The New York herald., 1921-08-31
NTERbOROUGH MUST
MEET RECE|VERSH|P
DEMAND TOMORROW
Judge Mayer Fails to Give
Company 20 Days Time
as Expected.
COLLUSION is CHARGED
Hirshfield Quotes Company
Employee to Show Strike
Was Fixed.
BIG OFFICIALS ACCUSED
Hedley and Quackenbush AL
legged to Have Been in Deal
With Brotherhood.
IG OFFICIALS ACCUSED

Judge julius NJ Mayer, of the
United States District Court, under
whose direction are the receiverships
of the Brooklyn Rapid Transit Com
pany and the New York Railways
Company, announced yesterday the is
suance Of orders to the Interborough
Rapid Transit Company to show cause
tomorrow morning why the receiver
requested in applications of the Amer
lean Brake Shoe and Foundry Com
pany and the Continental Securities
Company should not be appointed.
The Interborough, according to a pre-
vious statement of Frank Hedley, its
president, had expected twenty days
in which to reply to the receivership
petitions.
Further than the foregoing abso-
lutte silence was maintained yester-
day by all parties involved in the re-
ceivership, with the exception of the
Hearst Hylan- -Tammany combination,
which continued it's political attack
upon the Interborough and the Transit
Commission.
The directors of the Interborough
met and presumably considered the
situation precipitated by the receiver
ship applications. but refused to COM
ment. Neither would the Transit
Commission make a statement regard
ing the filing of the second petition.
Hfrshfield Charges ColIusfon.
The Hylan attack took the form OF
statement from David Hirshfield. Com
missioner OF Accounts, who said that
he had been Informed by man whom
he identified only as a former delegate
OF the Interborough Brotherhood that
the marlborough strike OF 1919 was
called through an agreement between
the Interborough Company and rhe
brotherhood. which is the employees
organization. The object of that alleged
collusion. he said. was TO compe, Mayor
Hylan to forego his fight against an
increased fare and TO maneuvre Lewis
Nixon. then Public Service Commits
Sioner. into a position whsre he would
be compelled TO sanction an increased
fare.
Hirshfield said as a result OF that In
formation he would drop his investiga-
tion of the Department Of Markets for
several days while he conducted an in
quiry into the affairs of the Inter-
borough Rapid Transit Company. He
said hs may subpoena the Intsr-
boroughs books.
Among other things. Hirshfelds reve-
lations included a statement by his in
formant that Lewis Nixon, formerly
chairman of the old Public Service
Commission. agreed to arbitrate the
strike at the instance of the company
and the employees, the employees be-
lieving that he would favor them, and
the company seeking to use him" after
ward. AS reward for that. 1t appears,
Mr.. Nixon was to be doomed for the Dem
ocratic nomination for President OF the
United States. 1t Is a fact that some pub
licity was given to Mr.. Nixon In that con-
nection at the time of the convention
at San Francisco last summer and he
went to the convention with the sup
port OF one or more New York delegates
Hirshheld quotes his informant as
follows:
Then we put up a boom--we had n
mass meeting to make Lewis Nixon
President OF the United States, and yor
can find out who paid for that. The
company paid every cent that that cost.
A fellow by the name OF Lew KAISER
he was a delegate--he is gunrl on
the Second avenue L--he was given the
money by Connolly (prcsident of the
/. r. T. Brotherhood) was his agent
to pay for the hall and everything.
That was what Nixon got for It."
j. l.. Quackenbush, general counsel
for the Interborough, who was mem
toned in Hirshfields statement as one
Of the representatives OF the company in
the alleged collusion. refused TO COM
ment last night.
Hirshfield prefaced his publication of
the alleged statement of the alleged
I. r. II. employee concerning the
alleged collusion with this:
While | do not know the object OF
the recelvership. I am satisfied that at
least one of the objects is to circum-
vent the opposition OF Mayor Hylan to
an increased fare and possibly the Pub
lie Service Commission. which am
quite sure will not at this time act
favorably to the company"
Presumably Hirshfield's reference to
the Public Service Commission was In
tended to be to the Transit Commisslo Ion,
since the latter body only has Jurisdiction
over transit matters.