The sun., 1919-01-04
Estimate and P. S. c. Re-
ject Plea for Raise Made
by InterbOrOugh Head.
FRANCHISE Is OBSTACLE
Railroad Chief Warns Busi-
ness Men of Panic Danger
if Lines Go Bankrupt.

mittee Of the whole the Board Of
Estimate decided Informally yester-
day:
That the application of the IN
tcrborough Rapid Transit Company
for an increase in fare to eight
cents could not be granted.
That the application Of the New
York Railways Company for an in
crease in fare to eight cents and
for permission to charge three cents
for a transfer could not be granted.
To hold a public hearing on the
entire problem before taking any
definite action.
To apply to the Federal Court
for >coreceiver to represent the
city's interest in the bankruptcy OF
the Brooklyn Rapid Transit Com
pany.
Although it was stated that the
question of municipal ownership OF
operation was not discussed in detail:
it is known that Mayor IIylan and
Comptroller Craig lean to this plan
as a possible solution of the complex
transit situation.
shonts Sees service BOARD.
The Public Service Commission held a
conference with Theodore 7. Shonts
president, and with counsel for the IN
terborough on the application OF that
,-
company rejected the suggestion that ir
return for ar increase in fare II should
reduce its preferential, which is deducted
from Its profits before the city !ets any
return, from sS,335,o0 to s3.150.o00
This would be per cent. on the Inter
borough st ,ck.
In a letter TO the Chamber Of Com
merce. the Merchants Association ant
many other business and civic bo1ie:
Mr.. Shonts called attention to the seri
business OF the traction situation. All O.
the electric roads In the State. represent
irg invested capital of sl,e50,o0o, 900
were heade1 toward bankruptcy. he de
clared, and the default, on this amour
OF securities might start q vast panic
that would affect every State in tn
Union.
During the Gay membe-5 Of the Boar
of Estimate were hurting high cYplosiv
shells in the direction Of the Public Ser
vice Commission. which replied Wit
shrapnel and mustard gas bombs.
! One big Job for Gov. Smith. the Mayo
declared. was TO got rid OF that mai
Whitney." Commissioner Whitney re
piled that his future was matter o
little Importance TO him. but "a gang /
in control ot the city which is threat
ened with traction deals and contractor
deals that will throw the past into in
significance"
Worth as Much as Berlin Radio
! Among the midest statements o
either side were declarations that tn
word of the other was worth no NOR
than a wireless telegram FRI Z, Berlin /
regard to the progress Of the war.
/ After the Board of Estimate at II
regular Friday session had engaged /
excoriatIng tho Public'Service Comnl!ssio
publicly for some time Mayor Hylan sud
denly producee some documents from hi
pocket.
"I have here" he remarked with
: fine note OF sarcasm. Two commun!ca
tions from man by the name ot'--th
MAJOR paused and sGunted closely a
one of them as though he was unable {
dec!pher the signature-''by the name o
oh, yes by the name OF Shonts. II
wants TO Increase the street car fares {
S cents. II there Is no objection we wi
refer them TO the committee OF III
whole
After Borough President Dowling ha
exacted a promise that nothing lnl
would be done until after a public heal
ing the mcnbers of the board resolve
themselves into committee OF the who
and continued their deliberations b.
hind closed doors.
Never before have the newspaper me
been asked TO hear the result OF the fr,
uuent secret sessions OF the boa rd, and
was with much astonishment that tw
hours later they received an invitatio
through the Mayors bodyguard to ent,
the committee room. Somebody actuall
suggested that they take seats tt
Comptroller acted as spokesman for Il
most part.
Obstacles TO Raising Fares.
THE question before us" he said "
divided into two parts. AS to the Int
borough request, the whole foundatio
OF the subway agreement was "A Gel
fare. The only way to change 70 an