New-York tribune., 1919-03-22

0hSi otreeO a. fulton Ferry Rail
$4,000.
"One 5 per cent bond of the Broad
par value of 81 900.
Six first mortgage bonds of th
Jerome Park Railway Company, of th
par value of 100000.
First and fefunding mortgage bond
OF the Twenty eighth and Twenty
ninth Street Crosstown Railroad Com
pany OF The par value of $1,37S,0O0.
"Fiftytive shares of the capital stool
OF the Third Avenue Railroad Com
pany valued at $500.
Collateral Security Pledged
CAS- the petitioners are informe,
and believe the said alleged bankrup,
now owns and has pledged as collatera
security for its obligations the fol
lowing bonds, securities and certifi
Gates of stock, all of which are not
now in its possession or under its
control.
"339,12S shares capital stock of the
lnterborough Rapid Transit Company
OF me aggregate par value of S33..
$4,000. ~o''
"1o3,129 shares capital stock of the
New York transportation Company OF
the e. aggregate value of S1,O35,74
United States per cent second
Liberty bonds of the par value OF
100000 -
That your petitioners are informed
and believe that the condition of the
business affairs of the said alleged
bankrupt is such as to render abso-
iutely necessary the appointment of
receiver at once to take CUSTODY and
possession of the assets of the a;lepc d
bankrupt pending the issue of the
bankruptcy proceedings"
The petition then alleged that the
seml-annual lnstalment of interest on
the collateral trust bonds, of which
there is S62, ,776,000 worth outstanding
Will not be paid with the result that
the bonds may be subjected to or be
IN danger of efforts to levy or attach
them"
Assets Not Over $60,00O,OO
The petition also stated that the as
sets of the alleged bankrupt consist
ing of the securities, bonds and stocks
did not exceed in value 100000 .OOO
Cash on hand was set at $4,000, while
the corporation was said to own bills
receivable to an amount unknown to
the petitioners.
After Judge Mayer had appointed
Mr.. Sheffield receiver the latter sent
his representative to 165 Broadway to
take possession of the property Of the
corporation. President Shonts, at 6
O'Clock, said he probably would confer
with the receiver some time in the
evening
When Mr.. Shonts reached his Office
last night, after a speech before the
New ork Board of Trade and Trans
portation, he professed surprise at the
announcement that an "Intercon" re-
celver had been appointed
lie went into his private office. COM
ing out few minutes later with a
copy. of the bankruptcy petition. He
sat IN his accustomed seat at the head
OF the board table, with newspapermen
IN unaccustomed places on each side
Of him.
Second Blow" Falls
The second blow, which we have
been fearing and predicting, but which
we were hoping would not come. has
fallen,' he announced. Then he con-
tinued:
This is great shock to all of US
VINO =, have been fighting so many
montns m trying to prevent disaster to
so many thousands of innocent owners
of these securities. We have faith
fully, earnestly and truthfully tried to
state the facts to the public and to
the public authorities in way that
would convince them that without helm
In the way of increased revenue for
our operating companies these things
would happen.
I'VE feel that we have done all that
we could and have no apologies to
make Tor our efforts either in that re-
gard or IN regard to the results of our
transportation efforts in the operation
OF these companies.
Book Surplus of $19,OOO,0 900
After maintaining these properties
and operating them with a degree of
safety unequalled in the world. we
nave SO administered the affairs Of the
company SO as to show at that time a
book surplus of S19,OO0,00O and an ac-
tual surplus of several millions more.
and we had provided for seven times
the amount of preferential for the
hrst three years under the enlarged
system.
eve felt then that the Interborough
Rapid Transit was as solid as the Bank
Of England. 1t is incomprehensible
that conditions have been so changed
by the war in a few months that to-
day we are not earning the interest on
our per cent bonds. But such is the
case.
The city authorities must admit that
from the time we put our signature to
the contract up to the present time we
nave done, everything to carry it out in
letter and spirit. We were opposed to
the dual system because it was ineffi
cient, and did everything we could to
Keep the city from adopting it. But
a. alter we became party to it we car
RED out every one Of it's obligations.
To Keep On Fighting
What dc you plan to do?" Mr..
Shonts was asked
We are still hoping for an increased
iare on the lnterborough," he replied.
1T IS the only thing we can do. 1t is
absolutely vital for the lnterboroueh
Rapid Transit Company to get IN
creased fare. 1t is the income pro-
ducer for the whole system.
This receivership to- day was caused
by the inability Of the Interborough
Rapid Transit Company to contribute
ITS dividends to the Consolidated. Two
OF our trenches have been taken. We
hope that public sentiment will be
aroused at last to help us in our fight"
Resign? Not on Your Life!o
When Mr.. Shonts was asked whether
ne had thought of resigning and "pet- |
ting out from under" be grinncd broad |
y and retorted
Do you see any white flag floating
about me? The idea is new to me.
haven't an apology to make-here's the
record Resign Not on your lifc!"
Mr.. Shonts was then asked: "Do YOU