The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-09-08
MAYER ACTS ON
CAR LINE CRISIS
Judge Tells Receivers to Call
Attention of Officials to Ur-
gent Financial Needs.
LOSS Is 100000 A MONTH
Experts Say Surface Roads
Yearly Deficits Probably
VIII Total $2,381, 900.

In an order filed In the United States
District Court Judge Julius NJ. Maye,
has directed that statements OF the
financial condition of the New Yori
Railways and Brooklyn Rapid Tran.
sit Companies be submitted to State
| and municipal authorities and civit
associations of this city.
The statements have been prepared
by Stone & Webster, public utilities
experts, at the request of the court
which has Jurisdiction over the af'
fairs Of both lines. which have been
in receivers hands for some time. The
order was made after Judge Mayer
had received a letter from the firm
summarizing the condition Of the
railroad properties and pointing to the
Immediate need for financial relief.
Judge Mayer is in control Of practical
ly the entire transit situation Of Brook
lyn. Manhattan and The Bronx. His
direct Jurisdiction over operation Is con-
fined t. the B. r. T. system, of which
Lindley NJ Garrison is receiver. and the
lines of the New York Railways Com
pany, of which Job f. Hedges Is re-
ceiver. The court, however, Is interested
In the Interborough Rapid Transit Com
pany because the affairs of the Inter
borough Consolidated Corporation. a
bankrupt, are in his hands with James X.
Sheffield as trustee in bankruptcy. The
Interborough Consolidated Corporation
holds the stock of the Interborough
N ox.ga n>rav, vit
York Railways Company.
order Given TO Receivers.
The order Of Judge Mayer to the re-
i.Messrs. stone 4 Webster, aeknowl-
edged experts OF high standing, were
employed some months ago by direction
of the court to undertake among other
things an investigation OF the financial
condition of the properties affected by
the receivership pending In this court.
This independent expert inquiry is now
nearing completion and the court Is
awaiting the final report of Messrs. Stone
& Webster, in respect Of essential fea-
lures of the transportation problems. In
cluding questions relating not only to
financial conditions. but also to opera
ton, property valuations and other inn
portant subjects.
"Since this inquiry was begun the
financial difficulties of the roads have
grown greater instead OF less. The re-
cent increase In wage cost made neces-
sary the request by the court for imme-
diate information, to which Messrs.
Stone & Webster have answered. as ap-
pears by their letter. a copy Of which Is
annexed.
This REPORT, especially the statement
-. Rn Ira t.a Nl,A .t.o
the courts receivers are falling by about
5000, 900 q month to earn their actual op-
Grating expenses indicates a grave and
immediate crisis. It Is impossible to
forecast the serious results which lack Of
financial aid may bring about. affecting
most vitality the welfare of the people Of
the city Of New York. Manifestly lines
cannot long be operated at an actual
loss. The problems involved press for
calm and serious consideration and an
earnest and united effort toward prompt
solution. That some means must be de-
vised for at least temporary relief seems
plain and urgent
THAT plans should be worked out
for determining the permanent status OF
the transportation companies and their
legal and financial relations to the State
and municipal governments seem an
obvious duty. the performance Of which
should be promptly undertaken
The legal, financial and governmental
questions involved are numerous and
intricate, and naturally there are differ
ing views as to the wise and proper
policies to be adopted.
because the problems presented are
so grave and the emergency is 30 press
ing and disaster 80 imminent, every good
citizen must feel that the effort to solve
uhA Aa A.Nr.
promptly and as nearly free from con-
troversy. political or otherwise. as pos
sible.
TN order that the gravity of the
situation may be generally made known
and that some appropriate action may
be taken as speedily as is consistent with
full information the receivers are Inv
structed to send copy of the summary
of Messrs. Stone & Weber and of this
memorandum to the State and municipal
authorities and to civic and taxpayers
associations of the greater city. At the
same time the receivers will make II
clear that every facility will be afforded,
both to public officials and citizens as
sociations, to satisfy themselves in re-
spect Of the actual financial and other
conditions existing in relation to the
corporations now in their official charge,
Meanwhile II Is earnestly hoped that
all who have Official duties to perform,
whether by State, municipal or legisla-
tive action. will reserve their Judgment
and conclusions on the Fundamental
questions involved until they shall have
had adequate opportunity to satisfy
themselves OF the facts and OF the real
conditions existing Such course viii
enable all concerned to arrive at a Just
determination. based Gas all just deter
limitations must bel on an accurate
knowledge OF the facts"
The letter sent by Stone & Webster to
Judge Mayer and which caused him to
act follows:
'In compliance with your request for
regarding the effect which
the recent increase In wages will have
upon the financial position OF the prop