New-York tribune., 1908-08-13
TO TEST P. S. C. POWERS
TRANSFER RESTORATION.
Judge Ldcombe Instructs M. S. r.
ReceiUers to Go to Court.

-
teen days. a month at most, there would be
a restoration of the transfer privileges which
existed up to last Thursday morning between
the 59th street crosstown line and the belt lines
owned by the Central Park. North & East
River Railroad Company and the Metropolitan
lines which intersect connect with them, re-
ceived setback yesterday.
Arthur H Masten. of Masten & Nichols. coun
sci for the Metropolitan receivers, returned to
town yesterday morning from Belnest. the sum-
mer home at Athens. Greene County. of Judge
E. Henry Lacombe, of the United States Circuit
Court bringing with him opinion in which
the Judge practically instructs the receivers to
go into the state courts and there test the
power of the Public Service Commission to com
pei them to enter into agreement to issue
transfers to the lines control of which they re-
linquished under the courts orders last week
Judge Lacombes reason for his instructions
to the receivers to test the Public Service Com
missions authority is because as he says. IT
is difficult to how the operators of the two
roads in their present financial condition can
succeed in agreeing upon a joint rate OF the
kind suggested" in the commissions order of
Tuesday.
That the receivers would show undue haste
In obeynv the order Of the commission was
generally expected. 1t was believed also that
whatever action the Public Service Commission
might take to enforce the restoration of trans
fers would be fought in the courts, and that the
receivers would first ask for advice from Judge
I.acorabe who appointed them, as to the course
they should follow.
The ouickness of their move IN applying to
Judge Lacombe, whose opinion came right on
the heels Of the commissions order, was some
thing of shock to the commission That body
will proceed, however. in its determination to
Tfc vii e.
pend largely on that of the two companies who
have. under the commissions order. until August
"a to establish joint routing and rate arrange
ment
JUDGE LACOMBE'S OPINION.
In his opinion on the application OF the re-
ceivers for instructions as to transfers Judge
Lacombe says:
The receivers have carefully conformed to the
general instructions contained in opinion hied
October S. 1907, to operate the road in accord
ance with the requirements Of law state ana
local When they took possession of the prop
erty the Metropolitan company was operating
The 5qto street crosstawn line under a lease.
The statutes of the state provide that IN such
case transfers should be exchanged, and TINS
was done. On August s, 1908. operation unoer
the lease ceased and the line was resurneo Urn 60 70
its owner independent corporation NO stat
ute ordinance regulation, state or local. re
ouired the exchange of transfers IN such case
and such exchange was therefore terminated
Judge Lacombe explains that the receivers
were guided IN absenting themselves from the
hearing held on Tuesday before the Pubic ser
vice Commission by his opinion OF June TO-
1oos IN which he said whether that section
(Section 40 of the Public Service commissions
oct, cor anv other one gives the Public Service
Commission power 10 compel two Independent
roads to exchange transfers is question OF
state law, the construction of a statute winch
NAV more appropriately be left to the state
courts He has this to say about the order IS
sued by the commission on Tuesday:
In view Of the information now on record IN
.his court az TO the financial condition OF the
two roads and the report recently maze 10 lns
commission showing that or twenty ihiiIiohs VI
passengers carried by the 59th street IIie C' :,
thirteen millions rode on transfers ana P Paio II
no fare il Is difficult TO see now the oPel~a ~
or tho tr-o roads can succeed In agreeing upon
Joint rate OF the kind suggested -,
The extent Of the authority of the comnls- cn,
under Section 40 is not exactly deHHeu
siona .b. new act has not yet been construed
nv the courts In the event or any proceeolhS
being brought by the commlsson Ia n,a. Iii
construction might be secured. the receivers VIII
ennear in any state court and cooperate IN
every way to secure prompt oeteIihii6'ioh -
any questions presented
Acting on the instructions of Judge Lacomoe'
the receivers probably will decline TO enter lnto
snv ARRANGEMENT with the Central PARK, Nortn
e. East River Railroad Company looking TO
Yesterday morning Mr.. Masten held long con-
fe-ence with Douglas Robinson. a brother-in-
law of President Roosevelt and one of the re-
caiyers hut both declined to say anything as to
what wouId be done regarding the Public Ser
vice Commissions order.
BELT LINE IS WILLING.
Meanwhile Henry Thompson. Of Vanderpoei'
1-bononson & Freedman, counsel for the Central
PARK North & East River Railroad Company
made no attempt to get into a conference with
the Metropolitan receivers or their counsel For
the directors of the company, however ne SAID
that they would be perfectly willing to obey the
cornn,fssion's order and restore the transfers, IL
the receivers would divide equally with them the
receipts from all passengers using the lines or
the two companies.
I'VE have been willing all along, SAID MI
Thompson, "to split UP every nickel OF JOINT
faro Nth the receivers We certainly would pre-
fer to take 2hs cents a passenger rather than
have our cars running practically empty. as
thew are now" Mr.. Thompson declined to say
whether the Metropolitan receivers and their
counsel explicitly understood this position of his
counanv hut he said that the half-and- half
division srrangement had been talked over with
representatives of the receivers.
would 21k-cent fare be enough to stave of
the receivership with which you said on Tues
day your company was threatened?' Mr.. Thomp-
son asked
II cannot say at this time to that, but at
any rate II is better to get 21 cents than to get
nothing; and we are ready and willing to give
transfers to the Metropolitan lines and accept
transfers from them IL they will give us half OF
each fare collected our joint lines. Al
though the greater part of the loss caused by