New-York tribune., 1919-04-18
Traction Expert to
Help Reorganize
Local Companies
Street Railway Authority
Will Seek Method Of Put
ting b. II. I. and Interbor-
ough OH a Paying Basis

former Seattle traction official A.
L. Kenpster, has been called to aid
IN the present study of the Inter
borough and Brooklyn Rapid Transit
lines, with the view of putting on q
paying basis the B. R. T. and the New
York Railways Company, which are
now in the hands of receivers.
Mr.. Kempster was manager of the
Seattle division Of the Puget Sound
Traction, Light and Power Company
before the system was acquired by the
with street railway work for the last
twenty eight years. Mr.. Kempster will
first assist Frederick P. Royce, general
manager for the receiver of the B. R.
T., and it is expected that he will later
aid in the investigation of the Inter
borough lines.
lntcrborough Study Under Way
The study that is now being made
of all the lnterborough lines is being
carried on by Stone g. Webster. cngi-
ncers, and Price, Waterhouse e. Co..
accountants. Mr.. Royce, Of the B. R
t., is also of Stone G. Webster, and he
was called in to systematize the opera
ton of that property.
When the New York Railways Com
pany went into receivership last month
a committee of the Interborough Con
solidated Corporation, which is the
holding company for all the Inter
borough lines, including the New York
present study. That committee is com
posed of Grayson N. p. Murphy, chair
man; John McHugh, Charles A. Pea
body, Charles S. Sargent, jr., James A
Stillman and Frederick Strauss, with
John A. Griswold, of 14O Broadway, as
secretary. These men are known as
the marlborough metropolitan Az per
cent Collateral Trust Bondh olders
Protective Committee. The INTERIOR
ough Consolidated Corporation is the
successor to the Interborough- Metro
Company is the depositary Of the com
mittec.
On April 2 Mr.. Murphy sent a letter
to the holders of the Az per cent col
lateral trust bonds. in which he said:
"Intcrborough Rapid Transit Com
pany has outstanding $3.50, 1898 900 OF
first and refunding mortgage PEI
cent bonds and $39 10000 three year
7 per cent notes due 1921, secured by
$61 ,279000 of tho first and refundng
bonds. On July l approximate $4,000
600 Of interest upon these bonds will
fall due, of which approximately So,
ouU,UUU is cnarGeablc against income
This amount will not be entirely pro
vidcd from earnings. The balance
must be provided in some other way if
default which might destroy the
value of the stock by which your bonds
are secured is to be avoided.
Safeguards Needed
"Manifestly if your security is to be
safeguarded, prompt action must be
taken. To this end the committee has
arranged for a thorough investigation
by Messrs. Stone and Webster, en-
gineers, and Mcssrs. Price, Watcrhousc
G. Co., chartered accountants. When
their reports have been received the
committee will cndcavor to formulate
some plan for the protection of your
security and ultimately for the reor-
ganization of the property"
c. w. Kellogg, of Stone G. Webster
is in charge of the study of the Inter
borough lines. Soon after Nh. Rovce
went to the B. r. T. he called G.. A.
Richardson to assist him. Mr.. Richard
son was superintendent OF the Seattle
division Of the Puget Sound Company
of which Mr.. Kempster had been man
ager, in Seattle. MIR. Richardson was
with Mr.. Royce for few weeks and
then went to Philade lphia, where he
IS now superintendent of transporta-
ton of the Philadelphia Rapid Transit
lines