The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-02
CITY TO ASK FOR
C0RECEIVER OF
B. R. SYSTEM
Garrison FayOrs Splitting
Up of Merged Lines I'm
der Court Control.
BANKERS TAKE ACTION
Begin Forming Committee to
Protect NOtcs-StOckhOld-
>ers Also Organize.
BANKERS TAKE ACTION

The city of New York took steps
yesterday to protect the investment
of the municipality in the properties
controlled by the Brooklyn Rapid
Transit Company. Corporation Coun.
sci William I. Burr announced
that he would ask Judge julius VI.
Mayer Of the United States District
Court to name coreceiver VIII"
would represent the taxpayers and the
$3.50, ,OOOO 900 Of invested capital they
have in the traction properties when
the court comes to make permanent
the temporary appointment of Judge
Lindley NJ. Garrison, former Setrr
tary Of War. as receiver for tie com
panies making up the n. II. 7. 'ly.
AT the same time the Corporation
Counsel called attention to the serious
nature Of the situation as applied TO
all of the traction lines both in and
ont of New York. There was grave
discussion among men of finance con
cerning this feature for the reason
that the underlying conditions with
regard 70 the r. r. T. also obtain in
other directions. aud whatever action
is taken in this case will serve as Il
guide and a precedent for future &C
ton in similar matters. The Wide
spread demand for higher farHs
throughout the country. ii was pointed
out, bears a close relationship to the
Brooklyn situation.
Demand for Higher Fares.
! Mr.. Burr said last night that the
! heads of other traction lines having
! interests in New York had placed be-
! fore him the urgent necessity fol
. higher fares in order TO meet their
demands, and he added that while the
! other companies in this city had
I financial arrangements to meet their
/ immediate necessities, some readtust-
!
| future To this idea President Theo-
| dore p Shonts of the lnterborougt
/ lines added the Information that he
and bis colleagues thought that in
| creased fares were economically
necessary TO meet the traction sit
uation. His letter is printed in full
elsewhere.
The chief developments in Connec-
ton with the receivership yesterday
we're:
/. The city of New York determined
to seek equal representation with the
B. r. r. through the appointment OF a
coreceiver whose duty will be TO par
ticuarly safeguard the citys interest
2 The Board of Estimate and th'
Public Service Commission received q
letter from Theodore =. Shonts, presi
dent OF the Interborough Rapid TRANSIT
Company. in which he made a new plea
for higher fares and predicted bank
ruptcy for his company il the presen
situation we're permitted to continue.
g. The New York Railways Company
announced that II would pay interes
due today hut was enabled to do 81
only by postponRg the payment o
accrued rentals. any one OF 100 mer
interested in the rented properties be
ing able to preciptate a receivershiI
at any time because Of the postpone
men..
4 The new receiver, Lindley NJ. Gar
rison. began his study OF the r, r. T
predicament, finding that the best cours
probably would be to have the cour
appoint separate receivers for the sep
arate surface companies which wer'
merged into the system.
8 The Central Union Trust Company
Kuhn, Loeb & Co. and Kidder. Peabod,
& Co. were engaged in the formation o
a committee, with James y. Wallace
president Of the Central Union Trus
Company, as chairman, to protect tn,
interests of holders of S57,735,O o
notes.
6. The principal stockholders, includ
ing Nicholas +. Brady, were busy witt
the formation of a protective committee
Calls on HyIan to Explain.
:. Travis H. Whitney, acting chair
man of the Public Service Commission
issued a statement calling upon Mayo
John F. Hylan to explain what he al
legged to he secret deals" regarding tn
local fractions.
s. The receiver began plans lookinl
toward the issuance of more than $40.
900, 900 receivers certificates to provd
cars for the new portions of the dua
subway, which are expected to be com
pleted in the near future.
Lindley NJ. Garrison left last nigh
for Washington, on matter uncoC
nected with the traction situation ant
on his return will plan steps to maxi
the receivership a permanent one a
the hearing on Monday in the Fedora
Court.
The chief losers by the critical situa
ton of the local fractions and by III
receivership OF the Brooklyn Rap
Transit Company are the city, tn
stockholders OF the bankrupt company
the persons who were going TO file los
and damage suits against the B. r. I
on account OF the Malbone tunnel acci
dent and the individuals, who may hav
TO pay additional fares on account @
separate receivers for surface lines.
William =. Burr, Corporation Counse
, told THE Sun last night that he will as
Judge Mayer, who appointed the forme
Secretary of War Tuesday as temporar
receiver. to name permanent coreceive
who shall be designated by the admins
tration to represent the city.
The Corporation Counsel said that III