New-York tribune., 1922-03-16
|. K. 7. Threat
Of ReceiversI,iD
Respite
Commission Defers Action
o" Order for Improved
Service for One Week
al Request of Attorney
Will Seek New ID al :
Modified Contract Will, the
vi haitian Company
Would Relieve the Strain

James l.. Quackenbush, counsel for
the lnterborough Rapid Transit Com
pany, asked the Transit Commission
yesterday to defer The issuance Of anv
order that would involve increased ex
penditure for the company. He told
the commission that the contemplated
order to improve service in the non
rush hours would force the Inter
borough into bankruptcy.
Clarence J. Shearn, counsel to the
commission, warned Mr.. Quackcnbush
that the commission was through with
temporlzing, that the public was ex-
asperatcd with unwarrantod congestion
and that the Intcrborough's remedy
was to come into the Transit Commits
sion's comprehensive plan. Mr.. Shearn
said that receivership seemed to be
inevitable for the Interborough unless
it accepted the commissions plan and
Tor that reason he objected to further
delay.
The Transit Commission, sitting as
court, made it clear that the stand
taken By the commission two weeks
ago when it practically asked the com
panies to sllow cause why they should
not be compelled to improve service
was still dominant.
Gains Weeks Delay
Mr.. Quackenbush asked for an ad-
journment for thirty days After de-
hearing for another week on the as
surance Of Mr.. Quackenbush that in
the mean time he and Frank Hedley,
president of the erborough. will
have had time to ascertain the definite
conclusions of the Manhattan company
with reference to modifying the lease
of the Manhattan to the Interborough.
whereby the Interborough is compelled
to pay $4,200,000 year on contract
that causes a net annual loss of at
least half that amount. After leaving
the hearing yesterday he conferred
with Manhattan directors.
Mr.. Quackenbush, in his remarks,
said that his company in the last six
months of 1921 missed earning fixed
charges by $1,937,0 900 and the first two
months of 1922 have not improved the
showing.
He said that the Interborough had
obtained an agreement for the exten-
sion of the conlpanys S38,o00.00O notes,
due within the next few weeks, % per
cent Of the note holders asserting to
he said, was the attitude of the Man
haitian company toward a request made
by the Interborough to reduce their
per cent guaranteed rental upon their
stock. He said that his company can
not, under u five-cent fare and existing
conditions, continue to pay the Man
haitian company rental
of" said Mr.. Quackenbush, "thc
Manhattan company should not see it
that way or there should be no basis
available for compromise, then
should expect to say to Judge Mayer
at the adjourned day March 80, as
would say to the commission, we can't
go further and we will have to face
the inevitable"
VIII Not Agree to Follow Order
Mr.. Shearn asked MIR. Quackenbus}
whether, if he received q reasonable
adjournment and the commission. de-
cided to order restoration OF the
service on the elevated and on the sub
way to q degree of efficiency equalling
that of 1916, the lnterborough would
accept the order of the commission and
put it into effect or attack 1t In the
courts.
After sparring with this question for
z few minutes. during which he re
viewed the attitude Of the INTERIOR
ough toward service orders, the Inter
borough lawyer finally said:
"If This commission at any time VIII
make an order that is beyond oar
pover TO carry out. Of course | sha'l
lake it TO the Appellate Division an6
.sk> tn hive it set aside fhat is TIE
best answer can male. Before aid
<conttnuod on paa. .h)