The New York herald., 1922-03-12

the above sentence as Indicative OF the
commissions probable attitude when the
Interborough's officers confront II next
Wednesday to show cause why greatiy
improved service should not be given
Immediately. especially during non-rusn
hours Of each day when. as has been
shown, the present service In many In
stances is inadequate even to normal
traffic. Mr.. McAneny. speaking for the
commission. also said publicly last
Monday
"The service orders that we expect to
put forward and upon which hearings
will be held should properly lay the
burden of proof upon the companies. We
propose certain improvements OF service.
propose to exact certain things. Any
thing to the effect that they (the COM
panies) are unable to meet those orders
is part OF the proof they must produce
mean the burden OF proof or their
financial inability"
An unsigned typewritten statement
ostensibly emanating from the office OF
the Manhattan Railway Company. 165
Broadway, was sent yesterday to news
papers denying some of the details OF
the authoritative story of the Inter-
borough's efforts to free itself from the
incubus of the Manhattan IT, lease.
This statement said, in part:
Representatives of the Manhattan
company have had negotiations with rep
Of the security holders Of the
Interborough company, but these ne-
gotiations have been on basis wholly
different from the negotiations reported
in the newspapers, and up to the pres
ent time the parties have not come to
any agreement.
1--WE understand that the Interborough
hno a1x a he
Manhattan company's properties are re.
turned to 1t. the Manhattan company
will be liable in some amount for the
improvements. but the Manhattan COM
pany and Its counsel entertain differ
ent view.
Prosperity Seen Ahead.
1T Is estimated by engineers that
the properties Of the Manhattan COM
pany, II returned to the Manhattan
company and operated separately, will
earn In the future a substantial sum
over and above the amount necessary to
pay operating expenses. taxes and In
terest charges. and that while the
amount so earned In the immediate
future will be less than the per cent.
dividend on the Manhattan stock, this
amount will constantly increase"
An officer of the Interborough Rapid
Transit Company to whom was read
last night the letter purporting to come
from the Office of the Manhattan COM
pany confirmed the accuracy of the story
published yesterday by THE New York
HERALD. THE Interborough," he said,
has decided to default on the interest
payments on the lease which falls due
on March 81. In the terms of agree
ment 1t Is specified that. in the event
of such default, the elevated lines Of
the Manhattan are to be returned to
that company at price to be agreed
upon The Interborough's price is as
stated by the newspapers, $4,000. 300.
It is, of course, true, again as stated
that the Manhattan has not agreed to
that price"
The Citizens Union. by a resolution
voted by it's board of directors. has
indorsed the amendments to the transit
act now pending in the Rules Commit
tee of the Legislature. One of these
amendments empowers the Transit Com
mission. in the event of rupture OF
the Manhattan's lease to the INTERIOR
ough, to compel continuous service over
interlocking lines of the two companies
as at present.