Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-07-22

York City Railway, and his counsel,
Matthew c. Fleming and Joseph H.
Choate. to make public recognition of
the fidelity with which they have dis
charged their trust.
Credit to the Judge.
One other thing should be said at
this time. The Judge before whom
all the traction receivers have been,
+. Henry Lacombe of the United
States circuit court, has been under
almost constant criticism more or less
pointed because of the fact that in his
younger years he was protege of
William G. Whitney because he was
appointed to the bench while Whitney
was in Mr. Clevelands cabinet. and
has been understood to be personally
sympathetic with the Whitney Ryan
interests. 1t is generally said among
the lawyers in the traction matter
that Judge Lacombe, in applying
judicial pressure when it was most
needed, was one of the most potent
agencies in making Mr.. Ryan and his
friends pay up. If that is the case
and the information seems pretty
good-the same credit that goes to the
receivers and their lawyers must be
given to Judge Lacombe, who, ii will
also be recalled, was instrumental in
getting provision made for the holders
of accident judgments against the
New York City Railway in the Metro
politan Street Railway reorganization
plan.
But after all this has been said the
ia "a that ~ AGAINST xe huu 00n
recovered. $52.OOO.OO0 of Metropolitan
Street Railway stock for which people
paid all the way from $50 to 1859 a
share, has been destroyed. and the
traction looting remains the greatest
financial crime in history. Nor Is the
$4,000 900 Metropolitan Street Rail-
way stock the only security that has
gone by the board; the $23.00O.0OO
which We're paid in cash into the
Metropolitan Securities Company in
1902 disappeared like some volatile
gas, almost before it reached the
treasury of that and its allied corpora
lions. The Third Avenues stock, at
ter eight years of Metropolitan mis-
management. now represents only the
privilege of paying an assessment and
the question is an open one before the
Public Service Commission whether
this issue ought not to be destroyed
entirely.
Millions Wiped Out.
Without going into the oft-told de-
tails of the other issues throughout
the system which Ryan mismanage-
ment and worse deprecated or des-
troyed. it is sufficient to add the $16,-
100000 Third Avenue stock to the
other two issues mentioned, and get q
total of almost hundred millions of
cash capital that has been wiped out.
1t is likely that the average patron of
New York's traction system, yes, and
the average bondholder of the Metro
politan Street Railway, would willing
ly forego whatever advantage may be
accruing to him through the $6,500,-
900, if he could thereby see one re-
sponsible traction magnate in Jail.
But in the absence of such mental
balm, it is at least comforting to think
of the six and half millions.
We get now the interesting news
that the directors of the marlborough
Metropolitan Company are consider
ing a default on their $43,000.000
Metropolitan Street Railway stock,
Wnen II come To the assessment Wnlcn
will be levied in the reorganization,
thereby allowing the Metropolitan
Street Railway to be permanently cut
off from the Interborough Rapid Tran
sit Company. Such step would leave
the lnterMet saddled with some
$2,500.000 of notes. against which there
are assets, issued on account of it's
Metropolitan Street Railway expert
ment, and with the four notes for
$1,000,O0O each which Ryan, Berwind,
Crimmins and Widener have taken. 1t
is understood that these latter notes
will never bother the Inter Met to any
considerable extent, according to the
understanding covering them. 1t
will, however, have to pay interest on
them and on the preceding $2.500,000,
all at six per cent. which will mean a
drain upon the earnings of the Inter-
borough of about $1,000 year.
The marlborough is abundantly able
to stand such a drain with it's ever
increasing earnings from the longest
ed subway, and the existence of this
charge may serve to remind its direc-
tors to keep out of surface traction at
fairs in future.