The sun., 1919-04-20
STEP TAKEN TO
DISSOLVE CITY'S
SURFACELINES
Court Asked to Sever 9th
and 9th Ave. Companies
From Lessee.
PLEA BY STOCKHOLDERS
If Granted 1t Would Mean
Abrogation of Free Trans
fer Privilege.
Plea BY STOCKHOLDERS

The hope that Job Hedges as re-
ceiver would be left in unmolested pos
session Of the complete system OF the
New York Railways, and that the dis
organization that made surface car
travel so trying in the receivership Of
the Metropolitan Street Railway Com
pany. would be avoided was hit hard
blow yesterday. Petitions were filed
for the owners Of the Eighth and
Ninth Avenue Railroad companies in
the United States District Court asking
that the lines of these companies be
severed from the system.
The petition was filed in behalf
of the stockholders of the two subsid-
larry lines. II they are granted they
are likely to be followed by similar
action on the part of the owners OF the
other lines that are parts of the New
York Railways Company through
leases that bind the parent company
to pay the lessons a specific income.
II the system Is disintegrated, trans
fers will be eliminated at a hundred
or more intersecting points. The Eighth
avenue line cars run from South Ferry
to the Polo Grounds and the Ninth ave-
nue. cars run from Desbrosses street to
1osth street. Transfers are given on
cars at all the intersecting points
to the Forty-second street line OF the
Third Avenue Railroad Company and at
some Fifty-ninth street intersections.
Compensation for Leases.
| The New York Railways Company
inherits its leases OF these subsidiaries
from the Metropolitan Street Railway
Company. It is obligated to pay the
Ninth avenue company $4,000 year,
the equivalent OF per cent. on the
100000 OF capital stock OF the sub
pany is obligated to pay the Eighth
avenue line s215.000 year and all
taxes The Eighth avenue line has a
capitalization of 100000
| No part OF the stock OF either COM
pany is controlled by the New York
Railways Company. The Eighth avenue
line was built by the Law family forty
six years ago and its stock is still in
the hands OF that family.
The petitions were presented to Judge
julius VI. Myer. who is in charge of
all receiverships of traction lines. He
set tomorrow. at 80 o'clock, as the
date for argument on the petitions.
| In ;t ;. ,Aa
New York Railways Company Is in the
hands of receiver. that the difficulties
OF operating traction companies have
been multiplied by increasing costs OF
operation and the inability to secure re-
lief through increasing fares. The
court is asked to order the receiver "a
return the property of the petitioners.
Burr's Letter 10 whitney.
As soon as he heard OF the petitions
William p. Burr, Corporation Counsel
wrote a letter to Travis II. Whitney
acting chairman OF the Public Service
Commission. iasking him to take such
steps as may be necessary to protect
existing transfer privileges. The letter
OF the Corporation Counsel follows:
the Eighth Avenue Railroad Company
and the Ninth Avenue Railroad Com
pany have filed separate petitions in the
United States District Court in the pend
ing suit Of the American Brake Shoe
and Foundry Company against the New
} York Railways Company.
Each of these petitions contains the
prayer that the court direct the receiver
of the New York Railways Company to
t,.1A lac 90
said roadroads, rights privileges, fran
chlses and other properties in said in.
denture or agreement described, and tc
return, surrender and deliver to your
petitioner possession OF the same"
consistently with the city's conten.
ton before the United States Distric,
Court and before your commission dis.
continuance OF operation as thus pray we'd
for-thus involving the abrogation Of eN.
listing compulsory free transfer priv.
: ieges in favor Of the public--canno,
lawfully he effected by order of the
United States District Court to It's re.
! ceiver.
| The provisions of the Public Service
Commissions law provide that cxcep,
and until your commission otherwise
, prescribes either by making an aEpro.
! pirate joint route and rate order or by
the exercise of some other lawful power
vested in It by the statute, the continued
joint operation Of these railroads now
held under lease, including the free
transfer privileges must be continued b,
the receiver.
/ my purpose in writing this letter &c
: you Is TO request that in case either IN,
receiver OF tho New York Railway,
Company or either OF the lessor com
panies apply TO the commission for It,
order prescribing change Inv the exist
ing situation. That you will please no
r tify me and give me the opportunity tc
be heard on behalf OF the city in opposi
= Contiaucd on StJteenth Pane