The New York herald., 1922-01-03
T.READY TOPAY
$4,OOO,O0O TO-DAY
Company Starts New Year
by Meeting Obligations;
Economy Did 1t.
VENNER CONTRADICTED
Receivership Likely to Be
More Remote With Better
Outlook.
HEDLEY SEEMS HOPEFUL
Satisfied With Results of His
Efforts to Make Revenues
Cover Bills.
HEDLEY SEEMS HOPEFUL

II was dH suspicious opening or the
new year for Frank Hedley, president
and general manager of the Inter-
borough Rapid Transit Company.
While celebrating the day quietly in
his home at Riverdale, Mr.. Hedley
yesterday informed reporter for THE
NEW York HERALD that, despite pes
simistic predictions to tie contrary
the marlborough to-day will meet
every penny OF it's semi-annual inter-
est obligations. amounting to slightly
less than $4,000, 900, on it's outstanding
first and refunding 5 per cent. bonds,
payment of which falls due on the
first business day of 1922.
Perhaps the most gratifying feature
OF this achievement from the view
point Of the Interborough's general
manager is that the corporation,
brink of possible receivership, is en-
abled to meet this obligation wholly
from its operative revenues, which
have been increasing materially under
as Mr.. Hedley testified recently in the
course of his public examination by
the Transit Commission. With the
exception of current bills for mate
rials and supplies these interest pay
ments were the only heavy obligations
of the company falling due at this
time.
Makes No Prophecies.
While Mr.. Hedley made no secret of
the satisfaction he felt in thus being
able to unhorse the prophets of evil at
critical moment he indulged in no
predictions. roseate or otherwise. nor
did he care to make any official state
rnent of the earnings and financial posi-
tion of the road later than that which
the Transit Commission.
Mr.. Hedley said there were too many
uncertain factors directly ahead to war
rant a this time any announcement fur
ther than the satisfaction he felt in hav-
ing made good the hope and expectation
he had voiced that the company would
manage to meet it's January obliga-
tions. Among the factors he mentioned
was the adjourned hearing of the bank
ruptcy petition, scheduled to come up
again In Judge julius NJ. Mayors Fed
eral Circuit Court on January 20, and
which probably will be argued on Janu-
ary 80.
This is the action in which Clarence
II. Venner. through his General Invest
ment Company of Maine and his Con-
tinental Securities Company of New
York, seeks to have a receiver appointed
for the Interborough. Mr.. Venner Is the
holder of a small block of the INTERIOR
ough per cent. notes which fell due
last September. Since that time more
than 90 per cent. Of the owners OF these
notes have assented to the extension
plan and have deposited their holdings
with J. p. Morgan & Co., the notes to be
payable next September and meantime
20 bear instead of per cent. interest.
The total issue Of these notes aggregates
s3s.144.4so.
venner Argument ForestnIIed.
Elijah n. Zolnc, counsel for the Ven-
ner interests. on his numerous appear
ances in Judge Mayors court repeatedly
has stressed the argument that the In
terborough not only had defaulted In the
payment of it's per cent. notes last
autumn Dut tndL tneTe was utllc pros
pect that It would be able to meet the
interest payments on It's bonds due to-
day.
Though the Venner interest has
pressed persistently for a recelvership on
that ground. Judge Mayer consistently
has maintained the attitude that re-
ceivership would be disastrous to the
public as well as to the corporation and
that II was to be avoided II possible In
the interest of public policy and the
greatest good to the greatest number
When the Interborough this morning
pays from accumulated operating rev.
enues the whole OF the nearly $4,000. 900
interest due on its bonds It not only
goes long way TO vindicatc tho action
of the United States Court. bankers said
yesterday. but It robs Mr.. venner and
his counsel of one of the most useful Of
their stock arguments.