New-York tribune., 1909-01-29
MET. TO GO AT AUCTION
HAS TWENTY Days TO PAY
Unless Principal Is Then FOrthcom-
ing RdiLzCay U'M Be Sold.

vv the decision of Judge Lacombe. handed down
Yesterday IN the United States Circuit Court the
property Of the Metropolitan Street Railway COM
pany covered by its mortgage TO the Guaranty
Trust Company will be sold at public auction 10
the highest bidder within twenty days unless the
principal is paid by the mortgagor. Ihe oecison
uas IN the foreclosure suit brought by the trust
company against the railway company and others
In his decision Judge Lacombe hods tnat tnere
has been a default under the mortgage ana .iai
the principal has been declared due he therefore
orders the sale as above stated he Iur'ner aS
that the form OF proposed decree Is 10 oe SUI
rotted 70 all parties February Is, and on eDru
arv % the court will hear and dispose OF al
amendments. ,,.
Bankers who have followed the local uaeuol1
situation closely believe that there are ohiy wv
,ossib1e nurcbasers OF the Metropolitan system a.
the foreclosure sale. The bondholders are iO0No
upon as the most likely TO bid the Prope2 Ppy.,
These are represented by protective COMM -,
of which John w. Castles. president Oh u" -,
re- Compepv fs chairman The other mem
hers are Otto H. Kahn OF Kuhn. Loeb & 70. anu
Alexander J. Hemphill. vice-presldent oL 'he 0N
anty Trust Company ,-.,
The other possible purchaser is the Interporousn-
Metropolitan Company, which owns the Ca. IlaSI
oe the s52 900 600 capital stock Cf the Mstropoita
Street Railway Company. and the u's3ol41S 60 -
$50 900 900 capital stock OF the Metropo'ls"
ties COMPANY. The latter company owns 'N -
,tra o+standfp1 s9aCa 600 capital stock OF tne Ne"
York City Railway Company, Which iea9eu GO &c
Metropolitan Street Railway Company Tor ~
years and guaranteed per cent oiVloeh"' "T
its stock
Theodore P Shonts president OF the 4n-0 ~
-. ,Ea+ro,outa, Copnanv intimated at the COM
nan,,s annual meeting, which was held receh'I!'
that the company might be a bidder ior 'he 49, ~
poltan at the foreclosure sale. the money ~ p"'
for the Metropolitan would have TO be raised now
ever and President Shonts implied thst the pie
ferred stockholders of the Interborousn-het'opeii
tan might be asked to pay voluntary asse''e,.@ .
of from s. to $40 share. Voluntary aSSe'Si"e
have not been particularly successfut IN ,he pe''
however and IL is a question Whe'ne4 SUN q E
would work out.
= wa. in February Of last year that the Guar
entv Trust Company as trustee OF the Aetropoh-
tau's s2 10000 general collateral trust hoI
per cent Ioo-year gold bonds OF lss' on "hIe ' .l
February interest had been defauItea' orOueHt oN'
to foreclose. In November. 1907 the Morton A,use ~
Company as trustee OF the Ned4Vo reIuhuiLs
mortgage per cent 1OOyear gold bonds OF 1902. had
instituted foreclosure suit.
The general collateral trust mortgage OF Hs
which will now be foreclosed. is secured by deposit
s the stocks uar value OF the Broadway
Seventh Avenue S. 10000; Forty-second street q
Grand Street Ferry Railroad. $4,000; central fAFA
North & East River Railroad, SDVO; Ih'rJ
fourth Street Crosstown Railway, sse9.Oo0 also all
property OF Houston, West Street ~ faEohiA
parrv Railroad Chambers Street & Grand street
Ferry Railroad. Broadway Railway south Ferfs
Railroad Metropolitan Crosstown Railway, Lex
inrton Avenue & Pavonia Ferry Ra1roao' C0iuln
&
sion also easehoId interests, contracts, real es-
tate. etc.
Judge Iacombe. in his decision. praises the work
of Adrian H. Joline and Douglas Robinson the
receivers OF the Metropolitan Street Railway Com
pany as follows
The tim. which has elapsed since receivers were
,,rointad has not been wasted. In this interim
orrlcttraIIy all the contract claims have been IN
Testigated and passed upon by the master, CuI oL
more thar forty-ive hundred actions ana CIeinis
for damages resulting from accidents ocouIrIns
nTior 70 receyership all but score or so have oeen
iinuidated in amount by trial or otherwise' Ot
otter tort claims aggregating more tnan L0uI
thousand all VIII be lquidated by the END OF thls
month. -. ..o-,xo-. h,ys ba.r
untirinK in their efforts to put the property IN a
Insurance Inoney-ths salvage OF four dlsasuous
dres~frorn the proceeds OF receivers certifcates,
Iron, the daily gross earnings, there mas since
receivers were appointed. been put INTO thls PtOP
ertv equipment upward OF -. 100000 ana TSrk Is
o,I, ,,Ser contract which viii be completed oefore
sale amounting to 81. 2Oo ooO more-rnaAns an As
Vregate expenditure of $S.OOO.OU0. "a
BeIevfng that large sums OF money "hicn shouLu
have found their into the treasury OF me coiil
Danv whose property Was turned over 70 1ne 80
fndv Of the court. had been diverted or retained;
tSa receivers Instituted exhaustive and caretui
cfaI transactions of many years AS IesuI oI
the work Of several months. two actions 1eIs
brought. One of them has resulted IN 1uIBHhelt
for 81 900 600. about 20 be appealed The other 20
recover s3 500 000 is trial. on the iheTilS'
and is being vigorously prosecuted. both suits pc
ing now in charge OF the New York City KaiWaS
receiver.