The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-12-08
WHITNEY TO BLAME,
COMPTROLLER SAYS
Mr.. Craig Says Commissioner
Caused Delays Costing City
Many Millions.
HUGE SETTLEMENT NEAR
Contractors Expect to Collect
100000 Damages Instead
of $4,000.

Comptroller CharleS Il. Crdis isSuV"
his promised statement yesterday In
regard to the claim for damages pend
ing before him by the international
Construction Company which Travis
Whitney, Public Service Commits
sioner, charged the Comptroller was
about to settle for approximately
$500 900, although, in the opinion OF
the Service Board officials, the dam
ages will not exceed $4,000.
Mr.. Craig puts the blame for delay
in rapid transit construction on Com
missioner Whitney. and the Commits
sioner issued a statement In which
he put the blame upon Mr.. Craig.
The Comptroller condemned the com
missions policy in the cancellation OF
uncompleted contracts and charged
that the real purpose of the Lockwood
law, which permits the cancellation II
existing contracts and the making OF
new ones for completion of the work
on cost basis, was to prevent any dis
closure being made OF the liabilities he
charges the Public Service Commits
Sion has imposed on the city by neg
iect of its duties.
Mr.. Craig's statement in part fol-
lows:
"Cost city Many Millions"
Upon Commissioner Whitney more
than any other living person rests the
responsibility for this condition Of af-
fairs. II the Public Service Commits
sion had promptly proceeded with the
plans and contracts there appears no
xr,Iat h1 1ttal
should not have been completed on
January /. 1917. This delay has re-
suited enormously to the benefit OF the
marlborough Rapid Transit Company
and costs the city OF New York many
millions of dollars for which II OBJ
tains no return whatever.
The form OF contract for construc-
ton subjects the contractors to n
penalty of from 5000 to 5000 per day
for delay in completion OF their work
beyond the contract period. Delays
by the Public Service Commission in
the preparation and delivery OF plans
rendered II impossible for contractors
under such penalties to finish their
work within the contract periods,
which expired before the entry of the
United States into the war.
EARLY this year Commissioner
Whitney and his associates drafted and
procured the passage Of what is known
as the Lockwood law" 1t was not
until recently that the purpose OF this
law was disclosed. That purpose, in
a word. was TO prevent any disclosure
ever being made as to the liabilities
that Commissioner Whitney and his
associates have imposed upon the city
OF New York by their delays and neg
lect Of their duties.
Case of the Intercontinent ai.
"Under the Whitney scheme for the
wholesale cancellation OF subway con.
struction contracts no disclosure OF
the delays and neglect of the Public
Service Commission would have beer
made.
Among the claims presented to the
Comptroller is one of the Interconti
mental Construction Corporation. The
commission stalled and delayed. In
stead of furnishing facts Il attempted
10 obscure the facts by verbose aszer
lions OF non-liability. The Public Ser
vice Commission obtained an adjourn
nlent of the proceeding before tn,
Comptroller and on October "a, 1918
gave the Comptroller a written assur
ance that the evidence would he pro
duced one week from that date namel,
October 81. 1918.
Commissioner Whitney and hi
associates no sooner obtained this ad
journment than they took steps I,
forfeit the contract of the Intercont!
nentA Corporation, which they evi
IDENTIFY believed would have had tn
effect of ending the proceeding befor
the Comptroller and avoid the neces
sity of producing the required proof.
THE claim of the Intercontinenta
Corporation is practically ready 70
final disposition. In anticipation o
this the contractors have greatly in
creased their force and the work s
long delayed by the Public Scrvic
Commission is being prosecuted wit
vigor. Great progress has also bee
made i'm the consideration of tn
claims OF other contractors. II Com
missioner Whitney and his associate
had been less persistent in their effort
TO subvert the agreement Of June Il
1918, these matters could have bee
disposed of some time ago"
Commissioner whitney called atten
llOn 10 Il statement Induc at tne Boar
Of Estimate meeting on Friday ,
Comptroller Craig, who asserted tina
the commission lad nothing defint
before the board reference to rapi
transit matters. Commissioner Whit
4 ney referred to his own statement o
the very definite project of completin
the tracks in a tunnel for early opera
ton at a cost of about $4,000, who
was before the Board OF Estimate Fri
day and which was laid over ~
parently by the Comptroller's motor
and upon which no action was taken.
"All the tracks could be put in b
January 20 next" Commissioner Whit
ney stated. IF the board had acte
favorably at the Friday meeting. TIL
delay at the instance OF the Conn
troller means that the completion wi
be delayed and that operation must b
still further postponed"
s----