New-York tribune., 1908-08-25
nEF[ANCE TO THE P.S. c.
FARE ORDER SCORNED.
com mission Nay Take Action To-
dou and a Test Is Likely.

Il JS
.-oveIling public will not he able to ride
so,h street or on the OF the East
ues- Side Belt lines transfer received
car of the Metropolitan system-at least,
et The receivers of the Metropolitan and
- central Park North & East River Railroad
r.,nanv sent word yesterday to the Public
dc commission that they were unable to
-, with the commissions order to estab-
,,e, through route joint rate of fare.
The Central Parks reply was very short and
the point It gave no reason why it could
y. obev the order of the commission. The
~.sr Of the Metropolitan receivers was good
ss.l longer. II explains why it cannot comply
,., the order of the commission, and Incl
..o1Iv pays its respects to that body. saying
.pr,- that the efforts of the commission to
.nrove the property of the Metropolitan have
,en s,Iperfiuous and implying Indignation at
she statements credited to the commission that
che receivers believed themselves not amenable
20 the state laws. After forecasting the drop
ming of more lines. found too expensive, from
-ba system and the consequent cutting off of
-nore transfers. il winds up with the declara-
.,on of the receivers that it is their duty to
make and keep the property a paying one. prac-
,,caIly an invitation TO the commission to test
.ts own powers TO enforce joint rates and the
exchange of transfers
The reply of the Central Park company, which
vas received yesterday morning, gave the mem
hers Of the commission idea of what would
he contained in the letter from the receivers
That did not reach the offices of the commission
until the afternoon, and then the three members
of the commission who are now In town
Nessrs McCarron. Eustis and Maltbie-wlth
George 6 Coleman and Oliver c Semple, OF
counsel and Secretary Travis H Whitney. went
into executive session. After il was over it
,as intirated that the commission would take
some action at its regular meeting this morn
ing on the failure of the companies to eStab-
lish through routes and joint rates
CENTRAL PARK COMPANY'S REPLY.
The Central Park company's leter follows:
Dear strs: Referring TO your order No 672; We
reg 70 advise you that find we cannot esiablsa
q through route or put in force joint rate Yours
CENTRAL PARK NORTH AND EAST RIVER
kAil-hoAD James DHts a, Macdonald. President.
RECEIVERS ANSWER
: The Metropolitan receivers say:
In the first place We may point out that in oper-
ating the roads under our charge We nave. uilder
pointed conforrned all state laws, ordinances
and reg mons gt.d bs federal Court We
considered ourselves not amenable 10 state c"ntio!
are wholly unwarranted. We unwilling 10 be
l.ve that newspaper statements to that effect ac-
credited 20 members your board made with
The commission as shown by the record Of our
correspondence and the instructions OF court re-
The fact that under the judiciary act Of 1885 the
the regulation of state statutes does no &
preclude from expressing our views as TO tht
81 such statutes Nor does deprive of the
aT csSxe Of cotestfng by such proceedings as Ne
may be advised, any acts of state officials @ that
erty-
ZONE METHOD NOT PRACTICABLE
Referring now to your order. we may remark
that the proposed zone method of transfer which
der present conditions in this city The members
% GENT man ho ries on the streetcars in New YORK
City that il is possible to segregate the people
with 5sth street transfers who may board north
bound car on tfor instance) Eighth avenue at a
rush hour Without segTega5ionI, it Is physoay ,3, "a
fun Of people insisting on tansporta tIon beyond
pay an extra for the privilege Each effort to
enforce the right to the extra fare, which your
Te-5cf Void ag.ats be against the road v hich
personal appearance of individual passengers But
this is a matter of detail the fundamental objec-
lion is found in existing financial conditions,
We have recently filed statement showing the
ceivershir OF New York City Railway; copy is
,s-i aos ~ ai,rs - Il I'M hle seIe, ~ Sem sbor, of
the necessary expenditures 70 an amount exceeding
Guided the very large sum expended on construc-
1ion account which has been provided from the
penditures represent anything paid to stockholders
bondhoIders the Metropolitan Street Railway
Company. with the single exception OF an item Of
interest paid during the first week before we had
ascertained the extent Of the financial disaster
which precipitated the receivership
NET INCOME OF PROPERTY
Examination of this statement will show that the
only items in il representing payments mot already
defaulted) investors l. e bondhoders and
stockholders of all roads including all underlying
securities are set down as rent Of leased lines
sen If these items were wholly thrown out
thus eliminating all question of capitalization or
slo less $50 So sifss1 12s 0S. The state and
city authorities this property for purposes
income on the states and ctys valuation of the
actual property to-day is but little in excess OF
Per cent.
While IL Is true that the expenditures made by
the receivers for repairs and rehabilitation nave
period of recevershp il must not be supposed mat
tor some year. ccrne there can be any substan-
tial reduction of such expenses There has never
been any allowance in the accounts for depreCa-
ton, and there Is such allowance IN our state
ment The conduit electric system is tar more ek
pensive 10 operate and maintain than i the over
head trolley system further heavy expenses
must be incurred in order TO put the property IN
satisfactory working condition
II being manifest that the property cannot con
unue operating with deficit we have been aho are
still confronted with the problem now 70 nlS' ne
both end. meet Since income cannot under ex-
i.ting statutes be increased on the lines we 3per.
The only way to do this is by changes o, & the o
pense side OF the account Reduction might pe
effected by starving the property. wtnch ~ was llie
method employed by the New York City RAILWAY
during the last few years of its operation Car
service might be reduced in non-rush hours, the
r.ake-shift repairs We have never for single
moment entertained the idea OF such economic
The Court al the instructed US that the ROADS
we're instruments OF public service and must he run
10 give the public efficient service
cr.ScEr CONDITIONS