New-York tribune., 1919-10-23


and had offered no concession in re-
turn, President Hedley said that the
company had informed Mayor Hylan
that it would pay the entire interest
on the sinking fund to the city out of
increased fares before taking it's own
profits. Later, Mr.. Hedley amplifed.
this statement by saying that the bond
holders would have to be taken care of
first, according to contract.
Mr.. Hed'ey said he hoped there
would be no receivership of the system,
900 would have to be obtained by
January l to avert this. If the attitude
Of the city authorities towards fare
increases is more lenient at that time,
he said. the needed sum night be
raised
Mr. Hedley denied as false, reports
that salary payrolls had been "padded"
to cover profits, and urged investiga-
ton. promising to send the padder" to
Jail if found.
Would Sell at Fair Price
"We'd sell the road to the city at
fair price" said Mr.. Hedley. 1--WE
would be willing to turn over the
operation Of the road and retain the
principle for the life of our contract.
But its our desire to continue to
operate under our leases, as the ac-
cumulation of losses must be offset by
future earnings"
Mr.. Hedley said he was ready at any
time to confer with city officials. He
temporarily elected officers world Not
be as expert as those given by trac-
ton authorities, and that politically
appointed operating chiefs would
hardly benefit the transportation sys-
tenn of the city.
Corporation Counsel Burr said yes
terday, with regard to the Court of
Appeals decision on street railway
fares:
THE effect of this decision ought to
be to put an end to the efforts of Com
missioner Nixon and the traction in
tcrests of this city to further disregard
the law as laid down by the highest
authority of the state. In view Of this
decision there is no longer loopnole
open to Commissioners Nixon for
usurplng power so as to override fran
chlse contracts made by the city.
power which the Legislature never in
tended to confer upon him
Farley's View Different
However real the financial necessi-
ties of the street railroad companies
OF the city may be, this decision of
the Court Of Appeals ought to suffice
to bring home to Commissioner Nixon,
to the traction companies and to the
federal receivers the great truth that
III our system of government the end
does not Justify the means. and that
the benefit, however real or imaginary.
to investors that may come from g-
norlng contractual tive-cent fares, does
rot warrant the usurpation of power
by a Public Service official, or the
breaking of solemn contracts by char
tered street railroad companies of the
city and state"
terence Farley, counsel to the Pub
nc Service Commission, on the other
hand, held that the opinion overruled
the contention Of the city and referred
merely to regulation of fares pre-
scrlbcd in contractual consents. He
said the decision did not affect con-
tracts made with the Board of Es-
innate, as in the Manhattan and
Queens Traction Company case.
To Continue Fight
Mr.. Farley said the commission in
tended to continue in the fight, and
that if the city did not offer relief
to the transit companies, some of them
might be obliged to 60 to court and
seek to have the rates declared con-
fscatory.
Mayor Hylan, encouraged by the de-
cision, yesterday instructed Corpora
ton Counsel Burr to investigate the
fare increases caused by the separa-
ton of leased lines from the B r. r.
system, as ordered by Federal Judge
Mayer because of default of leases
The Bro oklyn City Company an
nounced that it was ready to exchange
transfers between the Fourth Avenue
subway lines at 86th Street and the
Third Avenue line Of the company.
This is the first time since the break
up that The Brooklyn City Company
had offered to enter into transfer ar
rangements with other systems.