New-York tribune., 1919-12-31
Estimate Board Votes
for an Investigation
as marlborough Sends
S O S for $3,3OO,OOO
Delaney Presents
Ownership Scheme
Craig in Resolution for
Probe Demands sTrue'
Figures Be Given

A thoroughgoing investigation of the
traction lines of the city was au-
thorized yesterday by the Board of
Estimate, which passed unanimously a
resolution Of Comptroller Craigs call
ing for an examination of the books
and physical equipment of the com
panies.
Last night Frank Hedlcy, president
Of the Interborough and James L.
Quackenbush, it's attorney. announced
that they had not yet been able to
"clinch" the $3,30O,0OO which must be
obtained to-day if the company is to
be kept out of the hands of the re-
ceivers. They were sending financial
S S calls to Florida and other WITH
ter resorts last night in a frantic
eleventh-hou effort to get the CO.
operation of absent bankers and large
stockholders.
City Ownership Plan
John H. Delaney, Rapid Transit Con-
struction Commissioner, submitted to
the Board of Estimate plan for city
ownership and operation of the road
without increase of the city's interest
charges or Of fare. Dclaney's memo
randum included a letter signed by
Lindley N. Garrison, receiver Of the
B. r. T., and President Hedley, of the
lnterborough, asking for a conference
with the city authorities. Delaney also
stated that the lnterborough had asked
for a new agreement for the first six
months of 1920. providing for = tenn
porarily increased fare, as suggested
by Federal Judge Mayer.
These developments yesterday indi-
Gated that the traction situation, for
many months serious mudde, was
approaching a real crisis with the end
of the year. One of the most serious
consequences of an lnterborough re-
celvership, it was pointed out yester-
day by a high official, would be the
separation from the Intcrborourh sys-
tenn of the Manhattan elevated roads,
cntalllng~a 10-cent fare in many in
stances and further losses to the sub
way operators.
The Craig Resolution
Comptroller CraiG's resolution reads :
"Resolvcd, By the Board of Esti-
mate and Appcrtionment. that an in
vestigation into all Of the facts and
circumstances in any wise relating to
the transpo ortation lines operating in
the city Of New York, and particu-
larly with respect to the franchise
rights and actual money investment
put into the properties owned, con-
trolled or operated by any existing
companies, and the monetary value
thereof, and the securities hereto
fore issued or outstanding against
said properties; and the character
and extent Of service rendered by
each of such companies and the ade-
quacy thereof, and the cost of render
ing such service and the rates Of
tare charged therefor; and such facts
and c'rcums tances as may enable the
sand board TO determine upon proper
and sutflclcnt transportation and the
action to be taken b. said board with
regard to any of the franchises here
tofore granted by it, OF It's prede-
cessors, or any Of the companies
owning, controlling OF operating
transportation lines under. or by
virtue Of such franchises, or any a /
legged right Of any kind whatever;
and for the purpose Of more effect
ualiy conducting such investigation
and inquiry that subpnras be issued
requiring the attendance of witness
es and the product on OF such evi-
dence as may be deemed to be mate
rial to such inquiry and investiga-
ton"
In voting for the resolution Mayor
Hylan explained that his vote in the
affirmative was not to be taken as
favoring an increased fare. 81 am op-
posed to an increased fare, because
don't think 1T necessary" he added.
President-elect Fiorello II. La Guar
dla, of the Board of Aldermen, who
was in the hall, said:
La Guardia Approves
81 approve Of the resolution. 1t
should have been made SIX months ago.
Judging from the statements so fre-
quently made by otiicia.sS of the ad-
mlnlstration, the public was made to
believe that they knew all about it and
all of the facts
"Thc resolution is almost verbatim
to my reply to the Mayors question
shot at me toward the end of the last
campaign. l am delighted that they
have come to my way of thinking and
are ready to get the facts and face
the situation squarely."
No date was set for the investiga-
ton, but it is reported that it would
start at once. The committee on
transit of the Board of Estimate. with
the assistance of the Corporation
Counsel, will, in all probability, con-
duct the investigation.
In long report prefacing his reso-
luton, Comptroller Craig said that the
city. in the first place, had asked to be
represented by co-recciver in the
case of the B. X. T.. but had been
turned down by Judge Mayer. who was
now asking for municipal cooperation.
Craig then said that various reports
had been made By experts to the re-
ceivers, but that none OF these gave
the facts as to the franchise and other
rights by which the lines were oper-
ated or the "actual monetary invest
ment that has been put into the vari-
Gus properties"
The report continues:
"A widespread and active propa-
ganda and agitation is being conducted
for the right to charge increased fares
so as to provide satisfactory return
- I. .a1.1o~c 30 cccurs%;oc Matt