The New York herald., 1922-10-09
Continued from First Page.


be paid upon Interborough stock dur
ing the next FIVE years. all revenue
within the proposed limitation to be
devoted exclusively TO service
6. That it should eliminate the fixed
per cent. return on Manhattan stock
paid by the Interborough by way of
rental for its elevated properties.
amounting to $4.2OO,0O0 a year, and
that the rental paid the Manhattan
be reduced to reasonable rate, pay
able only in years in which it is
earned The fixing of this rate at
per cent. for the first year means
reduction OF the amount of rental to
be paid to $1.600.00O and gain of
S2,400,000 from this source alone for
additional service
z. That it should provide for public
representation in the new board of
directors and finally
s. That 1t should be treated as n
preliminary step in the carrying out
of the commissions broader plan for
the municipal ownership and unifica-
tion Of all the useful transit proper
ties in the city.
Security Holders Canvnssed.
The communication the commission
is making public. which is signed by
Grayson Murphy as chairman OF the In
terDorough Metropolitan bondholders'
committee, but written on behalf of all
the parties to the settlement. reports the
re suit of the canvass of security holders
which has proceeded throughout the sum-
mer and indicates that the companies
are prepared to meet all Of these condi-
tions
Thus through the joint efforts of the
Transit Commissioners and Judge Mayer
the security holders have already virtu-
ally agreed to changes of corporate
structure and policy that should do
away with even the possibility of a re-
petition of the financial abuses that in
past years have aroused the just re-
sentiment and criticism of the public.
Prompt attention will be given the
application and the decision will not be
delayed"
Murphy Tells of Results.
The letter addressed to the commits
sion by Grayson NJ p. Murphy, chair
man of the Interborough- Metropolitan
> 12 per cent. collateral trust bondhold-
ers' protective committee, under date of
October 7. follows:
me Following percentages of the
various classes of securities dealt with
In the Interborough- Manhattan plan Of
feadJustment have been deposited SUBJ
)ect to the plan: marlborough Metro
rolitan Az per cent bonds and Inter
borough Rapid Transit Company stock,
about 80 per cent; Manhattan Railway
Company stock, about S5 per cent. In
terborough Rapid Transit Company Sc
cured notes. almost 90 per cent and
lnterborough Rapid Transit Company
3 per cent. first and refunding mortgage
ponds, the full amount required by the
plan.
1T has been deemed wise that at
this juncture the Interborough Rapid
Transit Company should seek authority
from the Transit Commission, as re-
luired by law. for the issue of the new
securities provided for in the plan.
I'm connection with the company's
formal applications. the undersigned
committee ventures to call your atten-
ton to the main features of the plan,
which are intended to meet the require
ments heretofore laid down by your
PInn Meets Conditions.
"The three committees which represent
the security holders have constantly
borne the conditions in mind and 1t is
respectfully submitted that the plan now
before you fully meets those conditions.
AS result of the elimination of the
Consolidated Corporation
the following securities disappear
interborough- Metropolitan 4Ikeo
!, bonds Ssr:;,u, -. ses. sos. 900
poration preferred stock. 45.7io.5oo
poration common stock without
par valne. stated at 81 per
snare '''''..''.' .''.'...-........ 5.663, 1874
iotal .''''......'.......... .Sfid.2l1 .634
In place of these securities there will
"emain only the original $4,000. 600 OF
lnterborough Rapid Transit Compan,