New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-01-21
[. r. T. Needs
No Receiver.
Says Hedley
(Continuod from page ens)

the Manhattan Railroad for the use Of
the IL" lines are successful
Mr.. Hedley said that, ALTHOUGH mn
definite plan had been formulated. tho
company felt assured it could get finan-
cial support from representative bank
crs to meet additional capital require
ments in the future, should a receiver
ship be avoided.
Referring to MIR. Vcnner, the affi-
davit said he had brought similar re-
ownership actions against other com
panies and continued "They have all
been Of such uniform character that
they have been stamped by the name
Of 'Venneresque actions and under
Whatever nom Gle guerre said Clarence
II. Nenner has attempted to mask his
identity, it has been universally recor-
nized by the court as another preda-
tory attempt by him TO harass and an
noy the defendant"
The affidavit denied the allegation
that the company's capital stock had
been impaired, reviewing it's expendi-
lures and investments under the dual
contracts. Mr.. Venncr was aware many
Years ago, according to the affidavit
OF the dividends and bonuses paid bv
the company, which he now alleges
were unlawful.
..,- ~" SIuoion, inc a11daVlt added ::
Inc plan of the Transit Commission
when promulgated ought so to 90 af3 ,"'t
the status of this defendant as to make
its position even better than as
hereinbeforc shown; that deponent be-
lieves that any action taken At this
time looking to the appointment of a
receiver will be inimical to the public
interest.
"Deponent further shows that il the
plan of the Transit Commission shall
not be ready and in effect by September
l. 1922. when the extended three-year
notes OF defendant mature, it is to be
assumed, in view Of the action Of the
noteholders to date, that those three
year notes will again be extended for
a reasonable period provided that in
the meantime they shall not have been
funded
That negotiations are under way for
plan to fund the notes, in connection
with the REIMBURSEMENT Of the rental to
be paid under the Manhattan lease, and
that in deponent's opinion a denial
Of the motion for the appointment of a
receiver will be of great benefit to
the progress of these negotiations and
will be in the interest of all concerned
in the affairs of this defendant"
Judge Mayer yesterday authorized
S'''N.Cy ". Ndl4isoIt, receiver OF Lne
Brooklyn Rapid Transit Company, to
pay off and purchase S4,00o,00O Of B.
X. T. receivers certificates out of a
total of S18,000000. He also gave per
mission for an extension from Feb
ruary i, 1929, to February /, 1928. Of
the maturity date of the remaining
certificates. AS consideration for
the extension that interest rate on the
certificates will be increased from to
s per cent.
In his petition Receiver Garrison
said that due to economies in opera
ton, reduced cost of materials and
supplies and to a reduction in wages
the net earnings of the B. r. T. lines
had shown material Improvement. Be-
cause of this condition, he said, he
was in position by payment and pur-
chase to retire 100000 Of the certifi-
Gates now i'll the hands Of the public.
Receiver Garrison indicated that if
the next earnings continued at the
present rate he would be able to meet
future requirements in connection with
subway construction out Of them, and
at the same time retire further
amount of the certificates. He pointed
out that the economies were accom-
plished without any impairment Of
service.
In accordance with regulations Of
the Transit Commission the certificate
transactions will be publicly dis
cusscd next Monday morning at the
commissions offices, 40 Lafayette