New-York tribune., 1922-05-04
|. r. I. Accepts
Service Order:
Gets IS Million

CONTINUED trom pauc cnc)
! Mr. Hedley's complaint Of lack Of yard
/ facilities he said
"Mr Hedley's point about the initial
! 100 cars. which. under the circum-
| stances, would be fair one, was. as
matter of fact met in advance. The
/ opinion filed by the commission upon
! tho adoption Of the orders contains
this clause:
"In order to provide for the 15o
| gust |, certain temporary ward facih-
/ ties have to be furnished Plans for
/ these temporary structures are we'll
under way. and probably will be fin-
ished within the next two or three
| weeks
The engineers Of the commission
have practically completed plans for
the temprary facilities in question.
! With the time required for the prep
aration and advert isement of the in
cidcntal contracts and for the appro-
priation Of the necessary funds by the
Board Of Estimate, the work will be
comp 'etcd within four months The
manufacture Of the cars will take at
least six months. The temporary sheds
! and tracks, when completed, Will give
storage to l50 additional cars"
Chairman McAneny said he had re-
ceivod Mr.. Hcdley's letter with refer
cnce to lack Of yard room.
Judge Mayer Announces Plan
Judge Mayer in announcing the sue
cessfu readjustment plan for the In
terborough and Manhattan gave ont
the following memorandum:
The voluntary plan for the read
justment of the Interborough- Manhat-
tan properties has finally been agreed
upon by the boards of directors of the
two companies and by the various COM
mittees which have been in confer
ence for several weeks on the intia-
tive Of, and in consultation with.
United States Circuit Judge Mayer in
! his effort to prevent a receivership
/ Of the lnterborough Company and the
disintegration of its system
'The plan in its final form was to-
day transmitted TO the Transit Com
mission for its information, accom-
panied by letter from Judge Mayer
and letter from the three commit
tees.
at now seems to be generally recoc-
nized that the plan now before the
security holders accomplishes certain
fundamental reforms urged by the
TRANSIT Commission and other public
dutRO11lloS.
The Interborough Consolidated Cor
poration. which is the successor to the
lnterRorough metropolitan Company as
the Folding company controlling the
PETERBOROUGH Rapid Transit Company,
disappears from the scene with it's S45,
740.3O0 OF preferred stock and its 922.-
626 shares Of common stock, and it's
S63,S0S.O00 Of collateral trust bonds
secured by the pledge Of the INTERIOR
oueh Rapid Transit Company stock
ln place Of these securities tho S35.-
100000 Of Interborough Rapid Transit
Company stock remains
Speculative Factor Eliminated
"This Enterborough Rapid Transit
Company stock ceases to be Specu-
lativc stock. as the result Of the pro-
vision limiting dividends to per cent
Tho old Mania ttan fixed guaranteed
dividend rental OF per cent on $50
100000 Of Manhattan stock is replaced
by a lover rental paya bic out of earn
ings only. thus relieving the INTERIOR
ough Company from the danger of in
solvcncy due to fixed rental obliga-
ton. which it has not recently been
able to pay, owing to changed transit
conditions.
con the other hand the Manhattan
stockholders arc protected bv a first
Tnterborough- Manhattan system ND to
8 per cent for the first year, 4 per
cent for the second year and per cent
for the third and succeeding wears.
After these limited dividends are paid
the Interborough stock is entitled to
dividend Of per cent before any
further payment is made on Manhattan
stock, which cannot receive moro than
I per cent in any year.
"The lnterborough company is placed
IN position to pay its arrears of debt
and immediately to purchase the new
cars and other equipment necessary to
meet the service orders Of the Transit
Commission. Provision is made for
s15,oOo.ooo of new capital which ought
70 be sufficient to enable the Inter
borough Manhattan system to meet the
requirements of the Transit Commits
sion and the needs Of the pubNc for
several years to come.
Keceivership Is Averted
"Tho disintegration Of the system.
which would be the inevitable result
OF recelvership. is averted, thus
avoiding the imposition of the double
tare, which a separation of the elo-
waited lines from the subway lines
would probably have entaled Bv keen
ing the system together without re.
ceivershlp, the continuation Of the five
cent fare over the entire Interborouch
Rapid Transit system is assured,
PROVISION is made for the renre-
sentatlon of the city and the Transit
Commlss ION, if they so elect. on the
board OF directors of the Tnterborough
company.
All these results and other features
IN the interest Of the city and the pub
lie are to be accomplished without nm