New-York tribune., 1919-01-08
$4,000, 600 Needed to
Make &. X. T. Soluent,
Garrison Estimate,

Lindley NJ. Garrison, receiver for the
b. r. t., yesterday estimated that ap-
proXimately S9,000O0O will be needed
to restore the Brooklyn Rapid Transit
Company to a solvent condition. This
would cover adjustments of the claims
resulting from the Malbone Street tun-
mel wreck, the construction and equip
ment of new lines and the liquidation
of the company's outstanding obliga-
tlons to stockholders and creditors
Mr. Garrison indicated it might be
more or less, since the figures were
based on his knowledge of the transit
company's financial condition following
a partial digest of the material submit
ted to him.
"The argument on a motion TO make
he reccivcrship permanent will take
place on January IS, and at that time
| shall probably have a statement to
present TO the court asking for authori-
zatlon to issue receivers certificates to
the required amount" Mr. Garrison
said. The hearing Will be held before
Judge Mayer in the Federal court in
Manhattan.
System Absolutely Broke"
Mr.. Garrison said that the Z. r. T.
was absolutely "broke."
We can continue operating the lines
and can pay the salaries of the en-
ploycs, but we have to do it to the
neglect of the stockholders" he said.
1--WE have not even the money to paw
the interest Oh the underlying mort
cages"
OF the $9OOO,00O mentioned. upward
of $3.500,000 will De needed for the
construction of additional power gen
Grating units; and about $45O0,OOO
VIII be required TO purchase the new
type of cars that will be used on all
the completed extension lines.
The entire operation of the subway
and elevated lines of the B. r. r.. the
salaries and financial arrangements
Will be vested in Mr.. Garrison as
permanent receiver When asked if
the salaries of some officials of the
line were not rather high, Mr.. Garri-
son replied probably not to the men
who arc getting them," aud he ventured
no information as to the curtalment
OF those presumably large salaries
after January Is.
Would Pay Wreck Claims
The issuanccof S9,O0G,OO0 in receivers
certificates would have to be accom-
ptlshed by a court order giving the Ger
tlticatcs prior claim to outstanding
paper lhat would be the only way we
could dispose of them,' Mr.. Garrison
said, and he had little doubt. of the
ultimate permission of the court.
Joseph p. Griffin. chairman of the
Brighton Beach Victims and Passcn-
gers Protective Association, WAS 4
caller at Mr.. Garrison's office during
the day. Mr.. Garrison explained that
the settlement of AL Just claims is
contemplated by the rccoivcrship. and
he said that the relations between Mr..
Grlifln's association and the transit
company were "not antagonistic." Mr..
Griffin is the principal of a Brooklyn
public school. Many members of the
ASSOCIATION are interested solely in bet
ter transit facilities for BROOKLYN,
and not all are pressing claims. which
are beng taken care of by subdivision
called the complaint and grievance dc
partmcnt.
Thirty Witnesses Examined
Examination of thirty witnesses was
made by the November grand Jury in
the library Of the County Court with
District Attorney Harry Z. Lewis and
Assistant District Attorney Warbasse.
they were tralnmasters and dispatch
ers. Among them was John J. Egan, a
division superintendent. Others were
Hervey De Groot, assistant to Chief
Engineer W. S. Menden, now under in
dictment, and Robert johnson, signal
engineer. batch of time sheets was
submitted to the grand jury, which is
trying to learn the names of employees
and the, hours of duty prior to Novem-
yer |, when the wreck occurred.
The report current that the appoint
ment of receivershp was done to
force the issue of an increased fare on
the public was answered by Mr. Garri-
son: IL was put here by the court, and