New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-12

III the court 4tAA~tS W ~ dlll all appeal
in this action and II the contracts are
actually signed. an action will be in
stltuted and carried 10 the court of last
resort for the annulment and cancella-
ton Of the contracts. In such an &C
ton the question of legality would have
TO be passed upon by the Court Of APP
pesls."
Mccall Grants New Hearing.
Immediately after the decision OF .he
Appellate Division was announced Mr..
shearn made 4 formal application -
Chairman Mccall OF the Public Service
Commission for a new hearing on the
contracts. The application was grant,
ed and such a hearing will be held at
. o'clock tomorrow afternoon in the old
Common Council Chamber in the City
Hall. Il will be before the entire COM
mission, and the members of the Board
Of Estimate will be invited 10 take
part. The Board Of Estimate viii
probably hold a hearing of its own,
however, when the contracts reach il.
Chairman Mccall told Mr.. Shearn
he would permit him any reasonable
amount Of time at the hearing. Mr..
shearn said he would like two hours.
President Mitchell of the Board Of Al
dermen will also speak.
As already announced. Chairman Nc
Call expects 10 be ready to pass final
Judgment on the contracts By March /.
II he should decide that they are per-
fectly proper there is nothing now that
stands in the way Of their being adopt
ed speedily by the Public Service Com
mission and the Board of Estimate and
executed with the companies.
Chairman Mccall said yesterday that
there would be nothing in the suit for
annulment Of the contracts. threatened
by Mr.. Shearn, which would prevent
the companies and the city from going
ahead and carrying out the contracts.
There would be no stay TO prevent the
use Of city money on them while the
ectl0n was penOinS.
However, il was suggested that per
haps the bankers Of tho companies
might shut down on their purse strings
until the court had finally decided that
there was no ground for annulment.
That seems 10 be just the sort of delay
the opponents OF the dual subway sys-
TEN want, hoping that In the meantime
the whole programme will go TO pieces
and the city will be forced 10 take up
municipal operation.
Appellate Division Unanimous.
Ending his opinion, which was con-
cured in by Justices Clarke. McLsugh-
lin. Lsughlin and Scott, Presiding JUS
iice InSrsham said:
These are the three points which II is
necessary TO discuss, and We think that
they are all without foundation: We
think no fact lie alleged which would JUS
tify finding that the Pubic service
Commission in signing these contracts
were about 10 commit an illegal ofhcial
act, or TO suffer any waste or INJURY 10
the property or. funds Of the city, or 70
90 any act beyond the discretion expressly
vested in them by law. The other oo)ec-
tons to this contract have been examined.
They are none OF them sustained, and 1t
rs not necessary TO discuss them.
One Of the points brought up to he
proposed contracts by Mr.. Shearn.
WHICH he declared TO be fraud upon
ths city. was the price at which the In
tee0ofeugh had agreed to sell it's BONDS
to its bankers in order TO provide Tor
It's contributions to the dual system.
On the point the opinion was as fol-
lows:
The plaintiff lays great stress upon the
Tact that there were per cent bonds
which are 10 De sold by the railroad COM
pany at 9Si2 and gives il as his opinion
tf.at the public would subscribe Tor tne
ponds II they were offered at puolc SUD
Commission 70 determine whether pcrniS-