The New York herald., 1922-05-04
Readjustment Protects City
and Public; $15,O0O,0OO
to Be Raised.
ONLY 7 P. G. DIVIDENDS
Extensions and Betterments
to Cost S26O,OO0,O 900 Will
Be Outlined Soon.

Within twenty-four hours after the
adoption by the Transit Commission
OF its drastic service betterment orders
against the Interborough Rapid Tran
sit Company that corporations board
OF directors met yesterday and voted
unqualified obedience to all the rom
missions demands.
The Interborough stands pledged Ia
inaugurate all the train reforms re-
auired and to place Immediately its
order for new steel cars. The operat-
ing company. If II had so desired
could have withheld its answer to the
commission orders for five days.
Almost simultaneous with this action
came the announcement Though Judge
Julius M. Mayer of the Federal Circuit
Court Of the perfected draft of the
plan for the voluntary readjustment Of
the lnterborotgh Rapid Transit Com
pany and the Manhattan Railway
Company which has been adopted by
the respective boards of directors of
the two companies and by the three
protective committees representing
the several bodies Of security ho'ders
who are directly concerned.
The plan provides for $15. 100000 of
new capital, of which it is intended
presently to issue s10.5oo,ooo. as wal
predicted by THE New YORK HErALL
yesterday. to meet the costs of in
augurating the improved service re-
quired by the Transit Commission
Danger of Recefversbip Ends.
The plan averts definitely all danger
of an tnterborough receivership and
perpetuates the five cent fare-pver the
whole system. II limits future dividends
to a maximum of per cent. places the
l. r. T. controlling interests In close
harmony with the Transit Commissions 8
plans and provides for representation OF
the city and the Transit Commission. II
they so elect, on the Interborough board
of directors.
As now adopted, the plan will be sent
for ratification TO the $4,000 security
holders directly interested. Men most
closely associated with the readjust-
ment expressed themselves as optimistic
of its acceptance and success. They
believe 1t probably will be operative In
the early autumn. Unless the /. r. L.
directors had felt strongly confident OF
the consummation of the plan. 1t was
said they would not have committed
themselves so promptly to operative re-
forms of so costly a character.
Immediately after the meeting of the
marlborough board of directors was
ended Frank Hedley. president OF the
company, addressed TO the secretary OF
the Transit Commission letter in which
he said:
'Tn accordance with the formal ac-
ceptance OF Order No. 1927 B, here
with inclosed. permit me to state that
while the company. without waiting
for any further action by any official
body. will place forthwith the initial
order for one hundred cars. II Is my
opinion that to make these cars ef-
fectiya for the service OF the public
this winter 1t will be necessary Gas
testified upon the hearlng) that pro-
vision be made for the temporary
ward tracks at the Jerome avenue
ward and at the 1s0th street yard.
and for the temporary yard and shop
facilities at the 1iSth street shops, In
accordance with the drawings hereto
fore transmitted 10 the coHrnlssioh'
IIntil such provision shall be made the
company will have no place 60 receive
the cars"
HedIey's Formal Acceptance.
The incbosed formal acceptance OF
the orders was in the form OF dep
osition by Mr.. Hedley stating that the
two orders, A and 3. "are hereby ac-
cepted and will be obeyed."
Commenting upon Mr. Hedley's letter.
George McAneny. chairman of the Tran
sit Commission, said:
"Mr. Hedleys point about the initial
100 cars. which in any circumstance
would be fair one. was. as matter OF
fact. met in advance. The opinion filetl
by the commission upon the adoption or
the orders contains this clause
"In order to provide for the loo cars
rortiuued ou Pare Eight