The sun., 1919-03-21
MORE AID TO LINES
REFUSED BY BANKS
Railways Could Not Borrow
without Assurances of
Higher Fares.
END FORESEEN BY SHONTS
Officers Conferred Two Days
with Financiers to Prevent
Receivership.
END FOREsEEN BY SHONTs

Announcement that Judge Mayer had
appointed a receiver for the New York
Railways Company came after two days
Of conferences between officials OF the
company and bankers, and followed
closely upon hurriedly called special
meeting of the directors. II was ru-
mored for hours in Wall Street that the
reoeivsrship was close, although the gem
erai opinion appeared TO be that 1t would
include both New York Railways and
IntsrborouHh Consolidated. The weak
nes Of the traction shares throughout
the day reflected the general opinion in
the street a. to the imminence of receiv-
ership proceedings.
For two days the chise officers OF tho
company had been in almost continuous
conference with bankers endeavoring to
evolve some method by which the receiv-
srship might be averted. No loophole OF
escape was seen, however, In view Of the
situation with respect to higher fares.
Theodore P. Shonts, in an interview
after the announcement of the appoint
n,ent OF Q receiver, went over the fight
watch the traction officials Of New York
have been making for the last two years
for higher fares. He referred to the
first pamphlet which the Interborough
Rapid Transit Company had caused to
be issued on this subject. q pamphlet en-
titled why q Charge for Transfers Is
Justified" That, he said, was published
early in 1917 and marked the beginning
Of a campaign to educate the public TO
the necessity of higher fares and trans
fer charges
shonts's Campaign OF Education.
from that time TO the present" Mr..
shonts said. I'VE have been trying to
educate the public and the public au-
thorities in regard to the changing con-
ditions over which We had no control
and as a result of which all electric
traction lines must soon reach a point
where trouble would follow unless some
provision were made for an increase in
revenue. In the summer Of 1913 the
situation became 80 critical that we
doubted that we would be able to pass
safely by October /. We did manage
to get through that period. however, but
again on January l the situation was
Just as bad. Nature was kind to us,
however, and sent US a mild winter, 30
that with a slightly increased revenue
during the winter we were not forced to
meet the heavy costs usually incident to
the winter season.
'And so the situation has been. All
the time we have been hoping for relief
or for q promise of relief upon which
we could go before bankers and get ade-
suats funds. If the bill had passed in
Albany (the Carson-Martin bill) or II
the Board OF Estimate had taken a dif-
1srent attitude think the banks would
have helped US. But when January was
ea1. 900 worse than December. with the
latter the worst month in our history.
the situation began TO look, pretty hope
less
I'VE lived on through February and
when our creditors began to press us
and to demand payment and ask for
statements Of our cash position the In
svitable happened. These people came
along and filed their bills and served
them on US to-day.
when It was put up to us a hur-
ried meeting of the board Of directors
was called. I read TO the board our
financial condition and It was the judg-
ment Of the directors that there was
nothing TO do but 20 acQuiesce in the
petition.
Judge Mayer has appointed Mr..
Hedges our receiver and We are going
20 do all that we can to help him I'M
tangle the situation as much as possible"
Figures on Eight Cent Fare.
Mr.. shonts was asked how much. in
his opinion, would have been necessary
for the company TO charge for fare to
avert tho receivership. In reply he
oaid:
1--WE figured We ought to have an
eight cent fare for the marlborough and
an eight cent fare and three cent trans
fer charge for the surface lines. We
figured that seven cents would make US
whole, that the eighth cent would make
q return on the citys investment. While
we have q nominal fare Of Ave cents on
the surface lines, we issue SO many
transfers that the average fare for pas
sengere carried is now down to less than
three and one-half cents--3.42 cents to
be exact"