New-York tribune., 1919-09-18
Mass Meeting Approved
Public Misled by Mayor in
Regard to Necessities of
Situation, Says Court

IHeHI having Dcen MADE by JOD II.
Hedges, receiver for the New York
Railways Company, which operates the
lines, and asked for the suspension of
the order, and that mass meeting be
held at which the transit situation
should be made clear to the East Side.
Judge Mayer approved Of the latter
suggestion, saying it was most ncccs-
sary for the public to understand the
critical situation Of its transportation
lines. The situation was simple enough,
and would have been generally under
stood, he said, but for the efforts of
Mayor Hylan and his administration to
befoe the issue.
The trouble was, Judge Mayer said,
that, excluding rentals entirely. the
company was not making enough
money to pay operating expenses and
taxes. The Board of Estimate could
have given temporary relief through
higher fares, he continued. but had de-
clined to do so. and now it was neces-
sary to suspend the operation Of the
most. expensive lines.
Mass Meeting Called Tonight
An announcement last night by the
Community Councils of National De-
fence, an outgrowth Of the Mayors
Committee on National Defence,
showed that another spirit than that
which sent the committee to Judge
Mayer yesterday was abroad on the
East Side. The Community Councils
announced that mass meeting of pro-
test against TIE cessation of operation
on the storage battery car lines would
take place this evening in the public
school at Hester and Essex streets.
Among the speakers are to be Justice
Jacob Panken, Justice Aaron Levy,
Lillian Wald, Florence Kelly, Alderman
Jacob Held and Assistant District At
torncy Maskowitz.
The committee which called upon
Judge Mayer was headed by Magistrate
William Blau. Other members were
Judges Gustave Hartmann and Bcnia-
min Hoffman, Abraham Goodman, Tax
Appraiser Harry Kopp, Assemblyman
sol Nllman. Assistant Corporation
Counsel Adolph Stern, Harry P.
Schlacht, Daniel Weiss, Henry Hern
and Nathan D. Perlman.
NIT is no longer question of bond
holders" Judge Mayer told them, af-
ter saying 1T was time for "plain
speaking" and declaring Mayor Hylan
was to blame for the situation, at is
no longer question of paying interest
upon the investment of thousands of
eoplc-literally widows and orphans
and estates that hold funds for women
and children The sole question now
s: How shall the income of these
roads be such as to enable the receiver
actually to run them? That is the
question:"
Operating Cost the Issue
He then declared that it was the op-
Grating expenses-the money to keep
the cars running and the employees paid
that the receiver now was trying to
husband
"No one who has examined into the
matter has the slightest doubt he
continued, chat it is absolutely neces-
crease the fares. Mr. Goodman-I
think it yas-referred to part of my
memorandum in which spoke of the
permanent solution of the problem
/ quite agree with him that the per-
manent solution of this problem will
take some time and will require the
combined efforts of the most impartial
minds.
ut will be noted that in my memoir
andum pointed out that some means
must be devised for at least tenn
porary relief and that seems plain
and urgent. The question that you
are dealing with has been befogged
by constant talk about rentals, the
constant use of all sorts of expressions
having the effect of confusing the
public mind. AS the receiver has
pointed out to you, gentlemen, the
great arteries of travel covered by the
Fourth and Madison Avenue line, the
Sixth Avenue line. the Eighth Avenue
line and the Ninth Avenue line have
continued to be operated without pay
ing single dollar of rental"
Transfer Withdrawal Justified
Judge Mayer then outlined the diff
ticulties under which the entire trans
! portation system of tho city was op-
Grating, and particularly the heroic
efforts made by Mr.. Hedges to keep
the surface cars running. He explained
the withdrawal Of Staten Island trans
fers, saying it was done strictly in ac-
cordance with an agreement with the
city and after due notice had been
served upon the city
The city made not Il single propo-
sition," he said, (which would enable
the court to see its way clear to enter
INTO some new arrangement which
would at least be sufficient for the
railroad to make its operating en-
penses. On the contrary, the Commits
sloner of Plant and Structure gave out
the first misleading, inaccurate and
improper statement as to the state of
facts, endeavoring to make it appear
that the court had ruthlessly ordered
breach Of contract"
Although bondholders and their saw
lngs came into the situation only in
connection with the permanent solu
ton of the problem, Judge Mayer said,
ne outlined their plight to the commit
tee. saying the Sls,0OO,OO0 first mort
gage bonds were not held by fnanciers
or mlllionaires. but represented the
thrift of people of moderate means.
The same was true, he said. of the
s3o,ooOOo of per cent bonds, and he
asked what the East Sders would
think if suddenly told that they
were entitled neither to principal nor
interest from the savings banks in
which they had deposited their
| savings.
Strike Raise Ordered Paid
Judge Mayer directed Lindlev N.
Garrison, receiver for the Brooklyn
Rapid Transit, to pay the 25 per cent
increase in wages which brought an
end to the strike on the system, and
set September 20 as the date for dis
cussion of the financing of the surface
lines of the system whose deficit for
the coming year is reckoned at Sl,213,-
0OO
At about the same time tariffs were
| filed by the Brooklyn Rapid Transit
| with the Public Service Commission
and notice TO the same effect posted at
-i.l.