The sun. [volume] (New York [N.Y.]) 1833-1916, 1916-02-11

and what it netted the bankers From
what Mr.. Fisher did recall OF the finan-
cial operations Of tn. company, however,
these salient points featured the days
examination:
Inc formation OF the lnterho-ough
consolidated Corporation to take over
IN" old lnterborough- metropolitan mer-
srr or l"O6 involved a total loss. esti-
mated by Secretary Fisher at $50. 900. =
"on TO 500. .00O. 600 and cost the Inter-
borough approximately $50. 600, 900. The
lnterborough Consolidated was formed
Mr. Fisher said, ITO adjust our balance
sh'et ana 10 wipe out a large deficit
made up OF losses incurred In the bank
ruptcy of the Metropolitan system in
September. 1907.
IN" acquisition of The Pelham Park
ana city Island Railway companies. de-
scribed by Mr. Fishsr as "a mule tram
way somewhere In The Bronx" was a..
co'nplishcd ny the issuance Of 81, 800 900
capital stock OF tho iutcrborough to
August belmont Only s350.nd0 was the
cost OF the road. the remainder of the
SI.Iu".'o" going To- NT. belmont said
the witness. for Services" \ state
inent OF the stock of the Pelham Park
and city Island companies bought by
Mr. Belmont for tho lnterhornugh
showed that he paid for {; about sos. 80
cot a6. .O0O.OOO stock for 80, 900, 900
In th" acquisition Of the subway con-
struction contract owned by Mcdonald
ana MS associates In the Rapid Tran
slt SUBWAY construction Company Mr.
Fisher testified thar tn" Iuterbnrough
ISSUED s",6Vo.0o0 in capital stock 20 get
SS.0"o,oO0 Of CONSTRUCTION COMPANY
stock. which represented q thrcc-fourths
| interest IN the desired contract and
| then issued s2.io0,oo0 additional capital
| stock To acquire the other one-iourth
| Interest
The note trausactinn Was this Th.o-
dore'f Shonis arranged with J. T.. Nor
gan a CO. toT tn. discount OF SIS 00o. 900
lnterboroush per cent. rcfuudin. notes
! 10 pay an outstanding issue of 1000.
400 ''2 per cent. notes and $1,000. 400
| IN = per cent. notes. due April 90. 1912
The transaction. Mr.. Fisher admitted.
was Just practically for a year
Mr.. Colby first took up The organi-
zation Of the Interhurough consoli-
dated Corporation. the reorganization ~
the ln,erborough ghMetropolitan sy stems
which "as begun June last year.
Mr. Fisher said the losses involved in
| the bankruptcy of th. Inier-Met and
! the metropolitan Securities COMPANY ap-
| proNimated "A tuta. Of <SO. nO0. uOu to- $50 =
O0o.oo". When the l. Il. r. he Said. dc-
! CURED the subway and surface lines ~
| tn" lnter-Net system II made no guar
| antees to tho lnter-Mc, bond and stock
| holders originally. ne said. the div.-
dends of the luter-Mct We're paid from,
! the securities Of the Metropolitan street
| Railway Company. party 10 the old
! merger
! The lnt.rhorough Consolidated Curpo-
ration succeeded the Intcrhurourh- Metro
| politan Company and comprised the
| Il. T, the Metropolitan Street Railways
: Company and the Metropolitan Securi-
! ties compauy Il has practically the
/ same officers as the l. Il. T MIR Fisher
! said II consists OF 926. t2s shares of cont
mon stock, worth about par. i51 1.4OJ
| shares Of preferred. i per cent, worth
about par II also has - A. per cent
| bonded Indebtedness du" in lrGa or
/ S6,, ,>25.000 and AZ per cent. ten year
! notes due I'm la:; of 5000. 200. Tn,
| Inter Met did not pay a dividend since
, su7 because IL had liabilities of sl35..
| 100000 and assets Of about $50 600, 600
| he said.
II developed from Mr. Fishers test.
| mony concerning the iuterrelations ot
| the Interborough and III. Inter Met that
the subways are still under obligations
/ contracted al the time of the consolda,
! continued on Lighh Page.