New-York tribune., 1910-06-30
OFFER s5,5OO,OOO TO
END TRACTION SUITS
Receiver Ladd Announces Plan
in Litigation Against "Met."
and Others.
SUBMITTED TO u. S. COURT
Interborough Metropolitan to
Pay s4,ooo,ooo and N. Y.
City Railway 81, 800, 600
to Settle Claims.


The end Of the litigation incidental to
the three suits which William w Ladd,
receiver for the New York City Railway
Company, brought against the Metropol-
ttan Securities Company. the INTERIOR
ough- Metropolitan Company and certain
directors Of the securities company. was
announced yesterday by Mr. Ladd. he
having accepted, subject TO the approval
OF the court. plan of adjustment sub
mitted TO him by Lewis Cass Ledyard
and Robert W. de Forest as counsel for
various defendants in the three suits,
aggregating claims Of s15,56s7S2
Judge I.acoInbe set July as the date
On which he would consider the pro-
posed settlement. He ordered that no.
rice be sent 10 all parties and intervenors
of record in the suits of the Pennsyi-
vania Steel Company against the New
York City Railway Company and the
Morton and Guaranty Trust companies
against the Metropolitan Street Railway
Companv and announced that he would
hear also all persons who had filed
claims as secured or unsecured creditors,
whether they had otherwise appeared
or not
Offer Sc, 500 900 to Settle.
In effect the Interborough- -Metropoli-
tan Company has offered to contribute
81 1000 900 to the receiver and directors
Of the New York City Railway Company.
and sl.50O.G0o as a basis for the settle
rnent of the claims in the suits, total OF
s55o0,00e In a statement Mr.. de Forest
Says that the plan of adjustment has
the approval of all concerned and that
tt would, if satisfactory TO the court,
terminate a costly litigation which has
been going on, with little cessation, dur
ing the entire term of the receivership.
and also enable early reorganization of
the companies.
II vas in January of 1909 that Mr..
Iadd recovered Judgment for S5,271, So
against the Metropolitan Securities Com
pany This was affirmed IN February
II Of the same year by the United States
Circuit Court Of Appeals. and the Su-
prene Court refused a writ of certiorari
10 review the case Since the award the
receiver has collected through cash
security given at the time OF the appeal
s.. OBJ, ,T3s and got possession Of real es-
tate worth about 100000.
Mr. Ladd brought sequestration pro-
ceedfngs against the Metropolitan Secur-
ities Company. which resulted in re-
ceiversaip for the latter He s at pres
ent complainant in suit in equity
pending against Thomas Fortune Ryan,
Paul D. Cravath and other directors of
the Metropolitan Securities Company.
also directors of the New York City
Railway Company, to compel the resti-
tuition of S2,197,200 with interest
charged 10 have been wrongfully trans
ferred without consideration from the
CITY companv to the securities company
Would End Litigation.
Mr.. De Forest in a statement said:
The sum of S5.5oOo00 is paid TO the re-
ceivers in settlement OF tie claims Of the
receivers against the Metropolitan Securl-
ties Comapny and through that company
against the InterborOugh Metropolitan
company. its principal stockholder. rep
resentinS the balance OF the purchase price
Of sSo0oe9 of Metropolitan Street Railway
Company improvement notes. issued prior
10 the receivership. and on account of the
purchase price Of which only about 5000,
Doc had been paid al the time Of the ap-
poinfnent of receivers: and also in settle
naent Of the claim of the receivers of the
NeW York City Railway Company, based
upon the redemption at par Of notes of the
New York City Railway Company, which
had been originally issued at 90
The receivers claimed that the Metro
l,'tlitan Securities Company was liable 10
the extent ot this difference. and they also
oof5t@nded that corresponding liability
1osted upon directors, although they did
'loi- in any way Individually profit from
'ne transaction. Former directors have
a"cOrdingly provided the sum of 81 5000 900
part Of general read justment which
terminates 4 litigation. the continuance of
which might have prevented reorganization
OF the property for an indefinite length of
time without offering any means Of pro
Viding for the payment of the claims of
tHose who had suffered personal injury
through accidents. To settle its part Of
the litigation the Interborougf1- Metro
I.olitan Company provides 100000 for
which II has placed At par its notes in
That amount All pending litigation will be
ended by this adjustment
Theodore p. Shonts, president of the
lnterborough- Metropolitan Company, one
OF the defendants in the suits. said in
Tart regarding the proposed adjustment:
The Interborough-M Metropolitan Company
faS agreed TO contribute 10 the settlement
announced by Nr. De Forest not as any
p3rf OF plan TO participate in a reorga n
ization OF the surface lines-for that oues-
ton has not been determinations in order
e put end 10 all existing and threaten
Ing htigations against il.
iose keaa-