New-York tribune., 1908-06-10
RECEIVERS TO P. s. C.
ST4TE THEIR POSITION.
Say N. Y. c. Railzcay Co. Can't
Obey Orders as Given.

ObeY OrderS as CiTen.
Whether not the receivers of the New YORK
City Railway Company Will furnish service on its
various lines that VIII be considered adequate by
the Public Service Commission is serious question
which has been brought TO an acute stage py
series of letters that have passed between the com
mission and the receivers in the last ten days Inc
receivers take the stand that they are fnanciahy
unable to furnish service such rs onsidere1
adequate by the commission. judging by the orders
already issued.
The declare to follow out the orders
of the commission would mean expenditure OF
money which it is impossible to get, and intimate
that such course would mean distinte8rauoh
of the New York City Railway system, an abolish
ment of transfer privileges and bring about
chaotic condition In the transportation scheme as
il exists.
The receivers say the facilities they now have
and those that they making arrangements to
get will not permit them to operate mole than lao
and that the only problem must b" one simply
of distributing this number of among the vari-
Gus lines to the best advantage. The position OF
the receivers. stated in letter received by the
commission yesterday, is follows:
Assuming that the commission orders increased
f has n on Shr rs In th @ aae that
the cars now owned and to be acquired by us Viii
to the present method Of distribntion it would be
neeessary to comply with the views Of the com am
proximatey, $4,000 OOO and incur annual expenses
our o e Of a coneuson
sud Rs 3 * b to Of the the e9e ea
adopted or now under consideration but would I'D. De
vice upon all of the lines is in view clearly
The additional service called for by the specific
orders mentioned in your letter of June would, o.
approximately 80 per cent of the total additional
service; to provide which would involve the fnan-
The only method by which such addonal dit ssns ser r.
addtona reeegeTs e and it must be
obvious TO the commission that in the present
aT absoGfeE mposebe Ep ef The problem
f IF the is osr a no ef he or wheh
we are advised that the service rendered at
the surface lines is liberal than that pre-
vided at any time prior to taking control OF
the property but We do not desire or intend to
of placing additional service on those lines af
fected by the orders Of the commission aoove men en-
issue. the receivers are unable financially to carry
the merits of orders compliance with which Is
nancially impossible
Travis H Whitney, secretary to the commission.
in replying the first protest of the receivers
against the orders. wrote. under date of June l.
that the commission understood that the SsV""S'
expenditure referred to by them would not De
necessary under orders already adopted or uhueT
consideration, but would be the expenditures
necessary to provide adequate service upon all the
lines your Jurisdiction" The commission
also understood. he wrote. that the receivers did
not contend that the orders referred to would rem
der it Impossible for you to continue the opera
Of the lines under your jurisdiction as UNIT
but that under certain contingencies you would
be unable pay the rentals called for In the IN
ter-company agreements
Mr Whitney then suggested that the fact that in
past years large rentals to subsidiary companies
were agreed upon should not be used as an excuse
for not furnishing adequate service now. saying:
In other words If adequate service were given
upon all of the surface lines in Manhattan. ac-
cordng to the standard OF adequacy ADOPTED IN lhe
recently enacted you would be naole 10 pay
| the rentals which were agreed upon in past year $
when the service not adequate as measured
agreements by which large rentals must be PAID
prevents furnishing by you of adequate service
/ TO the people Of New York
To which the receivers replied yesterday:
In regard to the leased companies. position
IS simply that long the operation of the leased
lines is profitable Will continue operate such
lines under the leases paving the aentais @ noS
are exorbitant is not one in which We as recely-
ers interested. We cannot, however, IN Jus,
tice the bondhoiders and the creoitors "nolIL
represent, continue to operate any leased hnes
which do not earn sufficient amount TO pay the
rentals, have We the resources 10 meet these
obligations in the of such deficits. IT, there
fore, the requirements of the commission increase
| the expense of operation in the radical manner
ma nd continue the operation Of unprohtao Die
lines and will necessarily be compelled 10 ieriil-
nate such rendered unprohtabie.
| The statement of the commission that the ex-
istence of these agreements by which large rentals
adequate service the people of New YORK IS
however inaccurate. because. II the rentals were
/ the system and the operation of the surface cars
by number of separate companies with 1ne at Il
tendant refusal of transfers the rearrangernent OF
10 the public There would follow absolute and
utter demoraza tion Of the present transpor taton
system which we do not believe your coiiihlssloh
desires ACCOMPLISH