New-York tribune., 1909-12-16
RECEIVERS OPPOSE PLAN.

StetsOn and H. H. Anderson. their coun-
sci.
RECEIVERS OPPOSE PLAN.
At this conference the matter Of the
withdrawal of the line from the Metro
politan system was first formally
broached, but the receivers served
notice that they would be against any
attempt further to disrupt the Metro
politan system in that way. Though
the road has been operated at a loss by
the receivers. the 100000 rental which
the metropolitan has TO pay for the lines
Is chiefly 10 blame. they say. They
pointed out to the directors that there
had been no default in payment Of rental
and that none was IN prospect. To take
the road back at this time seemed m
them unreasonable. and they objected
vigorously to any further disintegration
Of the system
The petition 70 the court followed and
in that the petitioners assert thar S-Sf :
5l4 ~ back franchise taxes are now dua
on the Fourth avenue lines. with penal
ties amounting TO S213, ,6SS 9a The re-
eeivers. says the petition. are without
funds to pay this accumulation OF old
obligations, and their payment OF S4O0 :
ooo is cited as an instance of their in
tenuons in the matter If the road is
taken out OF the Metropolitan system.
Finally. they ask the court 10 -1irect
the receivers to elect whether thav will
assume all Of the obligations Of the
Fourth avenue system. under the lease
to the Metropolitan. pay in the hack
franchise taxes and assume in their en-
tirety the terms of the lease, or whether
they will give up the road.
The Fourth avenue road takes in in
addition 10 the regular Fourth and Madi-
son avenue line the S6th street cross
town line and the section Of the 18th
street line from Lexington avenue east
70 the 3ith street ferry.
To MAINTAIN THE SERVICE
II the petition is allowed and the Fourth
avenue line is Withdrawn from the
Metropolitan system. said Mr.. Root last
night. some arrangement would nat
urally by effected 10 keep up service
as nearly as possible like the present one
on the isolated section OF the 34th street
line.
Mr. Root made public yesterday a
statement Of the estimated annual taxes
and expenses in the nature OF taxes NJ
the Metropolitan system as at present
operated by the receivers. which showed
an aggregate expenditure of 81. 100 600.
divided in four sections. thus: For spe-
cial franchises. sos. 600: for franchises
other than special 100000: for snow
removal. 100000. and for paving SIJO.-
eco.
Another statement showing the rent
ais on which default had been made
aggregated an annual interest Of s. .t;iS.-
:.SS on a bonded Indebtedness OF S15j
1.SO though in the list comprising
this total was included $40 OOO annual
interest on $5.OOOGOO worth OF Third
Avenue first mortgage bonds. on which
the interest has been kept up by Fred
erick ". Whitridse. receiver of that sys-
tom. SlG2.Oo0 annual interest on ,he divf-
dend rental Of the 18th street Crosstown
line and some Of the obligations OF the
Second Avenue Railroad Company. ALI
Of which roads are at present being oper-
aJed independently of the Metropolitan
system.
The accumulated defaults on rentals
ard interest on bonds since the receiv-
frs took hold Of the Metropolitan sys-
tenn. said Mr.. Root yesterday. would ag-
greSate. roughly. Sl5OOOOaO In the
period from September p. 1907. TO Octo-
ber 81. 1909. SS,;}S5.OOO has been spent
On the various lines Of the Metropolitan
for material and work on rehabilitation.
and there is now in progress new work
calling for a further expenditure OF
SlS5.O0