New-York tribune., 1920-03-04
Hctlley Offers
City I.R.T. for
500, 0,OOO
Names Figure as Basis for
Negotiations, but Comp.
troller Declares Condi-
tiOns Are Unsatisfactory
8.Cent Fare Not Essential
Company Can Avoid Bank.
ruptcy on Present Rate
According to President

According to President
With Frank Hedley, president Of the
Interboroueh Rapid Transit Company,
in ! more optimistic mood in regard to
the immediate financial needs Of his
company, and Comptroller Charles l..
Craig pressing him for concrete
proposition to sell tho Interborough
interests to the city, the traction in
duiry before the Board Of Estimate
yesterday came nearer to Q real dis
cussion Of terms for . settlement Of
the traction muddle, in so far as the
Interbotough is concerned. than at any
previous hearing.
Mr.. Hedley finally set q price, in
GLIDING the Interborough subway and
elevated lines, of 100000 900, whicl,
vas not altogether satisfactory to Mr.
Craig.
Corporation Counsel Burr was about
to suspend the investigation Of the In
terboroush's affairs and had dismissed
Mr.. Hedley from the witness stand
when Mr.. Craig sought to get definite
proposal from the witness in reply to
his own proposition that the city take
and determine for itself the question
Of fares.
City Would Take Up Obligations
Would you consider a negotiation
that would relieve you Of all your OBJ
legations under your contract and let
you out entirely?" the Comptroller
said.
II would, personally, and if propo-
sision was made to relieve US of our
contract entirely on q basis that
thought was satisfactory I would, rec
ommend it to the board,' Mr.. Hedley
replied.
Would you take it upon the present
condition of your credit as rated in the
open market, for example?" asked Mr..
Craig.
Why. we could, but if you reflect our
credit on the basis of how much money
we could go out and borrow, I would
say no."
~ an, taking it just the way your
credit is appraised in the open market"
said the Comptroller. "You have OBJ
legations out, which you have got to
pay principal and interest on, and peo-
pie are buying and selling them. That
Is fair reflection of how good your
cTeoie is. And you say yourself that
the holders of those securities are in
danger os losing whatever they have
got IN. Now, it seems to me You would
do very humane thing if you would
save them what they have got in and
tart q negotiation here to let you out
OF this contract entirely"
Believes Securities, Are Depressed
"Oh. ! dont think So" said Mr.. He'd
ley. II think that the securities have
been very unduly depressed and they
are selling for lower figure now than
they ought to sell for"
Are you willing to negotiate to let
The security holders out on some fair
appraisal OF The money they have in
the property, and let the Interborough
o1: Of its contract and the city into the
possession OF the property, and per-
nit the city to deal with the fares then
as they find they should be dealt with 2"
asked Mr.. Craig.
II am perfectly willing to sit down
and see ii we can negotiate an entirely
neW trade with you on any basis that
Iou may have 20 suggest" replied Mr..
Hedc,,.
= am just willing to negotiate one
1 arads With you, said the Comptroller,
and that is to let you out entirely.
would not make new contract with
the lnterhorough, if ! had Anything to
say about it. on the company's perform
ances, if it was the last thing ever do !"
Mr.. Hedley said he was sorry to hear
the Comptroller say that, but that he
was willing to negotiate and submit
counter propositions.
NO, won't even find out what your
proposition is" retorted Mr.. Craig ~
via submit to you the only PROPOSE
tion: That YOU put valuation on the
money that is now in the property
Nhlcn was not supplied by the City Of
.%2" York, and the surrender of your
contract, and leave the question OF
aTes to the City of New York when
nat surrender takes place. do not
. ask you to take it away and con-
sider IT.
Stockholders Approval Necessary
II do not have to take it very far"
laid Mr.. Hedley. III have got it over
"ere. and that is lar enough. will
consider any proposition you make, but
of course you understand that any
proposition you do make l would have
20 submit to the board of directors,
and the board in turn to the stockhold-
crs, and you would run into trouble
also with your bondholders there"
Borough President Curran, Of Man
haitian, interrupted to ask the witness
Has!y IT he would make a proposal TO
-aS DoArO OF Estimate Tor the Inter
borough. Mr.. Hedley said that he
.earcd IL was impossible to make
proposal to the board, as he felt that
;. would be thrown out. Mr.. Curran
informed the witness that Comptroller
craig WAS not the entire board
M. Craig continued to press his
proposition. declaring that he referred
to both the subway and elevated lines.
We'll" Mr. Hedley replied after
soIrs Thought. "supposing, Just for the
sak" Of argument, we will say, that
i you can produce 100000 900 on the
arst Of next. month we would sell it
all TO you, where are you going to get
your 400,o00,00O?"
The witness questioned if the Comp
,!oller was not suggesting something
that was irnpracticable. Mr.. Craig de-
elarsd that he was not suggesting any
thing ifapracticabls at ali, because he
Snew every step Of the way that would
have to be travelled and how every
step could be taken. The only ques-
tion was, he added, whether Mr.. He'd
'sy wanted to hold out for something
80 ko