New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-08-28

vestment in rapid transit lines and
otherwise relieve the present impos-
slble conditions in the transit situation
in New York City.
The Transit Commission is now en-
gagged in the valuation of the system
and is making the Investigations re-
quired by the new law, but it is under
stood that the data necessary to the
formulation Of the plan will not be
available until after September /, 1921.
This company believes that any
such plan will make provision for the
protection of the investment repre-
cnted by the above notes, inasmuch IS
they we're issued with the express APP
prevail Of the public auth critics and
their proceeds were expended and are
being spent under the direction of such
authorities in the equipment Of the
rapid transit lines.
Plan for Securities Sales
1T is expected also that such plan
will permit this company to make the
necessary sales of long term securities
to enable it to pay off its notes and
obtain further funds for the improve
lnent and extension of New York's
rapid transit facilities"
Referring to the strategic position
psny, the letter to noteholders said {:
"The notes and bonds are in a strong
position to urge favorable treatment
in the new plan because the company
is entitled under its contracts with the
city to deduct from the subway earn
lngs prior to any return to the city
upon its investment in the new Inter-
borough subways (Which nov approxi-
mates $90000,000), a sum which will
be sufficient to pay the present fixed
charges upon all of its outstanding
notes and bonds 1t is also entitled
to receive out of the operation of the
elevated railroads all fixed charges
and in addition the sum of $3.50 900
annually before the city is entitled to
any participation in the profits Of
those lines"
AS to the operating position of
the Int thorough the noteholdcrs were
given the following information:
Reduction in Expenses
"The company has completed read
Justment of its wage rates, effective
July "a, 1921, by which its employees,
to help avoid receivership. have
agreed to accept reduction Of 10 per
cent thus effecting saving at the rate
of $2,600,000 year.
Reductions in the price Of coal and
supplies together with operating econo-
mics due to mechanical improvements
devised by the management, will effect
further annual saving Of at least
$1,000, 900, Or an aggregate reduction
in expenses at the rate of over $4,000
600 per annum for the present fiscal
year ending June 80, 1922
"The total Of these expected econo-
mics very closely approximates the
S4,464, 900 by which the company failed
to meet fixed charges for the fiscal year
ended June 30, 1921, during which period
however, the peak of extraordinary
costs was passed.
at is reasonable to expect that with
these economies or over $4,OOO,O0O
the company will be able to pay fixed
charges, including interest on the s
per cent bonds and these notes, and
also to provide for current expenses.
"Thus with the notes extended and
the continued Indulgence Of its gen.
eral creditors, the company should be
able to maintain, and probably gradu-
ally improve. its present position until
the Transit Commission shall have had
an opportunity for action in the prem
Uses.
Therefore, it is unquestionably to
the interests Of the holders of the 7
per cent notes to preserve the exist