New-York tribune., 1922-04-07

az announced, was matured engaged
the interests involved until late yes
terday afternoon, and it was not until
about o'clock that the final details
were established. The participants in
the conferences. which ranged from the
Morgan Offices to the Interborough Of
iices and TO Judge Mayors chambers.
included, at various stages, Judge
Mayer, Frank Hedley, president, and
James l.. Quackenbush, general coun-
sci, of the lnterborough: Dwight w.
Morrow. of j. z. Morgan e. Co, rep
resenting the Interborough per cent
bond holders Alvin ". Krech, chair
man of the Manhattan Elevated stock
holders committee, and Colonel Gray
son NJ. Z. Murphy, chairman. and Paul
y. Cravath, counsel, of the protective
committee for the Interborough-M Metro
politan a.. per cent bonds.
BANKERS were inclined to regard thr
scheme outlined as afrording a proba
Die basis for settlement, but empha-
sized that it could be made effective
only in so far as the securityholders
agreed to it. The plan has been
evolved only as statement of princi-
pies with the main details filled in.
and two or three days are expected TO
be required before counsel for the
various interests have completed g
final draft for cons liberation by the
committees representing the various
securityholders.
The procedure will be for these COM
mittees to act upon the plan and to
prepare and submit to the security
holders circular setting forth what
Is sought OF them. The committees. it
is anticipated, will indorse the scheme
with possible minor alterations, but
the real test will not develop until re
turns begin to be received indicating
the attitude Of the securityholders
Their assent will be sought through
OF the securities with the committees
Chief difficulty is looked for from the
Manhattan Elevated stockholders, espe-
cially as the rental contract is so
framed rs to neccssitate acquescence
OF each individual stockholder in a re-
auction IN the rate. The provisions Of
the plan bearing upan the holders of
the PETERBOROUGH M Metropolitan 41as
were llkened to an assessment. but in
view of the fact that their security
might be jeopardized by a receivership,
and of the advantages which the plan
offers from the standpoint of the stocK,
less objection is expected from this
quarter.
Bankers View Favorable
The attitude Of the bankers repre
senting the Interborough refundinp IS
IN the past, it was felt last night, vir-
tuaily assured that this section Of the
security holders would fall in with the
plan. They have consistently urged de-
velopment Of service by the company
and have been reluctant to take any
aetion which might prejudice the in
terestS OF the bonds and notes ranking
behind the IS. Their contribution to the
plan, figuring the sinking fund pay
ments on the issue at $4,000 900 annu-
ally, will amount to $10000,00O during
the tive-year period.
1t was pointed out last night that
the security of the s per cent bonds
would in TO way be impaired by the
act of temporarily waving the sinking
fund payments. While not generally
known, the last instalment due on this
sinking fund is in default, according
TO bankers, but this has not been made
the basis for any action by the holders
OF the per cent bonds.
Neither the members of the Transit
Commission, its counsel, Clarence J.
Shearn, nor Frank Hedley, president of
the 1nterborough Company, whose in
adequate service has for the last month
been the subject of inquiry by the
commission, indicated the least con-
seriousness yesterday at the service
hearing of the readjustment plan made
public last night by Judge Mayer.
Must Have Money, Says Hedley
Judge Shearn, with Chairman Nc
Aneny presiding at the hearing, drilled
away at the matter of getting Mr..
Hedley to admit that the PETERBOROUGH,
as unit, was furnishing inadequate
service during non-rush hours, and at
the same time had ample funds TO i'm
prove the service. Mr.. Hedley predi-
Gated all hopes for proposed improve
nlents on getting more money from the
operation of the system as whole,
The judge and the commissioners had
obtained about the same kind Of a~
answer from Hedley at two previous
hearings. Judge Shearn got into the
record various admissions from He'd
lev that there was no "operatinp rea-
SON for not giving improved service.
After much more of the same sort Of
interchanges; between counsel and wit
ness yesterday, Judge Shearn showed
signs Of impatience, and said, with
noticeable asperity:
lc IS an appropriate time, it seems
to me, to have it definitely understood
Mr.. Hedley, that if the plan that has
been proposed by the commission is
not to become effective. and not to be
come effective within a reasonable
time, the service requirements of the
commission will be based upon the
financial ability Of tac subway division
as unit to give the service that it is
obligated to give under its contract;
and the appreciation of that fact by
the interests that may be resisting
your efforts to have the lease modified
would, it seems to me, have q very