New-York tribune., 1921-08-29
Officials Said to Have De-
cided TO Oppose Action
of Brake Shoe COMPANY
on Claim for $57.O74
Scheme TO Raise
Fares, Says Hylan
Transit Commission Nav
Intervene to ProtectCitv;
Hedley Denies CoIlusion

From sources close to the manage
ment of the Interborough Rapid
Transit Company it was learned yes
terdsy that the company would fight
the application for a receiver, made by
the American Brake Shoe and Foundry
Company on an unpaid claim for
ss7O74 for supplies.
officials Of the Interborough have
eighteen days left in which to decide
what action to take. as under the law
twenty days is allowed them in which
to answer after the service of the
papers in the case.
Mayor Hylan, in a statement last
night commenting upon the situa-
tion, said:
"There is some scheme behind this
ever-ready and handy American
Brake and Foundry Company's appli-
cation for receivership. believe
that this is another attempt through
the Federal courts to raise carfares in
this city to eight and possibly ten
cents
George McAneny, chairman of the
Transit Commission, declined to dis
euss the effect of the application for
receivership upon the plans for the
relief Of the transit problem in this
city.
Plans Not Ready. Says McAneny
THE plan has not been perfected as
yet" said Commissioner McAneny,
and it will not be finished for some
days"
Another member of the commission,
Major General John F. Organ, said:
"The plans of the commission will
not be in shape to discuss them pub
icly until next month. l expect that
they will be made public about Sep
tember IS"
Neither General O'Ryan nor Chair
man McAneny would comment on the
suggestion of Mayor Hylan that the re-
ownership application might lead to
an or 10 cent fare
Whether the move made by the
American Brake Shoe and Foundry
OF other creditors of the Interborough
whose bills have not been paid will not
be known until to-day, when these con-
Germs open their Offices. SO far there
has been no indication of what atti-
Jude other creditors will take.
Hedley Makes Emphatic Denial
Emphatic denial was made yesterday
BY Frank Eedley, president of the In
l.,
party 10 the application of the petition
wanted a receivership.
In this connection telegram sent
out on Saturday by Mr. Hedley to hold
ers OF the extension Of the issue of per
cent notes, due September !, was made
public as tending to show that the
company did not desire a receivership.
This telegram, it was further pointed
out, Indicated that the company be-
lIeved, with the Transit Commission,
which authorized the extension, that
the company. if it passed through an
other year, would be able not only to
meet the notes at the end of a year,
but all other obligations. This tcle-
gram read:
Application for receivcrship Of In
Serborough Company filed by small
S@'.~ al II lrNttOE CO-LdS NJ IOtc NOlN~
ers have Joined therein. Company has
twenty days 10 answer. Situation as
70 deposit Of notes unchanged. Prompt
deposit of notes essential to expected
avoidance Of receivership. Substantial
majority already deposi ed.
The reference TO the deposit Of notes
referred to the surrender Of notes for
the Endorsement Of extension and
interest.
It was said that the case, if carried
70 the Federal courts, probably win 90
neforc Judge Maycr, who appointed the
receiver of the 3. r. T.
Fear was expressed in some quarters
Yesterday that if the Federal courts
sppolnted receiver for the Inter
borough this would interfere with the
plans Of the Transit Commission for
ennging relief 70 the present traction
mrddle.
Won't Alter Commission Program
ms, however, was said by an en-
p.oyee Of the commission to be
fCon'inued on nett cars)