New-York tribune., 1922-03-18
Cut in Rental of Republicans i'm
IL" Lines Aim House Divided
OfL.R. I. Deals On Army's Size
Manhattan Company Asked
to Reduce Z Per Gent
Guaranteed Return 10
4 bout AZ Per Cent
Some Concession Likely
Stockholders Will BE Asked
10 Accept Terms 10 Keep
Case Out of The Courts

NAec Vut OIL INC SfOUrAr
Signs multiply that the negotiations
now under way between the INTERIOR
cugh Rapid Transit Company and the
! Manhattan Elevated Company viii re
/ suit in cutting The Manhattan 7 per
! cent guaranteed rental on 4 capitaliza-
! tion of s6o,o00,o00 to sonnet thing close
to G "a per cent basis.
But before The Manhattan security
holders sanction any such reduction II
; concessions from the Intcrborough that
will make the final agreement less
Jug handled" than the present de-
mands Of the lntcrborough.
| Daily conferences OF both companies
directors will continue in an attempt
to negotiate some adjustment of the
contract which will tighten the quar-
tcrly obligation OF the lnterborough to
pay the Manhattan aI,050,000.
"The Manhattan Railway Company is
not the milestone in This matter" said
a 6nancier close to the management Of
the Manhattan interests yesterday.
"The lnterborcugh owes the Manhattan
to-day moro than the 1nterborough 8
some S3.o00000 Of taxes which arc some
eighteen months in arrears. The Man
haitian is willing to make concessions,
but it will insist that the Interborougt
make them as we'll. The matter Of
scaling down the per cent stock guar
anty is not to be the only basis Of
change. The lnterborough has made
millions out Of this Lease. II tie stu
alton demands change, the entire bur
den ia not going to be allowed TO fall
on Che Manhattan stockholders"
Manhattan shares continued to ad-
vance yesterday, following a sharp
break last week after it became known
that the Interborough Mad decided to
refrain from meeting it's obligations ON
April /.
The Wall Street view of the matter
stcrday was tina. it would be better
for tho Manhattan to accept sharp
reduction rather than hold out for a
prohlematical Z per cent which in
volvcd receiycrship Of the Inter
borough and forced re reorganization
Of the interocking systems.
representative OF the |nterhoroush
bondholders denied any participation in
the negotiations. eve feel amply pro.
tccted, no matter what happens at The
end Of the month" he said
Friendly Court Action First
"The end Of tho month" is likely to
be IS mo,nentous to the parties inter
cstcd g. the day the agreement WAS
made Nncn tho Interhoroueh took over
The Manhattan company
On March 30 the application Of the
American Brake Shoe snd Foundry Co..
a friendly creditor Of the Intorborough
for a receiyership for The 1ntcrborourh
comes up before Judge julius N. Mayer.
On the following day the application
of q +:
receivcrshp FOR tlc lnterboroush is
scheduled TO come up before fudge
Mayer. This is not a friendly action.
On or before tho lsst DAY Of March
the lnterborough is obligated to pay
the Manhattan company quarterly
rental. now three mouths overdue.
amounting to s1.0b0,0O0 The rental
for the first quarter Of 1922 also will
be due on the same day, but under ordi.
nary circumstances The Interboroueh
would take a month or two to meet Il.
In addition TO these two ominous OBJ
legations is the steadily mounting ar
rears of taxes, tho gross arrears for
all kinds at the present date reaching
going s2,259,S63 is due on the Man
haitian Elevated alone, and for this
the interborough under the terms of
i is lease Is responsible
Financicrs close TO the situation pre-
DICT that an agreement wil be reached
between the Intcrborough and the
| Manhattan before Saturday night of
next week.
Ronnd-Up Of Stockholders Hard
One Of the problematical factors and
one which requires the most careful
kind Of handling is the fact that
there, are 4,A14 Manhattan Company
stockholders and that rounding these
UP on proposition spelling financial
holders of the Manhattan sharos, as Of
November, 1921, are as follows:
DAY Gould estate. $3.50, 30
General Education board (kooke- - 'sS''''
unyersity Of chicago tRocie ''''''0O
noc%eieller Foundation GRoci.- ''''V'OVO
Bertrand NEUTRALITY-SUSPICIOUS.. ,1'"oS w 90"
j.. N. Anory & Son.......... 900, 900
Little trouble is anticipated in reach
ing an agreement with the larger in
terests, with the possible exception Of
the Jay Gould estate. That estate has
litigation on hand between it's lega-
tees, making prospect Of an agree
ment not at all likely, at least for
the present.
lawyers Say CNaJ the Manbatta n
stockholders who decided to stay out
OF reorganization will be able to in
woke the protection Of the courts in
the enforcement OF their claims, which
will have to be met in full.
Transit Commissioner John r. O'Ryan
held hearing yesterday on the pro-
| posal of the commission to readiust
the rental paid to the city by the Hud-
son and Manhattan Railroad Company
under its franchise for the Sixth Av-
enuc extension running from Christie
pher Street under Sixth Avenue. The
| franchise was granted on February 9,
1905. ard provides that the company
shall pay annually to the city $4,000.
sdch amount being equivalent to 9
per cent of 100000, the estimated an
nual gross earnings Of the extensions.
This payment is now subject to read
justment.
Under increased fares the companv's
receipts have largely increased The
Transit Commissions special commit
tee Of engineers and accountants rec
ommends that the company pay $4,000
year instead Of $4,000.
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