New-York tribune., 1921-04-21
Members of New Transit
Board Reported Ready
to Seek Court Action if
CompromiseEfo Fails
Manhattan Stock
In Market Declines
Consent Is Necessary to
Annulment of 7@o Div
idend, Declares Skitt

The release of the Interborough
Rapid Transit Company from its obli-
cations to pay annually more than $6,-
100000 in rentals on it's investment in
the elevated lines Of the Manhattan
Railway Company, thereby making pos
slble the profitable operation of the
subway system on its present scent
fare system, will be sought by the
Transit Commission, either through a
receivership for the Interborough or
compromise between tha latter and
the Manhattan stockholders.
The separation Of tho InterborouRh
from its Manhattan obligations, it was
learned from an authoritative source
yesterday, will be insisted upon by the
commission as first essential in re-
organizing the city's entire transporta-
tion system. Governor Miller, in his
conferences with George McAnenv. Le-
roy T. Harkness and Major General
John f. Organ, members of the COM
mission, is understood to have insisted
that they shall exercise the broad
powers invested in them to abolish all
arrangements whereby ono system de-
votes its profits to paying interest on
the stock of another system.
Manhattan Stock Suffers Decline
Belief that the commission will take
drastic steps to end the lease on which
the 1nterborough is obliged to pay Z
per cent on the 100000 900 Manhattan
stock was reflected in the stock market
yesterday. Manhattan stock recently
had been rated among the inactive is
sues. On Tuesday no sales were re-
ported. But yesterday 2,4OO shares
changed hands. On the opening the
stock fell more than points from
Mondays close of 81. 1t continued to
be offered plentifully until at the close
Of the day it had fallen 8lz points to
42h.
The decline was attributed solelv
to the belief that the Transit Commits
sion will take steps that will curtail
the per cent dividend guaranteed by
the Interborough under its lease.
A suggestion that the Interborough
may have to resort to a receivership
in order to obtain relief from it's Man
haitian lease was made in a report to
the Legislature last year by Lewis
Nixon, then Public Service Commits
a.oncr. Since then it has been as
serted that compromise might be eff
fected which would make a receiver
ship unnecessary.
Could Pay on Scent Fare
1t has been asserted that the Inter-
borough could be operated on q scent
iare and pay per cent on it's $35, 5,O00,-
900 stock, If it was not required under
the Manhattan lease, made in 1909. to
outlay about 100000 monthly for the
Manhattan lines, which show a deficit.
On this point Mr.. Nixon said to the
Legislature:
"There is little doubt that the Inter-
borough company could continue to
operate at the present rate of fare were
1T not for the carrying on Of operation
haitian Railway Company under lease.
After the opening of the new subways
the elevated lines fell off in traffic and.
while they have about made up this
loss, they are not earning enough to
pay rentals and fixed charges.
This loss the 1nterborough has to
make good, but even with the profits
of the subways it is not making enough
to do this. Unless the lease of the Man
haitian lines is Cancelled or the costs
cut down, a dim prospect at present,
the lnterbOrough may be forced into
a receivership. The only other way
by which this can be prevented is for
the bondholders or stockholders to
provide money to tide the company
over the present crisis"
Holders of Manhattan Stock
About third of the $6O,OOO,O0O
Manhattan stock guaranteed z per cent
dividends by the Interborough is held
by twenty corporations and individuals.
This stock is distributed as follows:
Estate of Jay Gould, $8,130.O0O; Henry
J. Cammann, $2,289,0OO; General Edu-
cation Board, $1,451, 400; Bertram Cut
ler, $1,141,0 900; University of Chicago,
$1,141 900; Rockefeller Foundation,
100000; Henry P. Fish, $934,00O;
Amory & Sons, $1,000000; Rockefeller
Institute, $665,000; Robert W. Gamble,
$590,000; Bessemer Investment Com
puny, S663,000; Whitehouse & Co.,
ss31, 900; John Gilchrist, $3.50
Louis M. Bailey, s55o0o0; Frank j.
Irving, $500,000; Adolph Miller, $413,-
600; D. T. Moore & Co., $265, 900; es-
tate of Horatio M. Slater, $240,000;
estate of Jacob H. Schiff, $4,000, and
c. w. McQuaid & Co., $685., 1000.
Thn