New-York tribune., 1909-07-07
ASKED ABOUT BIG SUM
WHITRIDGE Is QOi|~DD
c.o.,.1o,dcr Charges $4,000, 900
uont IN Former Reorganization

. ,i,s who said he was d 9
Idsr Of the Third Avenue -,-,5ers. reorgani-
interrupted a heai ii,s public Service Commission
eaton p'aIi z,anding from Frederick w VIM
- +bo receiver. an accounting iO' - =,
noosao Used and apparently not eAp -, the
- reorranization Mr. NhllilusS - oa,-ap
- telling what he conceived - ~
- - his proposed reorganlza'oi'' .,
-, -b. road was reorganized soilie
~. - ago " broke in Mr. Perkins the
-. % - owed was s21ooo0, ana >o''oV'VV "HS
.ised and put ahead Of the stocA' -,
what became oL 'ii
sums ,,-,..-.s,-e. ..t,,t I'll
.sn5 cut if somebody will put up the SSVV.vv Ul
500 Gao necessary 10 hunt it up Ihere Is
No sign that that sum was put hlto oiie Ai1u
e,enue road. If somebody VIII fuIiHsn 'iie ii''''
1eaSs.r,- 7 viii hunt up the lost sum-
..rf that money was not spent on The roau' IL
.rrisbes 4 lust cause for seeking restitution
declared Chairman Wilcox. Reslllullch was
to,,nd ouickly enough in the Metropolitan Securi-
,ies case concerning the purchase OF lle wan q
Cortlandt Street Ferries Railroad
THAT was A different situation. replied the re-
cetver THAT happened only yesterday, compaTa-
1ivelv When you try to trace the disappearance
Of several millions some eight years ago you Iiio
thai MANY Of those responsible are dead And
6naIly. perhaps YOU gel a judgment against man
with no money This is only the old story about
stolen money and the demand that those who stole
il should give il back
But YOU are receiver; you could bring suit TO re-
noyer this money persisted Chairman Wilcox
4 should can it a wild goose chase replied
whitridge but, If anybody will pay the expenses
I viii go ahead willingly enough"
Holm II Bowers. counsel TO the bondholders' COM
-1jt,ee which evolved the proposed reorganizatio
scheme quoted Law extensively to show the right OF
The REPRESENTATIVES of the reorganization committee
10 buy in The property and organize new company
This is one of the instances where the Public
serrice Commission must turn TO and assist IN The
work" said he. Unless new company IS formed
operation must cease since il is foreGone conclc-
sion that no individual could operate this road Il
s only 4 ministerial function you have TO perform
N register vour approval OF set Of securities we
have perfect right to issue The law Is so drawn
that the commission may approve an issue OF Sc
curites without any question Of franchise values
The lawyer saia that the proposed issue OF Sc
curites would cut down the annual fixed charges
more than 80 per cent That meant that the future
OF the ROAD was safe he thought, even II Its earn
inss were not 50 large at present The scheme
was the most reasonable he ever heard Of. he sald
and really was the only possible plan Under any
other no opportunity would be given TO the stock
holders to protect themselves. and they must lose
all while this one with precedent and legal detail
al correct, gave them a chance 10 participate IN
the securities of the new company.
There is no water: there viii be water. said
he The only question is whether this committee
It or whether matters shall remain in chaos
After lawyers representing the stockholders com
naittee individual stockholders and the holders OF
securities ir the Dry Dock line Of the Third Ave
aue system. and J Aspinwan Hodge for the Tran
sit Reform Committee of one Hundred had their
appearances noted Nr. Whitridge was called to the
stand He denied emphatically the charges that the
reorganization plan reeked Of stock watering he
said that the roads securities represented good
value when the bonds sold at s7lz and the stock
went I'd par.
.rrhe securities paid good hard money. hardly
earned" said Mr Whtridge. "A receivership is
not proper or satisfactory way 10 operate any
railroad. and we're trying 10 get this road out OF
the receivers hands In forming this plan there
has been a desire to make q financial scheme
which would last long as the road itself"
Mr WhItridge said he had made an estimate OF
the earnings of the road which showed that for
the year the total would be sl,5oo0eo. which, with
depreciation charges taken out, would leave A,-
9agea against the interest the new securities
He thought. also, that The roads earnings would
increase. In his figures there was no allowance
for administration and none for payment Of fran
chise taxes But said he, there were other charges
improperly in the operating account which would
Offset these such as the expense this year for
lawyers and masters in chancery, amounting to
$4,000 So he figured that the road had pretty
bright outlook.
Unless. Of course, they build a subway in Third
avenue" he added IF that is done, We might as
well shut up shop # the construction is done in
the manner usually followed in this city
The bondholders' committee. went on Mr. Whit
ridge ha6 checked up his figures and thought he
inclined be pessimistic regarding the road s
future Ee said there much promise in the
Union Railway and Kingsbridge lines, running
through communities growing rapidly. Branches
awaiting construction, ike the Pelham Parkway
extension and one University Heights, would
IL all some $4,000.
NJ he r7ot
better plan than the proposed to raise the
necessary amount OF money. Many small stock
holders TO his knowledge favored il and had made
arrangements 10 have their assessments paid
Answering question Of Commissioner WILCOX s
the receiver said he had considered raising
the fare. since while five didn't pay the road
FOR some hauls, he didn't think the people ever
would pay any than that
The hearing will be continued to-day.