New-York tribune., 1909-07-08
SEARCH FOR Sl6,OOO,OOO
WHITRIDGE HAS NO CLEW
Third 4Cenue B0ndkOIders' Counsel
to Take Hand.

Al the continuation Yesterday of the hearing be-
fore the Public Service Commission on the reorSan-
cation plan of the bondholders' committee of the
Third Avenue Railroad. John NJ. Bowers. counsel
for the committee, undertook to explain the dis
appearance" cf some S1600,0e0 This sum was sup
posed to have been put into the road When me
Whitncy-Ryan people got hold of it. but FREDERICK
w Wbtridge the receiver. says 1t evidently didn t
get into the road itself Mr. Bowers made long
explanation regarding notes of doubtful validity
and the like. He said the money to be accounted
for was not S160oO,00o. but Sl4,5ooo
II know nothing about any possible subverson
of funds" said he. But If there any, shall
take steps to bring about return of the money. 1
do not purpose. though take any such steps as
will teoparze the position Of all the bondholders
Receiver WhtridCe said his auditor had told him
the accounts showed that the money went into the
betterment of the road, together with S5,0o10oo in
notes.
That may all be-" he continued, but l stick to
my statement that have been unable TO see where
into the road
Samuel d. Levy, a stockhoder. wanted TO know
how far Mr.. Whtridge had investigated. The re
ceiver said he hadn't followed the trail far as he
wanted 10 know in general where he was coming
out before he undertook such proposition. and he
did not have the necessary funds He told certain
of the bondholders about his suspicious, though.
f. A Wichelman of No 80 East seth street, who
said he represented himself and few of the COM
mon people protested against the proposed issue
of securities He tried to make speech. and when
he Choked of he handed list OF questions
for Mr Whitrdge TO One of these was
why Mr. Whitrdge wanted to issue S920O0,0N OF
securities when he said the road could earn only
enough to pay fixed charges on $15,0Io.0oo
Because the owners of the property wish TO do
so answered the receiver. and because il would
he cruel to do anything else" He said there was
a general misconception 10 what stock really
was Once stock represented partnership in a con-
Germ he said; now it meant merely equity In a
certain property.
Gould you operate the road with fixed charges
IS they now?' asked Chairman Wilcox
No; certainly not replied the receiver.
In other words, then, il the heavy oblGa-
tions of the Third Avenue road which produced It's
downfall?"
That is true replied the receiver. The road
now has to sustain fixed charges amounting to S-
coo 900 a year. and il imperative that this amount
be reduced
Mr.. Whitridge said, in answer 10 questions from
Oliver G Semple of counsel for the commission
that the tort creditors under the reorganization
plan would, in instances. have little redress
Many of them have petitioned the commission TO
look after their interests.
Before adjournment Mr.. WicheIman passed up a
statement to Chairman Wilcox 1t as follows:
What l wanted to say to the commission was
that gentleman here to-day made the remal X
that he was ready pay the S25 assessment per
share put the Third Avenue Railroad on its
feet. l have known the road for twenty years. ana
been better or been in better con-
to-day. II Is bad that MI
WhitridEe. the receiver, was not around to I'ut
UP his signs Thou shalt steal in the rooms
of the directors OF the road some years ago-as
well as put them in the
The hearing Will be continued this afternoon