The evening world., 1921-08-29
All Stocks Drop as Result y,
the Application, Interbor
ough Consolidated Reaching
Lowest Point in History.
Wall Street Sees in Application
Attempt to Force Holders of
Notes Due Sept. 1 to Agree
to Extension.
Transit Board Announces 1t
Will Take No Action in Case
as Plans Will Not Be Af-
fected by Receivership.

There was considerable amusement
expressed to-day by wall Street at the
obvious attempt to inspire belief in he
public mind that officials of the Inter-
borough did not possess foreknowledge
Of the intention of the American Brake
Shoe & Foundry Company to bring
action to place the Interborough in
receivership.
1t was pinted out by close students
of the Interborough situation that the
Chairman of the Finance Committee
of the American Brake Shoe & Foun-
dry Company Is Daniel f. Pomeroy,
who is Vice President and director II
the Bankers Trust Company. The
Bankers Trust Company is what is
known as Morgan" institution.
Another director OF the American
Brake Shoe and Foundry Company is
Gates w. McGarragh, who is presi-
dent and director OF the Mechanics
ter bank is understood to have close
Affiliations with j. T. Morgan IL Co
Competent Wall Street authorities
to-day scoffed at the idea that these
influential directors of the American
Brake Shoe and Foundry Company
and other directors of the same com
'pany who are also directors in vari-
Gus companies that are known as
Morgan institutions, would have the
temerity to file an application for
receiver for the lnterborough with
out knowing the attitude of officials
of the company or of j. +. Morgan
Il Co. who have always acted as
bankers of the Interborough.
Much significance was also placed
on the fact that almost simultane-
ously with the Ming OF the applica-
ton for receiver. information re-
garding the application was flashed
to the office OF the Interborough and
it was found that President HedleN
already had prepared a formal state
ment dealing with the companys
position regarding the matter
While no one is in Il position Ia
give an opinion worth while as a.
whether holders OF notes due Sept
viii agree to an extension OF their
notes and thereby probably save the
lnterborOugh from receivership, IT
ls stated by persons in a position t.
know the facts OF the case that the
Interhorough is preparing for eveutu-
ahties and is determined to wage a
vigorous fight TO retain control of the
Manhattan Elevated.
4 primary motive in this contem-
plated night Is the fact that some
thing like $50 900, 900 has been on
pended out OF earnings or otherwise
oy the Interborough on Manhattan
Improvements and extensions. includ-
ing third tracking Under the terms
Of the lease only that part expended
on the old elevated structure prob
ably could be demanded back from
the Manhattan II the lease should be
forfeited, and that is understood 70
be only half Of the $4,000, 900 as in
vested
Interest coupons due Sept. | on
Interborough per cent bond W.
being paid to-day by J. p, Morsan
Co. TO those holders who have
posted their bonds for extension.
Securities OF the Interborough and
affiliated concerns showed pro-
nounced decline In value on the
Stock Exchange at tho opening to-
day and the slump continued
throughout the session. The Tran