New-York tribune., 1912-02-03
City Surprises Bankers Who Be-
Iieved That Feature PraCti-
CaIly Settled.
ANOTHER TAXPAYERS SUIT
Brooklynite Questions Preferen-
tial Payment Plan-Coleman
Talks of Municipal
Operation.

anu lne CITY representatives. "iN N
locked now over brand new financial
point raised by the city conferrees.
George S. Coleman, counsel Of the PUP
lie Service Commission, gave an opinion
that the pubic service law was broad
cough at present to permit municipal
operation II it were deemed necessary ~
the Board of Estimate.
John r. Ryon. real estate and insur-
ance man living at No. lGl Hancock
street, Brooklyn, began taxpayer s. ac-
ton to restrain the Public Service Com
mission from entering into any contract
with the Brooklyn Rapid Transit Com
pany for the operation Of rapid transit
lines which would involve the payment
to the company Of preferential pay
ment or guarantee He does not at
tempt to delay the construction OF new
lines, as was sought to be done in the re-
cent suit Of the Admiral Realty Com
pany.
Chairman Wilcox OF the Public Ser
vice Commission, Controller Prendergast'
Borough President McAneny and A. J.
COUNTY. representing Samuel Rea, tho
intermediary for the Interborough, wero
i'm conference off and on most OF the day
yesterday. Mr.. County would talk with
them and then would return to the
Interborough officials. At the end OF the
day both Chairman Wilcox and Presi-
dent McAneny declared that they could
not report much progress.
is there any likelihood Of your ever
reaching an agreement" Chairman Will
cox was asked.
well, ] cannot answer that question,
was the reply. You know never like
TO prognOsticate.
The usual reply TO similar questions in
the past was that there vas hope OF d
settlement II was stated that no ar
rangements had been made for another
conference, but that one would probably
bc held some time.
According to information from GER
tain quarter the Interborough Yielded 10
many of the objections made by the
Conferrees 10 the details as contained ih
the unofficial orfcr presented 10 thcm
early i'm the week by tho representatives
of the PENNSYLVANIA Railroad. These ob.
jcCtions were made at the meeting OF
tho conferrees and the Intermediates ot
Wednesday afternoon. Mr. Rea and
Judge Morgan j. O'Brien were at that
conference. At that time the objections
made 10y the city representatives were
put down on the offer or memoranda"
In red ink. That WAS taken back TO the
Intcrborough by Mr.. County.
ON Thursday Mr.. County returned. il
is stated. with the points on which the
Intcrboruugh was willing to make
change. Then II was that the city's
representatives brought up the branl
new financial point. The bankers. IT was
understood. had believed the financial
details to be practically settled when an
agreement was reached on the SIC pes
cent preferential payment.
Neither Chairman Wilcox nor Presi-
dent McAncny would acknowledge that
any new point had been brought up.
points had not been settled.
When Mr.. County left the conference
late in the afternoon all he would say
was: AN Intermediary cannot talk"
What next" Mr.. County was asked.
You will have to communicate with
Chairman Wilcox" was the reply. He
seems TO he the boss OF these negotia-
tions."
None Of the members Of the Public
Service Commission nor the Board of
Estimate regarded seriously the suit
brought by Mr. Ryon TO prevent the con-
summation OF any operating contract
with preferential payment feature.
They said il would be impossible for the
courts & pass on any question of that
kind before 1t was known what sort OF
II contract vas being drawn up.
Willard ~ Baylis of the law firm of
Baylis & Sanborn. No. 81 Liberty street.
obtained from Supreme Court Justice
Maddox, In Brooklyn. yesterday an order
10 show cause why the Public Service
Commission should not be restrained
from taking steps either in the prepara-
tion or contamination Of contract that
provided for a preferential payment.
The order is returnable before Justice
Blackmar, in Brooklyn. on Thursday,
when "A temporary injunction will be
asked pending the trial OF the action.
The Brooklyn Union Elevated Railroad
and the Brooklyn Rapid Transit Com
pany are co-defendants in the suit with
the members Of the Public Service Com
mission.
Raymond l.. Bayis. OF No. J6I 81.
Marks avenue. Brooklyn. furnished 4
bond To provide against any loss TO
which the defendants might be put for
which they will be repaid in case the
suit is settled in their favor
MY client Is substantial taxpayer
OF Brooklyn" said Mr.. Baylis last night.
He mas no antagonism TO any adequate
system o, transit relief. but. on the con-
trary, is dcsirous of seeing such relief
furnished az soon as possible. He is
greatly interested that the city should
not enter into any agreement with any
corporation the effect OF which would be
waste Of the city money or the execu-
ton and carrying out Of which wcnld
be contrary to the constitution, and
therefore Intellectual.
so long as there is legal doubt as TO
the city's powers to make the contracts
that have been proposed by the city's
officials the longer will be the postpone
ment of actual transit relief. Unless
the authorities desire unnecessarily to