The Birmingham age-herald., 1908-05-03
COURTS HAVE TROUBLE
 RUNNING STREET CARS Universal System of Transfers In New York Makes Operating Expensive CUR TAIL HEIR USE Receivers for Street Railway Company Are Having Troubles That They
 Did Not Anticipate-PubIic
 Is the Sufferer.
CURTAIL THEIR USE

The Commercial and Financial Chron- icle, the leading financial paper of Amer ica, says:
 The local community by sad eNperi- ence is being made aware of the i'll effects of governmental interference with ana regulation of the affairs of street rail ways We have in this state, as is well known, two Public Service Commissions, which have charge of pretty nearly ev- erything concerning street railways. steam roads, electric light heating and power concerns, and gas and express companies, etc These bodies began their 1abors on the 1st of last July, and the first thing the Public Service Commission for the First District (the body charged with the regulation of corporations Tn the metropolitan district did was to be- gin an investigation of the street rali- ways the elevated roads and subways Of New York city. There were. as always 7 happens in such cases, some sensational and damaging disclosures. The effect was to discredit all the securities nf these properties. Arrangements had been be- gun a short time before for financing the needs of the different companies for the immediate future through contemplated issues of collateral trust notes, but the investigation referred to. coming at a pe- riod of disturbed monetary conditions, such as prevailed last summer, rendered carrying the task to completion out of the question It had been known for a long while that the Metropolitan Street railway lines were not earning their dlV- idend and interest charges, but, through the common control of these street rail way lines and the subway and elevated lines, the surplus earnings of the Inter borough Rapid Transit company were available to meet the deficiency. The burden was heavy one. but in effect the financiers who had built and conceived the subway and had acquired the ele- vated roads were carrying the load.
 This plan of common control, however was from the first denounced by the sen sational press. They succeeded in egglng the commission on ffor a public bodN' however high the character of it's mem bers is always in large degree amenap!e to public clamor). and the inevitable foi- lowed. The controlling interests in the holding company-the Interborough-Met ropolitan company-Were not bound 10 carry this load, since their only interest in the street railway lines was in tnef stock holdings in the same, and accord ingly when their plans for new capital needs for the different properties for the immediate future were so rudely dis turbed and when at the same time abuse was being heaped on them thicker than ever, they declined any longer to make up the growing deficit resulting from the operation of these street railway lines The security holders and other creditors thereupon began to enforce their claims and receivers took possession. There was great glee in the camp of those who had so long been seeking to bring about thls very state of things Their predictions of general insolvency had been verified, and they delighted in sayinE ''I told you sC."
 The Pubic's Position.
 But now that all this has happened' what is the position of the travelling pub lie? Evidence is piling up with amazing rapidity. going to show that instead ol the fnanciers, who had been so roundiy denounced bearing the burden, as was the case before last September. the pub lie will have to shoulder the burden At first there was only general receiver ship embracing the Metropolitan Street railway proper; but gradually separate receivers were appointed for the various leased and controlled lines. each par ticular security interest undertook to en- force it's lien covering specific pieces or property. As a consequence the GUY street railway system is being dismem- bered piece by piece-a new receiVershlp this week having been that of the Union railway. covering the lines in the Bronx. With the courts operating the mes through the multiplicity of receivers, the question of course comes up how to make each particular line self-sustainng with view to meeting the obligations resting on it. The Public Service Commission, acting as if oblivious of the situation, continues to issue it's edcts commanding more frequent and better service. and the courts are to a certain extent aidlng IL in this regard. For instance. Judge La combe in the United States circuit court on Monday last granted authority to the receivers of the New York City and Met ropolitan Street Railway companies to is- sue 6 per cent 1-year receivers certificates to provide fer the rehabilitation of the surface lines of the two companies These ofae tn q both the general and collateral trust mortgage and the refunding mortgage. But this process is net likely to go very far and could not, in any event, be car ried on indefinitely: so the situation ot the court and the receivers is precisely that of the private owner, and the prob lem reverts back to the question, how 10 make the lines self-sustaining.
 The Transfer System
 The receivers have convinced the court that there is only one way of accom- plishng this end-transfer privileges must be either curtailed or cut off altogether A receiver cannot put his hands in his pocket and make up loss for the time being as can the private owner If so in- clined This week Receiver Whitridge of the Third Avenue railroad reported to the court that under the system of tranfer privileges with the Metropolitan Street railway and other lines the Third Avenue company for the month beginning Janu- ary 1G and ending February 15 had car ried 4.067 6lS passengers, of whom 2944,34l paid their fares with money and 1,132l1 maid with transfer tickets obtained on other lines. He adds this impressive but pitiful remark: T can neither pay wages nor buy supplies with transfer tickets and they are of no use whatever to the Third Avenue railroad Acting on this sug- eestion the court has directed that trana- fer privileges be in a large measure dis continued Some transfers had previous ly been cut off. but now all transfers be- tween the Metropolitan Street railway lines and the Third Avenue lines are to be eliminated except in certain places where there is common use of pieces Of road As a business proposition, Judge Lacombe says it is obvious that curtall- ifent or transfer privileges in this man ner will increase the cash receipts, and since receivers are trustees for the credi- tors, their duty to operate the roads so as to increase earnings is equally ob- vious.
 Instructive Figures.
 Incidentally some instructive figures bearing on the general question of trans fers have been published. It appears that in the fiscal year ending June 30, 1907. 376,62951 revenue passengers were carried on Manhattan Island, compared 41,.