New-York tribune., 1919-03-22
Owner of s3s,o12,ooo
Subway Stock Forced
Into Receivers Hands
lanes II. Sheffield
Appointed by Court
Shonts Blames Opposition
to Fare Increase--Sees
Danger to the |. r. t.

The Iniecbcrough Consolidated Cor
poration, which owns S33,912 900 Of
subway stock, went into rcceivcrship
Yesterday. 1t was the second of the
three great lnterborough companies to
Give up the gnost within twenty-four
hours,the New York Railways Company
,the green car lines having been
declared bankrupt late Thursday. The
Interborough Rapid Transit Company
alone remains-"our last trench"
| President Theodore P. Shonts admitted
last night.
Judge Julius VI. Mayer. in the United
States Distrieo Court, before whom the
bankruptcy petition was laid, at once
named James r. Sheffield, former presi-
dent of the Republican Club, as re-
ceiyer, fixing his bond at $4,000.
Under the orders of the court, Mr..
Sheffield will act as custodian until
the creditors can meet and elect a
trustee. Unless the receiver is then
elected trustee he will retire.
Shonts Blames Hylan
Mayor Hylan and the city admins
tration were forcing the Interborough
corporation into bankruptcy by op-
posing increased fares, in order to
bring about municipal ownership of
tho transit systems, President Shonts
charged after the second petition had
been filed Yesterday
He said the Interborough Rapid
Transit Company was in no Immediate
danger Of following suit, and that it
would be able to meet its interest
charges due July l. After that, unless
fares we're raised, he could see little
aspe OF avoiding the same financial
pitfsA which mad trapped the other two
companies.
Dave H. Morris, William F. Ladd and
William j. Franziol. creditors and
hondholders of the company, were the
petitioners yesterday Their action
was taken after statement had been
issued by the Interborough directors,
declaring the corporation would be
unable TO pay interest charges due
April /
Bankruptcy Resolution Adopted
Inc directors meeting had been
called In the board room at 165 Broad
way yesterday morning by President
Shents to consider an inquiry sent in
regarding the payment of interest due
april on the 4 Il per cent collateral
"ust bonds OF the lnterborough- Metro
poiifan Company, predecessor of the
Intercon."
resolution:
Resolved, That the president be,
and ne is hereby, authorized to an
'ser the communication OF the bond
h''aeIs by statement in writing to
'ae shect that this corporation is ard
'A' De unable to pay the interest ac-
1alng on April j, 1919, upon the an
psi cent collateral trust bonds Of the
marlborough Metropolitan Company,
sea ma this corporation IL willing to
% adjsdged bankrupt upon that
ground
Immediately upon receipt Of this
s'sssrneht, Alexander & Green, Of 1g0
osoadway, counsel for the three bond.
s''aefs, prepared and filed the petition
:" involuntary bankruptcy. The petit
non sets out that the corporation il
.ss consolidation Of the Interborough-
metropolitan Railroad Company and
we Finance and Holding Company,
D''o engaged in the business Of buy
az acquiring, holding and disposing
u the securities Of other corporations
J. X. i. Passed Dividend
me petitioners held that the act of
'as directors in admitting inability to
yas Inc interest due next week was
- aes OF bankruptcy. This situation,
'sSioent Shonts explained, was the
s,'H OF the lnterborough Rapid Tran
''s failure to declare dividends in
.sofnary AS the holding company
.speaas for most OF it's income or the
.sS'opo9oo Of subway stock it owns
s''s passing Of the dividend was a
seavy blow TO it.
ni1er stating that the corporation
sa large amount Of stocks and bonds
,sh1ec and pledged as collateral. the
sss'aoH continued that other securities
'e 'ocated at le5 Broadway or were
'sssasre under the control Of the cor.
s'a''sn Going into detail Of these
ssasH the document read:
assr petitioners are informed and
s believe that the following ae.
.''1z as'd certificates Of stock are
= ne poasssslon Of The said al.
M bsukraps:
'i9 M''i'en xix hundred and te,
,s<'s'ld iiye hundred and oighty.tw,
4 ne saoisal stoek of the Kew,
'si sg2s Gorpaay of ,he aucye.
TN Il " d 1885, ,o5s.
- 'ssea 1;s sas4ss .1wo mare,
- ss'ssssss-es ,sss.ssss-
ee'fis1sd On paoe eis