New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-09-07
RAISE TRANSIT DIVIDEND
marlborough Stock Put on 10
Per Cent Yearly Basis.
TO CREATE SINKING FUND
First of It's Kind, Wall Street
Says, Devised Against Inter
Met. Collateral Trust Bonds.

The directors Of the Tnterborough Rapid
Transit Company increased the quarterly
dividend on the stock from 81. 70 2i7 per
cent yesterday. thus placing the stock on
IN per cent yearly basis. and also declared
an extra dividend ~ per cent out NJ the
earnings for the last year The increase IN
the dividend was made. II was said. 10 en-
able the PETERBOROUGH Metropolitan Com
pany 10 create sinking fund against the
ss7s25,000 PETERBOROUGH Metropolitan a. per
cent collateral trust bonds. under which
the PETERBOROUGH Rapid Transit stock is
mortgaged.
As the sinking fund for these bonds was
established as OF July I. 1910. the extra
dividend Of per cent was declared 10
make provision for the period elapsed since
that time Theodore r Shonts. president
~ the marlborough Rapid Transit and OF
the marlborough Metropolitan companies.
gave out the following statement In ex-
PLANTATION Of the action OF the directors Of
the former company:
on June 2. 1910. a resolution was rassed
by the directors Of the Interhorough- Metro
pontan company appropriating $1,000 an
nualy out Of any surplus income in the
hands Of the company after the payment
Of interest and taxes upon It's Obligations
70 the acquisition OF its ~ per cent col
lateral trust bonds
These bonds are 10 he acquired in the
open market az not exceeding par and in
terest and 10 be turned in TO the trustee
or the mortgage so as 10 operate as 2 sink
ing fund.
The time now having come when the In
terDoroush Rapid Transit Company has felt
justified IN increasing its dividend beyond
per cent per aunum heretofore paid the
lnterborough- Metropolitan Company will be
IN a position 10 put In effect the declared
policy Of the company with respect 70 its
~ per cent bonds
lnasmuch as these bonds when turned
In 10 the trustee as additional security for
the mortgage. cannot. under the terms OF
the resolution Of June 2. 1910. be released
and will continue TO draw interest, which
must also be devoted 10 sinking fund bur
poses. a sum Of over 10000. 600 or A larger
amount II the bonds can be secured a. less
than par. will have been accumulated be-
fore their expiration for the purpose Of
patins of The S67.s2S,ooo N per cent bonds
outstanding
ing of Of the per cent bonds OF the In
terborough Rapid Transit Company by the
sinking fund provided FOR by that mort
gage. the equipment OF that company, now
valued at SIS 0lo,0c. will have been released
from that mortgage and the assets Of the
marlborough Metropolitan Company will
have been enhanced by corresponding in
crease in the value Of its stock in the In
terborough Rapid Transit Company. There
will remain the lease Of the Manhattan
Railway Company. which has been earning
Al a rate OF approximately $4,000 surplus
for the Interborough Company.
This was said 70 be the first time in
the history Of Wall Street that q sinking
fund like the one established for the In
terborough- Metropolitan AZ bonds had
been formed The sinking fund really
amounts 10 one-half OF / per cent year,
as there are about twice as many OF the
bonds as OF marlborough Rapid Transit
stocks outstanding The bonds were is
sued in 1906 and mature In $50 and were
exchanged for the stock Of the Inter
borough Rapid Transit Company on the
basis Of $500 in bonds for 800 in stock,
S33. 912. 500 Of the stock being thus eX-
changed.
The announcement OF the creation Of
sinking fund for the lnterborough- letro-
politan bonds and Of the increase in the
dividend on InterborouGh Rapid Transit
stock caused an advance Of = points In
the bonds and Of D = and e points. re-
spectively Ia the preferred and common
stock Of the lnterborough-Aletro
Company The preferred stock reacted in
the later trading. however. closing at
A. Ia net gain Of 4. DOiut for the day