The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-02
|. R.T. wins SKIRM|SH
TOAVERT RECEIVER,
HEARING POSTPONED
Judge Mayer Sets Next Fri
day for Passing on Pleas
Made by Creditors.
SOLVENT, SAYS LAWYER
Company Has Enough AS
sets, if Not Sacrificed, to
Meet All Obligations.
NOTE HOLDERS RESPOND
Almost All Likely to Favor
Extension: Decision May
Prompt Courts Action.
NOTE HOLDERS RESPOND

1ohiPdiy won q preliminary NICLoTy
yesterday in its effort to avert re-
ownership. Judge julius M. Mayer in
the United States District Court
granted its motion for a postponement
until next Friday of his order to show
cause why a receiver chould not be
appointed in response to the actions of
the American Brake Shoe and Foun-
dry Company and the Continental Sc
curities Company of New Jersey. In
granting the motion made by James L.
Quackenbush. counsel for the Inter-
borough, for one weeks adjournment
Of the issue, Judge Mayer said:
THE payment OF the claims for sup
plies is not matter of enbarrass-
ment to the company, since none is
more than three or four months over
due and these claimants would be pre-
ferred as creditors, while payments
can be made without receivership
from time to time.
1T is a matter of profound Importance
to the public as well as to the interest
of the security holders. that there be
no receivership IL it can be averted. 1t
would be bound to lead to numerous
complications, some of which might
serious affect the convenience OF the
public. The court desires not to in
crease the number Of receiverships. but
to dispose Of those which are now in
the court. Any one who has right
minded attitude will seek to aid in the
Of raGpivarGhin
Public Would Have to Suffer.
The motion for an adjournment was
based primarily upon the interests OF
the public and secondly. on the in
terests OF the security holders. both
of whom would suffer. Mr.. Quacken-
bush insisted. If a receiver were ap-
pointed at this time. Up to the close
of business Wednesday,. counsel told
the court, the holders of more than
s29,0o0o00 worth of the total OF $685.
144 400 in outstanding 7 per cent. notes,
which fell due yesterday. September J,
had been deposited for years extern
sion, and he thought II likely that be-
fore the close Of business yesterday
large part of the remaining se,OoOU
would be similarly extended.
With this obligation met, Mr.. Quack-
enbush said, he could see no immediate
occasion for the appointment Of re-
ceiver with its resultant loss OF credit
to the company and possible loss to
the holders of the securities. The total
amount of current obligations for
supplies was put at 81 $500 by Mr..
Quackenbush. sum which he said the
receipts for ten days would meet. All
the other creditors. counsel commended,
were amply secured.
.'If we e n opportunity now" said
Mr.. Quackenbush. " the company may
be able to continue operation without
going into receivership.'
The marlborough in its appeal found
a strong ally when William y. Guthrie.
counsel for the Empire Trust Company.
holder Of 81 per cent. of the company's
stock, filed a petition asking TO be
heard in opposition to the move for
a receivership. The Empire. the petition
averred. holds 1872 shares of Inter-
borough capital stock, either on its own
account or in trust for others. out OF
a total capitalization OF $4,000 shares.
Recetyership would Drop stock.
Appointment OF receivers, the petition
set forth, would greatly depreciate the
stock Mr.. Guthrie contended that the
company is entirely solvent, and has
sufficient assets to meet all obligations
IL its assets are not sacrificed. In the
opinion OF the Empire Trust Company.
despite depressed financial and indus
trial conditions, the position OF the
marlborough Is steadily improving. with
every expectancy that, with the return
OF better conditions. the company can
again be made profitable and its stock
valuable
Counsel were present also represent
ing the Guaranty Trust Company, the
nisafTa Ind
vidual stockholders and the American
Brake Shoe and Foundry Company.
All these interests joined in the request
for postponement. Even Corporation
Counsel OBrien, who attended as rep
resentative of the city, proffered no OBJ
lection to the plea for delay. This fact.
together with the reflection that Tom
Smith, secretary OF Tamamny Hail. y
a. director OF the Empire Trust Com
pany. caused the comment that for once
the spectacle was presented of the In
terborough and Hylan's friends aligned
as allies rather than as enemies.
The only opposition to the motion for
delay was voiced by Elijah ~. Ioline.
attorney for the Continental Securities
Company OF New Jersey. lie tried 70
force immediate argument for the ap-
pointment of receiver To delay such
gross injustice to the creditors because
the marlborough was operating on
"shoestringing, day-to-day system and
postponement OF the issue, even for one
week. would result in the more insistent
creditors receiving their money while
the others would be put off indefinitely.
In addition 20 some 100000 In debts
for materials and equipment Mr.. zoline
urged. the marlborough would find 1t
impossible 10 meet s2030.o0o in notes.
thrice extended, falling due on Decem-
Der 81. 1921. 81. 500. 900 for the Manhattan
lease, due in October. as well as other
miscellaneous Indebtedness.
Mr.. Quaokenbush retorted that all
these payments would be met; that the
10 per cent reduction in wages con-
scented to by the employees would save
s2.6oo.Q0O annually in operating costs.
and that other savings probably would
wipe out last years Interborough den-
r0uTtuUgd au Esfyreofb D0C1