The New York herald., 1921-08-29
TRANSIT BOARD MAY
ACT TO Save |. R. 7.
FROM RECE|VERSHIP
Three Ways Open to Public
Officials Who Are Solving
New York's Complicated
Fare Problems.
ACTION NOT FRIENDLY
Hedley, President OF Road.
Tells Note Holders Petl-
toner Is Only Small
General Creditor
20 DAYS GIVEN TO REPLY
y ------------
| acent Years Extension of z
2cr Cent. Notes Due Sept. l
ENas Granted to Avoid Just
II Such Litigation.
20 DAYS GIVEN TO REPLY

borough Rapid Transit Company,
,hich was applied for Saturday by
\ e American Brake Shoe and Foundry
,npany in the United States District
,urt, is granted it will be against the
,es of the Transit Commission,
\ ch is about to announce its plan
r the solution of New York's trans
ortation difficulties, according TO-
7 ransit authorities familiar with the
situation.
Persons expressing that view yes
,erday pointed for support OF IT TO the
opinion given by the Transit Commits
on recently when 1t approved the ap-
y ication Of tho Interborough for
! ears extension of its per cent.
1tes, due September l next. The
,tion OF the commission In approving
,e extension 1t is known, was given
y ith the idea that such an Indulgence
ght possibly prevent receivership
I hen otherwise 1t seemed to the COM
nission a reecivership would be In
evitable In the opinion the comms-
sion expressed the view that re-
ceivership would further complicate
situation already far too complicated.
None Of the members Of the Transit
Commission would discuss the applica-
ton yesterday, nor would they admit
that the commission would take cog
nizance of it in any way. There is rea-
son to believe. however. that the Com
m,ssioncrs will discuss the matter in
formally early this week.
Plan. Are stfIl I'm Camera.
The commission has made public no
tails OF the plan upon which its experts
ve been working for months ana oy
nich n hopes to solve the city's troubles
!, eett;n- from one place to another and
navinr or the same. 1t is understood,
however, that the plan has proceeded to
such definite shape that it is virtually
settled. and that II is OF such COM
prehcnsive nature that. broadly. it will
ft the situation. according to the COM
missions views. whether the receivership
granted or whether II is not.
IL Il understood that even II the aues-
N of a rcceivership still is pending
,en the commission is ready to come
TIN with its plan the commission would
and 1t necessary to wait for the set
nent Of that question.
r. was admitted. however. by persons
are in touch with the situation that
.eceivership undoubtedly would neces-
Z ate changes in the methods OF adapt
y ; the plan to the situation. That Is
lid 10 be the phase of the receivership
possibility that the commission will take
under most serious consideration.
II could not be learned whether a
modification of the application Of the
proposed plan would affect the question
~ an increased fare. The Hylan
sarst-Tammany forces who have been
isins the transit issue as stepping
4 ,nc to the reelection of Hylan began
make political use of the application
mediatcly after Il was hied. They
re loud in theii protests yesterday
Il the application was nothing but n
otcrfuge or the part OF the traction
1 crests to obtain an increased fare.
4 that the only hope OF avoiding that
in the reelection OF Mayor Hylan.
\ There was said to be reason to believe
II the commission might go so fer as
nave its counsel appear in opposition
.hc rcccivcrship petition should 1t APP
ar that the appointment would upset
,iously the application OF the plan at
4 ich the commission has arrived after
} ost careful research and mature DELHI
alton.
Three Alternatives Are Open.
! There are understood to be three
ourscs open To the commission regard
e the receivership application;
! Eirst--The commission could order its
I unset TO appear and oppose the appi-
1 ion for the reccivership.
second--The commission could rest
Il a mere statement OF its position re-
ding the matter.
rhird-The commission could leave
entire question severely alone.
None OF the Commissioners would In
ate yesterday which OF those courses
! zht he pursued.
Frank Hedley. president and general
! mayer OF the InterborouRh denied
phatically yesterday that the COM
~ desires a receivership or is In any
connected with the application for
which had been described as
y endly" action. His position was
1e out by the following telegram
Il lcn was sent Saturday by the Inter-
ough company to the holders OF the
ler cent. notes:
Application for receivership of Inter-
ough Company filed by small general
ditor to-day. No note holders have
lcd therein. Company has twenty
to answer. Situation az to deposit
1otes unchanged. Prompt deposit OF
essential TO expected avoidance OF
eivefship. Substantial majority al
N deposited"
Rhe reference TO the deposit OF notes
in the foregoing telegram Is ur-
TODD 10 mean the surrender OF The
Continued on Fourteenth Fooc.