The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-21
B. R. 7. Is FACING
THELOSS0F 26
SURFACE LINES
Garrison Warns That 1t
Cannot Pay Rental to
Brooklyn City Co.
MUST PASS DIVIDENDS
Latter Company Has Been
Run at Loss of $4,000.
Every Month.
MUST PASS DIVIDENDS

The Brooklyn Rapid Transit Com
bany may lose the lines that are the
backbone of its surface system. Lind
ley NJ Garrison, receiver, will inform
Federal Judge Julius NJ. Mayer on
September 29 that he will not be able
to pay rental due the Brooklyn City
Railroad Company on october 1 and
ask for instructions. Judge Mayer
severed the Eighth and Ninth avenue
fines of the New York Railways Com
pany in Manhattan on a petition for
Instructions under somewhat similar
circumstances.
Whether twenty-six surface lines will
be cut from the B. r. T. system depends
upon the attitude of the owners and the
Judgment of the court. A circular sent
yesterday by Frank Lyman. president
Of the Brceklyn City Railroad Company,
TO stockholders Of that company an
nounced the appointment Of committee
that has been charged with power to
take such steps as may be found to be
necessary to protect the interests of the
company and its security holders"
Non-payment of the October rental
instalment will cause the Brooklyn City
Company to pass payment of its October
dividend. The company has $12,000.000
in capital stock outstanding, no part Of
which is owned by the b. r. t. Its
lease Is to the Brooklyn Heights Rail-
road Company. a subsidiary Of the B.
R. T., for 999 years at s1.20o.o00, pay
able in quarterly instalments, with taxes
and interest on bonds additional. Taxes
amount to more than s15O,ooo year.
sixty Days of Grace.
The lease gives the lessee sixty days
Of grace in the event of tentative de-
fault in a rental instalment. so that an
adjustment will be possible until Decem-
Der /. The lessor company has $685.
600 in bonds outstanding, of which $4,-
$4,000 are in the hands of the public.
The Brooklyn City Company is the
only leased railroad system in the B.
r. t. but as it owns 231 miles OF
single surface track in the borough
1t is the backbone Of the b. r. T.
trolley system. The lines IL controls
are Avenue C, Bushwick avenue, Cal
vary Cemetery, Court street, Crosstown
Cypress Hills, Flatbush avenue, Flush
ing avenue. Flushing -Knickerbocker
Flushing -Ridgewood. Fulton street
Gates avenue, Graham avenue, Grand
street, Greenpoint, Hamilton avenue
Lorimer street. Myrtle avenue, NASSAU
avenue, Nostrand avenue, Putnam ave
nue., Richmond Hill, Sixteenth avenue
sixty-fifth street. Bay Ridge. Sixty-fiftf
y street-Fort Hamilton, Third avenue
Thirty-ninth street-Fort Hamilton
Tompkins avenue and Union avenue.
Defaulted September is.
The B. R T. made default on Sep
tember Is in the payment of $46,034
due as the income tax for 1918 of thu
lessor company. The lessor paid thu
tax instalment to avoid the penalties
The situation is one of difficulty
While severance would involve tn,
abolition OF 2 cent transfers between
lines of the Brooklyn City Compan.
and other surface lines of the B. r. T
this relief would be relatively slight
because the Brooklyn City Compan!
has nearly one-half OF the total track
age OF the entire B. r. T. surfac,
system.
AS an independent system the Brook
yn City Company has been losing
$4,000 a month on operating expenses
according to the estimates of the re
ceiyer's experts. The company hat
100000 in cash reserve on July i
ana the estimated deficit would max
short work OF this
The committee for the stockhoider
Is composed of President Lyman. Vice
PRESIDENT Henry +. Noyes. Alfred r
aorr' James Timpson and Harold
White