New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-03
B. K. T. Stock Sets
Nem Lo,c Record in
" all Street Trading

NeW LOic record in
" all Street Trading
Although the financial district had
heard reports before New Years dav
that the affairs of the Broofiyn Rapid
Transit Company were in such CON
dition that a receivership would be the
best method for obtaining relief from
its financial burdens. the definite news
came quicker than Wall Street had ex-
pected
AS consequence the announcement
that the company had been adiudged
bankrupt took the securities market py
surprise and Brooklyn Rapid Transit
stock. which has been steadily declin-
ing ever since it became apparent that
the management was unable to cope
with the conditions created By in
creased operating costs, opened off "A
points at -, and subsequently went
down further to the new low record
price of 203s. from which there was a
recovery at the close to 2114 net loss
, of 512 points.
The S57,735,000 three-year per cent
notes. upon which the company was
unable to meet the $4,000 600 January
| interest requirement, opened at 1912
sale, later broke to 10 and ended the
day at so. Other New York traction
issues were unfavorably affected by
the Brooklyn Rapid Transit receiver
ship. lnterbOrough Rapid Transit re-
funding 5s sold off to 10. contrasted
with Tuesdays last sale at 70. Inter
borough metropolitan 4 Us, the interest
on which is in doubt declined to 1913.
against Wednesdays high price of AZ
Protective Committees Act
The two protective committees repre-
senting the noteholders and the stock
holders yesterday began making active
appeals for deposits of the securities
represented by them. The offer of the
noteholders' committee that it would
advance the amount of the January [
interest to depsoting noteholders. it
was believed. would result in salts
factory response to the requests for
deposits. The 80 per cent interest Of
the War Finance Corporation in the
notes, 1t was stated, was being looked
after by Kuhn, Loeb & Co.
1t is not expected that steps will be
taken in the immediate future looking
to the formation of additional protec-
tive committees in view of the fact
that the Brookly Rapid Transit has
no other interest obligations to meet
In the near future. Until the court
has made Lindley NJ. Garrison perma-
nent receiver, it was said that the com
pany's bankers would not begin the
preparation OF reorganization plan.
Albert ii. Wiggin, chairman of the
stockholders protective committee. ex-
pressed the opinion that the members
constituted fair representation of the
shareholders. Exclusive of the hold
ings of Nicholas F Brady and the An
thony II. Brady estate, Mr.. Wiggin said
that large amount of Brooklyn Rapid
Transit stock was held by Brooklyn
men and in Boston
The unfavorable position of the New
York traction companies was again en-
phasized yesterday by the November
report Of the Interborough Rapid Tran
SIT Company, which showed compare
lively small decline in gross earnings
but a decrease in net after charges.
totallng nearly half million dollars.
The surplus after all charges was
S239'822, contrasted with $685.095 in
November, a917 For the eleven
months ended November 80 there was
surplus of only s439 963, compared
with S2,765,79s for the corresponding
period Of the preceding year
Comparison Shown
The figures in detail for November
and the five previous months compare
preceding year as follows:
November gross So 1861 s3.454,ss7
Net after taxes ....,. o90.6l9 1854 81 :
Total income. ........ i.17e. e6T l7S2.3 300
Surplus after charger 239.822 6S5.O85
Five months gross. 16,17o,9s5 15.s2S,0S7
Net after taxes ..-.... 4.i3o,496 6.90e ,407
Total income ..... 7.67O446 Sl45S5l
Surplus after charges 1895 2.765.79S
The report of the Brooklyn Rapid
Transit Company for the year ended
June 30 last showed net income of
s4,112,054 a decrease of S1.083184
compared with the preceding vars fig
ures Gross earnings from operation
amounted to S30,506, 497 an increase Of
slightly more than $1,000 600, but
operating expenses amounted to Sis
11l.S04 an Increase of more than ST.
$4,000. The Increase in fixed charges
alone totalled $695,189. Earnings since
the close of the last fiscal year have
showed a declining tendency with the
result that the company was unable to
meet the s2,oO0oO0 interest payment
on January ].
In addition to the s74,455.212 out
standing stock the Brooklyn Rapid
Transit Company has in the hands Of
the public total funded debt of S118,-
191 800.
The Stock Exchange committee on
securities ruled yesterday that deal
ings in the Brooklyn Rapid Transit de-
faulted notes shall be "fat" until fur
Their notice. This is another way Of
saying that the notes will be sold