New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-31
Judge Mayer Issues Show
Cause Order i'm 2 Suits
for Receiver; Directors
Silent After Conference
Hardness FayOrs
Unified System
Would Have City Own All
Lines; Hirshield Will
Start Inquiry at Once

!
Expectation that the directors of the
lnterborough Rapid Transit COMPANY
would make some public announcement
of its position and contemplated ac-
ton IN the recevership suits BROUGHT
by the American Brake Shoe and Foun-
dry Company and the Continental Sc
curltles Company failed Of fultillment
yesterday, although the weekly meeting
OF the board was held at 1856 Broadway
tor the purpose of outlining what steps
the company would take. After the
meeting officials of the I. r. 7. said no
statement would be issued until after
the hearing in the United States Dis
trlct Court tomorrow, when the COM
pany has been ordered to show cause
why a receiver should not be appointed.
The receivershp suits had the effect
yesterday of forcing additional de-
cllnes in the stocks of the INTERIOR
ough Consolidated, the holding com
pany, now in receivers hands. Other
Developments We're the announcement
oy David Hirshfeld, Commissioner of
Accounts, that he would immediately
institute searching inquiry into the
motives behlnd the suits, and a denial
by George McAneny, chairman of the
iransl' Commission, that a "preim;-
nary report" had been or would he
made to Governor Miller as a conse-
quence of the new litigation.
Inc DENIAL was in line with Mr.. Nc
A.neny's previous assertion that the
iltlgaton did not concern the work of
the commission in seeking to formu-
late comprehensive plan for the
alienation of the city's transit troubles.
Harkness Gives Clews to Plan
Persons in close touch with traction
AFFAIRS were inclined to believe Iast
night that some light on what the new
plan Will recommend was shed in 4
paper on Transit Tendencies in New,
York City, read yesterday before the
American Bar Association at Cincin-
matt by lie Roy T. Hardness, member
OF the Transit Commission. Coming
from one in Mr. Harkness's position
ms statements were considered signiti-
cant. NO other intimation has yet been
made OF recommendations that might
possibly be incorporated in the com
missions scheme
In his paper Mr.. Hardness advocated
uniacation of all lnes-subwav, "Ln
and surface-m municipal ownership and
a financial arrangement assuring a
fund for construction Of new lines.
Federal Judge Julius NJ Mayer. who
appointed the receiver for the Brook
lyn Rapid Transit Company. said yes
terday that he had signed ex parte
orders to show cause in the receiver
ship actions brought by the conn plain
ing corporation, and that argument was
set TOR l0:3O a. m. tomorrow.
In & statement issued last night
Commissioner Hirshfield declared ne
was satisfied that the action for a
receiver had for at least one OF its
objects the circumventon of Mavor
Hylan's opposition to an increased fare
He said:
THE American Brake and Shoe Foun-
dry Company, which brought this
action against the Interborough Com
pany in the United States District
Court, Manhattan. is the same company
which brought the action against the
New York Railways Company. in which
Job Hedges was appointed receiver by
Judge Mayer. and is the company
which brought an action against the
BROOKLYN Rapid Transit Company and
mad Lindley NJ. Garrison appointed re-
ceiver by Judge Mayer. The present
action was brought last Saturday b.
lore United States Judge Manton and,
according to press reports to-day. the
second proceeding was commenced yes
terday by the Continental Securities
Company of New Jersey against the
same company for a receiver before
Judge Mayer, before whom the New
York Railways and the B. R T. cases
had been brought"
Involves Company in Strike
Commissioner Hirshted's announce
ment that the reasons behind the suits
would be thoroughly investigated was
made following the examination by
him Of witness who. the Commits
sioncr said. had made "startling dis
closures concerning activities of Inter
torough officials IN connection with the
strike OF 1919"
the object Of these applications for
receiver is to follow the proceedings
that were followed by Receivers Gar
rison and Hedges by abrogatinc the
contract with the L road thus to be
able to do away with transfers and in
that way force the public who have to
use the u to pay two fares,' Mr..
Hlrsht'eld added. at is apparent that
the strike OF 1919 was ordered by the
lnterborough officers for the purpose
Of forcing Mayor Hylan to allow an
increased fare
The Public Service Commission. Tho
Commissioners said. would not dare to
grant an increased fare before election.
nut 1t is evident the T. R T. expects