New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-08-02
CANNOT PAY INTEREST,
Brooklyn Ferry Company Defaults
on First Mortgage Bonds.

The Brooklyn Ferry Company. which owns and
oDerates system of ferries on the East River he
tween Brooklyn and this borough, yesterday de-
6silted on the seni-anncal interest due August
=, as consolidated first mortgage bonds or which
e zNOeo are outstanding. At the Office Of II n
Rollins & Co.. through whom the interest payments
are made Il said that the default was due 10
the fact that the interest. which amounts to s62 500
had not been earned The trouble. il was added
vas tie result OF the development Of the subway
svstem in this borough. rather than OF the increased
fraNic over the Williamsburg Bridge which extends
INTO the part of Brooklyn reached by the several
lines Of the ferry company.
A protective bondhoders' committee. composed
# Charles 7. Barney. James Jourdan Joseph J.
o'Donohue. Jr, George II. Prentiss, Marcus Mayer
and Theodore +. Jackson is asking for the de-
nosst Of the bonds of the consolidated mortgage of
the Brooklyn Ferry Company. The Knickerbocker
trust Company has been appointed the depostary,
-here copies OF the deposit agreement may be OBJ
aimed upon application Any depositors not assent
s1g 10 the plan. when formulated. may withdraw
,heir bonds without expense.
sales Of the ferry company's consolidated 8 per
cent bonds were made at auction yesterday at a.
comparing with the last preceding sale price of AZ
On the curb the bonds were offered at So, against
last Saturdays offering figure of %. and the bid
vrice declined from 40 Saturday TO 80 yesterday
A represen tative Of the ferry company manag e-
ment said yesterday that the opening Of the sub
way had decreased the companys gross earnings
One-tnirQ, ana me payment or interest had
finally eaten up the surplus. He adds:
There has been bill in the last two legislatures
Coz the purchase by the city Of the Brooklyn Ferry
iompany system. nut IL has been lost sight Of
This default should bring the matter a head.
Under the mortgage the trustee is authorized,
n default in interest continues for six months,
sell the property. II il is not bought by the city
Il is ID 10 the bOndhoders TO say what shall be
done
TIE Brooklyn Ferry Company owns and operates
lines # ferries follows: From Broadway,
Brooklyn. 10 Roosevelt street, 10 Grand street TO
go street and TO 42d street, Manhattan: from
Grand street. Brooklyn, to Grand street. Nanhat-
tan and it operates. under a ninety-nine- year
lease from the Tenth and Twenty third Streets
rerry Company, ferries from Greenpoint avenue,
F-oaklyn. TO 10th street and 23d street, AIanhat-
tan Its directors are H. b. Hollins, J. J. ODono-
hue Jacob Hays. John Englis. B. j. Burke, T. F.
jackson. r. y. Young George II. Prentiss and
John .. Jenkins. Mr.. O'Donohue is the president.
The Union Ferry Company, il will be remem-
bered. about year ago found that its business
had been 50 seriously cut into by the competition
o. the Brooklyn Bridge that II obliged in
March. 1905. to suspend payment of dividends, and
made strong representations TO the city in sup
porf 81 position that it could longer pay on
rs leases from the city the old rental OF "a per
G. its gross receipts. serving notice that, y
the city would consent 10 an adjustment OF its
claims the company would cease operating the
ferries In May. 1908. an arrangement was made
under which the city executed new lease by prl-
Vete agreement with the company.