The evening world., 1920-03-03
HINTSL. R. 7. VALUE
IS S4OO,OOO,OOO
IF SOLD TO CITY
First Figures Given by Hedley
at Traction lnquiry-No
Crash in July.

Z
terborough-the same company said
to be threatened with Bankruptcy be-
cause 1t can't charge more than
nve-cent fare-indicated to-day to
the Board OF Estimate at the traction
inquiry that the Interborough might
sell out 10 the City for S4OO 600, ,OOO
This is the first time that a Sigure
has been mentioned by the Traction
Company.
General conditions in the subway
and the elevated lines were being dis
cussed when Mr.. Hedley gave
tentative estimate OF what the Inter
borough is worth
For the sack of argument" said
Mr.. Hedley. IF you can produce
t4OO,OOOOOO on the first OF next month
and we would sell it all to you, whore
are you going to get the S4OO, 900, OOO?"
Aren't you suggesting something
i1npracticable7" asked Comptroller
Craig.
Il am not suggesting anything that
is impracticable," replied Mr.. Hedley.
because l know every step of the
way that would have to be travelled.
and know how every step could be
taken"
The only question" said Comp
troller Craig, "is whether you want
to hold out for something you never
can realize and wreck your own
property as YOU go along. Instead OF
talking Of the four hundred millions
go ont and get down to earth and
analyze these equities and see what !
they are. and come back here with
"a proposition"
Il can do It right here with YOU.
and see II We cannot arrive at some
basis upon which we could have
these contracts changed and put the
company in shape so that II will have
money enough to carry out all the
obligations and render the service
that is satisfactory TO The public.
Your $400,O00,O0O proposition is
rejected so tar as am concerned" |
said Comptroller Craig.
Mr.. Hedley admitted that the Inter
borough will not crash into financial |
ruin on July next if 1t does not get |
an scent fare, but that it might be |
able to struggle along for quite a |
While. July was the time set for |
the inevitable collapse" He de- |
clarcd the best way to improve condi-
tions in the subway was for all per-
sons concerned to get together and |
work constructive1y. He didn't think |
the Interborough could raise the
money Just now, but could, probably,
If it's credit was restored. He did not |
agree with the Comptroller that moth
ing less than a miracle would permit |
the company to meet all it's obliEa- |
tions outside the subways.
Personally" added Mr.. Hedley 81 |
think we will be able to go beyond |
July 5 and pay our debts" He denied |
that he predicted disaster for the In
terborough by July s.
Mr.. Hedley declared that in con- |
sideration of the city's investment of |
~ 100000 and the Interborough's |
agreement to fix the fare at five |
cents and TO guarantee adequate, |
comfortable and rapid service" the
company was doing it's best with the |
facilities on hand. He asserted that |
he wouldn't consider the facilities |
proper until the city had completed |
the subway system and blamed tho |
city for the existing shortcomings.
James l. Quackenbush, attorney
for the Interhorough read into the
record sums paid to j. P. Morgan G. |
Co. and 20 August Belmont & Co. |
in connection with dual subway ne
gotiations. From 1911 to 1918 J. P.
Morgan & Co. received $500, 900, which |
was spent in connection with a $1O5,-
900, 900 loan for elevated and subway |
extensions.
why should ]. p. Morgan be paid |
twice for the same service?" asked |
Acting Mayor La Guardia.
I'm the words OF Senator Thomp
son." replied Mr.. Quackenbush. tho
InterbOrough paid j. p Morgan & CO. |
s. 900 for being ready to financially
assist it, and S25O.OOO for getting
ready to be ready"
Other statements showed that the
Interborough paid August Belmon,
Il Co, as financia! managers. from
1906 to 1918, $25O,44O,i5' for commis-
sions on the sale OF securities, from
1909 TO 1905, $862 500, and tor service
Of Mr.. Belmont as President am
Chairman OF the Board of Directors
from Dec. 81, 1903, to Dec. 81, 1915.
1925, 900, and that the Rapid Transit