The sun., 1919-08-19
BANKRUPTCY NEAR,
SAYSL. LAWYER
Quackenbush Asserts Road
Will Have S5,686, 400 Short
age on January I.
s1O,ooo,ooo SURPLUS GONE
Denies Fare Conspiracy, but
Says Campaign for Increase
Will Continue.

After the agreement had been reached
by the mterborough employees and the
Public Service Commission James. l..
ouackenbush. general counsel for the IN
terborough, gave out a statement in
which he predicted bankruptcy for the
company unless better credit is pro-
cured for Il Immediately, and also re-
taliated against District Attorney Swami.
who threatened to prosecute certain
cfncials of the Interborough for con-
spiracy to raise rates by calling the
strike"
The statement said:
The rs per cent. increase granted to-
night 70 the Interborough employees In
cludes the 10 per cent. increase voted to
them recently All other matters are
submitted to arbitration.
Mr.. Hedley assures me that the GER
vice will be resumed during the night,
Just as soon as a sufficient number OF
men are got together to operate the
trains properly ana safely. Normal SER
morning hours, probably by s o'clock.
The result OF this meeting 10 that
service IL restored to the public But
at these rates It will last only 30 long
as the cash on hand holds out. If the
credit Of the company Is not improved
Immediately SO that 1t can borrow
enough money to run on the result will
be BANKRUPTCY in the near future.
Na.s~l~a,~
The company regrets and deplores
the Inconvenience TO the public that the
strike caused. We have been conscious
OF the injury TO the city and It's inhao-
itants, and in order to stop this condi-
ton we have hurried on the period when
we will come to the end OF our re-
sources.
This increase thus far means an
additional $4,000. 900 salary per year
After we have paid heavy charges due
October 1 we will already be short
$4,000. On the first Of January we will
have shortage OF S5.6s3.4eo for meeting
fixed charges.
And I wish TO state hers that there
Is no evidence nor has there been any
Of the company seeking to force an
Increased fare"
Mr. Ouacksnbush was tofd of the
that he intended to present certain EVIL
dence against certain officials" of the
copany to a special Grand Jury. before
which he hoped to show that they con-
spired with employees to cause the strike
and force tho additional rate.
Thank you. haven't read the
papers this afternoon. I've been so
busy" Mr.. ouackenbush said. But re-
sarding that, let me say there has been
absolutely no collision on the part Of
the company At any time for the pur-
pose OF compelling an increase In fare.
There can be no crime without criminal
intent. No one connected with the com
pany has had or will have an intent to
commit crime.
1--WE have not the slightest reason to
believe any court will md any evidence
of conspiracy. l might add there are
provisions OF law that protect every cit
izen against malicious prosecution. And
we have no doubt that the courts or this
State will enforce all laws II there is
evidence of conspiracy to coerce officers
of this company by malicious prosecu-
ton it is to be assured that justice will
be done to these ofricers.
DID Not Fear Prosecution.
The settlement with the men was
| made for reasons I have stated and
not because Of fear OF any prosecution.
LAS I said before by the first OF
January we will haze contracted a loss
of approximately $6,ooo,ooo. The au-
thorities must recognize the economic
condition that we cannot afford to carry
passengers for less than 1t costs US. ]
| do not look for a receiver before the
| first of January, II then. You see we
must communicate with all tho stock
holders and / believe they would have
| raised the $4,000. 900 deficit before this
additional wage award was made, but
now l cannot say Just what their atti-
tude will be-
I'VE had a $4,000, 900 surplus, but
II was. exhausted July /. We also have
! loss OF $3.50, 900 that we are carrying
| in the Queens lines. which have never
| paid expenses. And we have on hand
! materials valued at S4.2s5.o 900. but this
| 10 not cash and can't be paid for
| salaries,
IAN 8 cent minimum fare will pay
our expenses. pay q return on tho In
vestment. both to us and to the city
Just how much since the additional
wage award an hour ago I do not YET
know
Nothing will deter us from agitatins
| in every possible way that is honorable
for an increase in fare. both for our and
! the publics good. For one must realize
| that unless the best OF everything 1,
| used in the operation OF the railways a
such high speed only poor and unsafe
service will result. Therefore It is nee
essary for the good of both that thii
high standard be maintained.
1--WE will go before the Legislature al
soon as 1t convenes with q bill for AT
| Increase in fares: there is already a bill
before this body to allow the Public Ser
vice Commission to increase the fare 4
necessary.
I'VE shall also continue our efforts I,
convince tho city authorities and I,
educate the public to our urgent anc
| i,ta " he anded