New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-01-20
LONDON TRACTION LINES
IN s175,0OO,OOO MERCER
Underground Electric, Founded
by Yerkes, Combines with
General Omnibus Co.
PLAN YEARS IN MATURING
Sir Edgar Speyer Chief Organ.
izer of Amalgamation in Which
Much American Capital
Is Interested.
[By Cable to The Tribune

London, Jan. 20-The long talked ~
amalgamation Of the Underground Elec-
trio Railways Company and the London
General Omnibus Company became an
accomplished fact yesterday by the
adoption of a provisional agreement
The underground company creates H.
400, 900 cumulative income debenture
stock bearing 9 per cent, f1,300,OO0 g
per cent income bonds and fl ,200,898
ordinary one-shilling shares. The hold.
ers Of common stock in the omnibus
company, in addition to the exchange OF
shares, will have cash bonus Of IS, per
f1OO Of accumulated profits. The prop
critics owned by the companies concerned
in the new amalgamation represent q
value of $175,000yO00. F
Sir Edgar Speyer, who became the
leading spirit of the reorganized under
ground lines after the death Of Charles
T. Yerkes, made the following explana-
tons Of these great transactions, 10
which large masses Of American capital
are involved:
believe London is the only great city
where traffic facilities have been developer
without bringing adequate remuneration 10
the companies providing them Nowhere
else does there exist so much overlapping
of travelling facilities, with consequent
blocking of street traffic. The London CON-
panies cannot wait forever for the reforms
urged by the Royal Commission. They
must perform their duties to The public
The arrangement made to-day marks a
new epoch. The coordination or all traf-
&c agencies in the metropolis is only a
question OF time. Parliament must deal
with Il sooner or later A sfsbiiiY a0S
Increased chances OF pront, while the pup
lie will have better facilities and save time
and money.
The formal sanction Of the amalgama-
ton depends now on the security holders
In the various companies parties to the
merger.
The amalgamation OF the Underground
. Electric Railways Company, OF London.
with the London General Omnibus Com
pany results in a system comparable IN
extent with that operated in this city prior
to the difficulties which arose In the Metro
polltan and Third Avenue companies. The
properties owned by the companies con-
cerned in the merger represent value OF
about s175,Ooo,OO0.
The Underground Electric Railways Com
pany has q capital stock OF s25,ccO,Ooo The
late Charles T. Yerkes, who invaded the
London traction field after disposing OF his
Chicago traction properties, was chairman
OF the company when IT was chartered In
April, 1902. Several Of the tubes and sur
face lines in which Mr.. Yerkes had become
interested, backed by a syndicate Of Ameri-
can and English financiers, were brought
under the control OF the Underground
Electric Railways. Company at that time.
The company at present controls the
Metropolitan District Railway. the London
Electric Railway Company the Charing
Cross Euston and Hampstead Railway and
the Baker Street and Waterloo Railway,
all electric roads and the London United
Tramways, an electric surface traction sys-
TEN. These lines comprise a system OF
about 102 miles in length.
Sir Edgar Speyer, OF the banking house
of Speyer Brothers. has been chairman OF
the Underground Electric Railways Com
pany since January, 1906. In April, 1908, the
company went into the hands OF a receiver
in friendly proceedings. preparatory 10 re-
adjustment. A satisfactory plan OF read
justment was worked out at that time by
Speyer Brothers, OF London; Speyer & CO.,
OF New York, together with two other for
eign banking houses, and the receivershlp
was terminated in September, 1908