The New York herald., 1921-03-10
SURRENDER OF 4
TRANSIT LEASES
PUT UP TOCOURT
Receiver Hedges Asks Or
ders on Plea of Refund
ing Bondholders.
HEARING ON MARCH Ia
Report on Condition of Sur
face Lines Is Filed With
Judge Mayer.
HEARING ON MARCH IA
HYLAN AND CRAIG SCORED
Uniformity of Rates Lost With
Disintegratioh- ,480
e Passengers in Year.

| AccompanyinG his petition for IN
structions, Job Z. Hedges. receiver for
the New York Railways Company,
fiIed with the United States District
Court, Judge Julius NJ. Mayer, yester-
day comprehensive statement OF the
present condition OF the entire prop
erty under hts charge.
Counsel for the committee OF re-
funding bondholders has formally re-
! quested the receiver to disaffirm four
additional leases of lines which are
now important component parts OF
return those lines TO their original
owners. There are the leases for the
Broadway and Seventh avenue line,
the Sixth avenue line, the Christopher
and Tenth Street Railroad Company's
lease and the BIeecker Street and Full
ton Ferry Railroad company's lease.
In hts report Mr.. Hedges says:
THE refunding bondhoiders are press
| ing for a sale of the property and have
heretofore submitted forms Of de-
cree. which provides for sale of the
present system in separate parcels
Other interests are praying that the
court will postpone the sale in the hope
that there may be some salvage for
other creditors Pending the sale of the
property. the refunding bondholders
have requested the receiver TO disaffirm
four OF the remaining leased lines, in
cluding the Broadway and Seventh Ave
nue. Company. which constitutes the
backbone OF the system.
Hearing Set for March II.
Fed by order of the court In the payment
of the interest on some of the underly-
ing bonds tthe Lexington Avenue bonds.
thh South Ferry bonds and the Column
bus Avenue bonds), and the bondholders
have started. or are about to start, fore
closure proceedings on the property COW
cred by these mortgages"
Through Winthrop s. Stimson, solicit
ora for Mr.. Hedges, copies Of the report
have been placed in the hands not only
of Judge Mayer. but also OF all counsel
interested, and Judge Mayer will hear
argument on the petition on March IA.
at 2 o'clock
OF the proposed surrender OF the
| leases named. the receiver says: IT
| the Broadway and Seventh avenue lease
were abandoned the result would be:
% The Lexington and Lenox avenue
route would be broken in two at
Twenty-seventh street and Lexington
avenue; t2) the receiver would have TO
abandon the entire Broadway and Sew
enth avenue route; ca he would have
to abandon tho Seventh avenue route
from Central Park to McDougal street,
and az the Sixth avenue route would
/ be broken between Broome and Canal
streets and between Church street and
/ West Broadway
IT the Sixth avenue lease were sur
rendered the receiver would. OF course,
! discontinue the Sixth avenue route.
Nor could the Sixth avenue company
operate Il except between Central Park
and Fourth street, unless arrangements
were made with other companies. nor
would tire Sixth avenue company have
any southern terminal. ITO Its route. In
any case. the abandonment OF the Sixth
avenue lease wotld result IN the dis
continuance OF through route from
South Ferry TO the Park and IN conse-
quent Inconvenience 10 the public
/ Three subsidiary leased lines OF the
| original system already have been sur
rendered TO their owners. These are the
\ Eighth avenue. Ninth avenue and the
New York and Harlem railroad COM
panies. The surrender Of these leases
cuts OF entirely the upper West Side
service of the Broadway-Columbu
Broadway Amsterdam and Sixth and
Amsterdam avenue tines.
In addition to these surrendered leases
there have been trnporarily discontinued
since September, 1919. seven lines. m
Guiding the Canal street crosstown line,
the Chambers and Duane street storage
battery line, and tho operation OF lines