New-York tribune., 1922-03-22
Manhattan Is
FOrShow-D0
On ~ Rentals
Refuses to Pay a Cen, fo..
improvements and Inter
borough Plea for Lower
Charge Brings No Action
IR.T.to DefaultP Payments
Mayor Orders Inquiry Into
B.R. T. Subway Contracts
in Effort to Break Them

Despite informal conferences and
exchanges OF views between the Inter
borough Rapid Transit Company and
thc Manhattan Elevated Railway stock
holders no progress hss been made. il
became apparent yesterday. in the ma
tor Of bringing about a reduction in
the lease terms which compel the In
terhorough to pay the Manhattan stock
holders S4.2oo,o00 year.
TO the informal suggestion by the
marlborough that the Manhattan con,
cany lower the yearly rental or take
back its Improbable lines and paw the
ln.erborough $4,000, 900 for third
tracking and eHtcnsions and other i'm
provements. the Manhattan has made il
clear 10 the Interborough that it will
net pay cent.
Meanwhile. it was learned Yesterday
che Interborough is unyieldinr in it's
determination to default on the Quar-
terly payment O. st.O50O00. long rast
due, and postponed until April 81. nor
will the Interborough pay rental for
the quarter ending the last dav of this
uonth.
Manhattan Ready for Show Down
George Wellborn Murray, counsel to
th. Manhattan stockholders commit
tee, OF which Alvin w. Krech is chair
man. has left town on two weeks
vacation. indicating that the Manhat-
tan company is going to wait for the
tals are due. The application Of the
American Brake Shoe and Foundry
Company for receiver for the Inter-
borough is up for a hearing before
Judge Mayer on March 80.
James L. Quackenbush told the
Transit Commission one day last week,
that if the Interborough was unable
at an early day to obtain concessions
from the Manhattan, he would be com
PEELED to face the inevitable' and ask
Judge Mayer to consider q receiver
ship.
The Transit Commission, in pursu-
sree of its "one big company" plan for
the entire city. will continue its sery-
ice hearing to-day and Frank Hedlev.
president Of the Interoorough. will be
on the stand. Chairman McAneny has
made it clear that no matter what the
marlborough may do about it's lease
contract with the Manhattan, the COM
mission Will insist upon a much better
service on the lnterborough, with a
cessation of congestion during the non
rush hours. The 1nterborough people
have given notice that any service or
der involving decreased net earnings
means receivership.
Concy Line Bonds Scaled Down
Attention was called yesterday by a
boadholder Of the Coney Island and
Bsoklyn ystem (made up of the old
Dekaib and Franklin Avenue and
Smith Street lines) that while the
company was able to show that its net
earnings were three times it's fixed
bond interest charges, the Transit
Commissions appraisal had scaled
down the 100000 of bonds to
$4,000 900 as tentative fair figure.
The murmurings from the COM
papies indicate g growing opposition
e the commissions general plan An
t!cipating that the Interborough Com
pany proposes to test the legality of
che proposed bonding system of the
commission for the zone big company"
project, the commission is planning to
get quick action in the state courts
or the major points that will be raised.
Mr.. Quaskenbush wired Governor
Miller yesterday calling attention to