New-York tribune., 1909-07-24
STOCKHOLDERS 10 p
NAY ASSESS THE ed .p.
SHARES 50 PER CEN,
Reorganizers Plan Heroic N...
to Save Property of the Ban,
rupt Railroad.

Plans for the reorganization %
Avenue Railroad Company. OF v-bi,,. = SCI
Linch is receiver. viii probably can sO'ss
sessment Of at least ~ ppr cep+ 'or a
pany's 81 1.S62OOO Outstandfrg us
The largest stockholders. realizing f...
measures are necessary. are understoo% g
agreed to this heavy payment
The largest twelve stockhaf4e-.
TO the Public Service Commfssior Iela7
1905. with the amounts helm r, - '4ls 1
follows: James l. Burke. S151 1ol,. aa
George Rliss. <GOOOO: Thomas Ej.... 5s.ais
900; Augusta Fl. Bliss. SIOHsa- "a
American Insurance COMPANY & - IL
Land Title and Trust Company NJ p,,g.. !
$4,000; the Rhode Island Hos1ttal -
pany. of Providence. $JOnnp, Aug7s,a :, - = =
$4,000; the Continental Insurance 60
$4,000; Thomas NJ North. Sn0Oo- -
Brokaw. $1,000 and the estate Of BsDt.-'
Knight, of Providence. $4,000.
In addition 10 its capital stock N.
has outstanding 81 .2SOOOO first mor+,---.. e.
cent bonds. $4,000 > per cent debsT,.s-
S3.G31 900 first consolidated rnortgaga -
Dividends due on the stock on Inns : ~
we're no. paid, and the interest I,,s d,
T. 1908, was defaulted on the consol,4..-F'-. !
The company was chartered On r,,,-~
1888. and was leased 10 the Metronoi,., : 4
Railway Company for the length Of rs es,.
on January 2S. 1898. at an annual rental
per cent on its capital stock for three So
o per cent thereafter. In September 1qgs i
Linch was appointed receiver by Justice p,.-
off. in the Supreme Court
Figures taken from the cornpanv's anna,
ports show that it was in prosperous ,5,-.
1890 when the net income was S1J4Se :
interest charges Of S91 30i and DIVIDEND,
of sos There vas thus a surplus Of Sg
for the year
In the next two years dividends o. r.
were paid. while interest charges dr0prss
$50 .JOO Net income was sufficient to sa,-
small surplus. In 1895 dividends Of IS. n,
paid and interest charges remained tie a.
leaving still small surplus
In 1894 dividends dropped 70 S79.IS5 ant Il
terest charges increased 70 Sg4. .J9S. but ns,
corre was enough 20 mai-tain the small Il
plus IN 1898 dividends We're jumped 10 9s
and interest charges to Sy7.gl3. totaIing 81
Oa3. against net income OF Sf91,024. a pra-
stand-off.
Dividends remained the same in 1896 aai i
terest charges were increased 10 S9SGe0 Il
income for this year was 50 in excess q
terest and dividends.
It will be seen. therefore. that tie c0ms
was making money for its stockholders " i
the time it was leased 20 the metropolitan Z
first move after the lease was 70 authOnn
issue of S7.OpOOOO consolidated bonds tc z
terments and eIeCtrifcati0n, and right hs,s
Second Avenue Railroad Company ne.
Waterloo. The Compauys books show ths.
cost Of electridcation by the underground =
tenn was S34O $50 mile. although a Easz
timate for such work is SlJAoUJ a nile
The consolidated bonds were steadily isz
and in 1901 the cost Of the road and eqrp-Z
according 20 the company's annual report q
increased from So. SO5OZ3 % SS.l944l3 Il =
the cost OF road and equipment was iEisls
again TO Sg.O21 .O91
In other words. SJ,1J6utN had been ad1a-
the roads construction account since liz sz
TO the Metropolitan IN 1S9S. and there as q
peared III the same report an item Of sslss
due 10 the lessee company for money ad'l-s
for construction.