New-York tribune., 1909-07-09
ATTACK Sd AVE. PLAN
STOCKHOLDERS PROTEST.
Call BondhoIders' Scheme Inequtta-
bic and Illegal.

Stockholders of the Third Avenue Railroad pro-
tested in no uncertain terms yesterday against
the bondholders reorganza plan, which is pc
fore the Public Service Commission for approval
It was termed scheme embodying absolutely un-
warranted watering Of securities-eXacty the sort
Of thing said Samuel n. Levy, counsel for several
stockholders which the Public Service CorumisSlon
was supposed to prevent
Robert r. Perkins who said he had been a
stockholder for twenty-five years, delivered sum
mary of the history OF the Third Avenue system
which. he indicated, had been almost deidGe rom
the beginning.
Squeeze out the stockhoders?'' he taurted the
representatives of the bondhoders' committee at
one point "Oh, not for worlds! The stockholders
are the company's best asset. We always give
up
Soon after his appointment the resour'etui re-
cever of the put up signs in tho cars bearing
the legend. Thou shalt not steal said Mr. FER
kins ''I cannot but wonder, in view of this plan
if one of those signs found its way into the pos
session of the bondhoders committee and deco
rated the room in which the deliberations on TINS
plan conducted
At this sally there n great roar of laughter
IN which even the bcndholders' representatives hao
to join.
John NJ Bowers. for the bondholdcrs, put in eN'-
dence yesterday a copy of the accountants report
on the disposition of the proceeds of the bond SAFE
ten years ago. as shown by the books. Mr. Whit
books say this money more than S10,00o,0oo. went
into betterments ne could find any lndlcatlon
of it in the road itself Mr. Bowers presented also
a letter from Mr.. Whtridge disclaimtng authorship
of the reorganizs tion plan. but saying ne was VIII
ing to help push it through for the bondholders-
Samuel u Levy protested against the plan as
being grossly nequitabl and against the punio
interest" He contended that the 'secur1tles "hi'n
would be issued as a result of the plan would ne
"a menace 10 the investing public" which neces-
arfec kDO
The nIsn also was Illegal said. because 1t placed
the management Of the property In the hshos oi
the adjustment bondholders without placing upon
them any lis bility stockholders
why" said Levy, 'it was because stock water
ing became an evil that Governor Hughes did the
monumental thing Of his csreer-the appointment
of the Public Service Commission.
Mr.. Perkins came along next with his history OF
the Third avenue road He described how the
stock was gradually increased TO N6@n.on and
said:
In these increases the stockholders we're as
sessed 7oo per cent their original holdings what
became OF the S4on00o history does not record nut
soon after the last dollar paid in rumors
came that there was floating debt ard we soon
discovered that it was SIS 100000 To lioudate the
COO debt s30O0DO of bonds were put ahead or
the stock and you have heard Mr.. Whitrtdges s ex-
PLANTATION of what became of the money
The stockholders have submitted to two ron
h4ries-ore of s14opoooo and one OF Sl6.0oo.Gn The
bondholders' committee I believe. has relied TOO
confidently on the gulbility of the stockholders
William n. Amory, who was secretary OF lne
Third avenue company when the " hi'neY Interests
got the road wanted to add some things for the
record L. f. Quigg. when testifying before the
Commission several months ago about his accei-
Grafton" expenditures, identified large pls for ue
tective services payments to men TOT watching
Mr Anory whom Mr. Quigg considered because or
his knowledge of the traction situation a very
dangerous man." Chairman WILCOX held that MI
Arn6rv could not testify unless he had some nhan-
cal interest in the reorganization plah SO MI [i
- ,oi5 h. +boiRht he'd buy few shares of Third
Avenue and appear before the commission to-day.