The sun., 1910-06-30
METROPOLITAN TANGLES CUT
REORG INIZiTION Plan rO
AVOID WORE LITIG tTION.
Agreement Nadr subject TO NpprO, ~
lntsrbarOugh Pays a4.OaDO. ODO
Secarlties' directors. ~, ,sOO OOO
Personal Injury Claimants tei On.


wing securities for the REDUCTION ~ the
burdensome rentals paid on subsidiary
lines and withnu' waiting for the adjust
inent by the courts Of tho many disputes
row pending hetwcsn the various in
terests which previously made up the
Metropolitan system. the hondholders'
committee IT the Metropolitan street
Railroad Company have agTeei upon a
plan of reorganization for presentation
10 the Public Service Commission. II
approved II viii mean disoontinuATC~
Of the litigation latws~n tho receivers
Of the lnterhoruugh Met rurolitan Com-
rany and the Metropolitan Securities
Company interests
Robert " be- Forest. who with Lewis
Cass Leiyard represents some of th"
directors of the Metropolitan Stree;
Railroad Compa' Y, eNplsiret the sltua-
tim YESTERDAY ip thit statement:
Lewis Cass Iedyarl ant Rotrrl " 10
FOREST ~ counsel Yesterday formally sub
miited IN col Nhi,m " add. r~'ciysr
ef The New lork cav Eailuay company,
and through Rim tn Judge in,ouihc plan
foT erding The litigation between tho -.
seiVcrS ~ the New York 'It, Railway Jor.
rahy anI m" Nrrr politan street Railway
Company IN fhs uur hand aud ths luinr-
borough Metropolitan COMPANY and ne
Metropoltau Securities t,wppuy ant rer-
Tain Of IT, former 5irrcrors ou tho other
band lhis ptu uf adjustment has been
under negotiation tor several N,"s- hr'v,,n
Msssr Ls,i, ird and be Forrest ari ,nuu-sl
Fepreserring The In'erh. rough Mrfrnuuh-
81 Comp1ny and 'us Metropolitan Ss,urf
tes 'onpau, interest. and thc Non. Joseph
n hOaie ami H'- l~-b'.4fr-, Nhr 4ra ruuu.
-sl Tor Tho receivers. 90 of whom have
EpIrOyrd N" n'yn ROW updnr -rNrl.. .~iuU
- Judge lA,uwlt" Tho plan has sI-p rr
ceiNed the HUpf1vrl ui the bouthnli"r,.
committees Who represent the two issues
Cf bonds NJ The Metropolitan street Rail
Way C.rpanV. whose pll u 81 rrprgauilt-
ti0n. soon 10 b" submitted tu The Public
Service comm ,- on. - 20 be- hl-ri upon
the con,umm,'on " the adjustment
The gentlemen Who are providing ihe
fnnds for this adjustment have been lr-
tuaied by a desire 10 terminate the costly
und veNst,ous litigation which has been 100
progress throughout almost The rutis,
period NJ the reCeivefshtp and 30 enable
the early organization of the Ms'rupgl-
taR pg0perites IN the interest Oi both The
important reason FOR the adjustment vr."H
commends itself to all Is tha' % SEEN. 10
anord. through tho action ~ rhe houu-
holder committees. the only mean, ~
pFovidinG RELIEF Tor the holder. 90 personal
injury claims who have recovered iudg-
menfs against the New York CIV rauvty
Company 90 the amount oG glm0-' =. .uOn $50.
whose judgments would athorut t-s have
heen rendered yalue.ess by foreclosure
The salient features Of the adjustment
are:
The sum NJ Ss.jOO.N0a ). paid - M" re-
reiEsrs In -.ttlfment nj 'h- claims uf 'Hr
fecsiyers Rgainst th- Metropolitan Serur-
tiles ComI.any and through thai comrlrr
AGAINST tho lHfrFnorough-Net
C0IhI an, ~ prinrig al .tork kholdcr. r~Dre
eating the balan,s Of tho puryha-.' rrire
Of e. .00o uon Of Nr'rof 1l.tan street Railway
Company imnro,~ment notes. ,-susd prior
10 the rerei,rfsbH, and on s.,ount Of the
ruTchas- rri.". nj hirh only M ont g.
COCOON hat hr-u paid a. tH' time ui tly
appointment ui rr ei,ar-. AMI also % settle
asnt OF tho LAIN of the receiver, of tt-
New NoTl, civ RAILWAY COMPANY ha~'d
upon the redemption a. var Of notes OF the
New York CITY RAILWAY Conn any which
RAT been ORIGINALLY issued At 20
The receivers ,lamrd that the Natru-
iolran Sruri'lr, ,omrsuy vas liable 90
me extent OF th,s difference and they also
slntsnded that eorrp-pondinf lal htv
'ested npon dire. tors although thrv did
nat IN Any vav Individually proHt from the
Transaction Former dire tor have ~
surriingiy pro, died the sum of - .-nu.un
- faTt ~ central regdIu-tmsnr. NhI,b
terminates htFgr.nu
To settle 10 Har Of the lti'ation ~.
'gterhoroush- N~trouul.'H1 toWuany rTO-
idc- stVH.ust. for Nhi,h e has pllne' at
IA - notes no thar amount The tus
committees OF honiholivr~ have mo- Ier-
taken rh,' any Ian of rauT .au. fa'fun which
tney adOr' shsu prov iir Tor rarti' 'irat.on
t1erein by the '.ul3ers of aGJIIdi'atrd ,iaiuus
far Personal injuries a 'uin-t the Nea lura
90. Ea O." 'pnua1~ ~ the Metropolitan
street pal Com any upon The most
favorable term. a., prdet fo arE lass OF
N,untholdeT- TO-. arrangement rlar"- tho
rsf-UHal iniur~ .la.rus ur on tho same ha.
a. thp msst favored honIHoltrrs Al
Ispdns ii'ra'.on .dl - ended by this
ntiu.'m"Hr
On1 ~ tN" nut3'm - 81 those terms ~
Ettl' msnts wa th" fling vest, ~dGv by
CTl william " lGdd. receiver for the New
Ypgk City RGilwRs COMPANY. IN the Ubited
StsEcsC Circuit CDurt u a petition permitting
ina 10 scu' ~ a compromis- Suggested by
i.e Securities Company for the settlement
cf q y bdgm'nt s"cur' 4 arainst that com
rany hy the Ciry comrany This Judg-
mcnt was ~ ecoyered on February II, 1870
IN an aCtiDn for S.27i $50 50 ~ this
amount there las been collected the sum
~ 81 .O3l, IN ~ This Judgment was
8airmcd by the Unitsd Stst.s Circuit
Court Il AnpealS and a writ Il certiDra-i
- review the case was refused by the Su-
TRtme Court at Washington.
The CtfY company Is at present the COM
piainant tn a suit IN equity now pendiay
% Tire Circuit Court against the Seouritl's
company and Thomas y Ryan. Paul b. .
Gravath and other directors u the Cis,.
UDmpany - compel the return - e. 7g7 sp
With interest. which Is alleged e haze been
vrOngfully transferred without cOnsdera-
uon from the complainant company .
bte Securities company Sp decision has
yet been reached IN this suit.
Col Ladd alsn has a zirt ,sa...!!!:.z .E,i urt
ths directors oi the Securities Comnany
- individuals 20 recover S2.OO0 coo n /
acoount Of The issuance ~ hotse Of the
New York City RdlwaY o. the Securities
Company ~ - and their almost immediate
redemption ~ par soon aftAT the Metro
politan iease % 1917 was carried through
This suit j. now before Judge Ray II the
United States Circuit Court awaiting
decision. but tho suggested settlement
will also cover this litigation
II was zaid yesterday that ono of tho
features n the reorEani Zation plans
which the bondholders have IN mind will
b. the restoration Of the general transfer
system