The sun., 1908-06-10
SMASHUP OF METROPOLITAN
INVOLVED IN p. s. BOARDS or
DERS, RECEIVERS DECLARE.
To Provide 10 Per Cent. Increase In Seat
Ing Capacity Would Lead to DissoIvl-
ticn Of the system and the Refusal Of
Transfers-Anyway There's No Money.


Ing Capacity Would Lead to DissoIr-
tion Of the system and the Refusal Of
Transfers-Anyway There's No Money.
Adrian Fl. Joline and Douglas Robinson,
the receivers of the Metropolitan rsilroad
system. have informed the Public Service
Commission that II they are compelled to
carry out the orders issued by the board
calling for such increased service on the
Twenty-thrid street. Lexington avenue,
Eighth avenue. Eighth street. Fourteenth
street and Eighty-sixth street lines the
cost would be so great that the receivers
would have to break up the existing Metro
politan system.
The commission issued few weeks ago
peremptory orders directing that sulIi-
cient number Of cars should be run over
these lines as to provide 10 per
cent. excess Of seats. The com mission
declared that the orders we're not unreason-
able because the lines were capable Of
bearing the extra service without posi-
bilty of congestion of traffic and that
even with the 10 per cent. increase there
would be passengers standing in at least
one-fourth Of the cars,
The receivers asserted in a letter sent
to the commission a few days ago that
in order to comply with the orders 1t would
be necessary to spend 50, 097 .S20 on addi-
tional cars. car house facilities and power
plants and that the extra expenses Of opera
ton would be 81 422.22O year The letter
went on to say:
1t must be evident to you that II Is impos-
sible for us, as receivers. to incur any such
obligations but granting. for the sake OF
argument. that we might attempt to carry
out your orders, we would thereby place such
a burden on the property that in all proba-
bility the leasehods would become unprof1t-
able. and there would result dissolution Of
the entire system in so far as it would be pos
sible for us to default on the contracts and
leases, leaving in our hands the Metropolitan
Street Railway proper.
As a result Of the loss of the leased lines
the Metropolitan Street Railway would not
have at its disposal suffi cient funds to operate
its lines in accordance with such orders you
have issued. and on account of the loss of
the control of the leased lines the Metropoli-
tan Street Railway would have to discontinue
very large percentage Of it's comparatively
more profitable routes. This would bring
about an utter decentralization of surface car
transportation facilities on Manhattan Island,
involving a practical abolishment of the
transfer privilege. radical rearrangement
OF the routes of the cars and resulting ineon-
venienoe and financial loss to the community.
no adequate means of surface car trans
portation at all.
We have already accomplished much in re-
constructing cars, in buying new ones and
better ones, In repairing tracks and increas-
ing the number of cars run. We are about
TO borrow a large sum of money, much of
which will be expended in the same direction,
effecting a still greater improvement.
Such further suggestions of Improvement
n n
our resources shall gladly follow out,
as we have followed your suggest ions here
tofore, but changes so extensive as your
recent orders will require. II generally APP
piled, are beyond our power to make with the
means at our disposal.
The reply made by the commission init
mated that the receivers had really con-
fessed that they could not supply an ade-
quate service on the lines under review,
for the reason that the large rentals paid to
the leased companies prevented the receiver
Of the Metropolitan system from spending
money for the convenience of the passen-
gers.
an other words" said the commission,
"if adequate service were given upon all
of the surface. car lines In Manhattan,
according to the standard of adequacy
adopted in the orders recently enacted
you would be unable to pay the rentals
which were agreed upon in past years
when the service was not adequate as meas
ured by these standards, and the existence
Of these agreements by which large rentals
must be paid prevent the furnishing by
you Of adequate service to the people Of
New York"
Replying yesterday to this letter the
receivers repeated that they were finan-
! cially unable to carry out the orders of
the board. They we're now operating
| had not the resources to secure facilities
| for the operation of larger number Of
| cars. but every effort would be made to
distribute these cars elua bly, over the diff
was repeated that if any effort should be
| made to enforce the orders nade by the
| commission there would have to be dis
| rupton of the Metropolitan system. The
| letter added:
In regard to the leased companies our
! position Is simply that so long as the operation
| of the leased lines is profitable we will con-
| tinue to operate such lines under the leases,
| paying the rentals now provided. The ques-
| ton as to whether such rentals are exor-
bitant is not one in which we, az receivers, are
! Interested. We cannot, however in justice
| to the bondholders and the creditors whom
! we represent, continue to operate any leased
| lines which do not earn sufficient amount
| to pay the rentals. nor have we the resources
| to meet these obligations in the event OF such
| deficits.
| The statement OF the commission that the
| existence of these agreements by which large
| rentals must be paid prevent the furnishing
| by you Of adequate service to the people OF
| New York" Is, however. inaccurate, because
| If the rentals were not paid the result would
! be the disinteRraton of the system and the
operation Of the surface cars by number of
separate companies, with the attendantfre-
frlsal of transfers, the rearrangement of
operating routes and immeasurable incon-
venience to the public. There would follow