New-York tribune., 1918-11-09
B. r. T. Franchise
To Go Under Fire
In State Inquiry
Public Service Commission
Sends Warning to Rail
way Directors

On motion Of Commissioner Travis
the Public Service Commission letter
was sent .o- the directors Of the Con
solidated Railroad Company (the Brook
lyn Rapid Transit Company informing
it that the COMMISSIONS counsel had
been directed TO determine whether the
methods of maintenance and operation
Of the B. Il. r., particularly the facts
Of the recent disaster on the Brighton
Beach branch, constitute forfeiture
or default of the contract with the city
under which the B. Il. T. operates.
The letter also informed the directors
that the commission would object to
any expenses arising out Of the acci-
dent being included IN the financial &C
counting to which the city is + party.
Contract Article Cited
The letter follows:
"Contract 10. i, between the New
York Municipal hallway Corporation,
lessor of the New York Consolidated
Railroad Company. and the Public Ser
vice Commission for the lst District,
acting for the City of New York, pro-
yides by Article LNIlT:
"'Thc lessee covenants to and with
Che city that it will, uuriug t"c ttrr
hereof, operate the railroad and the
existing railroads carefully and skill
fully, according TO the hlgnest stand
ards OF railway operation. and with
due regard to the safety OF passen-
ri of -l1
other persons
"This article is brought to your at
tenton for two reasons.
"In the first place, the commission is
aware that damages and expenses incl
dent thereto are, under tn uniform,
system oS accounts, treated as part of
operating expenses. By the rental
tarms of the contract operating ex-
penses, maintenance and fixed charges
and preferential Of the company arc
deducted from revenue ahead Of city
fixed charges. 70 the end that the
cty's financial interests shall be pro
tected the commission is given by the
contract the right of examination of
and objection to all items Of the ac-
counts.
Damage Claims Barred
"Tllc commission is, therefore. con
cerned with any possible addition tt
operating and maintenance accounts
For that reason the commission nov
feels 1t necessary to say in respect tc
the serious accident Of November |
1918, that the commission will, as pro
vided in the contract, object to the in
cluslon in operating expenses Of any
damages that may hereafter be paid or
account of the said accident, as we'll as
local ntbor ri
as the result OF such accident, includ-
ing, OF course, any such expenses in
CURED in the defence of any officers or
employees of the company in any Grim
iAal proceeding.
"Ths objection is in addition to the
protection afforded the city by Article
LNVl. which provides for the saving Of
the city from all claims of every nat
ure arising from injuries to passen-
gers, employees or other persons By
reason of negligence OH the part Of the
lessee or of any OF its employees.
Investigation Ordered
an the second place, the facts so
lar disclosed as to the said accident.
as we'll rs facts relating to the main
tenance and equipment and methods
OF training of employees and of opera
ton, compel the commission to instruct
its counsel to consider whether they
do not constitute such failure by the
company 90 operate carefully and
skilfully according to the highest
standards OF railway operation, with
due regard to the safety of the pas
sengers and employees thereof, and of
all other persons and to keep the
railroad and equipment and the exist
ing railroads and each and every part
thereof In thorough repair, ETC. as to
be forfeit or default of the contract. u
District Attorney Lewis. of Brook.
lyn, who is Investigating the disaster
announces yesterday that ne expected
to be able TO show that the 3. r r
itself was responsible for the strike
which mada possible the accident in
which scores OF persons lost their
lives.
According 20 Mr.. Lewis. the 3. R. T..
refused to comply at once with the