The New York herald., 1922-03-18
L HOLDERS DEMAND
CONCESSIONS
Want Something in Return
for Interest Cut in Z
Per Cent. Lease.
HOLDOUTS HAVE WHIP
Gould Probably Force Full
Payment by LesSeeS. 1t
Is Said.
BANKER ISSUES WARNING
Advises Acceptance of 4 l-2
or ) Per Cent. Offer or
Suffer in End.
HOLDOUTS HAVE WHIP
BANKER ISSUES WARNING

Progress is being made i'm the effort
to negotiate concessions in the term:
of the lease of the Manhattan IL" te
ene Interborough Rapid Transit Com.
pany. Nothing sufficiently definite ha:
developed yet, however TO warrant
those most directly interested in pre-
dieting terms of a settlement.
Daily conferences are being held II
which the interests Of the Manhattan
Railway Company are being repre-.
sented largely by Alfred Skitt, its
president: Alvin w. krech. chairman
of the security holders special com.
snittee, and George Wildwood Murray
counsel None of these officials was
willing to discuss the negotiations yes.
terday and James l.. Quackenbush
general counsel to the Interborough
said there would be nothing TO an.
nounce before Monday, If then.
The Interborough, il is thought In
financial circles, is pressing for reduc-
tion of the Interest rental rate from the
present per cent. or the $4,000. .00o
OF stock to a rate of 4 - or per cent
From sources in close touch with Man
haitian sentiment il was learned that be-
fore the Manhattan stockholders will
consent TO modification OF the lease
there will have to be changes in salient
features of the existing contract other
than the present per cent. guaranty on
the stock.
A.
Assent by two-thirds OF the outstand-
Ing stock is necessary to any change in
the terms OF the lease. Even IL that
proportion of the stockholders should
agree to accept reduced rate OF inter-
est, according to competent legal author
try. the Interborough would have to con-
tinue to pay per cent. to any outstand-
ing minority or might have to resort to
sedious litigation.
On the books of the Manhattan we're
k.413 stockholders of record as of June
30, 1921. Some hold large blocks of the
stock. Among the holders of 81 900. 900
pr more are Heirs OF the late Jay
Gould, sS.130.100: Henry ]. Cammann
S2,2S9.000, General Education Board
ltfrom John d. Rockefeller Endowment)
S1.451,400: Bertrand Cutler $1,144. 900
University OF Chicago (from Rockefeller
1zndowment). Si.i00.oO0. and J. NJ.
fvhiiOiS " t,oiif FAsVVVsvVVf the IsOGhr-
feller Foundation on the date named
held 1890. 900.
Some of the Ma mia ttan interests are
disposed TO resent what they regard as
the brusque attitude Of the Interborough
soward the contract. '.rhe Manhattan
Tease is not the milestone in this mat
Ter" said one who is in close touch with
the pending negotiations. That should
be understood by the public. The Inter-
borough owes the Manhattan to-day
more than the Interborough's whole an
nual deficit. together with some $1,000
Do0 Of taxes, which are eighteen months
In arrears.
VIII Resent one sided Deal
''rhe Manhattan is willing to make
concessions in the terms of the lease.
hut 1t insists that the other side shall
make concessions as well. The scaling
inown OF the per cent stock guarantees
IS not to be the only basis of change.
Uhe Interborough has made millions out
of this lease and has found ii a sin
Eularly profitable arrangement. IT. as
they insist. the situation demands
rhange. the entire burden is no. going
10 be foisted upon Manhattan shoul-
Hers"
In Wall street circles the Impression
that an amicable and advantageous ar
Tangement is likely to emerge from the
current conferences was reflected by
he continued rise in Manhattan Rail-
way stock An advance has been under
way for several days, although the
announcement a week ago that the
Interborough expected to default upon
fhe March 81 interest payments and
would no longer consent to pay per
cent. precpitated at that time a drop
~ several points in the stock
banker OF international reputation
~. -~.s.. -
Better for Manhattan security holders
40 accept Az or 6 per cent. rather
than hold out for a problematical 7 per
sent. Representatives OF large blocks
of Interborough bonds denied that they
were taking any active interest in the
Manhattan parleys.
We arc not worrying about IT," said
pne such. In any circumsta nces--even
in the event OF an Interborough re-
feivership--we feel that the holders OF
these bonds are amply protected"
sff.0oO.0oO Behind on Taxes.
According to the records or the Tran
sit Commission arrearages OF taxes
charged against the Interborough on ac-
count OF its Manhattan l. division
amount to $2.25s.Ss2.32 In addition 20
That sum the Interborough owes for
taxes due ana unpaid on its subway
division s1,365,04G. Total arrears OF
taxes on all the railway lines in the city
aggregate s14.204.sei
The Transit Commission held hear
3ng yesterday upon its proposal TO re-
adjust the rental paid to the city bv
the Hudson and Manhattan Railroad
Company (Hudson River tubes) under
Sts franchise for the extension running
under Sixth avenue from Chrlstopher
10 Thirty-th street The franchIea
hranted In 1905. provided that the com.
pany should pay TO the city annually 20
cents for each linear foot OF single
track railroad for ten years after the
beginning OF operation. and 81 per foot
Thereafter until readjustment.
A further payment OF 81, 1000 year
wes provided, such amount being equiv
s,lent TO per cent. on $500, 900. the esti-
mated gross earnings Of the extensions.
This payment. which was to be made
re- ten years, is now subject to re-
adjustment.
The Transit Commission recently re-
Serred the matter to committee for in
vcstigation and report. The committee
recommended adjustment Of the rental
so as TO correspond with the increase OF
revenue and the payment OF $4,000 a
tear was recommended in place OF the
$4,000 year heretofore received. The
compHnys income has grown both from
en- increase IN trsHic ana increases IN
tsres.