The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-16
RECEIVER EXPLAINS
B. R. T. FINANCES
Garrison Reports Construction
Subsidiary Must Raise ST.
100000 in 10 Months.
WRECK COST S1,238.000
Five Months Earnings Fall
86 Per Cent.-Williams's
Salary Is $4,000.
WRECK COST S1,238.0OO

Lindley NJ Garrison explained yester-
day to Judge Julius NJ. Mayer the affairs
OF the Brooklyn Rapid Transit Company
and its subsidiaries as he has discovered
them during fourteen days as receiver.
His report throws much light on the
financial situation that forced the com
panies into the hands Of the court.
Tho lines in possession OF the receiver
are the Brooklyn Rapid Transit Com
pany. the holding company; the New
York Municipal Railway Corporation. the
construction company on rapid transit
work, and the New York Consolidated
Railroad Company, the operating COM
pany for subway and elevated lines.
&B,OOO,OOO Needed in Ten Months.
The receivers report explains that OBJ
legations Of the New York Municipal
Railway Corporation under its contract
with the city aggregate SO 1000 900. Of
which 100000 must he met in the
next ten months. Approximately $500. 900
will have to he raised each month for
this purpose.
or the estimate of $4,000, 900 the
largest item IS one OF $500. 900 for COM
plotting tho equipment of lines as they
are built by the city. There remain un.
finished forty-seven miles OF track out
OF total of rs and nineteen miles OF
road out of a total OF forty-one The
estimate does not include taxes. discount
interest, damages to abutting property
or possible purcha 500 of real estate
The proceeds OF the bond issues OF the
New York Municipal Railway Corpora
tion aggregatlng 10000 600 have been
exhausted the report says. Rentals due
from the New York Consolidated Rail
road Company have not been paid in full
ana have been used partly for construc-
ton purposes. For this reason the Alu-
ntcipal Corporation was not able on
January l TO pay interest and sinking
fund requirements on its bonds
operating Company I'm Good shape
All of the bonds. with the execution
OF $2.265. 600. are held BY the Rroolklyn
Rapid Transit Company and are pledged
As security for : per cent. notes. The
petition for receivership was filed on
December 81.
Affairs of the New York Consolidated
Railroad Company are relatively In good
shape, although complicated by loans TO
the Brooklyn Rapid Transit Company
Summarizing the situation OF this com
pany the report says:
The total income OF the New York
Consolidated Railroad Company for the
year ended June 80. 1918. after all
charges. is given as s1,315,251o2. For
the first five months Of the recent fiscal
year g. e., since June 80. 1879 the net
corporate income was sS1.7543l or
&s19,3S3.S6 less than the net income for
the corresponding months of the pre-
ced'ng year. A balance shee. Of the
New York Consolidated as OF November
80. 1918. indicates Il surplus OF sl2l5.-
bio.4s, excluding dividends declared for
the year in advance and unpaid"
The practice on the part Of the hold
Ing company OF borrowing from It's con-
eitiuent companies and vice versa, is
explained, followed by this comment
III II be assumed that the amount rep
resented by certificates OF Indebtedness.
being for capital purposes. will continue
To stand, then II IL quite evident that
were the New York Consolidated Rail-
road Company in receipt OF the moneys
which It has lent TO the Brooklyn Rapid
Transit Company 1t would have more
than sufficient resources to pay all its
current indebtedness--which includes
principally the amount owed to the
Brooklyn Rapid Transit Company,
rental due TO the New York Municipal
Railway Corporation and certain I'M
paid taxes"
Causes of It's Troubles.
Tho chief difficulty Of the Brooklyn
Rapid Transit Company IL described as
lack OF cash due 10 the default OF the
Municipal Corporation on its bonds. re-
duction in dividends on stock II owns
ana the failure OF constituent companies
to pay interest on certificates OF IN