New-York tribune., 1918-10-01
Burr,on Hylan
Order, to Start
TractionProbe
Corporation Counsel Will
Seek Evidence to Annul
Franchise Rights
Fare Increase Request
Causes Mayor to Act
Executive Declares Orig
inal Owners of 4th Ave.
Get 100000 Year

iii0A ~ Nv 1C1 , VI fAIl ave.
Get 100000 Year
William Z. Burr, Corporation Coun-
sci, yesterday afternoon responded to
The communication from Mayor Hylan
wherein a full investigation into New
Works various traction lines was de-
nanded, with view to anuull ng all
franchises under which it may be found
shat the holding companies are not liv
ing up TO the original contracts with
the city by sending word to the City
Hall that the investigation will be in
stituted Immediately by his Office, and.
in accordance with the Mayors wishes,
will be pushed to the uttermost.
The Mayor, in his letter to Corpora
tion Counsel Burr, charged that hun
dreds Of thousands of dollars of the
public money" are being annually
wasted by the organizations now oper-
ting the transit systems in the city
through payments made to the holders
OF the original leases. who in their turn
aro rendering the pubic "no service
whatever" Through repeated reorgani-
2ations and consultations. the Mavor
charges. stock has been watcred again
and again always to the peoples detri-
1nen-.
They Ride in Rolls Royces
Heforeuces also were made to "hun-
r.-l
bout the city in Rolls Royce cars and
70 "one family" which alone is repre-
sented as receiving 81 900 day from
;he Fourth Avenue street railway line.
Finally the Mayor declared that the
current demand for seven-cent fare
5 unjustifiable
In both political and traction circles
me entire letter was taken as evidence
nat the present administrations long
advertised drive for municipality owned
always is definitely under way. What
IS ultimate outcome will be no au-
taoritat;ve person was willing to con-
lecture yesterday. All sides are agreed,
however. that full and complete air
ing cf the whole local traction situa-
ton is assured.
81 intend said Corp )ration Counsel
BUR- last night, ito sift the matter to
the very bottom. That there is some
thing fiagrantly wrong near y eve~y one
- to-day persuaded. That all these
loGdS are henvi y overcaplta lied uld
IN pretty much self-evident. Ger
,-iuly it would seem time for action,
700. when roads that are declaring divi-
dends all the way from IS to 81 per
cent come out asking for the privileges
Of raising their fares still higher. If
the facts warrant it, | shall have no
hesitation in annulling the existing
franchises, in accordance with to-day's
Instructions from the City Hail."
Mr. Burr SAID that he has not yet
heard from District Attorney Swami,
whom Mr.. Hylan suggested could CO.
operate in the proposed investigation,
but that he will gladly avail himself of
all the help that Mr. Swami feels will
ing to give in the matter
From railroad men, the Mayors Of
Iensive against them met with a diver
slfied reception. Frank Hedley, speak
lng simultaneously for the INTERIOR
borough and the New York Railways,
said that he had read the Mayors let
YER carefully, but that he had "abso-
'1teIy no comment to make"
tor the Brooklyn Rapid Transit Colo
mel I. s. Williams, president of the
road, dictated tine following statement:
We hope that the Corporation Coun-
idr as our system is concerned, and
that if the results arc what we expect
they will be the Mayor will be con-
v'nced that, in our case at least, con-
solidatlon OF street railroad properties
mas meant depletion, instead of infa-
ton of capital
The figures have been presented so
often of the scaling down of both
Nxed charges and capital as result OF
our reorganization and consultations
mat am surprised that the Mayor has
not seen them. Perhaps, however, he
Goes not have us in mind"
Other street railway officials, while
decilnlng to have their names used for
Iuohcatlon, privately characterized the
Mayors charges as largely misstate-
ments which could not but come to
grief If the announced investigation is
prosecuted to the extent promised.
Some justification for this attitude
vas found at the Offices of the Public
pslnted out that, although the roads
abe generally believed to be largely
oVercaptallzed, no allowance is made by
the commission for rentals paid for
franchises or for any bonding transac-
Nons undertaken by the companies.
IN determining the proper compen-
sat'on to which railroad is entitled"
a. oaIu commissioner raVlS II. whitney,
there are just five considerations
AIKEN into account. These are: First,
me actual operating cost; second, the
.ost OF maintenance, with due regard
70 70, the public safety; third, just
SS'lowance for depreciation of property;
1ourth, the insurance of an adequate
surplus to provide for unforeseen con-
ungencies, and fifth, the item of a
Property"
IN gauging the last, Mr.. Whitney en-
pnaslzed, 1t is the tangible assets that
are ere Inquired on, and not the transac-
IONS ions or obligations Of the sort to
which the Mayor has reference. 1t is
ia THIS basis. he added, that the hear
ntes IN regard to the solicited seven
SemT mI,, fare will proceed.
n The owners of public utilities in
Mew York City" he said, mo longer
oppose municipal ownership prices
satisfactory to themselves. The city
ICES the dangerous possibility that,
Inaer the pressure of war necessities,
we advocates of municipal ownership
sna the needy owners of utilities will
'nl.e to burden the city with utilities
good, bad and insolvent. useful and
oose..eesss, under agreements that will
sfhaa!.i1y public officials by promoting
s,,cir political success and will bring