New-York tribune., 1909-07-10
STOCK WORTH LITTLE"
SO MR. WHITRIDGE j1IS.
Defends Third 11rcnUe Re0rgdni1a,
ton Plan, 4ttacked by -fmOry.

non flGN- n tLNChCU w HtOf q.
vigorously declaring that the proposed plan OF
the bondholders' committee for the reorganization
Of the Third Avenue Railroad Company the
best could devised under the circumstances.
Frederick ". whtridge. receiver of the road. ad-
sntted the hearing before the Public Service
Commission yesterday afternoon that he had
Gently advised a holder of Third Avenue stock to
sell
In the main. do you think it a proper and good
planY" asked J. Aspinwali Hodge representing a
stockholder.
Il DO" was the reply. Il think anything is
good thing If stockholders are placed in the posi-
tion of bondholders."
You said the other day that q woman with
thirty shares of Third Avenue asked you what to
Co., continued Mr.. Hodge IF this plan is good
one, suppose she willing to put I'D the as
sessne1t OF $50 / suppose you told her 10 do it,
II she took my advice said Mr.. Whitridge,
rshe rushed downtown and sold those shares
q Then you don't think the plan is benefcisI?''
I do As have said. there a great many
whose minds saturated with the belief that
this stock has value, and have always held that
we should DO as much for the stockholders as we
could
Mr Whitridge said he thought L. the present
price Of Third Avenue stock, high. As for the cur
rent quotation for the bonds-7o-the receiver
Thought it fair price.
Colonel William y. Amory. who bought several
shares OF Third Avenue stock in the morning. in
orcer TO give himself chance to protest against
the reorganization plan. stated under oath that
he thought it 1.-THE most monumental piece of stock
watering that attempted"
Twice I have seen the Third Avenue Railroad
robbed" said Colonel Amory.- Both times | have
tried 10 prevent il. Now IT is be tried again"
Colonel AInory said he intended TO appeal the
attorney General to bring suits for the restitution
Of over sl1.ooa.0aO. tho expenditure Of which Mr.
Whitridge says he cannot account for, in case he
could not get the Public Service Commission to
make such appeal
in the previous reorganization of 1870 there was
shown 10 a floating debt Of So. ESQ COO said
Colonel Amory- This amount subtracted from the
SIS 10000 odd received from the sale OF consoli-
dated bonds -222 ss9 improvements This
amount il said. would be spent the
Forty-second Street Manllattanville & St Nicholas
Avenue Railroad ana the Dry Dock & East Broad
way line Not penny spent the 42d street
line. All the improvements made there were paid
for by the receiver. They pretended that they
spent S.S75e5e the improvements OF the Dry
Dock road. but they never spent cent there.
How dc you-know this?" asked Chairman Will
cox who conducted the hearing
Il was officer OF the company replied Colonel
Amory. I in the employ Of the road for five
years. serving secretary for eighteen months,
and resigning in 1890
Colonel Amory said he had told Mr.. Whitridge a
month ago that with an expenditure of s2c" he
$4,000 he could every dollar Of the missing
money and recover millions.
This bondhclders committee says in effect that
Il does 10 force restitution he continued
Mr. Whitridge says that he doesn't either think
:: is part Of the duty OF this commission 10 in
vestigate and then ask the Attorney General to
He has full power TO take steps for the resti-
tuition OF these funds Mr Whitridge would make
the best sort Of witness in such q suit
-On March o. 1900 The following directors Of the
Third Avenue Railroad were elected: William &
whitney. Thomas r Ryan Grant B. Schley. H. H.
Nreeiand. " s. Johnston. John ID. Crimmns and
Edward NJ BurEhard. Some OF these
dead. but their estates are good. Others alive;
they have money. This commission can do great
deal of good and believe. force the restoration Of
millions"
When Mr. Hodge asking Mr. Whitridge
the 81 00oeoo had gone the receiver said
that he had been misunderstood if il thought
that he had SAID the money had been distracted
from the treasury. He had said that while the
books showed that it had been spent on the road,
there evidence, far he could find that
81 had been expended for the benefit of the
lines. He added that he had never authorized the
outlay OF any money TO Investigate the matter be-
cause there certainty that any Of the mill
Sons could ever be recovered.
Gould YOU tell from the books what became
Of this money" asked Mr. Hodge.
There seems 10 be peculiar delusion." replied
the receiver. that when man takes million
dollars he promptly enters it upon the ledger. and
when ne is called 70 court tells about IT with the
greatest frankness and smiiingly' accedes when he
IS asked 10 it,
The attention Mr.. Whitrdge called 70 the
restoration in the & Cortlsndt Street Ferries
case but ne replied the interested per-
sons in that deal not dead
Colonel Amory criticised the report of earnings of
the Third Avenue for the year ending December 81,
1908. he said he would deduct an item of s132.0o0
for power sold o subsidiary companies which had
not been paid. and s30.592 which he thought
Improperly cassed rental. He would also deduct
$4,000 meet the franchise for the period
covered by the report. all Of which would reduce
the net earnings about $4,000.
by the plan OF reorganization said Mr.. Amory.
'-the capital Of company would be increased by
se657, ,o0e. and that is for surface railroad i
feel my duty open the eyes of the public The
Third Avenue can never earn 81. $4,000, which is
the interest demanded under this plan"
The hearing viii BE- closed on Monday.