New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1909-08-21
Jean SELL TO NJ. S. R.
But3P. S. G. Will Look Into Bridge
Operating Company Profits.

The Ppblic sarvce Commission decided yesterday
Ito permit the New York City Railway company 10
sell to the receivers of the metropolitan system
five hundred shares OF the stock of the Bridge
Operating Company for three times It's par value
The commission will try. however, by public inves-
tigaton discover the reasons for the large proht
in carrying passengers across the Williamsburg
Bridge at 2A cents each Commissioner Malthe is
to be the inquistOr. and the first nearing VIII De
held on August 81, at 2:30 p. m
The commission has been considering the advis-
ability of this stock transfer for long time Sew
eral hearings have been held. William NJ Cole
man. counsel for the Metropolitan receivers, de-
clined TO tell Commissioner Maltbie at one Of them
what the profits of the Bridge Operating Company
were Commissioner Maltbie decided not TO press
the request. but get at the facts through in
vestgation.
Commissioner Maltbie's report shows that the
Bridge Operating Company formed by
agreement between tho Brooklyn Rapid Transit
and the New York City Railway. each of which
took five hundred of the thousand shares
issued With the New York City Railway in the
hands of a receiver with tangible assets the
$4,000 which Receivers Joline and Robinson are
willing to pay for the five hundred shares Receiver
Ladd hold will be unexpected gain the cred
ftors Commissioner Maltbie speaks in his report
of the several agreements and contracts entered
into between the companies, and says
The contracts apparently give these companies
exclusive right to operate the tracks
mentioned although there are no words expressly
paneS so interpret the agreements. and the fact
that the Manhattan company may allow other
rallroadS In this borough to operate over the
pair OF tracks allotted to the New York City COM
pahy ana that similar rights given TO the two
brooklyn companies seems to indicate that such
was clearly the intention of the contracting parties
Commissioner Metbe also points out that s per
cent on their investment was guaranteed AS a
matter of fact. the profits far above those
figures, As the New York City company is in the
hands OF Receiver Ladd the operation of the cers
by the Metropolitan receivers across the Williams
burg Bridge. has been. he says. without any legal
authority.
Commissioner Maltbie states that he did not con-
slider the approval of the application involved
an approval OF the terms OF the agreements. The
question he says. is merely whether the transfer
OF rights and privileges will be advantageous. No
appeared TO oppose the transfer at the hear
ings. and he found no adequate reason for disap
proving OF the application. Then he says:
The compensation for the transfer OF the stock
and OF the right and privileges IS stated be-
Sl5OoH which is equivalent to 500 for each 500 OF
investment, the stock having been fully paid for
Approval OF the application should be
Strued as an expression OF opinion upon the
reasonabeneSs or adequacy Of the compensation
II IS also true that approval does not bind
proper capital charge. n basis upon which
the receivers of the Metropolitan Street Railway
are entitled 10 fair return. These matters are
wholly outside of the present proceeding and are
not passed upon directly indirectly in connection
with this application.