The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-03
B. R. 7. PLIGHT STIRS
HIGHER FARE ISSUE


company and 1921 shares of the
brooklyn. Queens County and Suburban
Railroad COMPANY
IL Is further asserted in the complaint |
that the b. r. T. through stock owner |
snip controls the Coney Island and |
Brooklyn Railroad Company. the sub |
way company and owns and leases !
power houses, power plants ard SUBJ ,
stations In Manhattan and Brooklyn. |
When the subway company contract |
was entered into between the company
and the city of New York" the com
piaint- on information and belief. says. !
1T was estimated that the amount re-
ceired by the subway company from the
Sle or its $50 .000, 900 first Inortgl &c
bonds would be sufficient to enable the
subway company to complete and pro-
vide the initial construction and equip ,
ment called for under the terms of the
contract. but owing to delays beyond
the control of the subway company and
to the great increase in the cost of Dor.
materials. &c. since the execution of the
contract the cost of the work has largely
exceeded the estimates, and 1t is now
estimated that further sum of sll .OOo,-
600 will be required FOR the completion
OF construction and equipment"
lm"cd1nte shortage S4,sOO,OOO.
II Is stated that the subway company
now has expended all the proceeds de-
rived by II from the sale of the first
mortgage bonds and is now without
funds adequate or sufficient to enable It
to complete the programme of construc-
ton and equipment required Of il by the
contract. and also without funds for the
payment OF obligations and Indebtedness
incurred In the course of the work and
now due or soon to become due, the
amount of such obligations and indebt-
edness OF the subway company now due
or-soon to become due being in excess
Of s4,200.00O
The funded Indebtedness Of the r. r.
7. is given as s70,3O5.00o. and the COM
pany also has an outstanding floating in
debtedncss OF upward of Sa,S5O.o 900 for
money borrowed and for materials and
supplies.
The complaint also states that default
WAS made by the r. r. T. in the payment
OF the principal OF its six year per
cent. gold notes due July !. 1918. and
still continues. and that an instalment
OF interest amounting TO s2.000,42j be-
came due and payable January l, 1919.
The complaint says the p. r. 7. Is with
out means to pay its Indebtedness and
that the default in payment OF interest
will he continued and the company VIII
| be unable to pay the instalment due on
January ! of the subway Companys
mortgage bonds amounting to S1.5oooOo
The outstanding funded Indebtedness
| the complaint describes as: first refund
ling mortgage convertible 100 year gold
mortgage bonds due July !. 2OO2, So
10000 fifty year gold mortgage per
cent. bonds due October l. 1915, s7,ovo'-
1 600: six wear per cent gold notes due
July 1, 1918. s5S0.O00. and three year
| ! per cent. gold notes due July !. 1922,
So. 900.
| Part of Maturing Interest Paid.
Brooklyn Rapid Transit Company yes
terday paid the maturing interest on all
tissues except the three year notes. the
six wear notes and the New York Mu-
| nicipal Railway Corporations first mort
gage per cent. gold bonds due January
IL, 1865. for which the protective com
m,ttee. formed by the Central Union
Trust Company. Kuhn, Loeb * Co. and
Kidder. Peabody & Co. will receive de-
| posits and will advance at the time or
| deposit the amount Of the defaulted in
terest-
The War Finance Corporation. which
| owns $4,000, 900 approximately OF the
s57 900. 900, has asked the committee 70
| keen il informed ~ the latest develop
| meuts in the traction situation, ana II is
understood has agreed 70 deposit the
| notes There was conversation on TINS
subject over the long distance telephone
! yesterday.
In addition 70 the vote holders pro-
,ectivc committee the Stockholder'
formed a protective committee headed
hv A II Wigg.n. chairman of the Chase
National Bank, and including tharle'
4 Roody and Frederick ", Ecker o
AutI nH
. the BANKERS Trust Company Galen l.
stone Of BOSTON, Frederick Strauss o
!, T. & w. Seligmann & Co. and Everett
n Sveezy. Vice-president ~ the Firs
National Bank and an expert on publ
utilities. Outside OF Nicholas +. B7ad'
and the ramiications of the Brad!
. estate the largest stockholders and tn
largest number are located In Brookiyl
, and Boston.
While the committees are expected Z
look tter the note holders and the stock
holders, the latter needing particula
protection or account of the break 4
/, the stock yesterday 20 20as for los
Of more than six points. 1t was an
nounced yesterday that the properties j
receiyership would be run In the inter
ests Of the creditors and that an effor
would be made to improve the transpor
tation service.
Judge Mayer to watch Matters.
Judge Mayer, It was said. plans I
. | rive personal and direct attention I
operations under the receiHerFhip ana I
, take a much greater interest In tractlo
: affairs than usually falls to the lot OF
= Federal court jurist. This personal AZ
y | tention Is said 10 he due 10 the fact Una
= the War Finance Corporation owns w
100000 of the notes and TO the cl'y
( | participation In traction affairs.
Receiver Garrison was in Wsshingto
Yesterday winding up personal aHa'i
u | preparatory TO the devotion OF full q
tention 70 Il. r. 7. problems. lie Is eN
y pected TO return to this city to-day pt
}, r. will he unable to do much more tina
study the questions at stake prior 10 or
| 15th when the temporary receivershi
is expected to be made permanent. AUG
a that one OF the first steps will be III
v issuance OF receivers Certificates to ralt
- new money estimated to range fro
I 81, 600, 900 as minimum need 10 S@o
a 600. 900 as a maximum.
~ Col Timothy s. Williams. long III
chief executive OF the Brooklyn Rapi
:, transit system and all Its lines and a.
:, EARS. at n meeting of the operating an
- oth.r heads Yesterday abdcated formal
=, in favor of Mr.. Garrison. lie asked h
II FORMER subortlinates TO give to the r.
:. ceiyer the same measure OF faithful se'
" yica and devotion that they had given
% h,n, hu, TO all requests for informatio
" he said: A.. ,,..
> "You will have to ask the receive
that question. now nave the privilege
maintaining silence"
sah a