New-York tribune., 1918-07-27
would show the financial condition of

would show the financial condition Of
the roads.
Colonel Timothy s. Williams, presi-
dent OF the Brooklyn Rapid Transit
Company, argued that the roads were
under expenses as the result OF the
war which were not dreamed OF when
the franchises we're granted providing
that a ) cent fare should obtain He
said that it was a question Of either
the increased cost OF operation being
borne largely by the taxpayers of the
city. generally or by the users of the
road.
The city has invested" said Colonel
Williams, cor will have invested by the
time it completes the dual system, not
which are, or viii be, operated blythe
New York Consolidated Railroad Com
pany, and not less than 100000 900 in
the lines which are, or will be, operated
by the Interborough Rapid Transit
Company, not including the $4,000, 900
invested by the city in the original
subways. This new investment OF s210.-
0Oo,00O in all will mean an annual in
terest and sinking fund charge of ap-
Droximately S12,000,00o per year. This
annual burden can be met only in two
ways either out of the railroad sys-
tenn in which. the money has been in
vested, or out OF the taxpayers.
Up to the present time not a dollar
of it has been charged to the taxpay
ers. 1t has all as it has accrued been
charged 10 the cost of the city's con-
struction. But from the time that in
itial operation begins-which in the
case of the Interborough company is
now announced for August, and in
the case OF the Brooklyn company Will
probably be early next spring--the in
terest and sinking fund on such in
vest1ncnt, If not met out of operating
rcceip pts, must be borne by the tax
payers, and your administration. Mr..
Mayor. must face this problem What
ever this large burden be it will be
larger proportionately during the next
three years than in later years. First,
because the new railroad system will
not yield anywhere near its maximum
revenue during the first years Of op-
GRAFTON: and. second, because initial
operation begins at a time when costs
are abnormally high and when less
net revenue will remain for either
company or city interest
Admits paid Gallery"
Mayor Hylan's cross-examination of
Mr.. Smith, counsel for the roads, lent
lively interest 10 the proceedings.
First the Mayor asked if the large DEL
egation of street railway men in the
galleries were being paid by the com
panies for attending the hearings Mr..
Smith said they were. Then he obtained
admissions that the rentals paid by the
New York Railways Company for the
right to use some of the old Metropol-
itan Street Railway lines were par
TALLY returned to the New York Raj
ways Company through its holdings of
stock, and that the Forty-second Street
and Grand Street crosstown lines were
paying stockholders of the old com
pany Is per cent on a capital stock or
S748 900.
$50" argued the Mayor, "you pay
Is per cent and then get half of it
back through your so per cent owner
ship You ought to be patriotic and
cut down that 18 per cent. You ought
to use your influence with the stock
holders and cut down that IS per cent
to per cent"
Would Stand by Contract
'If you made contract with man
you wouldn't ask him to break it,
would you 2" asked Mr.. Smith
Instead of asking the stockholders
10 break the contract you prefer asking
the people to pay higher fares, so that
the Is per cent income which your
W. war or no war" replied the Mayor.
"Of course the New York Railways
Company, like the rest of the corpora
tions. cannot be expected to let little
thing like a world war interfere with
an exorbitant 18 per cent dividend"
Opposition to the fare increases was
made by Assemblyman Mark Goldberg,
as the representative OF the American
Federation of Labor.