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The sun. (New York [N.Y.]) 1916-1920, December 08, 1916, Image 9

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ff. Cameron Forbei, Kecelver,
nd International Bankers
Agree on Flam.
Capitalization of $150,000,
000 Unchanged Bond
holders Secured.
yr. Cameron rorbe, formtrlr Oorer-gor-General
of th Philippine; Jams
perir of 8peyer Co.. Sir Edgar
perer of Bpeyer Droi., and Blr William
Barzard of London, Lord nltehta of
Dundee, representatives of the Banque
4 Paris et dei Pays IU, and of the
ioclcte Gcncrsle of Paris, Brussels,
Geneva and Lucerne and the Pari
Rothschilds have agreed on a plan of
reorganization for tho Brazil Railway
Company, which went Into the handi
tf Mr, Forbes as receiver In October,
1114, because of default by the Qor
amment of Brazil.
The reorganization plan haa been per
fected with the collaboration of Percl
rl Farquhar, "the Harrlman of South
America," who ha consolidated, con
etructtd and financed railroads there
with a capitalization of approximately
1(00,000,000, nm! all of whozo companies
were prosperous before the war.
The plan provides for the payment of
10,000,000 franca by French bankers.
In this respect It Is unique. It Is the
first foreign financial transaction per
mitted to citizens of any of the Allies
since the war began.
pedal sanction from the French Gov
ernment was secured by the Banque de
Paris et des Pays Baa and by the Soclete
Generate In support of a business propo
sition In which the French had Invested
more than $100,000,000, and which ob
viously looked too good toloe.
Capitalisation la 9180,000,000.
The reorganization Is also unique In
the respect that there Is to be no change
In the amount of the securities of the
dominant company or nny of Its sub
Idtaries. The reorganization commit
tees, though representing security hold
ers of several countries, agTeed that the
capitalization of approximately 1150,
100,000 fixed by Mr, Farquhar and his
associate, Dr. F. S. Pearson, who died
on tho Lusltanla, waa conservative.
Bondholders will keep their bonds, but
the majority of them have agreed that
the bonds of most classes) are to be
Income bonds rather than fixed mort
gage bonds, until the Brazilian Govern
ment makes good it guarantees and the
company's earnings build up Its finances
above the chance of collapse,
French bankers and financiers will as
sume management of the company, the
French Interests being much greater
than English Interest and far superior
to the American capital that haa been
Invested. The principal obligation of the
company, payable In France, Is 250,000,
00 franca of Sao Pauto and Rio Grande
'sends, which were guaranteed as to In
terest by the Brazilian Government.
Of the Brazil Railway proper there was
another Issue of 86,500.000 francs put
out In December, 1910. In lieu of tho In
terest on guaranteed bond Brazil haa
given treasury bills to the company, but
these treasury bills cannot be dis
tributed among bondholders, most of
whom have been driven from homes In
Belgium and northern France or are In
the war. '
War Delay! Xeorgraalaatlon.
The committee of French security
feoMers Is composed of P. Deleuze, Al
elde Ebray, Le Comte de Lalgue and
Alexts Massenet They will name a
majority of the new board.
Delay In reorganization of the com
pany has been due to war circumstances.
Just as was Its default Hundreds of
holders of th company's securities were
In Belgium and In the occupied portion
of France and the reorganize have
taken great palna to communicate with
them. Naturally too there have been
differences of opinion between the Brit
lh, American and French Interests. All
et these differences now have been ad
Justed. The company was organized In 190S
with an authorized capital of 115,000,000
per cent non-cumulative preferred
stock, $5,000,000 6 per cent, cumulative
preferred and 140,000,000 common. Of
this stock 152,000,000 haa been Ihsued.
its funded debt amount approximately
to 1100,000,000. It consist of 12,831.
000 4U per cent first mortgage bonds.
11.510,500 6 per cent, debentures, francs
M.SOO.000 4H per cent, bonds, 2,000,000
5 per cent convertible debentures, and
francs 5,797,100 6 per cent, notes.
When completed the company'a sys
tem, which now extends to the frontiers
of Uruguay and Argentina, will run
from Sao Paulo to Paraguay and
Uruguay as well. Approximately e.OOO
miles are now In operation. Mr. Far
quhar and Dr. Pearson contemplated
Unking the company and Its subsidiaries
with lines extending to Buenos Ayres
through the Argentine Railway Com
pany, which they also organized and
Control Bis Other Itallroada.
The. Brazil Railway Company controls
the Soro-cabana Railway, 892 miles; the
ao Paulo Rio arande Hallway, 773
miles; the Parana Railway, 252 miles
the Theresa Christina Railway, 72
wiles: Cle Auxlllare de Chemlns de Fei
su Brest!, 1,381 miles, and the North
Parana Railway. 26 miles. Jointly wltt.
the Port of Para Company the Brazil
Hallways Company owns the Madelro
Mamore Railway, which has a track
ago of 228 miles, and has outstanding
111.000.000 stock and $8,100,000 In notes
ana bonds.
The Farauhar-Peanion syndicate and
Its Hrltlxh and French associates ulso
controlled tho Port of Para, ft. company
having valuable
concasasona from the
Brazilian Government and operating a
steamship line n connection with a rail
road which Is to reach the, west coast
of South America, The Brazilian Gov
ernment, having guaranteed this com
Pa,ny" securities, paid It In Treasury
ollls, but 75 per cnt of the bondhold
ers are In Belgium or th occupied por
tion of France and cannot be reached.
The same Interests control land, lum
ber and power companies designed to de
velop business elan thA rnllm1 Minv
of these companies will be atrengthened
nd put on their feet by the $5,000,000
French money, for that Is to be used
for develpoment rather than for pay.
ment of Indebtedness. Th money due
from Braall Is expected by the reorgan
ises In the current fiscal year and that
will provide for all obligations.
Ara-ata Uas Wot a Factor,
The Argentina Railway Company, also
controlled by Mr. Farquhar and his aa
ociates and which It was proposed at
one time to merge with the Brazilian
properties, Is not a factor In the present
business, although there will continue
harmonious trafTIo relations between the
Brazilian, Uruguayan and Argentine
Brazil's default In Interest navmsnt
was due to the fact that Its obligations
were duo In Europe and that it could not
reiuna tnem without grle ous lots after
the war broke out Since then It has
been In a parallel case with the United
States In that while Its people have been
numerous oeyond precedent Its Govern
ment, relying largely on customs riuttm..
has run behind. There has been a big
export trade, but an lr.port trade pro
ducing little revenue.
The Government haa, however, cur
tailed expenses by 40 per cent and Is
providing, as has the United States, for
more Income from Internal revenues.
Its fixed charges on unsecured loans ap
proximate $10,000,000 a year, and soon
after the outbreak of the war It bor
rowed 190,000,000 from the Rothschilds
on a loan maturing August 1 next
More than $20,000,000 has already been
deposited to meet this debt, and by
August 1 a new revenue programme
will be In operation.
Meanwhile the French, looking Into
the future, have forestalled one com
merclal Invasion, whether by friends or
New York State Chnmber of
Commerce to Probe Strikes
and Lockouts.
Greatest Rival of Standard
Oil Company Seeks New
York Market
Stock Acquired by Knhn, Locb
t Co. Heavily Oversub
scribed at Outset
Urges That Obligations
Placed on All Service
"Good Will Based on Right
and Justice Must Be Made
Industrial problems and the relations
between capital and labor, considered by
the members to be considerably out of
Joint will be the aubject of Investiga
tion by a committee appointed yesterday
by President A. E. Outerbrldge of the
Chamber of Commerce of the State of
New York, at Its monthly meeting. The
following committee waa named: Kd
ward B. Page, George W. Perkins, Will
iam Hamilton Chllds. O. M. Etdlltl and
William I. Saunders.
' The resolution adopted In this connec
tion caJled attention to the fact that
during the year the people of New York
have suffered losses and Inconveniences
because of strikes and lockouts, and that
"the country at large has recently been
threatened with a suspension of trans
portation facilities by means of a strike."
It will be the duty of this committee,
according to the resolution, to ndvlse
with employers and wage earners, when
The Chamber of Commerce went on
record as opposing public ownership of
railroads as "neither advisable nor nec
essary to work out the transportation
system best adopted to the present needs
and future development of the country."
It added that the chamber Indorses
the movement to coordinate the control
of railway and water facilities of an
Interstate character under the common
guidance of the Interstate Commerce
Commission, In opposition to the regu
lation of the commerce of the country
on State lines.
The resolutions advocated the estab
lishment of regional sub-oommlsslons
whose actions would be subject to re
view by the commission.
Physician Threatens to Take As
sail! Case t Orand Jury.
Although Magistrate Ten Eyck In
Vorkvllle court yeterday discharged Dr.
Walter Bewail of the Iroquois Hotel and
Leo Mandcl, a conductor, of 1514 Char
lotte street, The Bronx, on tholr counter
charges or assault, the physician a law
yer announced the case will be taken
before the Grand Jury. ' Testimony was
given to ahow that Mandel, the con
ductor, chased Dr. Bewail a block and
beat blm until a policeman separated
the two, following an argument that
started on a street car.
Dr. Sewall's story waa that Mandel
started the car before he had finished
getting aboard. When the doctor In
dlgnantly protested he declared Mandel
heaped abuse on him until he struck the
conductor with his cane. In response to
tho protests of Alfred J. Talley, Dr.
Sewall's lawyer, when the case was dis
missed, Magistrate Ten Kyck derenaea
his aotlon on the ground that the physi
cian had started ths fight
Shares of the Royal Dutch Company,
the most formidable rival of th Stand
ard Oil Company In International trade,
which never have been traded in any
where except In the London and Am
sterdam atock markets, have been
brought to this country, Kuhn, Loeb
Co. announced yesterday. About 220,000
shares purchased by the banker will be
offered to th publlo In a day or two and
listed at an early data on th Mew York
Stock Exchange,
In arranging for th offering of the
stock In the New York market It waa
stated that the company (Imply wanted
to arrange for partner In the United
States, the Inference being that the
company could obtain all the money It
needed In either England or Holland.
I Heavily Oversubscribed.
The shares were offered to a syndicate
yesterday morning at 10 o'clock and the
books were closed at 1, the offering hav
ing been oversubscribed more than twice
In record time. The official announce
ment follows In part:
"Kuhn, Loeb Co. announce that
they have purchased from the Royal
Dutch Company for the working of
petroleum wells, etc, a blook of shares
of that company for Introduction In the
New York market. The Royal Dutch
Company, with Its affiliated concerns. Is
the largest and most Important oil com
pany In Europe, controlling and owning
extensive oil fields In all parts of the
worm. Tno company owns or controls
through Its subsidiaries n fleet of 292.-
970 tons. It has no funded debt and no
fixed charges.
"The shares are quoted In Amster
dam, and since 1913 In London, where
tncy were Introduced by Messrs. N. M.
Rothschild A Sons. The company has
paid large dividends uninterruptedly
since 1902, tho rote of distribution for
the past four years having been as fol
lows: 1912, 41 per cent; 1913, 43 per
cent; 1914, 4 per cent, and 1915, 49
per cent"
Coaamoa Stock 930,000,000.
The Royal Dutch Company la second
only to the Standard Oil Company In
the oil companlea of the world and has
proved to be In the last few years the
latter concern' keenest competitor. The
company has about 7S.000.000 Dutch
guilders of common stock outstanding
and preferred stock amountlnfl to ap
proximately 30.000,000 guilders. The
Dutch guilder Is worth about 40 cents
Ih gold.
Proceeds of the atock offering In the
New York market will be used for the
development of the company'a property
In the United States, where It owns ex
tensive oil fields In California and Okla
homa. The stock probably wlfl be
offered to the public nt 70. On this
basU the purchase of the stock Involved
more thnn 115,000,000. Three shares of
the American stock will have a value
equivalent to one share of the European
stock. On this basis the dividend rate
will be about 94 per cent
lis Had Rapid Growth.
The Royal Dutch Company was In
corporated In Holland to work oil wella
In the East Indies. It started as a local
enterprise and It was not until 1902 that
the first activity began In an Interna
tional way. In that year a working
agreement was made with the 8hell
Transport and Trading Company of
London and the De Rothschild (Paris)
group to provide for distribution of Its
products In an International way.
In subsequent years the company ab
sorbed the principal other oil producing
enterprises In the Dutch East Indies,
thcroby giving the company a predomi
nant position In this field. This being
accomplished, the Royal Dutch Company
amalgamated Its Interest with those of
the Shell. Tho combined assets of both
the Royal Dutch and the Shell were
turned over to two new companies, the
Rntnnlfsche Petroleum Company and the
Anglo-Saxon Petroleum Company.
The latter unit does the producing and
the former the transportation for the
Roynl Dutch Interests. The Royal Dutch
owns about SO per cent, of the stock of
the two companlea In addition to the
Interest mentioned the company has since
acquired exclusive or controlling Interest
In oil fields In Rumania, Russia, Egypt,
Persia, United Btate (California and
Oklahoma), Panama, Venezuela and
The largest of th properties acquired
are In Russia, where the Roynl Dutch
Interests 'have been combined with those
of the Do Rothschild (Paris) group. In
the United States the company owns the
Roxana Petroleum Company of Okla
homa and the Shell company of Cali
fornia, the former with 35,000,000 capi
tal and the latter with 333,515,575.
Chicaoo, Deo. T. Theodore P. Shonts,
president of New York's Interborough
Railroad, advocated to-day that an obli
gation to remain at work be enforced
upon employees of publlo service cor
poration. His address, delivered before
th Illinois Manufacturers Association,
also favored the Imposition of strike
liability upon labor union.
He Insisted there should be a primary
consideration of the publlo's right In
all controversies between labor nad pub
llo service companies and that the Inter
est of both contestants ahould be
subordinated to publlo necessity. The
argument of the Interborough'a head
took application from the strike In which
th Interborough and the New York
Railway Company now are Involved with
the Amalgamated Association,
Tares Retralatlaaa Saggested.
Mr. Shont suggested three cardinal
principles be established for the guid
ance of capital and labor.
1. That In any conflict between the
managers and men of a publlo service
corporation th rights of the publlo are
2. There can be no permanent benefit
In the triumph of either capital or
labor In such a conflict tf the struggle
leaves scars and wounds or bad blood.
Unless good wilt based on Justice and
right Is restored and made permanent
the struggle le a losa for all.
2. Nothing must be done to Impair
any of the fundamental rights belonging
to any man to work or not to work
for or with whomsoever he will and un
der conditions satisfactory to himself.
Can't Thrive Selfishness.
After reviewing the steps In the Inter
borough's fight with the union that led
to tho formation of an Independent
brotherhood by the Shonts employees he
"Admitting fully the benefits of union
ism, conceding that It has brought to
the workers things that were their due,
that It has corrected many Injustices
and brought many corporations to a
clearer understanding of their obllgs
lions. It must not be forgotten that
unionism cannot thrive merely for Its
own ends. And no more can a corpora
tion thrive which devote Itself solely
to selfish purposes.
"If unionism Is to succeed It ut do
so by promoting the prosperity not only
of the men, but of the companlea for and
with which the men work,"
Pnbllo Should Take Part.
The public In fairness to capital and
labor, said Mr. Shonts, should try to
adjust differences rather than have the
factions light It out nnd pay the bill.
There should be a way In which the pub
llo could assert Its rights to both sides
and compel service, he asserted.
"Havo we not come to a time when
It Is necessary," he asked, "to make the
employees of u public service corporation
responsible to the puDlio just as we man
those responsible who Invest their money
In a public undertaking?"
Mr. Shonts clten now inose wno worn
for tlm l'dllrn nnd Fire deDartment of
cities are bound against quitting their
"If we deprive firemen or postal em
ployees of the right to cripple the publlo
service why should we allow that priv
ilege to other public aervleoT" he aakod.
Views on Arbitration.
Further In describing how the public
let the brunt of all these tights fall on
corporations, Mr. Shonts said :
"Tho publla service haa a moral, legal
and financial responsibility to the com
munity, while the worklngman of that
corporation has no enforceable respon
sibility to that community of any kind."
He discussed certain aspects or. arbi
tration i
"I mar falrlv nolnt out that If the em
ployer violated the terms of an arbitra
tion award there woulrt De no trouoie
about redress In the Interest of the em
ployee nnd the publla through the con
trol which the State exercises over a
publlo service corporation.
"Tho suggestion Is under discussion,
too, that labor unions be Incorporated
In order that they may bo hem to nnan
clal liability In the case of violation of
agreements. The mere fact that It la, so
widely discussed gives it a standing that
calls for Just and wise decision. It can
not be Ignored.
Inquiry Tie fore Itrlka.
"The same may be ald. If no more, on
the proposition that neither strike nor
lockout be permittee; until some impar
tlal tribunal acting on behalf of tho pub
lie shall havo time to Investigate thor
nudity all the facts and report these
furta tn the nubile. Labor's best pro
tectlon better thnn laws or regulation-
Is an enlightened public opinion."
lt summed un his discussion I "Vti'
der present conditions the publlo has
nrnrtlcallv no protection, and at th
present time the relations of labor and
capital to the public are not upon the
same bnsls uerore the law.
Reader of "The Bun" Calls At
tention to Block at Madi
son and Fifth Aves.
Membership far Transfer I Posted
at fTri.OOO Also.
The committee on membership of the
New York Stock Exchange posted for
transfer yesterdny the membership of
Frederick W. Stchr to Robert C. Hanks
for 375.000. Hanks, who six years ago
was a telephone boy. will be admitted to
membership In tho firm by which he Is
employed. The sale of the membership
of Joseph W. Ogilen. deceased, to Joseph
S. Hunting at J7G.000 was posted. In a
partnership tranefer the membership of
Krert M. Stem waa taken over oy Myron
I. liorg. Amory Q. Hodge posted th
transfer of his membership to hi son.
John K. Hodge.
Albert Hrun Drumley, Emanuel J.
Hellner and Alfred O. Kay wtre eleotad
to membership.
Another Subscriber Would
Keep Taxis Off Main
thorlttea do 'not proceed with Una work.
No reasonable excuse haa ever been
offered, so far as I know.
"It la quote certain that the trafflo
congestion near Forty-second street and
Fifth avenue can be ubvlatcd without
either bridges, the construction of which
would certainly be a terrific calamity to
the appearance of tho city, or the con
struction of depressed car tracks, which
would be a terrible mow to real estate
values In the neighborhood.
"Among the possible remedies to
alleviate tho congestion of vehicular
traffic on Fifth avenue, It occurred to
mo that if taxlcabs, which pick up fares
nt railroad depots, ferries or bridges, to
use other nvetiues.
'A campaign of education, showing
(he help this would bo to doing away
with trafflo that Is to nobody'a benefit
nnd to tho hurt of property owners and
storekeepers might bo In order.
Nathan Ia urrmo."
Oeneral concern about th tleup of
trafflo la evidenced by the letters re
ceived dally by Tin Bum since it began
an Inquiry Into th cause and possible
remedies. The problem Is so acute that
many minds have applied themselves to
ths solution. The following letter mani
fest th trend t
"You do well to devote some space In
Tnt Bun te a discussion of th con
gested trafflo conditions on Forty-seoond
street at Fifth and Madison avenues.
Of these two crossing Madison aventie
la much th worse, and th more dan
gerou because of the street car lines.
Th Madison avenu Una turning there
and the swinging of the long car around
the corner make this crossing th most
dangerous one uptown.
"It 1s surprising that the defects in
this crossing have not been remedied
long ago, because It can be done with
such atmple changes. Most of the traffic
crossing Madison avenue on Forty-seoond
street at the crowded hour Is go
ing to or coming from the Third avenue
elevated and the Orand Central Term!
One Way to End Jaaa.
"There are two entrance to the sub
way west of Madison avenue on the
north (Id and one very large and com
modious entrance on the south side. If
the mezzanine floor of the subway upon
which these entrances open were carried
along the north side of the subway sta
tion to Join with tho mezzanine floor
which opens Into the Grand Central Ter
minal a vey large proportion of the pas
senger trafflo which now crosses Madi
son avenue could cross under the tracks
at Madison avenue Into the Grand Cen
tral Terminal.
"This change would require the con
struction only of a steel' platform for
the distance of about 150 feet. This
platform could be hung directly over the
north car track of the subway. It would
cost but a few thousand dollars, and It
would obviate most of the difficult condi
tions at Madison avenue.
"If the city authorities ever get ready
to finish th Park avenue driveway from
Fortieth atreet to Grand Central Ter
minal, most of the motor congestion nt
Forty-second street nnd Fifth avenue
will be done away with. Those of u
who have offices In the neighborhood
can eee no reason why the municipal au-
Hereafter It Will lie "Hast lBOth
Street, Morris Park Avenue."
In order that there may be no con
fusion, tho Public Service Commission
adopted a resolution yesterday changing
the name of the Hast 190th street station
on the White Plains road extension of
tho Lenox avenue subway to the "East
180th street-Morris Park avenue sta
The present Bronx Park terminus of
the line Is commonly termed th 180th
street station.
c i
Cataolle Permitted to Bat KMl
on Fast Day by Papal Deer
Roman Catholic all over th worM
are exempted to-day from observing tag
strict rul of th Church requiring ab
stinence from meat on Friday. Th ex
emption I brought about by th fact
that to-day Is a holy day of obligation,
the Feast of the Immaculate Conception.
Up to about five years ago holy days
falling on Fridays carried no exemption
from the use of meat, but th reigning
Pope at the time , Plus X., Issued a dear
authorizing the use of meat on Friday
which fell on holy days. Tht preaafrt
Pop haa not seen fit to nullify this de
cree, with tho result that to-day Catho
lics will be permitted the unusual liberty
of eating meat Announcement of III
exemption was made from the altar C
nil of the churches tn this city last Bun
day. I)y a strange coincidence it will be tn
second time during the present year that
Roman Catholics In this city hav been
permitted to eat meat on Friday, Last
March 17. St Patrick's Day, fell on M
day and Cardinal Farley obtained from
Rome what Is known as a territorial dis
pensation Under the dispensation net
only were the Catholic resident of th
archdiocese permitted to eat meat, but
the privilege was extended to any per
coming Into tho archdiocese from point
outside Of It It was the first time In th
history of th archdiocese that a general
dispensation was granted.
lYnw. I'M" nnnnnnnntf'MLff I
When ordering by mail give measurement two inche$
nmaller than actual size of abdomen.
On Sale in Men's Furnishing Dept.
James McCreery & Co.
5th Avenue
34th Street
For purchasers who decide
within the next few days,
we can make deliveries
before Christmas.
Touring Sedan $1000
Roadster Sedan 960
Orant owner average JO mile to th gallon.
Randall .Motors Corporation
The Liberty Brought
A Strikingly Beautiful Small Oar.
THE instant success of the Liberty Brougham
in New York amon a clientele of the ut
most discrimination indicates the exclusive
character of this beautiful car.
Already in daily use by some of the best-known
New Yorkers, the Liberty Brougham satisfies a
need never before met.
It is a distinct departure from the closed bodies
of all other makes. It is distinguished by square
lines, the smartest of custom made bodies, a low
chassis, and a general appearance of correct ex
clusiveness which is the essence of distinction.
That has been accomplished which hitherto has
only been attempted, by building from the first a
small car, remarkably roomy inside, exactly adapt
ed in size, character and finish to the use of people
of taste and the definite motoring requirements
which come of long metropolitan experience.
The Liberty Brougham is the product of the com
bined brains of manufacturers and designers who
for years have produced only the best in motors.
Its unusual character is evidenced not only in its
perfect and distinctive grace, but also by the re
strained good taste, the avoidance of over decor
ation and elaboration, the simple beauty of line
and fitting, which alone are appropriate to an
environment of genuine refinement.
It Is conservative to say that the Liberty Brougham is
perhaps the most exquisite creation which has ever been
placed on the American market. The price is twenty-three
hundred and fifty dollars.
Metropolitan Distributors JOHN F. PLUMMER, President 1748 Broadway (at 56th St.)
U 5
Sixty WrdJtrwti-'.

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