The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-04-01
Judge Mayer Outlines Prob
lens Which Experts Are
Now Considering.
HIGH FARE In ABEYANCE
New York Railways Rentals
for the Leased Roads May
Be Revised Downward.


who confirmed Job e. Hedges as receiver.
Contrary TO its action IN the case OF
the Brooklyn Rapid Transit the city
made no application for the appointment
Of a joint receiver. although Corporation
Counsel william p. Burr appeared before
Judge Mayer at the hearing on the tenn
porary order to advocate that the unity
Of the existing surface system be pre-
served and the abolition Of free transfers
as a means OF obtaining financial relief
be made a matter Of last resort he
urged that a public hearing be held NJ
the court at the earliest possible moment
at which argument on the question oy
all interested parties might be heard.
Corporation Counsel burr prefaced his
remarks by stating that he appeared In
an effort to aid the court by any sugges-
ton that might tend TO preserve the unity
Of the system and to urge that the pro-
fessed object of the receivershfp as set
forth in tho application OF the plaintiff
be lived up to in actual performance.
in this connection he expressed the hope
that the needed financial relief might be
obtained by . scaling down of the rentals
paid by the New York Railways Com
pany for its leased lines, rather than by
abolishing the system Of free transfers
Or the imposition Of an Increased fare.
Problems in Receivership.
Il am extremely gratined," said Judge
Mayer, ~at the attitude of the Corpora
ton Counsel and his promise Of coopera-
zion and constructive effort In the prob
lens that now and doubtless will here
after be presented. 1t Is not inappro-
pirate at this time to point out some OF
the important things TO which the atten-
~ ~ a
These may briefly be classified as the
legal. traffic and financial problems at
tending the recelvership
The court perfectly understands that
matters will come up which frequently
are not understood by lsymen. These
ere matters affecting the stockholders,
creditors and various contract relation
ships In respect to franchise matters
with which the receiver must acquaini
himself as quickly as he can. I assume
that all counsel interested, while con-
serving the interests Of their clients will
cooperate with the receiver. The court
will welcome the cooperation of all coun-
rel officials of the Public Service Com.
mission and the Corporation Counsel.
I'm regard to the traffic situation IN
The case Of the receiver Of the Brook.
iyn lines considerable dissatisfaction
was met with in regard to the actual
running of trains and all questions con-
nected Herewith. In that case the re-
ceiver first directed his attention to the
problems Of the proper running Of the
trains.
THE court has tried TO keep informed
a. to whether there has been any sctua
improvement in the running OF train.
there. and 1 am told by people in whom
I have confidence that there has been q
srtxfQ 20 Ninl trnr u In NJ ~
nay that Mr.. Hedges may do the sans
in the case of the New York Railway,
Company, although in this case the com
plants are very few as compared with
the Brooklyn lines.
How good traffic shall be and unif e
Il can be kept depends on development,
in the financial situation. The question
OF transfers to which the Corporation
Counsel has referred Is n very important
one and will of course be approached
only after q careful study OF the sItua
ton.
at have been careful to say notnini
on the much mooted question of IN
crensed fares. The first firing TO do Il
10 get all the facts; to ascertain In
way the verify OF which there Is n,
Sc, and to find out what Is n fair return
on the investment. 1t is important T.
know from expert men just what 1
the value of these roads for all pur
poses An Investigation by expert mel
10 that end Is being made in the cas-
Of the Brooklyn lines and doubles
will be made in this case. When al
these things have been learned then W
can decide what to do.
when all the facts are clearly an,
fully understood then II will be foun,
out what is tho right thing to do.
increases Of fares are unnecessary W
will understand 1t. If an increase O
fare. on the facts. proves to be neces
sary after a full. free and fair discus
sion. I am convinced that the public o
New York Ia 30 fair and reasonab l
that they shall have no hesitation 4
making It known-that II this 10 one o
the remedies, they desire that this rem
edy shall be adopted.
IT have a very real conviction from
many years OF knowledge that there |
no fairer public than that OF the cit
Of New York. but II Is u public whic
desires to know what the real facts are
and any solution OF this problem
whether by Encouragement of franchise
in the interests of investors or an in
crease of fare because OF increased ex
pensss, or whatever the arrangement
may be which fairminded men decide /
right Is one which the public OF Ne,
York will ratify II they believe It rIgh
1T Is a problem that invokes tn
best judgment that can be found, bu
there Is no problem of this kind tina
cannot DO solved by fairminded men, o
that II Ia with especial pleasure that
note the attitude OF the Corporate
Counsel, and some day we may all fee
chat we have contributed something t
the solution of this problem"
In his memorandum and affadlvlt file
with the court Mr.. Burr expressed tn
hope that n scaling down of the existin
high rentals OF leased lines of the Nev
York Railways Company might be foun
by the receiver to be a more advisabl
mode of trying TO improve the financiu
condition Of the defendant than an al
tempt to obtain an Increase over tn
existing 8 cent rate OF fare. II. however
the receiver reached the conclusion tina
II was desirable for him In the interes
OF these properties TO endeavor to &c
an Increased rate of fare the prope
authorities to whom he would have t
apply would be either the municipa
authorities. OF possibly In the event G
certain pending legislation going throug
TO the Public Service Commission.
From the clty's viewpoint the relie
II applied for. ought be upon the basi
of asking for new franchise under tn
charter for the limited term Of twenty
I'VE years and with other provision
looking to municipal ownership. Mos
of the franchises or the New York Raj
WAYS Company wers granted by the cit