New-York tribune., 1919-09-08
Manhattan and BROOKLYN
Companies in Hands
of Receivers Must Have
Help, Says Judge Mayer
Running Behind
100000 a Month
Total Deficit for Twelve
Months VIII Be $2,-
$4,000, Experts Say

The financial condition Of the trans
portaton lines of the city makes at
least temporary relief imperative, ac-
cordlng to Judge Julius NJ Mayer. of
the Federal District Court. Judge
Mayer points out in memorandum
that the roads now being run by re-
ceivers appointed by him are failing
by 100000 month to earn their
operating expenses, which, he says, in
dicates a grave and immediate crisis.
Accompanying Judge Mayors memo
randum is q communication from Stone
e. Webster, Of 120 Broadway, employed
by the court to ascertain the financial
condition of the traction lines. The
letter reveals that the total operating
deficit of the New York Railways Com
pany and the Brooklyn Rapid Transit
Company for twelve months will
amount to $2,391 900 According to the
report Of the experts, the B. R. T. def
ict will be $1,286,OO0 for the period
stated and the deficit of the New York
ANYWAY CV'HDdiy Dl l,lIo,UUO IL Is
pointed out that the present cost Of
materials and supplies has increased so
that it will be some years before the
companies can earn operating expenses
and taxes, if ever.
Financial Difficulties Grow
In his memorandum, Judge Mayer
says:
"Messrs. Stone & Webster, acknowl-
edged experts Of high standing, we're
employed some months ago by direc-
tion of the court to undertake, among
other things, an investigation of the
financial condition of the properties
affected by the receiverships pending
in this court. This independent cx-
pert inquiry is now nearing completion,
and the court is awaiting the final re-
port of Messrs. Stone & Webster in
respect of essential features of the
transportation problems, including
questions relating not only to financial
conditions, but also to operation, prop
erty valuations and other IMPORTANT
subjects.
"Since this inquiry was begun the
financial difficulties Of the roads have
grown greater instead of less. The re-
cent increase in wage cost made neces-
sary the request by the court for i'm
mediate information, to which Messrs.
Stone & Webster have answered, as
appears by their letter, Il copy of which
is annexed.
Losing 100000 a Month
"This report, especially the statement
that the surface lines in the charge of
the courts receivers are failing bv
about 100000 a month to earn their
actual operating expenses, indicates a
grave and immediate crisis. 1t is i'm
possible to forecast the serious results
which lack of financial aid may bring
about, affecting most vitality the well
fare of the people of the City of New
York.
"Manfestly lines cannot long be op-
Grated at an actual loss. The prob
lens involved press for calm and SER
ious consideration and an earnest and
united effort toward prompt solution.
That some means must be devised for
at least temporary relief seems plain
and urgent.
"That plans should be worked out
for determining the permanent status
of the transportation companies and
their legal and financial relations to
the state and municipal governments
seems an obvious duty, the perform
ance of which should be promptly un-
dertaken.
"The legal. financial and government
tai questions involved are numerous
and intricate, and, naturally, there are
differing views as to the wise and
proper policies to be adopted
Disaster Is Imminent
because the problems presented arc
so grave and the emergency is so press.
ing, and disaster so imminent, ever,
good citizen must feel that the effort
to solve these problems should be un
dertaken promptly and as nearly free
from controversy, political or other.
wise, as possible.
"1n order that the gravity of the
situation may be generally made knowr
and that some appropriate action may
be taken as speedily as is consistent
with full information, the receivers are
instructed to send copy of the sum
mary to Messrs. Stone & Webster, ane
OF this memorandum to the state anc
municipal authorities, and to civic ane
taxpayers associations of the create
city. At the same time the receiver.
will make it clear that every facilit,
will be afforded, both to public officials
and citizens associations, to satisf,
themselves in respect Of the actua
financial and other conditions existin,
in relation to the corporations now il
their official charge.
"Meanwhile, it is earnestly hope
that all who have official duties to per
form, whether by state, municipal O
Legislative action, will reserve thei
judgment and conclusions on tn
fundamental questions involved unit
they shall have had adequate oppor
tunity to satisfy themselves of tn
facts and of the real conditions exist
ing. Such course will enable all con
cerned to arrive at a just determine
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