New-York tribune., 1909-04-13
MAY DROP STH. ST. LINE
CONTRACT ENDS MY 1.
Metropolitan ReceirerS Want U0re
Fau0rable Terms DeadtOch.

The operation of the Sth street crosstown line by
the receivers of the Metropolitan Street Railway
Company is likely TO cease on May unless the
agreement between the Central CrosstoWn Raiiroac
Company and the receivers. under which the cross
town line is temporarily operated. is renewed IN
dicatiOns at present that the company ana 'he
receivers Will not agree the terms or the re-
neWaI. IL such event the subsidiary road VIII be
thrown back on its owners to operate, and another
wholesale cutting off of transfers Will result
Pending the result of the negotiations the holders
Of the $2J000 three-year cent coIldteIal hoeS
OF the Central Crosstown Railroad Company nave
organized protective committee The notes III
question mature on May /. Cornelius {. Cuyler Is
chairman of the committee and the other meInuers
Charles Francis Adams, I'd. Allen GURUS Her
bert l. Griggs and Paul NJ. Warburg
on April l. 1901. the Central CrosstoWn ffalioAu
Company was leased to the Metropolitan Street
Railway Company for S99 years at an annual rental
of 15 per cent the companys $VOooD OF capl'dl
stock, in addition to guarantee OF the interest
and principal of the company's bonds. On AprH apr, l.
1903. the receivers OF the Metropolitan defaulteu on
the quarterly $500 thereby breaking the
lease.
As the owners Of the subsidiary road did not care
10 undertake its operation at that time a contract
Was made with the receivers by which the Metro
potan agreed continue to operate the me lor
at least year and pay the hXed charges only
This contract sanctioned by the Puotc service
Commission and the 8th street line has peeh op-
Grated in accordance with its terms for the last
year.
The Public Service Commission has not been sat
isded however, with the service on the Sth street
line and has ordered the receivers to run more
cars. The receivers have refused to obey ile cp'-
missions orders for the most part and nave gwen
as the reason therefor the fact that the line was
not earning its operating expenses, not to mention
the fixed charges Numerous hearings have been
held and some sharp letters have passed between
the commission and the receivers over this line
Three months ago Adrian II. Joline and Douglas
Robinson the Metropolitan receivers, in reply 10
a letter from the commission demanding better
service on the Sth street line reminded the com
mission that the line was operated only under a
temporary agreement. and added that they in
tended apply Judge Lacombe Of the United
States Circuit Court for Instructions in regard to
the renewal of the agreement. This is the question
which is pending.
As to the earning power Of the Central Crosstown
Railroad Company there is considerable difference
of opinion. The figures of the receivers. which
have been printed in part in Tho Tribune. show
that the road is not earning its operating eN-
penses. The figures compiled 10y the Public Ser
vice Commission, on the other hand. show operating
expenses fully earned. with a substantial surplus
for fixed charges The roads annual interest
charges are S112.5oo and the taxes bring the fixed
charges up to more than Sl25.oon
In negotiating for a renewal of the temporary
contract it is known that the receivers want more
favorable terms The note holders and stockhoid-
ers are standing out, of course, for all they can
get. The result is A practical deadlock. A meeting
or the holders held yesterday. and an
other meeting Will ne held
In case the- receivers and the owners of the
subsidiary line agree renewal OF the present
temporary contract its terms must be approved
by the Public Service Commission. II the receivers
refuse to renew the contract the owners of the
road will have operate IL Or let the property lie
idle It is probable that the receivers will ask
Judge Lacombe TO decide the question for them.
In view Of past decisions by Judge Lacomhe In the
present traction reCeiveTship he is not likely ta
order the receivers to enter into contract "n
which they bid fair to lose money.