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HIGH FINANCE.

NEW YORK TRACTION SCANDALS.

A REFUND MADE. (Received 8.45 a.m.) LOXDOX, April 9. The London "Daily Mails'* Xew York correspondent reports that, as a sequel to the deal in October, 1907, in which worthless traction concessions were sold for large sums, to avoid litigation, but reserving the right to recover from the Metropolitan Street Railways Company, P. V. Ryan and the trustees* of \Y. Whitney and W. Elkins' estates, with Messrs Widener and Dolan, sent the Metropolitan Securities Company a cheque for £138,458, whicli they received when in 11)02 the company paid Brady £193,100 for a cross-town tramway company, then existing on paper. Moore and Schley, brokers, received £2(5,500.

The above group declare that the, money represented the repayment of the loans of the late W. Whitney for the benefit of the street railway company. It was intimated during the inquiry of 1907 that the money was defrayed to railway corporations, and for legislative, political and ither secret expenses.

In Xovember last the Grand Jury of Xew York acquitted Ryan and other American capitalists, who were charged with what is known as the Xew York traction scandals. The amazing exposures in the metropolitan investigation as to the operations of the syndicate of insiders controlling the company fairly startled a community accustomed to high finance, and made the insurance scandals appear tame. Mr McDonald, the contractor of the subway, admitted having received £50.000 in cash and f 10,000 a year for five years for burying one enterprise which had been organised and not constructing others. This operation was eclipsed when Mr Anthony Brady, giving most sensational testimony, offered a relation of the transaction by which a comparatively worthless franchise known as the Fulton-Wall-street Ferries Railway, existing only on paper, was sold to the Metropolitan for nearly £200.000. Of this amount Mr Brady received £50.000, and the balance was equally divided between Messrs Ryan. Dolan. Elkins. . Whitney and Widener and Moore and Schley, brokers, the latter representing another interest. The money appears to hnve been first paid to Mr Brady, who received the full amount, and afterwards divided it, sending six cheques, made out in the names of the several parties, to the late Mr W. C. Whitney, who distributed the same to his colleagues. This cold-blooded transaction had a depressing effect on financial circles. Two out of the six beneficiaries, Mr Whitney and Mr F.lkins. are dead. Of profits aggregating 160 millions sterling in 25 years, millions of dollars were paid to individuals with no apparent returns, and the skilful evasion of the courts in organisation and of their mandates in reorganisation are some revelations in this case.

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HIGH FINANCE. Auckland Star, Volume XL, Issue 85, 10 April 1909

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