The New York herald., 1922-05-04
Continued from First Page.

SOutiuucQ from + lrSt rage.
TO be ordered at once and on August ]
certain temporary yard facilities. be-
cause of pending delays on the mair
work, will have to be furnished. Plans
for these temporary structures are well
under way and probably will be finished
within tf.e next two or three weeks
THE engineers of the commission have
practically completed plans for the tenn
porary facilities in question. With the
| time required for the preparation and
advertisement Of the incidental contracts
and for the appropriation Of the neces-
sary funds by the Board of Estimate
the work will be completed within four
months. The manufacture of the cars
will take at least six. The temporary
sheds and tracks when completed will
give storage to $50 additional cars"
Plans for New Construction.
With radically improved subway SER
vice thus apparently guaranteed and the
necessary capital to finance it assured.
! the travelling public will await with keen
interest the publication, probably to be
made before the end of the current week,
of the Transit Commissions completed
plans for proposed new subway con-
struction at an aggregate cost of ap-
proximately $260.000,000.
/ Concerning the Interborough- Manhat-
tan readjustment the following state
ment was authorized by Judge Mayer:
THE voluntary plan for the readjust-
ment of the Interborough- Manhattan
properties has finally been agreed upon
by the board Of directors Of the two COM
panies and by the various committees
| n HfOt1 L. g.
eral weeks on the initiative of and In
consultation with United States Circuit
Judge Mayer in his effort to prevent a
receivership of the 1nterborough COM
pany and the disintegration of its sys-
| tenn.
THE plan In its final form was to-day
transmitted to the Transit Commission
for its information, accompanied by
letter from Judge Mayer and a letter
from the three committees
1T now seems to be generally recog-
nized that the plan now before the
security holders accomplishes certain
fundamental reforms urged by the
Transit Commission and other public
authorities.
"GD The Interborough Consolidated
Corporation, which is the successor to
the 1nterborough- metropolitan Company
as the holding company controlling the
Interborough Rapid Transit Company.
disappears from the scene with it's
$45.740,500 Of preferred stock and its
932.626 shares Of common stock, and it's
$63.S0S.000 of collateral trust bonds,
secured by the pledge of the Inter
borough Rapid Transit Company stock.
In place of these securities the $35, ,000,-
900 OF marlborough Rapid Transit Com
pany stock remains.
yc T,ta
Company stock ceases to be a specula-
tive stock as the result of the provision
limiting dividends to 2 per cent
"(S) The old Manhattan fixed guaran-
teed dividend rental of per cent. on
S60,0OO,000 Of Manhattan stock is re-
placed by lower rental, payable out
OF earnings only, thus relieving the In
terborough company from the danger
of insolvency due to a fixed rental obli-
cation. which it has not recently been
able to pay owing to changed transit
conditions.
"L" Holders Protected,
"(4o On the other hand the Manhat-
tan stockholders are protected by a first
claim upon the entire earnings of the
Interborough-Manha system up, to 8
per cent. for the first year, per cent
Tor the second year and per cent for
the third and succeeding years. After
these limited dividends are paid the In
terborough stock Is entitled to a divi-
dend OF per cent. before any further
payment Is made on Manhattan stock,
| which cannot receive more than per
cent. In any year.
"(5) The Interborough company Is
placed In position to pay it's arrears
OF debt and Immediately to purchase the
new cars and other equipment necessary
| to meet the service orders of the Tran
sit Commission. Provision is made for
$15.000.000 Of new capital, which ought
to be sufficient to enable the INTERIOR
ugh-Manhattan system to meet the re-
quirements Of the Transit Commission
and the needs Of the public for several
years to come.
"(6) The disintegration Of the sys-
tenn. which would be the inevitable re-
| suit of a receivership, is averted. thus
avoiding years Of expensive litigation
| and also avoiding the imposition of the
doub&e fare. which a separation Of the
| elevated lines from the subway lines
would probably have entailed. BY
keeping the system together without a
receivership the continuation of the Ave
cent fare over the entire Interborough
Rapid Transit system is assured.
I'D Provision is made for the rep
resentation of the city and the Transit
| Commission, II they so elect. on the
| board of directors Of the Interborough
| company.
| Judge Mayer and the representatives
Of the several protective committees OF
security holders have been cooperating
In the closest spirit of harmony.
| The Judge yesterday wrote to George
McAneny. chairman OF the Transit Com
| mission,
| The chairman of the Transit Com