New-York tribune., 1919-01-07

Dec. Burr sends report on
agreement to Mayor.
Dec. 4.-McFarlane, Burr and
Quackenbush have meeting.
Dec. 30.-Last of series of con-
ferences between Burr and Quacz-
enbush.
Scent fares were to be charged The
City Controller also was given the right
to object to any item in reports of
/ companies to the Public Service Com
mission.
{ City to Pay All Bills
Mr.. Burr said the city's option to
buy the transportation lines included
the assumption of all the outstanding
liabilities and Indebtedness of the
companies. including existing leases,
whether the rentals were too high or
not. He objected to the fact that no
provision was made for the exact man
ner of selecting the trustees
Mr.. Burr entered strong objection
to the annual return which the COM
nanles were to get during the period
OF trustee operation. This, he said.
included many excessive rentals. guar
anteed annual payment OF per cent
interest on 100000 600 OF income bonds
and Ner cent annual dividend On
the Sl6,00e.O00 of New York Railway
Company stock, all of which provi-
| slons Mr.. Burr reported as objection
able
TIC amount which the city would
nave TO guarantee the CORPORATIONS
was reduced to actual figuroS in the
agreement in the case Of the New
York Railways Company 1t follows:
annual interest Oh underlying bonds. S492 500
Annual interest first + per cents. 721'3S7
Anhual interest on adjustment . per
Annual per cent return on stock. S74 '4sS
Quarterly amount of guaranty fund s05'3S
Burr Tells of "Threats"
ne threats" hcld out by the com
panles, according to Burr. were that
the bankruptcy of the street railway
llhes would take place if the agreement
we're not accepted, and, in the second
'Aoo eileSc street railway com
panles would be disintegrated. and Tins
abolish the free transfer system.
The hearing at which the rovcIa-
lionS of secret conferences were
brought out was held at the rooms of
the Public Service Commission Ae
Lafayette Street. on the application of
the New York Railways Company to
raise ITS fares. Chairman Whitney and
commissioners Hervey and Krackc
were present, with counsel. while Ed
gar j. Kohlcr represented Burr. and
Henry J. Smith and Arthur G. Pea
cock assisted Mr.. Quackenbush.
After telling of President Shonts'
conversation with Mayor Hylan during
the ceremony attending the opening Of
the Lexington Avenue Subway on Au-
gust !. Quackenbush said that Shonts
was summoned to the City Hall by telc-
phone few days later.
Shonts Meets MacFarlanc
Here, Shonts told Quackcnhush. the
Mayor, introducing MacFarlanc, said:
MI snonts, YOU have said to me
YOU wanted to progress the matter of
the question Of fares during the sum
mcr. Mr. Mcfarlanc hero has had to
DO with that matter in Boston and i
considering it in Chicago, and il may
be he has possible solution which
Under Certain conditions win be ac-
ceptable to the city, and suggest that
YOU talk with him about it,
Asked whether he regarded McFar-
lanc as representative of Hy)an.
QuackeobNsh replied: ooh. without any
doubt. Otherwise would not nave
wasted any time on him"
Just previously he had described
Mcfarlanc as "a publicist and lawyer
CT Boston connected with nowsnancrs
publ llshed in Boston by William Ran
dolph Hearst, and d contributor 10 All
the Hearst papers throughout the coun-
try on trans sportation matters.
Publicity Withheld
Mr.. kohlcr. rcprcecntng Purr, OBJ
jcctcd at different times to Questions
asked b. Quackcnbush particularly
those tending to show that the meet
ings between the lnterboroueh officials
and city representatives were not of
PUBLIC character. Quackonbush re-
piled That none of the meetings rc-
quHcd secrecy, but that he had dc
.loyed making the negotiations nublic
until they had been whipped into
s%@'E tbc Ety. ,o' ''a'"'@l'" by the people Of
The protocol, following Mcfarlanc's
ideas, Mas submitted to Burr, who.
according to Quackcnbush "wipcd the
earth with it, Quackcnbush admitted
tlihI ditnough only nc and ShontS
among the lntcrborough officials knew
o. the agreement he had conferred
about it with Colonel Timothy S. viii
ams. president Of the Brooklyn Rapid
Iranist, and President IIougn. of The
Third Avenue elevated line, before pre-
pairing it.
Speaking Of the protocol, Quicken
bush said:
sThe plan was AN ambitious ono. II
was intended TO put the city in control
and on the road to ultimate ownership
OF all the rapid transit and surface
lines in the City Of New York outside
Of the Borough Of Richmond. that be.
lng omitted because Of obvious rca
cons"
Receiyershp Not Opposed
Asked by Mr.. kohlcr whether the
city authorities bad said thcy wanted
n receiycrship FIR the Interborouoh
the witness replied:
"Thc War Finance Corporation had
urged the Mayor and Controller "a ,ake
steps for an increased fare to improve
the credit Of the Interborouqh 40 that
they might feel warranted in maxine
e loan, and also to avert Il posNibIe re-
ceiyership Of the lntcrborougi because
t..f II H.