Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-08-30
HYLAN Sees PLOT IN NY.
TROLLEY RECE|VERSH|P
Mayor Believes Scheme Afoot
To Raise Fares to 8 or
! 10 Gents.
SITUATION APPROACHES CLIMAX
Second suit Seeking Relief for Inter-
borough Rnpid Transit Company Is
Ei1cd--StocS Market Ucncts In
LltIEntion.
[By Associated pre.sl

NEW YORK. Aug. 2s.-Thc New
York traction situation. involving
hundreds Of millions Of dollars.
which for several years has held the
from, Of the stage in local finance
and politics. today appeared TO be
approx ching n climax.
second suit seeking "a receiver
ship Tor the lntcrboroueh RAPID
Transit Company was flcd. this ar
tcrnoon in Federal Court. while the
stock market was showing III effects
Of a prior suit az similar nature
brought last Saturday
The second suit was fled by Ciar.
ence III. Ncnncr, president OF the
Continental Securities Company. who
oiso seeks receivership for tho
Manhattan Railway Company. which
operates elevated lines and is leased
by the InterborouEh. operator of tho
city's subways. Saturdays suit was
brought BY the American Brake Shoe
and Foundry Company. which. In
presenting it's claim of s57.074 for
supplies. contcndcd that the Inter-
borough owed more than s3.OOO,oO0
to various concerns for equipment
and materials. which It was unable
to pay.
Fear "Irrctrie,nhIc Disaster"
The complaint today alleged that
the charges against the company cx-
cceded earnings by s4.iGi.o0O during
the year ended last June 80. Tn.
Company was largely responsible,
g. q,
plight. it said. advocating It's abro-
cation through receivcrship to pre-
vent ''irretrievable disaster" The
complaint declared the Interborougl !,
was carrying in it's assets. aggrcgat-
ing s50,000.000. worthless items such
as the stocks OF dcfunct companies.
Federal Judge Mayer ordered tho
company and the city to show cause
next Thursday why receiver should
not he appointed.
The present city administration,
which has fought all efforts OF local
traction companies to obtain more
thRn 8 cent fare. profcssed to see
political significance In the receiver
ship applications.
lIylan Secs "Srhcmr."
Mayor Hylan said lie believed there
ships actions to raise car fares 10
and possibly 10 cents. He added
that the city was ready To take over
the lines and operate for n 8 cent
fare. Municipal ownership. he ma in.
ta!ped, was the only solution of tho
problem. The scent fare will be a
plank iu'his platform for election
and his opponents also have adopted
the same stand.
bankers conversant with Interior
Ough affairs announced that more
thnn half OF the investors I'm the 33S.-
'oS.ono in notes OF the lntcrboroush
due September |. had agreed to cX-
tend thcm. increasing the interest
from to per cent. The traction
company stated Saturday 1t hoped to
avert receivcrship through extension
Of these notes.
The Brooklyn Rapid Transit Com
pany. operating surface. elevated and
subway lines in brooklyn. with ex-
tensions through Manhattan To
Quccnsborough. went In rcccivcrship
in 1879. and that Same year n re-
ceIver was appointed for the New
York Railway Company, operators OF
trolleys. Tho II, II. T. subway and
elevated lines extend over 25S miles,
while tho lnterborouGh's total 3Gl, OF
which 222 miles belong to the under
ground system, penetrating four of
the five boroughs In tho greater city