New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-28
delaware Concern Brings
Action for $57,O74
Due, and Seeks to
Prevent Disintegration
Hedley Hopes to
Avert Collapse
O'Ryan Calls Action Un-
fortunate, as Transit
Commission Had Form
ulated Plan for Relief

A receiver was asked for the Inter
borough Rapid Transit Company in an
.cuitv suit filed against it yesterday
with the clerk of the United States
district Court The complainant is the
american Brake Shoe and Foundry
Company, Delaware corporation. The
foundry company claims $57,074.90 due
u for brake shoes and castings furn-
shed the Interborough company.
The floating indebtedness of the de-
tendant for materials, equipment, taxes
and supplies is upward of $3,oo0,Qoo,
.eAording to the bill of complaint. This
amount, the complaint states. is now
overdue and the defendant unable to
pay.
Rolling Stock Threatened
The complaint further states that
certain creditors arc pressing for pay
ment, that suits are threatened, that
executions may be levied on equipment
snd property Of the defendant, and that
there is grave danger the defendant may
thereby be deprived of the use of its
equipment and rolling stock. 1t is al
leged also that, for the benefit of the
public and for the creditors, it is desir
able that the operation of the subway
and elevated lines be kept intact.
long history of the Interborough
company from its organization in 1902
to the present time is given in the bill
oi complaint. The bill says a receiver
. necessary to protect creditors. The
suit was made on behalf Of any other
creditors who may care to join the
sction.
Because the Transit Commission is
work on q plan for the financial re-
lief of the Interborough and other trac-
ION lines of New York, the situation
precipitated by the application for \
nceivership was termed "unfortunate'
ia q statement made to The Tribune
last night by General John F. O'Ryan,
one Of the Transit Commissioners.
Plans Made for Relief
While do not know the full details
Of this suit he said, II am aware that
Tor some time the lnterborough inter
ests have been skating on thin ice,
because of the increased costs in labor
and materials. Although in other lines
Of business the cost of the output is
rsised as the cost Of production in
sreases, the New York traction lines
Ere held down by law and prevented
.rom doing so, their revenues being
a1ed on the basis of five-cent fare.
However, our commission has been
authorized to provide temporary relief
Up to the present, for reasons which
20 not care to discuss now, the COM
MISSION has declined to give this relief
5ut do believe that relief plan now
beng worked out by the commission
FIJI appeal TO the public, the city and
,ne transit companies and security
aolders.r
Does this plan include any decision
% the part Of the Traction Commits
,on TO permit the companies to raise
me fare - General Organ was asked.
Commission Ready to Act
Y do not care to discuss now wheth-
eF or not such is the case" he replied.
1T is rather unfortunate for all in
srests concerned that this situation
.as arisen at this time, so shortly be-
'ofe the commissions plan 10 to be
nace public. It is contemplated to
announce the plan before September
The public will do we'll to keep in
Mind that the Inte THOROUGH is the big
Esst railroad company in the world
~ sa,s 5a being the case, debts totalins
Dooo'ooo or thereabouts should not
appear so large"
10 you believe that the INTERIOR
,axa system could be operated to bet
~ ~ advantage for all concerned unde
ss ,as commissions plan rather than un-
~ ~ receivership?v was another qucs-
Ton asked him.
:. i am not in position TO answer
aat until ] haves given the situation
,.fIner study" was the reply. "But
= believe that it would be best to
.esp the situation in statu quo at least
sa'A the Transit Commissions plan is
announced: II is very fair one"
. Iranx Hedley, president Of the In
a'porcngh Rapid Transit Company.
.ss,srosy issued the following state
.sn. regarding the rcccivership asked
~ ny the Delaware corporations:
inis forenoon the American Brake