New-York tribune., 1922-04-07
Manhattan Co. 10 Accept
Reduced Rental Under
Plan Proposed by Judge
MayerAfterC Conferences
Tive.Cent Fare
Will Be Retained
Providesfor 100000
for New Equipment; Sc
curityholders Must tRatify

Judge Julius N. Mayer, Of the United
States Circuit Court, officially an
rounced last night a voluntary read
iustmcnt Of the financial and contract
nal relations between the lnterborough
Rapid Transit Company and the Man
haitian Elevated Railway Company,
through which receivcrship for the
Interborough ls avoided, and The two
big companies Will continue TO be op-
Grated as ono system. Future opera
ton k 20 he based on q ijyc-cent fare.
The old ninety-nine-y year per cent
guaranteed rental payable TO the Nam
haitian stockholders, amounting to s4,-
100000 a year, is cut down to . 3 per
cent rental for the fiscal year begin
ming July /, 1922; & per cent for 1928
and per cent for 1924 and subsequent
years.
The 1nterborough company is 10 pay
up rental arrears due the Manhattan
&ad also pay ta% arrears to the city.
Pending contamination of the pro-
POSED readjustment the Manhattan
stockholders get nothing in the way of
rentals.
s70Oo,Oo0 New lnterborough Notes
Tnterborough stockholders arc 10
subscribe for 100000 in new Inter-
borough notes. he Inter rboroush's Sc
cured notes, msturng next September
are to be extended ten years.
The proposed readiustment, which is
still to be ratified by tho parties in
interest and must be approved by the
transit Commission, will provide sl5,-
$4,000 for capital requirements. chiefly
ior additional equipment.
Judge Mayer, who had deferred ac.
hon on two applications for the sp-
pontment Of receiver for the Inter
aorougn in order to give the COM
panies time for rcadiu5ting their re
istions, was chosen US the medium by
he parties IN interest for making
public the new tentative agreements
dtsgEibed in the following statement
from hin.:
Several weeks ago the court called
conference Of the counsel represent-
ing the various interests in the Inter
borough and Manhattan properties and
urged upon them The advisabiiity of
agreeing upcn some fair plan of volun-
,afy readlustment that would avert an
In'erborough receivership. The court
'9oA this step not only for the protec-
on of the sssets in the hands of
'aiAe5 II. Sheffield, as trustee in bank
11ptcy of the lnterborough Consol.
Gated Company, hut also in the hope OF
s'eT,oc the very grave injury to the
,I&Nellng public and to the security
holders which the court was convinced,
after careful consid ideration of the PEND
7'g receyership applications, would re.
'uit from receivership and the disin-
'eI7ilon q the lNterborough. Msnhst-
fon system
cluntcer HcAdjustment Planned
As (he result of r series of confer
'7ceg held in consultation with the
court 4 plan Of Voluntary readiuet-
i1eht mas been prepared which the con-
3 'eles7 nave agreed to submit to their
Pe'uNe committees and boards of
p-FeEtoI.' namely-the Tnterborough
o"aho!oers' and noteholdera' commit
.@e, OF which ] F. Morgan is chair.
nan tire Nanhattan stockholders
cyiatAl'tse. Of which Alvin ". Krech is
snalr1ian; the board Of directors Of
-4''heltan Company, the INTERIOR
s1Fh consolldated bondholdcrs' com
~ 49,, ot Nhich Colonel Grayson NJ. +.
,.sp']Y o;roi Is chairman, and the board of
!.ec'ors OF the lnterborougb Com
Pd4IN. ~ NPlIpT-eG
ol this plan Will not only insure tho
'ontinued operation Of the Interhor.
Ign Manhattan lines as one systen,
@ nut VII enable the company to make
!ahtlal Improvements in service bv
nno.iiu-ne the necessary funds for the
.;;-oseS eo'.;S OF new cars and other ne eded
nHalphent and for ether capitsl pur
The me Plan in no way conflicts with
sio, program of the Transit Commits.
b boron IN the contrary, the Inter
soush- Manhattan companies. With
tE Hnsnc.al structure readiusted in
Mahner proposed, will be in much
,o'SeF position than they now are to
sioU iOperate with the Transit Comrig-
,,shh III f7tfy!ng through some com
ob;aenSlFe plan 10 achieve the public
sTb's the com mission has in view.
tbs Ie formal agreements embodying
toidaaah i pan Tor submission to the security
.ior o,ustS are IN the process of prepara-
Details of Proposal
fsatne lne following summary Of the NJ ain
Sa.ates Of the plan has been prepared
e,,.,, IL; The Manhattan rental is to be
tomb;us cut OF the earnings Of the
eo syst>m after the payment Of
Continued or rase ss}