New-York tribune., 1922-10-09
Complete Plan to Rebuild
Finances and Maintain
Scent Fare Announced
An Plea TO Commission
la Million Debt 4
Done Away With
Dividends Limited to z
Per Cent When Earned:
High Rentals Slashed

complete reorganization or the In.
terborough Rapid Transit Company SO
as to insure the maintenance of the
five-cent fare and greatly facilitate the
carrying out of the broad, compre-
hensive transit plan of the Transit
Commission for the city was an
nounced yesterday in the petition made
public by the commission Of the Inter-
borough metropolitan bondhoIders com
mittee. Negotiations for the intricate
readjustment Of Interborough securi-
ties and financial reorganization to
comply with the conditions laid down
by the Transit Commission have been
in progress since last May, shortly
after the present commission took Of
ice.
Chairman George McAneny Of the
Transit Commission declared yesterday
that it meant the first big step toward
the successful working out Of transit
conditions in accordance with the COM
missions plan. The company in it's
petition acceded to every demand made
time avoided threatened bankruptcy, and
places itself on solid financial foun-
dation, with complete elimination of
all excessive rentals and other fixed
charges, such as the old Manhattan
Elevated lease, which have been the
heaviest burden to carry i'm the past.
The Transit Commission has set Oc-
tober IL as the date for the hearing on
the petition, and Chairman McAneny
said yesterday no time would be lost
in considering 1t. Judge Julius M,
Mayer, of the United States Circuit
Court Of Appeals, has labored long and
successfully with the Transit Commits
sloners to bring about the acquiescence
of the thousands of security holders to
the reorganization plan.
Commissions Statement
The fundamental conditions de-
manded by the Transit Commission and
finally worked out and accepted by the
companysaare set forth in statement
Issued is' yesterday by the commission.
They are:
u. That it should not contemplate
any increase of fare beyond Ave
cents or any reduction of the Joint
service for fve-cent fare now given
upon Interborough and Manhattan
lines.
2. That it should provide funds for
new cars, additional power service and
other equipment necessary to meet the
present and future service orders Of
the commission. 1t is estimated that
the cost of such new equipment will be
in the neighborhood of $4,000, 900.
"3. That it should do away wholly
with the Interborough Consolidated
Holding Company-the successor of
the Interborough- Metropolitan - with
its $114,000,000 Of securities.
~. That it should limit the possible
future dividends of the Interborough
to per cent, to be payable only when
earned. This would prevent the dec
laration and payment at any future
time Of excessive dividends, which,
during the war period, went as high as
20 per cent.
No Dividends for Five Years
so. That no dividends whatever
should be paid upon Interborough
stock during the next five years, all
revenue within the proposed limita-
tion to be devoted exclusively to
service.
"6 That it should eliminate the
fixed 7 per cent return on Manhattan
stock paid by the Interborough by way
of rental for its elevated properties,
amounting to $4,200000 year, and
that the rental paid the Manhattan be
reduced to a reasonable rate, payable
also only in years in which it is
earned. The fixing of this rate at 8
per cent for the first year means a
reduction ofs the amount of rental to
be paid to M,SO0.oO0. and gain of
SO, 100000 from this source alone. for
additional service.
a. That it should provide for public
representation in the new board of di-
rectors and, finally,
49, That it should be treated as a
preliminary step in the carrying out
Of the commissions broader plan for
the municipal ownership and unidca-
ton Of all the useful transit properties
in the city"
"The communication the commission
is making public, which is signed by
Grayson MP. Murphy, as chairman
Of the Interborough- Manhattan bond
holders committee" the statement con-
tinued, abut written on behalf of all
the parties to the settlement, reports
the result Of . the canvass OF security
holders which has proceeded throughout
the summer, and indicates that the COM
e