New-York tribune., 1920-01-08
Application for Public Hear.
ing on Question of Raise
10 8 Cents. Filed With
s*seS-
sthe Board of Estimate
Quick Decision Urged
Suspension Imminent, 1t Is
Declared, Unless Imme-
aediate Relief Is Granted

We4AA sasO AsVSAW Va EbSt1AAtS yGSCGKQ4y
ky Job E. Hedges. receiver Of the New
York Railways Company; James r.
SheMeld, trustee Of the estate Of the
Peterborough Consolidated Corporation,
and tLindley NJ. Garrison, receiver OF
sh6 Brooklyn Rapid Transit Company
5ne same applications were filed with
lewis Nixon, Public Service Commits
3igner, and John H. Delaney, Transit
C0nstruction Commissioner.
sslmpending disaster to the city's
1@nsportation lines unless relief ia
gfanted was urged as q reason for
"a eArly hearing and = prompt decision
GaFrison declared that suspen-
q76G Of all the surface, elevated and
subway lines controlled by his COM
p4nyswas threatened.
sssglxs. Garrison asserted that the
eMfming condition OF the system,
SAken In conjunction with the small
smopnt Of cash which these companies
h4ye on hand, means that the date is
nor lar distant when 1t may be neces-
s3ry to suspend operation entirely, q
Sltuatlon which would be disastrous to
the interests Of the people Of Brook
lyn."
Action Possible Tomorrow.
Action by the Board Of Estimate may
pc taken at its regular meeting to-
morrow, it, by unanimous consent, the
rule for placing the hearing on the
eAteldar for future date is suspended.
va: La Guardia, who, as president of
The Board of Aldermen, has three votes
en- the board, declared yesterday that
m favored an early settlement Of the
tfection situation, but was determined
to biting out all the facts.
qm not entirely satisfied with fig
r.alo %ko
nesessary operating expenses of the
fAitways," Mr.. La Guardia said. Cali
Ee have are the figures prepared by
stone & Webster, the accountants,
4nd object to the conclusions they
have drawn. l want to draw my own
conclusions. and, for my part, in
tend to find out just what constitutes
necessary operating expense. Six
million people ride every day in New
would mean that the public would have
20 pay $18O,000 more day. 1t is q
question in which the public has
vital interest. Yet / do not believe in
more delay. I think it could be settled
in three weeks" ~
Raise Would Continue Until June 80
III asking for Immediate considera-
tion of plans for temporary relief"
the applicants request an increase to
eight cents, to continue until next
June 80, unless continued by proper
oAfeiil action"
HI. Hedges in his application re-
ferred to the suggestions for relief
made by Judge julius NJ. Mayer last
month. and says:
seKiie temporary plan, so far as it af-
fects the lines Of the New York Rail-
ways system, is in substance as fol-
lows:
s(aD A temporary increase in fare to
eight cents, to terminate on June 80,
1920, unless extended by proper official
action.
"(b) The lines to be operated as one
system, substantially as they were op-
Grated by the New York Railways Com
pany prior to the receivership, with no
extra charge for transfers.
fc) The receipts to be applied only
10 the payment of operating expenses,
taxes and interest on the underlying
bonds mentioned in the courts memo
rAndum, and necessary TO keep the sys-
Aest from distintegration.
"(d) The surplus beyond such pay
nSefits to be held subject to the joint
cider Of the court and the public off,
Gals for application to additions and
betterments, including equipment, and
upon accident claims incurred prior to
the sreceivership, or, if deemed prefer
able by the public officials, to be held
- suspense fund, the disposition of
which will be determined in the per-
manent plan.
"Relief Immediate Problem"
IT is not contemplated by this plan
fAtxzany Of the income shall be used in
the payment Of rentals or dividends to
stockholders or any interest upon any
Of the $48, ,670,777 of bonds issued under
the stfirst real estate and refund1ng
mortgage and the adjustment mort
gage, both of which are now in default
The underlying mortgages upon which
the interest will continue to be paid
under this plan are mortgages upon
N9xions original railroads embraced in
45ose00, or only a fraction of the con-
ceded value Of the physical and tan
naef property Of these railroads, To
1att 10 pay this interest would cause
4urt1er disintegration through fore.
cioxqre suits, and would make the res.
to1Gt1cn Of = universal free transfer
system impossible. The fimmediat.
lief
Deficit Of $s,s1o,33s in 1918.
Ne. Sheffield in his petition states
The increase in the cost of opera
ton Of the elevated and subway line.
has 50 sfected the earnings of the In
terborou9h Rapid Transit Compan,
that whereas in 1917 the combines
earnings Of the subway division ant
the Manhattan division left a surplus
shove all fixed charges Of $8,88b,359
ard in 1918, $4,662, ,758, the company in
3019 suffered deficit of $3.50, ,338, ane
the Estimated deficit for the year end
ing June 80, 1920, is much larger. /,
jgApparent that the earnings for th,
ysef ending June 30, 1920, will be in
Anf1eient to meet the interest ans
sinking fund obligations on the first
and refundinR bonds and three yea,
notes issued by the interborough Rapie
Tteusit Company, and that there viii
ri pp income applieable to the Man
habAn lease and none for the invest.
7sent Of the city in the subway prop.
eytils (Which Is estimated will aggre.
K4te $3.50, ,000, 900 exclusive Of interes,
and sinking fund during ccnstrucfion)
cthef than the hxsd rentals payable
ksfn.ant to the provisions OF Contract
Ne. q"
935. 900 for Tunnel Injury