The sun., 1907-08-23
INTER. met WON'T OPEN BOOKS
WILL FIGHT AGAINST PUBLIC
SERVICE BOARD.

Tho heads Of the marlborough -bistro-
poitan company have refused to open their
books to the Public Service Commission.
The commission has been notified that
because the company Ia not a railroad
corporation. but merely holding concern.
In the belief Of the officers Of the Intsr-Met
it 10 not within the jurisdiction Of the
commission. This became known last
evening after the adjournment Of the con-
tinued investigation by the commission
into the local railroads.
The expert accountants employed by
William NJ. Twins. special counsel to the
commission. to 60 through the books Of the
companies now comprised in the Inter-
Met sought to get access TO the books Of
the Inter-Met for the purpose Of ascertain
ing the details Of the merger agreernsnt.
These books were closed to tho representa-
tives Of the commission.
The members OF the commission, IL can
be said ofacially. do not intend TO rest
quietly under the conditions. II the atti-
tude Of the Inter-Met ofic ials is persisted
In the commission will in the course Of the
next few days issue peremptory order 70
the company to deliver UP its books. When
that order is issued the company, acting
on advice which will be given by Paul d.
Cravath and De Lanoey Nicoll, the Inter
Nets counsel. will refuse to comply with It..
When the next step is taken by the COM
mission. as may be expected. to ask the
courts TO enforce It's order the Inter-Mee
will meet the issue by starting proceedings
to test the right Of the commission to ex-
anime the books Of the corporation.
The practical effect OF this developmens
well may be to bring up the question Of the
constitutionality Of the act which brougas
the Public Service Commission into being.
When the act was passed Mayor Mcclellan
and Comptroller Metz were anxious that
the courts should pass upon It's legality, bvs
William B. Ellison, Corporation Counsel
at that time, and Francis X. Pendleton, who
has succeeded Ellison. both advised the
Mayor and the Comptroller that in their
opinion there was no doubt about the con-
stitutionahty Of the aot. Accepting those
opinions the Mayor and the Comptroller
did not 60 further with the contest they
intended making in the courts against tho
supplanting Of the Rapid Transit Commis-
sion by the new body.
The Inter-Met intends to fight. II not
the legal existence Of the Public Service
Commission. at least the scope Of the powers
it 10 vested with In the act which created It.
UnIess the commission and Mr.. Twins
can have aooess TO the Inter-Met books
they will be powerless to dslve into tho
conditions under which the merger WAS
made or to prove he slatsment which
Mr.. Ivins has made % often In the course
of the investig igstion, that In his belief there
has been improper imitation Of the assets
Of the merged companies.
Another obstacle that Mr.. WINS has met
with In his efforts to get at the facts UNDER
lying the consolidation Of the various com
panies which are now comprised In the
lnter-Met 10 that he has been told that
the books Of the old Metropolitan Street
Railway Company no longer are in exist
ence. According to all that Mr.. Ivins
can learn these books have been destroyed.
When the counsel for the Intsrboroush-
Metropolitan company were aslred 1t the
close Of yesterdays hearing II IL was true
that the books Of the old Metropolitan com-
pany were no longer In existence they
said that they had no knowledge - to
whether the books had been destroyed
or not.
All that they would permit themselves
to say was that the books OF the New York
City Railway Company. which was formed
In February, 1902, TO take over the Metro
politan system, were kept regularly and
that they would be given to the commission
for inspection. The explanation also was
made yesterday that there was no need
for the keeping Of the old books because
when the New York City Railway Com
pany was organized and a new set OF books
opened there was no futher use for tho old
books. and that in destroying them the
custom had been followed OF doing away
with such books after they had been audited
and their contents embodied in the books
OF the new corporation.
Mr.. Ivins has been depending upon these
books to throw light upon the high costs
charged for the electriication OF the Broad
way. Third. Sixth and Ninth avenue and
Thirty fourth street lines. as we'll as other
routes. Mr.. lvins has already brought out
that according to the reports of the Metro
politan company it cost %. al. .2s7 to change
the motive power OF the Thirty-fourth
street line to electricity: that several OF
the other routes cost from ~ ,O00. 900 Co
81. 900 900 the mile. while the Eighth avenue
electrification cost only sios.i4s 4 mile.
Il was also placed on record by MIR, wins
that the Fulton street line, still operated
by horse oars. was put down on the reports
Of tho company as having cost s2.ss3,o9T
a mile to construct and equip.
The varianoes In these reports OF costs
and how the valuations were made up Mr..
Ivins was hoping to get some light upon
from the books OF the old Metropolitan
company. but II it should turn out to be trus
that the old books have gone into the fur
mace It 10 doubtful II be viii get the infor-
nation he 10 seeking.
Perhaps" said Mr.. WINS last night, the
books of the New York City Railway Com 2
pany will give us the particulars we want.
II they do not am afraid that the lass OF
the old books will prove a serious impedi-
ment to this part Of our investigation. How
ever, will be able to say more on this mat
ter when our accountants have made an
examination Of the books Of the New York
City Railway Company. Although this
company was formed In the early part Of
1907 II was learned yesterday that the old
books were In existence as
late a. June, 1904. when District Attorney
jerome was asked to take UP the charges
made at that time that there had been de-
liberate wrec1ing Of the Third avenue road
Il - ~ -