The New York herald., 1921-08-30
Continued from, First Page.

to a low mark of 35%. That repre-
sented the lowest price at which that
stock ever has sold since 1t was ad-
mitted tc the New York Stock Ex
change in 1890 The Manhattan Ele-
waited road was leased for 800 years by
the Interherough in 1909, and the per
cent. annual dividend on its stock was
guaranteed by the Interborough COM
pany. There was no indication of how
much IL any. of the decline In the price
OF that stock yesterday was the result
Of possibility of an abrogation OF the
lease.
Interborough Consolidated common
stock and preferred stocks both sold at
the lowest price in their history. 2% and
tx respectively. The three year per
cent. notes opened ut "a. off ~. and
then dropped points more to 50. The
first and refunding 5s dropped to 4sA.
Off nearly 6 points from the close OF last
Saturday. The Interborough- Me tropoli-
tan AIS opened at 121a and then broke
TO 11h, off 2& points. A subsequent
rally carried them back above 49,
Tie Transit Commission neld con-
ference yesterday upon the receivership
situation, after which 1t was announced
that 1.-THE Transit Commission has de-
cided to take no action with respect to
Brake Shoe and Foundry Company for
receiver for the Interborough Rapid
Transit Company" The commissions
statement added
"In view OF the present interest In the
plans of the commission, 1t Is perhaps
just as well to add that they VIII not
be affected to any appraciable extent
whether the 1nterborough company re-
mains under the control OF its corporate
officers or is managed by receiver"
The foregoing statement was Issued
before the Continental petition was filed,
but IL was presumed that the additional
petition would not affect the attitude of
the commission.
John p. O'Brien Corporation Counsel,
issued O statement In which he said he
would make a study of the petitions to
determine the city's course. He ex-
pressed the opinion that the receivership
petition was preliminary to the an
nouncement by the Transit Commission
of It's plan for the reorganization or the
transit systems and was for the purpose
of bringing home to the minds of the
public the alleged need OF further rcve-
nue."
The Corporation Counsers statement
was in line with a statement from Mayor
Hylan appearing in the publications OF
situation into political Goliath. with
the Mayor In the role OF David. Among
other things, the Mayor. whose four
years OF office do not record an effort In
that direction, except In n short Staten
Island llnc, asked why the transit lines
were not turned back to the city for
municipal operation.
The Contlnentars application covered
generally the same ground regarding
the broad aspects of the Interborough's
financial condition MS was covered by
the application filed Saturday Then.
after setting forth the belief that the
elevated lease Is n great burden on the
Interborough and largely responsible for
the company's distress. IL continued:
The Interborough company. as lessee.
Is required TO pay all tho operating costs
and fixed charges OF the Manhattan com.
parry. and in addition s4,200.000 per
annum and dividends upon the capital
stock of the Manhattan company. Ac-
cording TO the annual report Issued by
tho Interhorough company the net earn
ings OF the Manhattan company property
for the year ended June 80. 1918, were
S771.710 loss than the amount OF the
dividents so paid on the Manhattan
stock" The total dividends paid for tic
years 1918. 1919. 1920 and 1921 the Con-
tinental put at sii.24t 600 In excess 4
the Mnnhattans net earnings.
Wherefore" continues the application.
your orator charges that said lease
should be promptly abrogated in order
to save the defendant, the Interborouzh
company. from irretrievablc disaster.
and that such abrogation can only bel
accomplished througA N receivership -
tho defendant. the lnterDorough coni-
rany,'
"on reformation and belief" the conn
plairsnt alleges that:
The actual deficit tof the INTERIOR
ough company has been, much mors
than set forth In annual reports