New-York tribune., 1922-05-04

a
duly sacrificing the interests Of about
$4,000 investors. among whom the
ownership Of the various securities
resting on the lnter,orough- Manhattan
properties is distributed
at now seems reslized on all hands
| that the plan is not in conflict with the
purposes OF the 1;ansit Commits ion
but is intended 20 Sc in cooperation
with lts plans. Etpress power has
been reserved by the committees to
adapt the plan to meet the future re
qurements of the Trnnsit Commission
when they arc IN a position to act de-
fnitively regarding tl,.'r own plans.
Laid Before Transit Board
Judge Mayor also gave out copies of
letters, which he SAID were self-ex-
planatory One read as follows:
my Dear Chairman McAneny:
Some time ago handed you copy
Of a public statement regarding a plan
for the volur tarv readjustmcnt of the
Interborough Rapid Transit Company
and the Manhattan hallway Company
which the boards Of directors of the
two companies and the three commit
tees representing the security holders
had adopted. The conference, resulting
in the adoption Of this plan were un-
dortaker 1t NY suggestion in the hope
of avcrting the very grave injury to
the travelling puhilc ard the security
no. ders, which | was convinced, after
careful conside ration of the pending
receivership applications, would follow
reccivership and the disintegration
Of the lnterborough- Manhattan system.
AS | informed you and your associates
the committees have since been engaged
IN putting the plan into formal shape.
The plan of rcadiusment as ten.
tatively outlined in the memorandum
acc ccompanying my statement has now
been worked out in greater detail and
various provisions have been insterted
for the protection of the city and the
public and looking towards co-opera-
tion with the Transit Commission
81 have asked tho counsel for the
variou committees to hand you at
once copy of the plan in the form
finally agreed upon.
Sincerely yours,
"United States Circuit Court Judge"
Chairman McAneny's letter to Judge
Mayer in reply to the foregoing fol
lows:
"My Dear Judge Mayer:
II have at hand your letter of this
date with relation to the proposed plan
for voluntary readjustment of the
financial relations Of the Interborough
Rapid Transit Company and the Man
haitian Railway Company. I also have
received from the several committees
that have been in conference a copy of
the plan in the form finally agreed
upon.
"As you indicate, the members Of the
Transit Commission have been kept in
formed OF the progress of the negotia-
tlons in question. and we not the dec
laration contained in the plan TO the
effect that any adjustment effected
at the present moment will not con
1lct with the ultimate contamination
of the plans of the commission itself
in so far as they relate to these COM
panies. Also that the individual com
mittees. representing respectively the
lnterborough bondholders and note
holders, the Manhattan stockholders
and the 1ntcrborough Metropolitan 41a
per cent bondholders, reserve to them
selves the power and tho right to adopt
modified or substitute plan of read
lustment to conform with tho plans Of
The Transit Commission when def
nitoly formulated
I've note. further, that tho plan Of
the conference is submitted TO the
commission informally at the present
tune, IN order that We may continue to
be fully Informed thereof, and that in
due course. and after the necessary
consents Of the several bodies Of in
tercsted security holders have been OBJ
tanned, application shall be made TO
the commission for the approval Of
the various steps involved which. un-
der the law, require such approval.
Freedom Of Action Reserved
The commission appreciates your
courtesy, as we'll as that Of tho con.
terccs, in acquainting it with tho dc
tails Of the negotiations and the con-
clusions reached. Inasmuch. however.
as the commission will be called upon
TO pass, in the manner fixed by aw.
upon essential details of tho proposed
adjustment, after public HEARINGS and
upon full and careful conside ration Of
tn" whole matter, it must naturally
Wlthhold any expression Of opinion
upon any feature OF it at tho moment
and reserve its full freedom of action
for exercise at the appropriate time.
ne ccmmlssion assumes that, what
ever may be the immediate disposition
OF the conferee's plan, the several CON,
ln'ttees will be prepared to keep in
louch WIN 1t a. the broader plan is
developed. and to aid it, as the above
quoted declaration suggests, in de-
ttcfmlnlng the place the Interborough-
Manhattan system is eventually to have
in such broader plan.'
CHAIRMAN McAneny also received
letter from the chairmen Of the various
CONFERENCE committees in charge Of the
Interborough Manhattan read djustmcnt,
ann,uncIng the adoption of plan (as
outlined by Judge Mayer had contain
inc the following:
This plan is not intended to CON
net with the ultimate consummation Of
the plans of the Transit Commission O t
the state of New York. On the con
trary 1T is believed that the consum
nation of this plan will promote the
publlc purposes the Transit Commiz-
SION has in view. TO the end that the
committees may be in a position ef
fectively to cooperate with the Transit
Commlssion in accomplishing its aims
eacn or the three committees expressly
reserves the power to adopt modified
or substitute plan in accordance with
the plans of the Transit Commission