New-York tribune., 1922-03-29
Cut lin Rental
OF Il Planned
To Save [. II. T,
Acceptance Of Reduction i'm
Z p. c. Guaranty by Man.
haitian Owners Forecast
After Day Of Conferences
Bankers Control Situation
Caution All MOI 10 Provoke
a Receiyerrship JUS; When
Business Is on Upgrade

After day of informal conferences
looking to q modification Of the oner-
aus per cent rental Of the Manhat-
tan. representatives Of the INTERIOR
ough Rapid Transit Company and the
Manhattan Elevated Railway Com
many said last night that there was
20 change in the situation.
There were ta'ks among the parties
n interest and representatives Of !.
p Morgan & Co in the office of Alvin
W. Krech, 81 Wall Street, the greater
mart Of the working day.
James l.. Quackcnbesh, counsel for
the In.crborough, after a conference
with some Of the Morgan partners. said
ate in the afternoon that the Inter
borough interests would make no
statement until formal one was is
sued and he could not tel when that
would be.
viii Meet Again To-day
The conferences viii be resumed this
morning in the Office Of Mr. Krcch. who
s chairman of tho Manhattan stock
holders comm 'ttec.
The consensus of Judgment in Wal
street is that. in vieus OF the stand
taken by the Transit Commission Chat
there shall be no increase in the five
cent fare), supported as the commits
sion is by Governor Miller, the Man
haitian stockholders, who receive 9 7
ncr cent guaranteed rental on SEQ 600
100 share capitalization. VIII finally be
prevailed upon to modify this rental
The Morgan banking interests are be
coming potentially more powerful as
the day approaches for Federal Judge
Mayer to decide on lhe matter OF a
receivcrshp for the lntcrborouch. The
American Brake Shoe and Foundry
Company's application for a receiver
comes up tomorrow in tho Federal
Court. This is a 'ffiendly" suit. so
called. The Continental Securities Com
pany also has an application for the
appointment of a receiver, which is
scheduled for hearing Friday. On Sat
urday the Interborough's current obli-
cations, amounting to about $4,000 900,
are due, with $4,00000o on hand to
meet them.
The Morgan house floated the In
terborough's 5000 100000 Of bonds and
notes, and many Of the buyers Of these
securtIer keep asking the firm about
them. 1t was learned yesterday that
tHt hpi gan dItUtIS are CduIiOninI aii
parties in interest that it is time to
exercise discretion, and not set going
succession of receiverships just at the
time when business as whole is be-
ginning to shake off its grogginess.
Financicrs Hold Up Hand
No one at the Morgan Offices ycster-
day would discuss the lnterborough
Manhattan strained relations further
than 10 say that the Morganq are not
the parties Of either the Arst or sec
ond part. but holders Of securities that
are amply protected by the undoubted
value of the Interborough. At the
same time, the marlborough and the
Manhattan people arc kecping In touch
with the bankers. and ultimately what
>hc financiers say is going to have great
~ ight in formulating an agreement be-
ateen the 1nterborough and its credi-
tors.
The atmosphere Of the situation last
night suggested that the Manhattan
stockh olders Will reduce the per cent
rental, at least foy a term of wears. SC
as TO enable the Hedley management
Of the Interborough and its subsidiaries
TO continue, and that as soon as the
Manhattan decides on this modifica
ton the lnterborough will borrow s1O.-
o0o.oo and hquidate its moro pressing
obligations.
At the conference to-day it is cx-
pected that the following persons will
ne IN attendance: George Woilwood
Murray. Counsel to tho Manhattan
stockholders committee; Alfred Shitt
president of the Manhattan company:
frank Hedley, president Of tho Inter
borough, and James L, Quackcnbush
counsel Of the company, and n repre-
tentative Of j. p. Morgan e. Co
probably Dwight Morrow. who in IN
terborough bond matters generally is
the spokesman for the banking house.
Another phase of the situation which
is having an indirect influence on the
Observation-Disclosures case is that
the Wall Street bankers just now are
York, New Haven & Hartford Railroad
and also with the Public Service Cor