New-York tribune., 1919-03-21

cent charge for transfers. From that
time on up to the present, almost con-
tlnuously, we have been trying to edu-
cate the public and the public author
tiles that, because of the increased
cost of labor and material, unless we
could get more revenue trouble would
follow
SIN the summer of 1918 we .aought
that if we could live until September
80 we would be fortunate. We passed
October l and thought then that pos
sibly we might go ill December 81
but doubted our ability to go past that
the extraordinary increase in cost eX-
perienced in other winters.
date. BY the grace of God and the
indulgence of our creditors we got
over January ].
Mature has been kind to US, giving
us mild winter, 80 that we lave had
| slight increase in revenue without
1--WE then went along hoping that
before the axe fell, if we did not get
actual relief, we would, at least. get
promise of relief which would follow,
so that we could go to the bankers for
financial aid.
IF any action had been taken by
the Board of Estimate tending to
have helped us over this period, but
they did not.
Situation Looked Hopeless
"Since January /, as we have looked
over our monthly statements, the stu
alton looked hopeless. Then creditors
began to press us, demanding payment
and statements of our exact financial
condition, and, finally, the inevitable
happened. The people filed their bill
against us and served it on us to-day
"When the matter was put up to
us we hastily called a meeting of the
board of directors and | read the pa
pers to them. 1t was the, judgment of
the directors that nothing could be
done but to acquiesce, and we passed
resolution to that effect.
1--WE have every confidence in Mr..
Hedges and are going to do our ut
most to help him unravel the ,situa
ton"
When asked what increase would
have been necessary to save the stu
alton, Mr.. Shonts said:
I'VE figured we should have an eight
cent fare for the Intcrborough and an
eight cent fare, with three cent trans
fer, for the New York railways. the
charge 20 be made for the first trans
fer only, subsequent ones to be free.
The eight cent fare was to cover the re-
turn on the city's investment. A seven
cent fare would probably make us
whole. A seven cent fare with three
cent transfers would probably have
saved the New York railways. The
average" fare now is only 3.42 cents,
instead of five cents, because of the
great number Of transfers that are
issued free"
The Mortgage Indebtedness
The bill of complaint itemizes the
mortgage Indebtedness of the company
in this way:
First, real estate and refunding
mortgage, $18061 ,2S9.75; adjustments
mortgage, S30609, ,187.44; convertible
script. $2,250; Lexington Avenue and
Pavonia Ferry Railroad Company first
mortgage, $5,000,000; Columbus and
Ninth Avenue Railroad Company, first
mortgage, $3,C00,O0O; Broadway Sur
Sl,5OO,O00; South Ferry Railroad Com
pany, first mortgage, $35O.0OO, and Cen
tral Crosstown Railway Company, first
mortgage, S250,0OO. These represent
the lines owned by the New York Rail
ways Company.
The mortgage indebtedness of the
lines leased by the company appears
as follows: Broadway and Seventh Ave-
nue. Railway Company, first consoli-
us'eeu ihol ltSdRe, @o,1OO,OOO; ChrlStO-
pher and Tenth Street Railroad Com
pany, first mortgage, $21O0OO; Twenty
third Street Crosstown Railway Com
pany, Improvement and refundng
mortgage, $1.5O00OO; Bleecker Street
and Fulton Ferry Railroad Company,
first mortgage, 100000, and Thirty,
fourth Street Crosstown Railway Com
panny, first mortgage, $1,ooo,o 900.
Inc petition declares ION informa-
ton and belief" that the defendant,
since entering into possession as afore-
and leased by it as parts of single.
system, constituting routes over diff
ferent lines, or parts of liner, connect
ing separated lines over parts of in
termediate leased or owned lines, or
lines of controlled companies, inter
changing equipment among the various
lines, and furnishing equipment as
might be required to meet, from time
TO time, the varying requirements of
particular lines, supplying power and
using power houses, car barns and
stations as seemed best for the effec-
tive and economical operation of the
system as whole, and also establish
ing system of transfers between.
various lines and groups; that the de-
1endant owns the equipment to a sub
stantial amount which has been used
over the system.
100000 in improvements
"The plaintiff is informed and he
lieves that since entering into posses
sion of the premises the defendant
has expended large sums, aggregating
more than $3,O00,00O, III making inn.
provements and additions and other
capital expenditures to and upon lines
OF It's system, including it's leased.
i
greatly benefited such lines of railroad
and .enhancedsthe value of said leased
properties, but that the defendant has
no further resources for any further
expenditures that may be needed; that
the defendant has been required and,
will be required to make large expend-
ltures for the maintenance and repair