The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-12-30
new METROPOLITAN pLAN
PERSON a. INJURY ~ DEMENT'S
TO BE PROTECTED.
Reorganization PROTEST Prepared b,
Alexander =. liemphiii Submitted TO
Public service Heard rived Charges
10 Ne tut by About 81 600. OOs,.

Public service Heard FtSeh Charges
10 Ne Cui by About l.ODo. OOD.
A plan for the reorganization OF the
Metropolitan Street Railway. upon which
a joint committee. OF which Alexander j.
Hemphill, vice president OF the Guaranty
Trust Company 10 chairman. has been at
work for many months. was presented 10 the
Public Service Commission for its approval
yesterday The plan has been prepared
by the committee with the sanction and
cooperation OF the committee representing
he per cent general mortgage bonds
and the committee representing the
holders Of The per cent refunding bonds
Of the company.
The principal features OF the plan are
described as follows:
The total present outstanding securities
and obligations OF the Metropolitan street
Railway system are about $50 900 OOo.
and this amount does not include the out
standing securities OF certain collateral
companies which we're used To aid in financ
ing the system. such as the New York
City Hallway and the Metropolitan securi-
ties Company.
The plan provides for securities including
the new securities provided 20 he issued
and old securities left undisiurb-d TO u
total amount OF about soc. 0O0. coo which
IL a reduction OF about $40 .O00.O0o in the
present outstanding securities and obliga-
tons.
The hxed charges representing the
interest on the bonds which have been adj
jus'ed under the plan have been reduced
a
The new securities to he iss'!-d are
approximately a. follows 81 ..ss Ooo new
hHed charge = per cent bonds sJs. 90 on
new adjustment income bonds bearing
int crest at ) per cent si4 OGo 80 OF stock
II IL estimated that the net earnings Of
the company after setting aside a deprsCia =
ton fund will he sufficient to paw imme-
dia'-ly from :tl per cent to per cent. on
the adjustment income bonds
The holders of the stock and improv rn .n'
notes Of the Metropolitan street RAILWAY
COMPANY are given the right Of participi-
ton on the payment OF an as--ssmcn,
SUFFICIENT to furnish tn. new cash needed
which II il estimated will not exceed $40.
80 OS,
The plan, II ~ stated. does no, provide
for the participation of the Metropolitan
Securities Company or the New Sork
City Railway Company A novel feature
~ that. subject TO the permission Of the
commission. holders Of personal injury
claims are 10 have rhe right To participate
under the same erms as The most favored
bondholders The amount Of such tor,
claimants is given a. 81 s55,DO No
assessment il required II these tort
claimants
The proposed , per cent bonds would
nun for thirty years and would he secured
by first NOR gage on the company
real estate The ) per cent bonds would
run for n similar period and IN. holders
Of them would have the power by vote
Of "A ma iori,v in amount To elect one less
than a majority Of the board Of directors
OF the new company It Is proposed 10
incorporate until fun interest on The
bonds shall have been paid for three
successive wears
Ford BACON 4 Davis. she experts en-
ployed bv she receivers II - stated. have
nad. an inventory and appraisal of the
property which shows "A valuation largely
IN -vce-- Of the total securities which
would hr outstanding Tn. COMMITTEES.
has asked III. Public S-rviC" Commission
Ia hold hearings on the plan a. an early
date
Judge laComb- has -aId his II the
feature of he plan which relates . persons
holding claims for personal injuries
against the metropolitan street Railway
COMPANY snd tbs. New York CIV Railway
COMPANY
1hi- appl alton particularly commsnd-
itself 10 tn" 'our' h~' HI-s Oi ia, statement
II contains u ~ provision for persona m
jury rstns again-' The New York cav
RIiIWav 'o'npluV From III" very tn"ep-
ZION ~ The -, ownership 'hr situation n
this group of creditors has been "A matter
of much concern u - W.'Il settled under
III" authorities mat they are not preferred
creditors Moreover. Ih.v are not creditors
M all Of the METROPOLITAN street Railroad
'ompanv which owns IN" property kut only
Of the tmpecunlou~ Jesse" which operated
'h. road. These mortRsg. creditors Of
the Metropolitan are under no legal ohhgl-
ton 10 give them any interest IN tn. prop
-r'y covered br the mortgages That they
are willing TO treat them a. II they were Hor
only rrcdiior- Of the Metropolitan but also
a. II they wpr. creditors holding a hrst
mortgage on ~ property - most com
msnJabls. " shows an appreciation of
fairness and equity which speaks we'll for
tho plan. whatever ~ he. which they ar.
about TO submit
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