New-York tribune., 1922-03-11
/. II. Z. Threat
Called Bid for
Receivez.sE,i1)
Continued from page one)

stood to be a friendly action, and really
in the interest Of tho lnterborough
Ncnner Action Called Up
The other action is different Clar-
ence II. Nenner. representing The Con-
tinc1tal Securities Company, also has
an application for a reccivershlp. The
company got wind of Mr.. Venner's in
; tention to apply for the appointment of
a receiver, and the result was the ap-
plication by the American Brake Shoe
and Foundry Company, which now has
the right Of way.
MI. Hedley of the fntcrborough told
Mr.. McAnony. of the Transit Commis-
sion, two weeks ago that his company
had made a proposition to the Man
haitian company to take back its old
system. When Mr.. McAneny was
asked yesterday about the reported IN
tention of the Peterborough company
to default on its contract with the Man
haitian company, he said:
"This, in its present stage. is an
inter-compan matter, and until the
negotiations reported to have been
undertaken have been concluded, and
the results presented TO it officially,
the Transit Commission naturally Will
have no comment to make
An important matter is whether, IT
the Manhattan company takes back its
old system and operates 1t, 1t will be
permitted to charge a fare that VIII
facilitate the profitable operation of
the system When this question was
brought up yesterday, Mr. McAncny
said that the general railroad law con
trolled the situation, and gave the
state power to pro rate fareS Wherc
the ride is continuous and where more
than ono company is concerned IN the
haul. Furthermore, the Transit Com
missions amendments to the transit
law now before the Legislature en-
powers the commission TO regulate the
fare where there is continuing rae
over more than ono system.
Extensions Made to 81
The extensions of the Manhattan sys-
tenn built by the jntcrborough include a
niece of the Ninth Avenue line from
l55th Street across the Harlem River
TO A connection with the Jerome Ave
nue line. Another extension is on the
Third Avenue line from the old Ford
ham Road station through Webster
Avenue to Gun Hill Road and White
Plains Road. Another is on the Second
Avenue line, from Fifty yseventh Street
and Second Avenue over the Queens
boro Bridge. These were all very cost
ly in their construction, and are car
ried on the Interborough books as cost
! ing about $17.0O0,OOO.
The Interborough reported that the
! Manhattan system in 1920 was operated
at loss of S2,600,0OO. The guaranteed
the heaviest milestone for the INTERIOR
ough to swim with, and the officials
say that it will sink the company un-
less freed from it, which 1t Is proposed
to do by refusing to pay any more
rentals under it.
Mr.. Hedley, testifying before the
Transit Commission on November %,
with reference to the congestion, made
no concealment of the fact that the
service on the Interborough had been
curtailed to make financial ends meet.
He said, in answer to question by
Judge Shearn;
"The service has been regulated by
the income of the company Whenever
it has been possible 10 cut car off a
train and run three-car trains instead
of four, or eight, or ten-car trains, and
still carry the people, not with comfort,
but still carry them, we have done it in
that way, and that is the way we have
shaved the service and made the service
fit the money that has been taken in"
In the last analysis this admitted fact
| is the primary cause for the approach
ing crisis in the affairs of the Inter
borough and the Manhattan companies.
The Transit Commission demands q
better service, and the Interborough
finds it impossible to improve the serv
| Ice and pay its Obligations. The In
terborough people have told the iran
sit Commission in about so many
words that if the commission will CO.
operate in keeping the company out of
receivership the Interborough, within
two and half years, will pay the city
interest on its investment in the sub
ways. The probable defaultng on the
contract with the Manhattan company
is interpreted as a shortcut to solu-
ton of the entire financial problem"