The sun., 1919-06-26
Federal Court Orders Them
Returned to Their Stock
holders.
FREE TRANSFERS END
y. Y. Railways Company's
Inability to Pay Rentals
Causes Drastic Action.
RECEIvERSHIP is CLOSED
Lines Will Be Operated as
Usual, but Financed by
Owners Hereafter.
RECEIVERSHIP is CLOSED

Julius NJ. Mayer, Federal Judge di-
recting the receivership of the New
York Railways Company, ruled yester-
day that the Eighth and Ninth avenue
surface lines shall be severed from the
green car system. They will be re-
turned to their stockholders. released
from the receivership and operated as
independent traction companies.
The ruling Of the court means the
elimination of free transfers at points
where the Eighth and Ninth avenue
lines intersect other lines. Transfers
are now issued on the Eighth avenue
line at the following functions:
Fourteenth street. Twenty third
street. Thirty-fourth street. Fifty
ninth street, Eighty-sixth street. 116th
street and 145th street.
In addition transfers are given for
the Chambers Madison street line to
the Williamsburg Bridge, the Spring
Delancey street line, ths Avenue C line
and the so-called Eighth street line. all
OF which cross lower New York by
irregular routes.
Hedges Losea Fight.
On Ninth avenue transfers are given
as on the Eighth avenue line, at juno
ton points south Of Fifty-ninth street
The route of the Ninth avenue cars Is
from 1O6th street to Fulton street. The
Eighth avenue cars run from South
Ferry to the Polo Grounds.
The decision of Judge Mayer, which
vas given in answer to the petition OF
Morgan ]. O'Brien and Michel Kirtland.
counsel for the stockholders, marks the
end OF struggle since Job E. Hedges
vas appointed receiver four months ago
10 keep the system intact. In announc-
Ing his determination, Judge Mayer said
that except FOR what appeared to be the
sympathetic attitude of Lewis Nixon.
new Public Service Commissioners, he
had discovered no official inclination to
aid in solving the problem caused by
the traction company's imperative need
'or new revenue through increased fares
and charges for transfera He added
that the situation had reached point
where he could not deny the demand of
the owners OF the Eighth and Ninth
avenue lines for their property In view
OF the inability of the New York Rail
ways Company to pay the rentsls.
The Eighth and Ninth avenue lines
are among twelve that are parts OF the
green car system by virtue Of leases
that bind the lessee to pay specific an
nual rental. They are among five such
lines upon which the New York Rail-
ways Company has no claim whatever
in the shape Of ownership of stock or
bonds
The two lines were brought into the
syEem during tho organization OF the
Metropolitan Street Railway Company
by the late William c. Whitney. Own
ership OF both is largely held by the
Tate and Hays families, descendants OF
ne builders. Joseph Tate and William
Fl. Hays, OF Tate & Hays. stock brokers
president, respectively.
The lessee Is bound to pay tho Eighth
avenue company S215.000 a year and the
Ninth avenue company $4,000 year.
The rental has not been paid for eight
months In both cases the lessee as
sumed tax charges.
The other lines held by the New York
Railways under leases which are not
'empered by substantial stock holdings
- the lessee are those OF the Sixth Ave-
aue Railroad Company. the christopher
and Tenth Street Railroad Company and
he New York and Harlem Railroad
Company Severance petitions on the
part Of the stockholders in these COM
9anies are expected.
Three Cent Transfers Planned.
Mr.. OBrien said that II IL planned by
the owners to make an arrangement
with the New York Railways Company
providing for transfers at interesting
points on payment OF . cents He said
hat ar interchangeable arrangement on
this basis would insure operation at q
proht
In the twenty-five years In which the
two lines have been subsidiaries Of the
New York Railways Company they have
.ost their physical Identity. Neither line
touses In travelling to South Ferry
'ars of the Eighth avenue line avail
themselves OF franchises that are the
property OF the New York Railwayt
Company.
For the present the lines will be oper'
f,sd as in the past without interruption
o. service or change In routing. The
New York Railways Company will pro
vide the service. but the revenue from
fares will go TO the owners. who will
finance the lines as independent oper
stors
Judge Mayer made his order contin'
gent upon his approval OF plan oi
operation to be submitted by Mr.. OBrier