Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1910-07-19
DIRECTORS OUT OF
OWN POCKETS PAY
|NTER-MET. DEBTS
Use Private Fortunes Making Up
Most of ,OOO Given
to Receiver Ladd.
GAVE FOUR NOTES FOR
ONE MILLION EACH
Taken at Par Value by Ryan,
Widener, Berwind and
Crimmins.

NEW YORK. July 1s.-That the for
mer directors OF the Metropolitan Be-
curities Company, in settling the htiga-
ton against themselves and their cor
poration by the New York City railway
after the traction smash of 1907, paid
not only 81, 800, 900, but all except about
$1,000 0 of S6,500,000 brought into the
city railway treasury, became known
yesterday. The public announcement
OF the settlement took cognizance of
the payment of $1.500.0o0 In a by
the securities company directors, but
the fact hat substantially all the mill
lions now regained for the rehabilita-
ton of the surface traction system
came from the private fortunes of the
men who managed It in the years which
led up to receiverships and general
bankruptcy, has just become known.
The settlement was entirely financed
by individuals, although made in large
part through the Observation-Disclosures
p~olitan, which issued its notes at par
for 1900, 900. The connecting link is
that the ACKNOWLEDGEMENTS
notes were four in number, issued for
81, 000, 900 each. and were taken at par
individually by Thomas F. Ryan. P. A.
B.. Widener, e. j. Berwind and John D.
Crimmins. There was q minor division
of one OF these interests, concerning
which the details were unobtainable,
but 1t vas not large enough to affect
the substantial accuracy of the state
ment.
How They Divided the Burden.
BY way Of recapitulation, the restora-
ton of the $500, 900 recovered by Re-
ceiver Ladd as a result Of litigation in
stituted by himself and his predeces-
sors, Receivers Joline and Robinson,
fell In a tax upon individuals about
this way:
Thomas F. Ryan-s1.o0 100000 Inter
borough-Metropolitan note. $13S,54
Wall and Cortlandt Street Ferries re-
fund, and $500, 900 cash paid Receiver
Ladd. Total. s1.43S, 548.
P. A. B. Widener-$1.O 900, 900 Inter
ACKNOWLEDGEMENTS note, $685. 4S
| Wall and Cortlandt Street Ferries re-
fund. and ss00,000 ash paid Receiver
Laid. Total. 81, 43S. 54S.
E. j. Berwind-s1.0 900. 900 Interorough-
Metropolitan note. n $780, 900 cash
paid Receiver Ladd. Total, $1,000, 900.
John d. Crimmins-$1, 000, 900 note,
less certain minor p~articipations, and
$500. 900 cash paid Receiver Ladd. Total,
81, 300. 600.
Thomas Dolan-$13S, 438 Wall and
Cortlandt Street Ferries refund.
Elkins Estate-s13S,4 ABS Wall and
Cortlandt Street Ferries refund.
Whitney Estate--s18s, 43S Wall and
Cortlandt Street Ferries refund.
Paul D. Cravath-S1O0, 900 cash paid
Receiver Ladd.
Mortimer L. Schiff, Thomas P. Fow-
Ter and n. H. Vreeland-About $1,000
cash between them.
In this connection it became known
that there are several influential d.
rectors Of the Observation-Disclosures
tan Company who are in favor of di-
vorcing the marlborough Rapid Transit
Company from surface railroad affairs
altogether, and will advocate, when the
Metropolitan Street Railway reorgani-
zation comes up, having that corpora
ton default on the Metropolitan Street
Railway stock assessment. The result
would. OF course, be the wiping out of
the Metropolitan Street Railway stock
owned by the Observation-Disclosures
tan.
TIL Basis OF the Suits.
There were three main branches to
the litigation which resulted in the re-
covery Of the City Railways SC. SOC, 900.
The earliest in point of time was a suit
brought by the directors of the Metro
politan Securities Company. after Re-
~ceivers Joline and Robinson had taken
control of the surface roads, against
Messrs. Ryan, Widener and Dolan and
the estates of William Elkins and Will
lam C. Whitney to recover the $685. 92
Wall and Cortland street ferries money.
That sum represented with Interest the
amount paid to the five men in Ques-
ton.
The other two branches of the litiga-
ton were fully set forth a few weeks
ago, when the settlement itself was
announced. One had to do with the
payment to the New York City Railway
of a balance Of a judgment of more
than $4,000 900 obtained by Receiver
Ladd against the Securities Company,
The last of the three lines of litiga-
ton was started against the directors
Of the Securities Company as individ-
uals on account of the discount of the
City Railways notes at 10 and theii
immediate redemption at par, back II
1903. This started the process of di-
verting the assets of the City Railway
which the Securities Company con
trolled through stock ownership, anf
the process ended soon after May %
1907, when the last remaining assets
were taken in connection with the
agreements mentioned.
-
D. OF L. INSTALLS TONIGHT.