The New York herald., 1921-02-09
GARRISON LISTS 10
NON-EARNING LINES
Judge Mayer Will Decide
Whether Traction Roads
Will Be Halted.
HEARING SET MONDAY
B. R. t. Receiver, Says Brook
lyn Transit Problem Must Be
Treated as a Whole.

Iindley NJ Garrison. receiver of the
Brooklyn Rapid Transit Company, the
New York Municipal Railway Corpora
ton and the New York Consolidated
Railway. filed report yesterday with
Judge julius M. Mayer Of the United
States District Court explaining the
financial condition Of these companies
and summarizing the results OF the re-
ceivership.
1t was announced recently that Mr..
Garrison was preparing a report asking
permission to discontinue the operation
of several lines. While his application
does not specifically request suspension,
it does mention fifteen lines that are
failing TO earn even their direct operat-
ing expenses, and asks that Judge Mayer
give such directions as he finds appro-
pirate.
A hearing will be held Monday in the
Federal Building on a motion for such
relief. All facts relating to the opera
ton of the B. r.. T. and other companies
will be gone into in detail.
Discontinuance of the lines not earn
ing operating expenses would affect the
following: Wilson avenue, Ralph-Rock-
away. Eighth avenue. Vanderbilt ave-
nue., West End avenue. Eighty-sixth
stree. Ocean avenue, Broadway, ia
maica avenue, Reid avenue. Broadway
Ferry shuttle. Metropolitan avenue. Utica
avenue, Franklin avenue and Smith
street.
Nassau Lines Discontinued.
The application shows that the Mas
sau receiver has suspended in whole or
in part the following lines: Ocean ave-
nue. Gin part), Rogers avenue, church
avenue, Seventh avenue, Park avenue,
Thirty ninth street-Coney Island Gin
part), and Hicks street.
The Suburban receiver has suspended
in whole or In part the Metropolitan
avenue line Gin part), Wyckoff avenue
line and Ralph avenue shuttle line.
Mr. Garrison points out that the prop
erty OF each Individual company in re-
ceivership must be separately admin
istered for the benefit OF each COM
pany's particular creditors. so that
neither the funds nor the property or
any one receivership can be used for
the benefit of any other receivership.
Mr.. Garrison says also:
ut seems too clear to require elab-
orate statement that the transportation
as a whole, and that 1t is impossible
to deal satisfactorily with it piecemeal.
Whatever is done in one direction in
evitably affects not only the particu-
lar situation in hand, but to a greater
or less extent the whole situation
while under existing conditions there
Is no centralized authority capable of
treating the situation as an entirety. and
while, of course, 1t Is not suggested
that this court, under existing condi-
tions, can deal as adequately with the
questions presented to 1t as 1t Gould II
there was such a centralized authority
capable of dealing with the situation as
a whole, II Is nevertheless important in
the opinion of the receiver, for the court
to consider the necessities of the sltua-
tion as a whole with a view Of meeting
1t as fully as existing law permits"
Unpaid Interest S11,652.35S.
The Brooklyn Rapid Transit Com
pany, the report says. has outstanding
mortgage indebtedness in default to the
extent OF S7S.255,0 900. with unpaid in
terest thereon to last December 81
amounting to $11,652,35S. The company
has Indebtedness to subsidiary COM
panies for borrowed money aggregating
s6,427,437, upon which interest is in de-
fault TO last December 81 to the amount
Of S64S,597. In addition 522 contract
claims ggregating S775.18l. all prior to
receivership, have been filed.
Since the receivership liens have been
created upon the property to secure re-
ceivers certificates in the aggregate
amount OF S5,000.000 The current la
bilities of the receivership December 81
1920, amounted to $2.09S,765.
The report shows that the New York
ha
$50. .000. 900 OF first mortgage bonds, all
in default, upon which interest is In de-
fault to last December 81 to the extent
of $500, 900. These bonds are guaran-
teed by the New York Consolidated
Railway Company, and the guarantee Is
secured by a general mortgage upon the
property of the Consolidated.
For the purpose OF carrying on con-
struction work, as required by contract,
the New York Municipal and the New
York Consolidated Jointly issued S13,-
00O, 900 of receivers certificates, which
were sold by 1t to the public. The report
shows that on November 80 the New
York Municipal Railway had expended
all but approximately s2,20o.000 OF the
proceeds of these certificates and had
outstanding obligations on contracts for
work In progress amounting to S7.752.-
500.
The New York Consolidated Railway
Company has mortgage Indebtedness
in default to the extent of S60,000,000
arising by virtue of it's guarantee OF the
principal and interest upon the municipal
bonds. In addition there are liens
against the property under certificates
OF indebtedness aggregating $14.654,7s4,
upon which the interest last December
81 was in default 10 the amount of
S205s.33s. Fifteen contract claims, to-
falling $5e0,S11, and 672, totalling
s2.2s4.09s. have been filed against the
company.
Liens amount to s13.O00.000 and cur
rent liabilities of the receivership on De-
cember 81 were s4,241,642. Deficit