New-York tribune., 1921-09-22
Court Sees No
Need for /. r. r.
Receiver Now
Judge Mayer Again Post
pones Hearing When Told
That More Note Holders
Have Granted Extension
Finances Are Improved
Counsel 70 rCompany Says
All Bills for Maintenance
Up to June l Are Paid

Judge Julius NJ. Mayer in Federal
court yesterday granted a third post
ponement on his ex parte order that
the lnterborough Rapid Transit Com
pany show cause why receiver should
not be appointed. He declared that no
evidence had been presented indicat-
ing that any holder of the per cent
notes, which fell due September /
with the exception of the Continental
securities Company and it's president.
Clarence H. Venner, desired rece;var-
snip. These two noteholders accorfn I
for only $4,000 of the $3s,144,4O is
sued.
September 80, at IL a. M. was the
time set for the next hearing.
The court is of the same opinion
as heretofore that every effort should
be made to avert such a crisis as the
appointment of receiver in this case
would precipitate," Judge Mayer said
in announcing the postpouement. "A
receivership could do no good to the
noteholders, and there is more evidence
than ever that they recognize this
fact"
Notehoiders Grant Extension
The evidence to which he referred
was the statement of James L. Ouack-
enpush, attorney for the COMPANY.
which was presented to support a mo-
tlon for further postponement.
Up to 1870 to-day and since the
last hearing" Mr.. Quackenbush said.
'potes for s1,313,10o have been de-
posted for extension for one wear at
per cent, leaving only ss,3s7,2oo still
outstanding. That means that the hold
ers OF more than 81 per cent Of the
notes have agreed to the extension
Since the hearing on September Tho
daily average of notes deposited has
been 100000"
Judge Mayer declared that the COM
oany's record in this matter made "an
extraordinary story" He granted the
adjournment less than fifteen minutes
after the arguments began.
Mr.. Quackenbush further said that
practically every holder Of $4,000 or
more Of the notes had agreed to the
that the number of de-
oosltors up to Tuesday evening v-es
f,o23 out of 1900, that of the no
which have been presented for nav
nent $9b,SO0 have since been turned
N Tor extension, and that no note
l:older, except the Continental Sacuri-
les Company and Mr. Venner, has vet
aiken action for recovery.
Financial Condition Improves
The general financial condition Of
he company mas also improved slight
y since the last hearing" Mr.. OuacEen-
'ush continued. "All bills for coal and
up to June ! have been
laid and the cash balance has in
.reased."
Elijah N. Zoline, attorney for the
Continental Securities Company and
hr. Venner, was in court and opposed
he postponement. He said that he had
the Interborough to present
! statement like Mr.. Quackenbush's to
upport its motion, but differed with
he company's attorney on the conclu-
lions to which it led. He declared that
he large number of small creditors
till to be heard from indicated less
hat they were away no vacations and
otherwise inaccessible, as Mr.. Quack-
had suggested, than that they
we're holding back to see what action
he court would take.
Mr.. Zoline also called attention to
he fact that on October l the Inter-
,orough must pay s1,800,oOO due on
ne Manhattan Elevated lease.
That is just as much an obligation
or the lnterborough as the notes" he
aid. Those creditors are to get their
money, but no provision is being made
or the note holders"
Judge Mayer granted the adjourn
aent without listening to further argu-
nent on the Manhattan question