The sun., 1919-06-26
TWO LINES CUT FROM
GREEN CAR SYSTEM
|. .ContipYsd from First PAGE.

hs,-
/ their plan ready.
In his argument Mr.. o Brten said ~,
dividends will be due July 1 and cana,
be paid unless the lessee pays the rant,
He said that the charge had been maj.
repeatedly that the rental for -.
Eighth avenue line gave return y, :,
per cent. to its stockholders. He als
this percentage was based on the c,,,
| talization of the company at 81 oOo nm
and ignored the fact that at the t,ns =,
the consolidation the COMPANY ,ur,.i
over, property worth $4,000, 900 10 IN.
lessee
William P. Burr, Corporation coup,.
objected to the proposed severanc. =,
the ground that dlsintegration O, IN.
system would operate against the pphl,,
good.
Mr.. o'Brien asked If the Corporation
Counsel would Join with him in ask,r,
the court to order the receiver 10 n,,.
the rentals. Mr.. Burr was silent NJ,
~ ~ 'Sh Soiu 'hat tue Dondnolders had
announced their intention OF suInv -
foreclose on their mortgage, and ,bs
lessons Of leased lines were justified IN
seeking to dispossess in the face OF In
ability to pay the rentals.
Col. Henry L. Stimson, counsel ,o-
the receiver, took no side at the hearing
he presented the situation. He said .ha,
the Eighth avenue was losing $4,000
N INF
surplus last year. These figures he ey.
planned take into account only operating
expenses and taxes and make no allow
ance for reserve or depreciation.
Recent Earnings Discourasins.
Speaking OF the system as a whole
Col. Stimson said that the important
FACTORS were a discouraging statement
OF earnings during the last nine months
and letter, dated June is, from Pub.
lie Service Commissioner Nixon. Tina
Commissioner said that the statistics
presented by the New York RAILWAYS
Company In support OF request to BE-
permitted to raise fares nearly two
years ago had become out OF date and
asked that new figures be submitted Col
Stimson said he was to meet the Com.
mission to-day and give an outline o,
the situation. after which, he had rea.
Bon to believe. a series OF hearlnTs
would be ordered. He said that II re-.
lief is granted by means OF transfers
the additional revenue will run from
100000 to 100000. depending whether
the rate is two or three cents.
Explaining the position OF the bond.
holders. H. P. Rowland said they asked
the court to keep the property intact but
not to the extent OF retaining It's labn.
ties. The Eighth avenue line is a heavy
liability, he said.
Mr.. Burr said that even with sew.
erance 1t would be impossible to charge
for transfers without permission Of the
Public Service Commission Judge
Mayer said that that was a detail to
be arranged as part of 'he process. The
court said he would base his action zen.
orally on the Constitutional provision
against the confiscation Of property He
said that in Justice to the bondholders
whose interest is in default. the rentals
could not be paid, thus leaving the re-.
ceiver dangerously slight margin for
operation. The main thing to be avoided,
he said. is an issue of receivers certh-
Gates. I'VE must have more action and
less talk" said the court
The court said that Mr.. Nixon's letter
indicated the Commissioner earnes, de-
sire TO be helpful at once, but nat the
Impression should not exist tia: Il he
does act in the field IN which he has
jurisdiction 1t will solve all the insolvent
traction companys problems
No Action on Bridge Petition.
Judge Mayer reserved decision on a
petition of receiver asking for Instruc.
lions as to whether he should revoke tie
contract with the city through which
Cal Sc OF the Fourteenth street. Seventh
avenue and other lines are opcratei
across the Williamsburg bridge Under
tie contract, the compNny II limited 70
five cent fare. Unler similar con-
tract, B. r T. cars cpme 70 the Nal.
haitian side Of the brigo.
Col. Stlmson said the bridge Journey
added a mile and a half TO the long
hauls OF the cars which cross 3, It's
discont!nuance would bring an immediate
saving of $4,000. he estimated. He
said that the proposed move would hurt
working people. who could least afford
the extra fare and that If the contrary
had 1t in its power to select the transfer
enue 1t would not touch the present ar.
rangement.
Corporation Counsel Burr said that
100000 people benefit each year by
the arrangement. He said that the pet.
ton had been made without suH.IeH;
time being given for investigator and
negotiation.
Judge Mayer adjourned the matter 70
-. # a
city. the Public Service Corporation ard
the New York Railways Company maze
an investigation as n preliminary % A
possible new contract. Both the New
York and Brooklyn traction COMPARES
refused to accept a renewed six months
permit on June ! and service is Aens
given pending instructions from l'
court.
A petition OF the receiver for i0s.rl''
tons in relation TO the payment q ln'
terest on the per cent. first mortgage
bonds Of the New York Railways COM
pany, due July l. gave occasion for
long discussion OF the financial condition
OF the company. The semi-annus. install
ment aggregates s36l,225.
Bronson Winthrop OF counsel for re
receiver presented summary g'r the
nine months ended March 81 which
showed a deficit OF Sl,O5oSr2 before
the interest claim OF the frs. mortgage
bondholders is reached. lie SAID tha'
these figures were more favorable 'h7'
they seemed as a basis for fg:arc +a..
culations because the period .0..Hi7'
two months before large increases "
the wage scales We're intr1l, gt A'
fall. He asked that the court tS'rd'
to default on the interest
Col. Stimson said that TIE stem
failed to earn interest on t's uH'e.-
lying mortgages OF its own 'ues-7''
Including leased lines-hy moe NAN
$4,000 in the six months PIE Gang
March al IL this continues L. sac,