New-York tribune., 1919-03-21
"Green Car"
Lines i'm Hands
OF a Receiver
Continued from pax. I
management of the company's affairs

management Of the company's affairs.
said:
ut is undeniably a very serious prob
lem, and some one has got to work it
out. l presume that my appointment mt
by Judge Mayer was the result of our
lifelong intimacy and because he
thought | would fit into the situation
some way"
Mr.. Hedges was classmate of Judge
Mayer.
II come to this problem entirely
conscious of the seriousness of it, to
work out some line that will do Justice
to every one. l shall acquire my in
formation on the situation as rapidly
as possible, and as promptly as possi-
bic work out solution, which must be
firm, consistent and just to ALL"
In financial circles the fact of the
bankruptcy did not cause much surprise
1t has been expected for a long time
Some astonishmcnt was, however, cx-
pressed at the extent to which the
company's affairs now appear to have
become involved.
Theodore P. Shonts, president of the
New York Railways Company, in a
statement issued just before leaving his
office last night, referred to the re-
ceivership as "inevitable." Last sum-
mer, he declared, the directors of the
road felt that it would be impossible
tor them to last until the end of Sep
tember. A seven-cent fare, Mr.. Shonts
added, would have saved the situation,
and he bitterly scored the Board of
Estimate for it's failure to allow the
company any relief.
Mayor Hylan first learned of the re-
ceivership proceedings at. $500, while
attending meeting of the Board of
Estimates franchise committee. His
comment was:
"rhc Interborough said there would
be receivership for these lines. They
have made good their promise"
Controller Craig's Hope
Controller Craig said that he hoped
Mr. Hedges would "take into considera-
tion the interests of the city"
In the bill in equity presented before
Judge Mayer yesterday afternoon it
was set forth that the total income of
the New York Railways Company for
the fiscal year ended June so last was
81 ,S3. .88 less than was required to pay
the interest on the first real estate and
refunding mortgage 4 per cent bonds.
At the end Of the year the total incoma
fell short of meeting such interest by
$239 9,lS7.6O, while the corporated deficit
was set at $2,125, ,03932.
"Many thousands of suits" it was
further alleged, are pending against
the company, which the latter would
have no means Of satisfying in case
judgments were secured. Barring a
receivership, general rush of credi-
tors to the courts was, in effect, pre-
dicted, with tho consequent breakup
OF the street car SYSTEMS present un-
ity as an operating service.
The authorized corporate stock out
standing was listed at $17,495 ,O6O, sub
ject to the mortgage Indebtedness
Present in Judges Chambers
The receivership petition on behalf
of the plaintiff, the American Brake
Shoe and Foundry Company of Della
ware, was signed by William G. Pearce,
president of that corporation. George
M. Judd is the plaintiffs attorney. At
the gathering in Judge Mayors cham
bers. where Mr.. Hedges's appointment
was made. the stockholders of the New
York Railways Company were repre-
sented by Paul D. Cravath. James l..
Quackenbush and Richard Reid Rogers
appeared for the company. Joseph P
Cotton, jr., represented the committee
of per cent bondholders and Charles
P. Howland the per cent bondholders.
The companies either owned or
leased by the New York Railways Com
pany are the Broadway and Seventh
Avenue Railroad Company, the Bleeck-
er Street & Fulton Ferry Railroad
Company, the Christopher Street &
Tenth Street Railroad Company, the
Eighth Avenue Railroad Company, the
Fort George g. Eleventh Avenue Rail
road Company, the Forty-second Street
& Grand Street Ferry Railroad Com
pany, the New York & Harlem River
Railroad Company, the Ninth Avenue
Railroad Company, the Sixth Avenue
Railroad Company, the Thirty-fourth
Street Crosstown Railway Company
and the, Twenty third Street Crosstown
Railway Company.
Mr.. Shonts's statement as to the
conditions leading up to and compel
ling the bankruptcy is as follows:
Looking back over our records,
find that it was on May 20, 1917, that
we first sought relief from situation
which we knew would follow if it we're
not granted. On that date we issued q
pamphlet, why charge for transfers
is justified and we tried at that time
to secure permission to make a three