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| Re: Essex- Before the IND (1244111) | |||
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Re: Essex- Before the IND |
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Posted by Elkeeper on Sun Aug 25 22:06:32 2013, in response to Re: Essex- Before the IND, posted by Handbrake on Sun Aug 25 21:12:42 2013. I had always wondered why the Manhattan els were not severed (and shut down) when the IRT officially went bankrupt on Aug 26th, 1932. This almost happened in 1921-22, when the IRT almost went under like the BRT did. In 1903, the Interboro leased the MER and agreed to pay it a sum of just over $7 million dollars/year. However, by 1921, the IRT was in a difficult financial position and wanted to reduce the annual payments to a little over $4 million. At first, the MER Directors (who sat on the IRT's Board) balked, until the IRT threatened to spin them off and make them pay for some $30 million in improvements- including $17 million for third tracking the els. The MER directors finally agreed to the $4 million/year number with the proviso that the MER would never be spun off. When LaGuardia condemned and bought the 6th Ave el in 1938, the $12.5 million, minus back taxes, went to the MER bondholders- not to the IRT. |
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