New-York tribune., 1919-01-09

and 21 per cent to some of those COM
panies. If this isa done, practically
every company in the city will be max
ing money and there will be no need
of an increased fare.
AT as early date as possible after
your investigation l wish you would
report to me which line is violating
the conditions of its franchise, and
what should be done to revoke the
same Very truly yours,
"JOHN F. HYLAN.'"
Launches Attack on Whitney
"Evidently laying the foundation for
another campaign along different lines
tor higher fares, the Interborough
and its ever-ready advocate, Whitney,
seemed willing to create the impression
that there was something mysterious
Or irregular about the city's counter
suggestion to the arbitrary demand for
higher fares. This is Whitneys usual
method of misleading the public. Mr..
Quackenbush testified in this matter
that he reported daily to Mr. Whitney.
The trusteeship experiment. or any
other plan, could not have been tried
until the law was changed and after a
public hearing by the Board of Esti-
mate and Apportionment.
For reasons Of its own, the Inter
Borough Company is using every force
at Its command to protect Whitney and
administration. The public, however,
will not patiently tolerate much LONGER
an official who has SO miserably failed
tc perform the duty for which the
public pays him.
Urges Criminal Prosecution
Neither will the schemes of 'hieh
finance, resulting in stock Watering
and ovc~capitalization of traction lines
III this city, which defraud the in
yestlng public. be tolerated much
longer; District Attorney Swami has
taken hold Of this phase of the subject,
@nd am very glad Of it. The abuses
that both the travelling and the in
vesting public have been subjected to
at the hands of the traction ring have
long cried out for action by the crimi-
nal authorities"
When Commissioner Whitney re-
turned last night from a trip to ALBANY
he was asked about a report that he
had gone to the state capital to ask for
a Legislative investigation of the transit
muddle. He said he had gone on other
business.
"Do you think there ought to be such
an investigation? he was asked.
Urges Sweeping Inquiry
There should be, without doubt" he
answered. at should investigate the
Public Service Commission, the city ad-
mlnlstratlon, the traction officials and
the transportation situation generally.
The Wall Street end should not be
taken up, as that is not matter for the
present commission hearings.
AN investigation is advisable into
conditions for the last six or eight
months. Pm perfectly ready to have it..
so far as it concerns the commission"
Chairman Whitney said that there
should be legislation to meet the pres
ent difficulty. He declared that this
should take the form of placing limita-
tions on long-term leases, interlocking
directorates and holding companies. 1t
should plan to eliminate them in the
future, he said, although there was a
legal question as to whether it could
wipe out those now in existence.
absentee Landlordism"
Mr. Whitney said that the long term
leases on the street railway lines,
which arc attacked by the Mayor, rep
resent "absentee landlordism" in its
worst form, as most Of them were for
periods of 500 years.
When asked whether he had any plan
to break the deadlock" in the situa-
ton, Whitney said it was too difficult
to solve offhand, because of the null
tiplicity of ownership and leases. He
believed that it would go far toward
Il solution if the leasehold companies
were to make concessions as to their
franchises, but that their attitude
seemed to be to "sit tight"
There are only two alternatives, if
any community is to have transporta-
tion," he said. Either allow the. pri-
vate corporations adequate revenue to
maintain themselves, or have the city
take them over and assume the re-
sponsibility and liability. If the com
pany isn't able to get the revenue to
pay fixed charges, interest, etc. Il
must 20 on the rocks. If the city
takes it over, it must. either pocket the
loss or have high enough fares to make
it self-sustaining."
Not To Call Mayor or Morgan
Whitney said he would not call
Mayor Hylan or ]. P. Morgan, the In
terborough banker, at the hearings.
The only possibility Of their appear
ance is II they arc put on the stand by
the city. or the Interborough to refutc
some o. the testimony already taken
IN the rate case
The hearing yesterday WAS called OF
~ hong Of Colonel Roosevelt. 1t will
DC resumed this morning, when the