New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1922-01-21
Improvement in Finances
Practically Assures Pay
ment of All Obligations,
Federal Court Is Told
Drastic Economy
Shows Big Gains
City Expected to Release
s2,26O.O 600; B. r. T.
Reports Affairs on Mend

The financial condition Of the Inter-
borough Rapid Transit Company is i'm
proving and there is every reason to
believe it will be able TO meet all its
Obligations in the future, according to
az affidavit by Frank Hedley, president
o. the company, filed Yesterday in the
Federal District Court.
With the affidavit WAS the INTERIOR
oughs answer to the recent petition of
The Continental Securities Company. of
which Clarence H. Venner is the head
asking that receiver be appointed for
thc ;raetion corporation. Argument in
the case will be heard before Federal
Judge Mayer on January 80.
In asking that the Venner action be
dismissed, Mr.. lIedley set forth in de-
tail many reasons why receiver
should not BE- appointed, chief of which
were that such course would hinder
tn company from fulfilling its obliga-
tons, cause hardship 10 the travelling
public and interfere with the plan of
th- Transit Commission to reorganiZe
TIL traction lines % New York City.
Payment Made on Bonds
a. evidence Of tbs company's grow
rs ability to meet financial require
nenLs the aisidaN it showed th. at the
mt Of the year IS, 761 $50 interest was
pad on lnterborough first and refund
ns per cent bonds, that the per
eN notes due December 81 1921. had
ten reduced by payments on account
e lSO5.0J0, and that the interest due
On That date had been fully paid, and
maj the semi-annual interest on the
LIss and second mortgage bonds Of the
ssnhattan Railway had been met to
aa's as we'll as the quarterly INSTALL
Msnt Of the dividend rental of the
Manhattan coiapony due October /,
1921.
Inc Willingness of the noteholders
10 aid the company in its difficulty and
prevent receivership was indicated
cy tne fact. according to the affidavit
'hst s5S ,4G2 500 Of the Z per cent notes
que September l, 1921. had been turned
n lor years extension, leaving only
N,.2l 800 outstanding.
Nj. Hedley affirmed that the COM
psny was catching up with its supply
ana material bills and that it had 10
pocuity IN obtaining credit. All bills
Hao oeen PAID up to October !. 1921. and
on January 70 1922, the company's cash
count amounted to $2.l90,0OO, said
W. aHdavit. Mr.. Hcdley said he be-
"eNed tne cash balance on February
would De s2,s00000 and that the com
pa,.s "ouid DC able to meet its current
oonsauons as due after February 1 to
.,,sleemoer |. 1922, when the extended
~ year notes will mature.
,nfough various economies. including
seuacuoh IN wages and automatic de-,
,Mes: .ss:: the company's sa&ing is nut at
s.ssuUoo IN operating expense for the
psuod Of January to June 80. 1922. nv
NJ Hedley. TIE monthly statements
@he company for the last six month.
as shrm d. showed a gradual decrease q
"a ;ac net corporate deficit and an ac-
.as 9si net income for December of S19.-
Money Due From City
= Referring to the decision of the
soof' Of Appeals, upholding the tran
NJ law. the affidavit said the decision
s'ald have the effect of releasing to
ae eomaprY $780, 900 due it from the
tnditures.
Inc Inc income of the company will be
ssa Hsher increased. according to the
alaavlt, If osotiations for a reduc-
wi IN the rental the company pays
'cor''rp-d page three,