New-York tribune., 1922-04-08
comnany's Attorney Says
Renefi, to Both Manhattan
and the marlborough In
,erests Must Be Obvious
Hylan Claims the Credit
u.vor Asserts Compromise
Finally Assures Continu-
snce of Five-Cent Fares

nany, said yesterday 'A"'
uod;dcation of the troublesome
,es.e by the lnterborough of the Man
-, elevated would be ratified by
tbe parties in interest
81, is for the manifest advantage
- al concerned that it should be
,.t;sed, said Mr.. Quackenbush.
Mayor Hylan, who has consistently
ohs. ,ucted the work Of the transit
Commission. pressure from which led
to the readiustment. of the contractual
md financial relations of the Inter-
borough and Manhattan companies,
eame ont last night in fifteenhun-
dred word statement, in which he laid
claim TO credit for the readjustment
that averted a receivership for the
marlborough and retained the scent
fare which for more than a year the
Mayor has been predicting the Transit
Commission was planning to increase
10 cents.
Huge Task Ahead
Frank Hedley, president of the Inter-
borough was on the stand at the
Transit Commission hearing yesterday
morning and afternoon, with Corpora
t;on Counsel O'Brien doing nearly all
the cross-examining.
The tediousness of the hearing was
enlivened now and tnen by sharp inter
changes between the Corporation
Counsel and the head of the INTERIOR
ough, but nearly everything brought
cut by the Corporation Counsel was
data that Mr.. Hedley had given in
previous examinations by the commits
sion.
Mr.. Quackenbush said that the task
Of communicating with the security
holders with reference to getting their
assents to the readjustment of the In
terborough Manhattan relations was an
exceedingly heavy one, as it involved
eonferring or communicating with
about $4,000 persons, whose affirmation
is needed to make binding the tentative
agreement brought about by Judge
Julius NJ. Mayer, of the Federal Dis
trict Court.
Mr.. Quackenbush itemized the par
ties in interest as follows: 1000 Man
haitian Railway stockholders; 1000
holders of 8 per cent Interborough
notes, amounting to over s38,000,O0O,
and due September 1; $4,000 Inter
borough 5 per cent bondholders, repre-
sented by j. P. Morgan & Co. in the
main; 5000 holders of Interborough-
Metropolitan collateral trust Az per
cent bonds. Holders of Interborough
preferred and common stock also must
be reached, but Mr.. Quackenbush did
lot know yesterday how many there
were.
Differ on Surplus Earnings
Mr. Quackenbush said that the
"harometric fund" feature Of the agree
mert which would restore the 7 per
cent income to elevated railway stock
holders whenever lnterborough earn
ings exceeded 4 per cent, was based
upon the assumption that Interborough
earnings were to be reckoned for the
present lnterborough system, includ-
ing the Manhattan company. The Tran
sit Commission holds that the earnings
OF the subway and elevated systems
should be counted separately, so that
the surplus earnings of one should not
nave to be devoted to carrying a deficit
on the other at the expense of nee
essary Improvement in the subway
service.
Yesterday was set down, at least in
the minds Of the transit and railway
officials, as "O'Brien day" as the Cor
poration Counsel had made it plain to
me commission that he wanted a
chance to ;how President Hedley his
exact destination. Mr. O'Brien had his
way, and t'ok most of the day trying
i" rattle NJ. Hedley, but failed to do it..
r Identail', Mr.. O'Brien had with him
. Of his office associates.
Mr.. Hedhy told Judge Shearn, coun-
SCI Tor tn commission, that the first
Dig paymet by the Interborough would
be S2,o00OO in back taxes on the ele-
Fateo dlVblon, and that practically the
remainder Of the income of the system
would be available, as Mr.. Hedley put
1t. for oher purposes
Very good observed Chairman
McAneny
Mr.. O3rien said that, in the opinion
OF the ely, the congestion situation on
tns lntgborough had reached a pass
whefe immediate action was demanded,
d ana unhss the Interborough did some
.hsng a once the Health Commissioner
might step into the breach.
The situation is acute" said Mr..
0Brien. "
1t has been acute for five or six
se"rs, "Is, suggested Judge Shearn.
m not examining you, Judge. S4o-
pose you keep your place" Said the
Guys chief counsel.
Mr. Hedley, in answer to Mr..
ohrien, who wanted to know how
many new cars the company would put
70 work If it had available $1,000, 900,
sdid nifty or Siytv
vad.i inen Mr.. O'Brien went into an in
resignation of the capacity and opera
s. s'oi OF the Interborough's power
of ftSes' +Sa asserting that only 67 per cent
NJ ME- re generating efficiency of the COM
pahy was used at present. and
Tag TEaa9ing to know why that was so. Mr..
medley said the Interborough was sell
s gooa deal of power, but that as
soon as the city conformed to the re-
esrt sar.eilehts OF its contract and finished
certain subway lines the power plants
"ouIo be more fully operated for the
.onpany's individual use.
Ar' Hedley said the Interborough's
power plants were being operated with
astasef sf.as efficiency than any in the city.
after after tilt between the LAWYER and
op ers witness, Mr.. Hedley gave Mr..
: o. nrien severe look and said:
th;aa won't let you get away with any
'4'"g while I am on the stand"
OBrien and Hedley Spar
hen the Corporation Counsel said
intIe snsI ne wanted to bring out what the
nv had spent for coal, Chair
s;s .isn McAneny said that the commits
S.en ;as" already was in possession OF that
haa obtained at an earlier