one dollar Of water in
Guy stock and there Is water in the stocks OF
-7ost o. Ire other roads either. Railroad stocks
as generally worth 500 the share. and sell Tor
~ TOO It's absurd 70 say there is S5 per cent OF
zsts- u most steam railroads in this country
z n Hartman and 4 Il Rogers we're also told
~ NJ ryan testimony BY = Tribune reporter, but
refused 70 comment on II
N discussing The question q water stock ex-JUs-
t.os E5lzsda,e said in The Tribune OF February s:
The result today Of the management Of railroad
t-6Es g-6 bonds and are compelled 10 pay interest
se---7-ses -rA proceeds Of viSich are not Of The
slightest ralue 70 the corporations that issued
@ issues e5oe S to 5nS- pBs zs re 4si26a9 PsTqeg5a has os
rs s--e--as and devices have secured rhe seCI1-i-
rt@s sz5 deE-t-ed The railroads Of the same.
A6rz7 Il. Jol.re. in giving his views OF the
Subject II The Tribune q the same date. said.
ne loose -arE about ''vatere5 stock is the 70
edge = ne facts J denv that The always Of this
If sre. q ssners5 5 T4.s @ 2IercaPl5is-izec i5 @
-s1-5'- Or -econstttuted for the amount of their
z
-s-y rare cases Al this nonsense about water
1s.,s5 ltrtle
President Elicit q III Northern Pacific Railroad
rs 5se- quoted follows
T. ak +z,E ebo4t = IT. Ta5sEsd @ Tsll.osa @ Z. ztos Is gn
- Ire -ailroad stocks o the country. Il would
- rrossile 10 rerIace the railrosd ds for the par
value q the railroad stocks Of The country
x Q WHITNEY THE sCAPEG0AT
F-o- Pau I. Crsvsth-s testimony before the
grand fu-y 7 is apparent that upon tire shoulders
cf William C.. Whitney. VINO has been dead for
-ez-s PIT not only the responsibility FOR most
r. --@ yellow dog" funds. h1r also that for the
failure y the Metropolitan Street Railway Com
rs-r n. C-avsrh also said that overIavish ex-
ps-5.-r-es rroba My had something TO do with the
failure This e1t-avagsnce he attributed to too
F-ezr cr-irriS7-.' Nj. Ryan. however. seemed 10
appreciate TIE value Of Nj Whirneys services. for
l. -es-+1ed that Il NJ Whitney were alive now
s-d s-i- The leading spirit" in Metropolitan sf-
ts--s le believed there would not be al the
trc-n}e having
81 Ran also went at length INTO the cost or
s--es- -zi-var Construction in New York and told
l'7- --a~,iou interests here could have saved the
n tsloo.l L :hey had been permitted 10 use
overhead r-oeys
~. C-avath gave the grand jury long ex-
ra-e-I-r or ra, formation me different trac-
-.al mergers. Tie investors. a. said. had lost
mar t1les S06co o. IN the decline OF the traction
les. and get the big like Ryan. Elkins
s-1 -l.zl aresicl-'' This fact Nj Crayath said,
-'-g the natural usual suspicion that
--le one vas 70 blame and thar the system had
bee looted. Then the lawyer spoke Of M Wait
-ss -ar1ee-toa with the system and his influence
--g- .-. lie said
1i- Wa---ey wss powerful. resoqrcefui and sg-
l-esS.tS man ano II carrying ouJ MS Sreat plan
e turned out 10 D. an ultimate pToft 10 accom-
Pisa q step toward constellation Brilliant as ne
"es r6 7as not q close student OF the physlcaI
s-=a-. ~ -r- % .,tl'-ots5 = u ~,r55-tors or = good
--nr - 70 The future The results Of his will
--E-rS- - sacrifice ultimate protts 10 accomplish
Consolidation were. first The leases that ne made
were sometimes very expensive ones. and leases
"-.e- the Third Avenue lease to-day absorb a
'..1" and haif dollars 4 year of income e3cluslye
Tie .rd Avenue lease. which would take. i II
-4-@ ers naid $50 90 a year more There can he
sr.a-. n .He !. sh- of subsequent events that
r.f rentals -es,I-inE from these leases were
F"r~- greater burden u rentals than the business
..l-c .tf .-G J0 carry.
BIXRY'S MEMORY POOR.
George F1xay- who acted as trustee for The Met
r0ga--s- in us purchase Of Bronx franchises and
'c-s ~s-t i- the Wall & CortIandt Streets Ferries
h-e 1esl Lad AT exceedingly poor menory- lie
cog.d nor -ecoIIert who mad employed him. whether
y ~ Ran, ETeeand or Whitney, nor couId ne
remember about sIcn sums q n1lli'"n OF :"
ao1zrF for which be was trustee. Finally juror
zss@6 hmm II ne admitted that Bic vas acting as
DUNN
Certainly he DOES shouted Mr- Jerome. and
r" re -trre vs.h Bea-dsley and Hennen
N- P~a- curing his testimony. referred 70 the
-1-o@ueor1e franchise tax
4u- you've never .lzid a." said puzzled juror
~E now v-e haven't but the 4 destroyed our
F-ed+'. re,o-1ed nj Ryan M Ryan did not
-e-1erhe- about many O. the yellow dog" checks,
Sr.r-er took care Of such matters h SAID.
Are Hts death in Isp4 ~ stopped paying and
'ast is ono of tac reasons We are ia 50 inuch
Chs-5e. = r,55Iarn = Efsslzins 4 Sells account