Amster's El

Peering from behind thick-lensed spectacles, Nathan Leonard Amster. a Rumanian-born director of Manhattan Railway Co. ("The El") and head of a stockholders' committee, arrived late at the annual meeting last week. Behind him trouped 30 angry stockholders armed with stacks of proxies. Though a meeting chairman had already been elected, Director Amster promptly accused him of trying to "railroad" the meeting, deposed him and elected Lionel F. Straus, a New York tractioneer and one of his henchmen, to the chair. While election tellers squabbled loudly over the legality of proxies. Insurgent Director Amster listened gleefully to stockholders shouting disapproval of the management. Saying they understated their case, Chairman Straus summed up: "It is not only the Manhattan situation which is rotten, but I can go further and say that Interborough [Rapid Transit Co.] itself was born in iniquity." After seven hours of tumult. President Roberts of Manhattan Railway waved his arms in despair, yelled: "The meeting is yours." The Amster group then elected their own board and went home.

Thus did Nathan Leonard Amster bring a new entry to the crowded field of interests which are jockeying for position in New York City's plans for unification of all its transit lines (TIME. Sept. 5). The ousted directors represented I. R. T., the subway system which leased all Manhattan Railway's elevated lines for 999 years, and pledged itself to pay interest & dividends on Manhattan securities. When I. R. T. was thrown into receivership, it was an open secret that the chief purpose of the receivership was to break the unprofitable lease of the El. Insurgent Amster is fighting its abrogation.* But even if the lease is broken, he claims he can put the El on its own feet by installing escalators, refurbishing cars, teaching courtesy to its surly guards. Meantime Insurgent Amster is also trying to force I. R. T. receivers to pay interest already overdue on Manhattan's first mortgage bonds to stave off foreclosure. When & if New York's transit facilities are unified under public control, he believes Manhattan stock (of which he claims he owns more than 50,000 shares) will be worth $30 a share. Last week it sold for $12.

The ousted board included Banker Charles Hayden, J. & W. Seligman. Partner Frederick Strauss, President Thomas Ignatius Parkinson of Equitable Life. Because Nathan Amster got in on the ground floor of the Chicago, Rock Island & Pacific Ry. reorganization in 1917. is now a member of its executive committee, Wall Street was not surprised that the new board included two Rock Island men. Edward Norphlet Brown, chairman of the executive committee (he is also board chairman of stricken St. Louis-San Francisco) and Peter Gansevoort Ten Eyck. At its first meeting the new board chose Insurgent Amster as president.

Now 63, his face as wrinkled as a walnut, Nathan Amster says he is "in the financial business." He emigrated to the U. S. at 20, prospected in West Virginia coal fields, drifted west, developed rich copper claims. Wall Street has known him as an independent financier and market operator. He was one of the first men to bull Boston & Maine during the early stages of its rehabilitation. Always keenly aware of the value of publicity, he once advocated consolidation of all U. S. railroads into one huge system.

* In New York there are 730 mi. of subways, 137 mi. of elevated. They transport nearly 2,000,000,000 people annually at 50 a ride and are continually in financial, legal or political wrangles which practically nobody comprehends. But one thing is clear: the El, with fresh air and plenty of scats but less convenient, loses money.

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