New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1910-05-13
No BID At MET SALE
infer of Part of Railway System
Meets No Response.
NEW PLAN TO BE MADE
vsxt Sale to Include Property
Embraced in Refunding
Mortgage Of 1902.

.,se he whole Metropolitan Street
- system vas net included in the
- offered for sale yesterday no bids
- -areived The sale was by order OF
---i-e6 States Circuit Court on fore
-. - proceedings instituted by the Guar
- T-sst Company, trustee for the
- eal 3 Per cent bonds. The market
-, ~ he bonds is $4,000. and the ex-
es az the receivership amounted to
80. 50 that the court fixed 100000 as
- lowest sum which the auctioneer,
- ?. Day. should receive as a bid for
me property offered
--ss sale was 20 have taken place on the
...,s Of the courthouse, but Special Mas
- William / Turner had secured Part V
- -ss County Court 10 which he ad-
s..-rns5 st . o'clock Among those gathered
-s-rass the proceedings were Adrian H.
-.T-s one of the receivers: John c.
u,ocre-. counsel for the holders CT the 3
= cent bonds. Arthur II. Masten, attor-
fo- ne receivers. /. c. krauthoff and
rr Nathewson, counsel for the joint
.,-u;,+ee IF bondholders: Bronson Win
,s-,, counsel Tor the per cent bond hold
* and Julien r Davies. attorney for the
F-rs-antv Trust Company.
Alexander Ressner, a clerk IN Joseph P
-,svs Office, spent half an hour reading the
sscree and memorandum OF sale. after
v-sicb Julien 7. Davies moved to adjourn
.rs sale Until such tine as the property
.~sctes by he Sc, So. coo per cent bonds
sbould Re offered for sale under the fore
ensure proceedings. Special Master Turner
Denied the motion
NJ. K-authoE. acting for George E
r-tpv. chairman OF the joint committee Of
hondho.6ers. Put up TWO checks for So coo
each IS security for any bid which his
client might desire TO make When no bids
were ofTe-ey the sale was adjourned.
NJ h-aurhoff explained that the COM
ruittee q b1ndh0Iders vas planning re-
organization and wished to wait until the
foreclos-re proceedings OF the I per cent
bonds had been completed. so that the
whole property could be sold in one parcel
The general collateral trust mortgage,
under which the foreclosure proceedings
were brought vas executed in 1887, and
covers ina property. franchises. leases,
stocks and bonds owned Or controlled by
the Metropolitan Street Railway Company.
including about thirry-five pieces Of real
estate
The -efurding mortgage, which was exc
cufsd u 1902 and OF which the Morton
Trust Company, now merged with the
GUARANTY Trust. was the trustee, is sec
ond Lien upon the property covered by the
genera collateral trust mortgage This
fndenture secures the outstanding $l2,-
90 900 Ter cent bonds; but is first lien
upon other valuable property, including
the reaI estate a. Lexington avenue and
Sc street, the 18Th and s6th streets and
Msdis7n avenue property, the property
bounded by l46th and l47th streets. Lenox
-snd Seventh avenues; the Dry Dock. Front
Et-eet Ninth avenue. the sd street proper
ties and the Sd street leesehold.
The sale. therefore, under the mortgage
Of Isg- would not convey 20 the purchaser
fhe tide 10 the entire property Of the
Metropolitan Street Railway Company
For that reason il was thought best by
the 5eint committee representing the bond
holders under both mortgages, who are CO.
operating in working out plans for the re-
organ lzaJiOn Of the system, 10 make no
he until after the decree Of sale should be
HANDED down in the foreclosure suit fnsti-
tgted hv the Morton Trust Company fol
zawirE default il the payment Of interest
On TIE SIS. SD. 60 ( per cent bonds secured
II TIE refunding mortgage Of 1912
Thsr decree is expected 10 be granted
within Z few weeks, and after that, If the
sales under the TWO DEGREES shall be held
81 TIE same tine, the bondholders' joint
committee VIII he prepared 70 submit a
bid Z --cn Wiz probably be satisfactory in
anoc1- and -he acceptance Of which viii
be followed by the discharge Of the re-
ceire-s and the adoption OF Z plan Of re-
ergsL -za--r~.
Il Is cru-S onIy supposed that the re-
orEar-za-l7n plan viii include as did that
q ire Third Avenue Railroad Company.
e. assessment on the stock, Of which the
Inter11rCg-h-N Metropolitan Company holds
si-,14 49, ont % the total 81, 0aa,9a0. and
thai TIE -a--sr company wiz meet the as
sessHe1-. me alternative apparently being
Ihe Wl1-HE out Of the stock