The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-03

scheduled to begin next Monday in the
Criminal Term OF the Supreme Court. AS
yet no word has been received from the
defendants counsel as TO whether they
intend TO file an application for rhange
of venue Mr.. Lewis said that II suSh
an application was filed at the last mo-
ment he was prepared for the contin-
gency.
While the receivership will not halt
the criminal prosecution, II puts the
corporations OH a nev basis so far as
loss and damage suits are concerned.
Leroy w. Ross. formerly Assistant
District Attorney. ~ Court street,
Brooklyn, an expert in personal dam
age litigation. explained the new situa-
ton yesterday as follows:
Claims for damages against the d.
Il. T., under the receivership, are simply
ir the position of unliquidated debts
They take their place in the order OF
collection-or payment 1t might be said
behind the claims cs tie bondholders
and also behind any new liabilities Gre
nted by the receiver or arising during
Me receivership.
"1f the present action should be sue
ceeded by foreclosure of the mortgages
which secure the bonds OF the company.
DO in the position of one holdirE>a claim
against man who owned a house. the
F, mortgage OF which was being foreclosed.
The mortgage would he a first lien be-
| fore. other creditors would have a look
\ in. The only chance for creditor in
| this Instance would be at the surplus
] left after the satisfaction of the claims
| Of the MORTGAGE. 1t is unusual for
surplus 10 be found after foreclosure
| sale.
| IF adjudi LEGATION OF bankruptcy should
| result from the appointment of Mr. Gar
| rison as receiver of the 3. r. T., the re-
! suit would be practically the same as
| foreclosure. The secured creditors-the
! bondholders-would be entitled to pay
trent before the unsecured creditors BY
the time the unsecured creditors are
| reached there isn't anything left as a
general thing. And it will make little
difference whether tho claims are against
the Il. r +. or the receiver"
| Next to the issue of payment of loss
| and damage claims Brooklynites yester-
| day were most interested in the probable
ity that Receiver Garrison would ask
| for the appointment of individual re-
ceivers for each Of the l.. Il. T. subsi-
| carries. This would abolish the trans
Ter privilege and would virtually put In
effect what was asked for last summer,
| the elimina ton of many transfers be-
| tween surface lines and the stoppagc OF
all transfers between surface, elevated
and subway lines. Receiver Garrison S
elton is said to be dependent upon the
amount of money each SUFFICE line
earns. II line is losing money. Il will
be earmarked for a separate receiver
ship.
The lines that would he affected by
a reviva. of the increased fare applica-
ton include the following Grand street
| F1usE!ngk nicke rbockcr, Flushing ave.
nue.. Flatbush avenue. Fifth avenue
Ocean avenue, Hamburg avenue, West
End, Thirty-ninth street ferry, Coney
Island, Broadway. Metropolitan avenue
and Franklin avenue. All are trolley
lines except the Broadway and Wes'
End routes
Would Double Fares on Some Line,
The most important increases that hat
been requested were probably those or
the Ocean avenue and Fifth avenu,
lines. Fare on the former would b,
made cents between Broadway fern
and Avenue NJ. and cents addt!ona
, between Avenue VI and Emmons avenue
Sheepshead Bay. on the Fifth avenu,
!, line cents would be the fare to Thirty
sixth street and cents move from Their,
to Fort Hamilton.
:, |
/, OF Estimate is declared to be the ques
. ton OF burden OH the taxpayer or OF
2 the fare payer. \Heretofore the ten
: dency has been to lay the burden on thu
taxpayer. but the receivership has de
, veloped the new situation that the bur
. den Is Just as heavy on the taxpayer
, and IN addition separate receivershil
y for the b. Il. T. subsidiaries may plac
; burdens on the fare payer without an,
. Improvement IN the return OH the city
$ 'nvestm
e The Board of Estimate IN giving con
sheraton to the proposal that the cit
= take over and operate the r. r, T. wi,
. have before It an opinion by prominen
d city official, who pointed TO section u
g paragraph ., OF the General City Law
: which reads as follows:
4 Every city is empowered 20
Z acquire by condemnation real and per
=. sonal property within the limits Of tn
u city for any public or municipal pur
Il pose
Vt Paragraph 5, empowers every city
&c ITO become indebted for any public q
V municipal purpose and to issue thereto
Y obligations of the city
Re Paragraphs IL and Is give the cit
n the right Ito construct and maintal
public buildings, public works and pull
u lie improvements and to o!
tabllsh apd maintain such institution
II and instrumentalites for the nstru,
u tion enlightenment, improvement
% and welfare OF its inhabitants as
y may deem appropriate or necessary Il
)" the public interest or advancement"
:. There IS not particle OF doubt
~ my mind" lie said. but that the operi
ton Of rapid transit lines is 'munic
pal purpose within the meaning and II
tent of the statute. because the. ter
a. used IN this article shall rncluC
70 the promotion OF health, safety. comic
70 and convenience
m Mayor HyIsn Plans Action.
. Mayor Hylan's statement yesterda
=, however, indicated that more attentic
was being paid 10 fare increases and
"a the request for an additional receiver
represent the interests OF the city
), New York than TO possible futu
rs municipal operation OF the b. r, T. II
+ statement follows:
r. '"The receivership of the n. n. T. HI
M precipitated and laid the foundation f
IN a readjustment OF the entire trans
ne situation. The city has a far larg
IN interest in the subject than any one
err the transit companies About s25t
he 600, 900 OF city money IS invested
Sc the dual subway system, n substanti
m part OF which is TO be operated by {
D. B r.. T.
"NIore important than this. howev,
he is the rendering OF proper and adequa
id service by the transportation compani
T. so that the public may>~travel in