New-York tribune., 1922-04-07

interest charges and is to be at the
following rates:
For the fiscal year beginning July /,
1922. 3 per cent.
For the fiscal year beginning July I,
1928, per cent.
For the fiscal year beginning July /,
1924, and subsequent years, 5 per cent.
These preferential payments are to
DE cumulative and must be made to
the Manhattan stockholders if the
earnings exist.
"In case per cent dividends should
be paid in any year upon Interbo-ough
stock any further distribution OF divi-
dends for that year is to be divided
upon prescribed basis between the
lnterborough stock and the Manhattan
stock until the total dividends upon
the Manhattan stock for that year
have reached per cent.
"2. Provision is to be made fer the
payment of all existing current obliga-
lions, including the arrears of rentals
at the present rate and taxes under
the Manhattan lease down to July l.,
the beginning of the next fiscal year.
Pending the consummation of the plan
nS dividends are to be paid upon Man
haitian stock. but accruing Manhattan
bond interest is to be paid, and five
payments of approximately $500, 900
each are to be made to the City of
New York on account of taxes now in
arrears on the Manhattan property
Will Improve Property
provision is to be made to insure
the application of proper amount to
the maintenance and improvement oe
the Manhattan property, including the
installation of turnstiles at stations
and pneumatic control doors for cars.
"3. The interest payments on the
jnterborough per cent first mortgage
bonds and on the secured notes are to
to increase the amounts available for
the Improvement of the Interborough
properties and other capital purposes
the sinking fund in respect of the
Interborough per cent first mortgage
bonds is to be waived for a fve-year
period.
-. The Interborough secured notes,
aggregating s3s,144,0oo, maturing Sep
tember / next, are to be extended for
a period of ten years.
-. The Interborough stockholders
are to subscribe for s7,ooo,ooo of new
Interborough notes. Such stockholders
as do not exercise the privileges of
subscription are TO surrender portion
Of their stock for the purpose Of insur-
ing the sale of the notes to others.
"6. 1t is estimated that the proceeds
Of the sale of the notes to Interborough
stockholders, the sinking fund pay
ments to be waived by the INTERIOR
ough bondholders and the surplus
earnings for four years above the pro-
posed preferential dividends on Man
haitian stock on the new basis will pro-
vide for all payments and maintenance
in arrears, and in addition $15,000,000
FOR capital requirements, chiefly addi-
based upon an allowance for substan-
tial increases in service. 1t is also es-
t;mated that by 1925 the Interborough
company's accumulated preferentiais
will have been made up and that there
after the earnings Of the system will
provide several million dollars annual
ly toward the preferential to which the
city is entitled under its subway con-
tract. ALI the foregoing estimates are
based upon fve-cent fare
Commission Must Approve
81. The proposed new securities will
be subject to the approval of the Tran
sit Com mission in accordance with
law
George McAneny, chairman Of the
Transit Commission, made the follow
ing statement:
mission have head with interest the
statement of the court with relation to
the agreement reached between the In
terborough and Manhattan interests in
an effort to avert receivership of the
Interborough properties.
1.-THE commission for several months
past, in its informal conferences with
the representatives of the companies,
has insisted that their existing engage
ments must Be modified, recognizing
that the lease in its present form, with
provision for the payment of the fixed
7 per cent dividend to Manhattan stock
holders as rental. is the greatest sin
gle bar to necessary improvement Of
service. The agreement, with the sew
sral balancing concessions, reached this
afternoon represents apparently a sub
staptial move in this direction. The
Transit Commission, however, will be
called upon to give its formal con-
sideration to the entire matter, and to
approve or disapprove the agreement in
question, after public hearings have
been held In the manner provided by
law. The members of the commission
must. therefore, reserve their judgment,
or any expression of opinion, upon the
terms proposed until the matter has
come before them officially and been
weighed with relation to all of its bear
ingS upon the existing transit situa-
ton"
Crash Narrowly Averted
Since the directors of the INTERIOR
ough failed last Saturday to vote the
appropriation necessary to pay the Z
per cent quarterly rental to the Man
haitian Elevated, it was said last night,
It has been a toss-up whether there
would be a receivership for the Inter
borough, with the chances of averting
it regarded as doubtful
The default of the Interborough on
the rental due the Manhattan Elevated
ts understood TO have resulted in
strong pressure by the committee rep
resenting the latter's stockholders to
bring about the appointment of re-
ceiver. The negotiations for a reduc-
tion of the rental reached virtually a
breaking point, and only Judge Mayors
Intervention is said to have saved the
situation. His interest in the matter
arose from the fact that the applca-
tion for appointment of receiver was
pending in his court.
The conferences at which the plan.
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