New-York tribune., 1919-03-13
Bondholders Tell Legisla-
turc New York Lines Can.
not Pay Interest Charges
Officials Are Not Scared
Controller Craig Says Prop
erty Could Be Sold and
Would Be Kept Going

ALBANY, March 12.-Thc bondhold-
ers of the surface car lines Of Man
hattan-the virtual owners-se served
notice on the Legislature day that
unless the transit companies were per
mitted to charge a 6-cent fare the sur
face cars would stop running
The bondholdcrs of the New York
City Railways Company met in New
York early in the week.
The announcement was made bv
John {. Cobb, of Boston, chairman of
the bondholdcrs' committee, at a joint
hearing Of the Senate Public Service
Committee and the Assembly Judi
clary Committees He advocated the
Martin Carson bill. This would per-
mt the Public Service Commissions to
increase rates, Notwithstanding any
existing agreements.
Speakers, among them Charles f.
hughes and Nathan l.. Miller, former
Judge of the Court of Appeals, quoted
from recent decisions of the Court of
Appeals sustaining the upstate Pub
nc Service Commission in raising gas
rates in the Village of South Glcns
alls above the figure specified in the
/ franchise.
AS Mr.. Cobb Secs 1t
"rhc earnings do not even pay the
interest on the underlying securities, -
MIR. Cobb said. "Therc has been q lot
OF loose talk about large dividends and
watred stock. but W invite an appraisal
OF our property, and if you enact this
bill we may be able to get such an
appraisal.
"The Second Avenue line, which has
been in the hands of receiver since
celvcr's hands as dcsult of It's fail
urc to pay interest on the present re
celvers certificates, a thing that has
never happened before. Unless we car
have rcbet we are going to quit"
Controller Craig of New York sale
afterwards:
"Mr. Cobb's threat is not Worrying
anybody. If the cars stop running tn,
properties would be sold under fore
closure to some company which woult
operate them at q profit at the presen
rate. If the municipal ownership bill
IS passed New York could take over th
ines, for the company is greatly in ar
rears in taxes"
Invasion of Home Rule
Corporation Counsel William P
Burr, of New York, opposed the bill
as an invasion of the Home Rul,
spirit.
Mr.. Hughes, answering the sugges
ton of Senator George f. Thompson
chairman of the Senate Public Ser
vice Committee, that he did not know
what the Public Service commi ssions
which he created, were doing, said
( You will nceer make any progress
in American government if you per
NIT dislike or distrust of personne
to influence you in establishing poll
cics. Sooner or later you will hav
to face the facts, and then you vii
realize that it is a question of rev
cnues or receivcrship."
Mr. Hughes represents three larg
insurance companies.
Senator Abraham kaplan, Democrat
Of Manhattan, introduced a resolutio,
asking for a legislative inves tigatiol
of the finances of the Interborough t.
determine if an increase in fares wa
justified. The resolution was referre,
to the Finance Committee, where i
will not slumber
John c. Cobb is the man who las
June came here from Boston, his home
with the proposal that street cars sto
running at 10 o'clock each night S
that the lines might saw emoney. II
is a director Of the New York Stree
Railway Company. In August he ap
pearcd before the Public Service Com
mission as representative of the bond
holders and said the company hat
reached the point where it was read,
ITO rip up its lines and go out o
business.