New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-04-08
PAY BACK $692, ,292 81
PAPER RAILROAD SALE
RESTITUTION.
.Suit against Ryan, Uidener, DoIdn
and the Whitney and Elbins
Estates Discontinued.

Estates Discontinued
Thomas F Ryan, Peter A. b. Widener and
Thomas Dolan and the estates Of William c.
Whitney and William L. Elkins have paid back
TO the metropolitan Securities Company the
sum Of S692 292 81. which amount the company
paid to Anthony " Brady for distribution ct
the time OF the purchase of the Wall & Cort-
landt Street Ferries Railway Company. the IA
nous paper railroad" property. the history Of
which disclosed at the Public Service Com
missions traction investigate in the autumn of
1907.
Of the money thus restored the Whitney es-
tate paid S245. .6S1 10 which was the amount
originally received by Mr. Whitney, and the
others S111.65 IS each. The suit which was
brought by the Metropolitan Securities Com
pany in 1907 has been discontinued.
The defendants. while returning the money.
state that they reserve the right to demand re-
payment from the Metropolitan Street Railway
Company. to which they assert the money was
originally lent No interest was paid by the de
PENDANTS in making the settlement.
The announcement OF the restoration of the
money and the dismissal of the suit was made
yesterday in the form Of letters which passed
between counsel for the several defendants and
ex-Judge William ]. Wallace. counsel for the
Metropolitan Securities Company. the plaintin
in the suit. This is the first restitution OF
money made in the clearing UP Of the numerous
local traction cases.
DEFENDANTS CONTENTION.
The letter from the counsel for the defend
ants TO Mr.. Wallace. bearing date of March -.
follows:
Dear Sir-Referring to our recent converse
tions with you with respect TO this suit, We are
writing this letter in order to aCquaint you WIN
the position taken by our respective clients
Upon full investigation of the matter, IL mas
been established that in 1900 Mr.. Whitney ar
ranged that certain advances should be made
for the benefit Of the Metropolitan Street Rail
way Company with the understanding that they
should ultimately be repaid. Such advances
were made by himself and by Messrs ElElns
I DOIan RYAN and Wdener. Some two years
later each OF those who had made advances was
reimbursed the exact amount advanced by NM
with interest. This reimbursement was enectsd
by the Metropolitan Securities COMPANY at thG
time of its purchase Of the securities of the Wall
& CortIandt Street Ferries Railway Company
None of the gentlemen named made any pioHt
I whatever out Of the transaction Each received
the exact amount advanced by him, with inter
est. and more
Of the Metropolitan Securities Company Is to
recover the amounts thus repaid on the theory
| that the moneys with which the reimbursement
vas made were furnished by the Metropolitan
Securities Company and not by the Metropoltai
Street Railway Company. for whose oenent tle
advance had b9"i mace. In view OF the lhIS!
est OF the Metropolitan Securities Company IN
the Metropolitan Street Railway Company anu
its obligation 10 furnish moneys for the payment
OF the debt OF the latter company our clients
believe that had the requisite and formal cor
yorate action beeu taken a repayment by the
/ securities company of the street railway COM
| pany's debts would have been entirely legal
our clients however. recognize that this was
not done and that 1t is now claimed by the Sc
curties company that the amounts which We're
repaid TO them In reimbursement for their ad-
yances for the benefit Of the Metropolitan street
Railway Company came from moneys pald ny
the securities company TO Mr.. Brady as the
purchase price Of the securities of the Wall &
1'ortIandt street Ferries Railway Company.
While il is clear, after a full examination of
the facts that the moneys OF the securities com
! pany were used to repay advances made to the
street railway company. our clients have been
advised that the securities company may be en-
! titled to follow these moneys. notwithstanding
the indebtedness Of the street railway company
| to them. They have, therefore determined 10
| return to The securities company the exact
| amount received by them respectively, reserv-
| ing. however, and not surrenderlng thelr right
| To- repayment by the street railway company of
| the advances made by them for its benefit. We,
/ accordingly inclose herewith check TO your
order for S692 292 SO in settlement of this litga
LEWIS CASS LEDYARD.
BRONSON WINTHROP.
/ Counsel for the estate Of the late William c.
! Whitney, -
/ Counsel for Thomas f Ryan:
JOHN G. JOHNSON.
WILLIAM F. SHEEHAN.
Counsel for Peter A Is. Widener and Thomas
/ DoIan and for the estate of William Elkins. de-
| ceased
! To ". J WALLACE.
WAIVE INTEREST CLAIM
Mr. Wallace under the same date, replied as
| follows
! have received your favor of March 25 in
/ closing check for $692. .292 So This check covers
! the full sum received by Messrs. Whitney. Ryan.
/ Wideuer. Elllins and Dolan out of the purchase
! money S965, 607 19) paid by the Metropolitan
/ Securities Company TO Mr.. Brady for the bonds
! Ferries Railway Company. the balance being
/ retained by Mr.. Brady and to which the Metro
! politau Securities Company has never made any
claim.
Your statement that so much OF the purchas Sc
/ money as received by MessrS Whitney.
Ryan. Widener, Elkins and Dosn represented
| advances which had been made by them on be-
/ half Of the Metropolitan Street Railway Com
| pauy upon the understanding that they We're TO
| be repaid. and that each received through the
| Brady payment the exact amount advanced by
! him with interest. and no more accords with
| my understanding of the facts.
| have advised the Metropolitan Securities
! Company to accept the amount actually received
| by Messrs. Whitney, Ryan, Wtdener Ekns and
! Doan. and waive its claim to recover interest
! thereon partly because of the facts stated In
| your letter and believing this to he more ex-
| pedant than to incur the delay and hazard Of "A
| protracted litigation over disputed questions of
| fact and law.
DEAL EXPOSED IN 1907.
! 1t was at the investigation into the affairs Of
the Interborough- Metropolitan Company before
/ the Public Service Commission In October of
1907 which was conducted by William NJ.