New-York tribune., 1908-04-21
RYAN ON MET. CHARGES
CONP4NY "THROTTLED.
Not Looted or Uatered, He Says IN
Com preheHsiCe Statement.

pany Thomas F. Ryan denied Iast nlgliI l1i01 e-0
company had been overcapiraIized- that enor-
mons profits had been made BY insiders
through construction contracts and otherwise .
-ra+ in the purchase OF the Wall & Cortiana-
c+-ae+ Railway the insiders himself. 2 A .
yyt5aner. William g. Whitney. Thomas Doian
and William A EIkius. had appropriated SILL
90 each for their own personal uses
~-ba cornDanv was not looted.' asserted Sir-
Rvan. "ft was throttIed-' The tall1Fe or l-s7
surface lines Mr. Ryan said was due 20 'no
following conditions. mainly the result OF state
Interference
Fr-sr-The extension o. the free tra7sfe7 CO.
ton bv legislative enactment and court dec.I.oai
from five cents % only a little more tl7I ~
eet4 cents r-,-,~ Increases IN taxes. The special
franchise tax alone having almost doubled ne . >
TENS burden % taxation - - .--a.-
Third-The extraordnary 'onSesz.'l -s '- --e-
s-a5s & res7,hz - l.1ga N 7i sI-S IN an a5aoraaI
H1Ir,4ar ~ accident claims. rms item alone amount
ing 10000 year. or about l' PEI e7a- OF 1n7
Four,h-The competition o. subway lines. 5oi!-
with the aid of the cry r-eeli.. . -
the system fully = 100000 year or move than .
per cent upon the company s capital St2c-s
N-. Ryan said that al no time in the his
tory OF the company did the combined stock
holdings q himself Nessrs. Vhitney- Doa7.
EIkfns and Widener amount 70 A quarter II the
total stock issue He said the co-pa1y's pres
enr outstanding capitalization % S--'t<''""
represented actual cash Investments Of St'}
10000 He erphaticaliy denied that either he
Mr. Vreeland any other OF the fnancier7 a.
ready mentioned ever had q dollars worth of
interest in any construction contract and Il
detail he refuced many such charges.
REASON FOR HIS LONG SILENCE
NJ. RYAN said that when he appeared before
the grand jury he told that body t1at h rad
prepared ''succinct statement covering the
chief features OF the history and present slrua-
ton Of the Metropolitan Street Railway com
uanv TO the best OF his knowledge and recoi-
lection" with the intention OF making IL public
AZ once. 7 did not so publish it, said Mr
Rvsn because was informed tha- tIe ques-
ton was 10 b. brought unde- Official InvsStlsa-
rfo7 and was advised that fl vas improper tor
ne TO do 81 then
IF had realized continued Nr- Ryan Win
a touch Of bitterness 'rhe extent - t19 H'1sr7p
raze7tation and viltfcari7u - which I have
rasn subjected during the last i've months
=o,r1- = 7 could have been deferred from max
frE the pu5lioa5i7n- But as I told the grand
+r-v had not done 50 for the reason stated
: r-A- submitted the statement 70 them ana
asked the privilege Of placing II before the puo-
lie
He then gave OUT the statement Arrer o7ar
acre-izfrg rha current charges against tH7
4i-aora-s ard former management - the con-
I Z :
ton OF tn - vs - s<alizati0n. TIE history q
t-s oa-f+arfza-fo7 from 1885 tn 1903 follows
In 1sss The 1le--opollra7 Trzc-on C9n2s7g y
New jersey vas -0-T771i @ - 7eS 1,5 -+s-a u-as
- - - -ra4z-r~v in cash sT.0ff.fH SIoSe-
4I41rly The capital was doubled and 7 57i = 17r.7
Sa75ra s=I=4 so 600 representing 81 o0f 600 q
-4z- Dsf4 in TIE sale % --e stock az = Was
-r1-CTr-s 7zz-ri--7-a q venture, and sue
scrip-to1s were obtained VIII c,Ie..-.y e.-1 % ]
-fo- Company % New York was formed VIZ a.
STOCK OF tE7 N-----v-S vv--S 49, 5- - or1 =-o-t
Ne9 JsT IN ~ - =-s-zza-a - 81 40 7od and zolI
-La remaining Sa1ofs1 for cash ar par. Result;
If 5 2'5l sas6 S''rs--s- Pal5 n
n 1888 the Metropolitan Street Railway Com
Darv was formed as an operating company ard
acquired from the Metropolitan Traction Com
rarz certain stocks. the Ilsr os which lI-- Ryan
gave the grand jury. as follows
49, g--- T1.- z.--- =5--l T- P55. Ferry 5a ''.'o
-,ls- pan =-.,--z- .7---s-- ...-.-.. 17ooo'0
Ns-ET'az ,---+ .--. IA -5sz company 5000 100
-,.,- .............. ......... .sls5oo 80
NJ. Ryan explains in his statement that hess
stocks had been bought by the traction COM
many from time q time directly from the orig1-
nal owners and were sold hy r. % -he Metro
-ar--a7 Street Railway Tor tie same par amount
he treasury 81 the traction company result
ra+-z~ said he so far as Outstanding shares
were concerned. To change total capital issued
S20Oc0 O5f representing SI>os"pD Of paid -
cash Mr.. RYAN then gives -Ha history OF ne
r7~7parv through the years 1895. 1~,t-. 1895 and
1899 as follows
In 1885 TIE stock O. he Ne 1s+22o's7 g9 81 81 ssi
- So 600 a01. and the add t-T1-- 8 -''+' vas
Ep-.ra 1t-- nd = q i
other stocks ePp-e--e1 ar $500 -,- 40 -
c2i-S'- .--- ---sT .z-s-af Fsz-a1 Se7 600 con
IN -lsti 49, --z- -54 z-a-ez -1ds-s r1.z1c
upon me properties and trar-1.SeS rs asSe,
Fstrvsv stock and S6.60ao0] OF de5entI-es. repre-
san-iuE enhanced values Or Sec-r-l1es oN---1- -
eez- - -T-e~-f77 company tae-a-pon became
extinct and was succeeded 7E .H@ so--.eall
issued S55901.oaa. rel-essl--Hs S-s0oeee' o cas1
Fzl T9 I,qs and 1sea s15.0oaoca q new stock vas
sold stockholders AZ Par. and S7ll1.l1 o 80
proceeds was used 20 retire re 0e9en,L--s- Es=
.ng SIS oo3 Zoo 6f cash paid in
i the following year after s70o00oo of new
stock had been sold 70 shareholders az fSo-
~ ~as-ll- vas Total capital issued $4,000,
ooa rap-asertlng s442o0oo0 of cash paid in
IT, rrA cash paid in SAYS Mr. Ryan. should
ba added interest for the period during which
ir Welded no return in the form OF dividends
upon the stock which represented II Fhls frcrR
1855 70 1894 amounted 20 5000 GOO, thus max
ing -he total cash investment S49.24o09o- BUT
from ,his sum should be su5t-acted S6eoa.oeo
-ao-e-enring debenturrs distributed pro rata
ar-orr the shareholders. This leaves S42e}o.-
GOO OF actual cash investment representing S5-.-
cao aao ,g e-,rlr uo,y 0utstauGinz. or SIS I3 per