New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-02
,roximase.y 5oo.Ooo,oOo of securities in

me other partner might be so dlsas-
trous as to result in financial cata-
ciysm, from which, as prominent
banker said yesterday at public hear
ing, rne nation might rot recover in a
generation.
The city can gain nothing sby the
bankruptcy Of a partner in the dual
subway system, and yet may by con-
tnued refusal TO increase fares pre-
c'pitate such bankruptcy and still have
20 lace the problem Of increasing fares
20 escape ruinous taxation. If the city
were IN possession of the railroads a
continuation OF q five-cont fare would
ne at the expense Of the taxpayers and
contrary to the spirit OF the rapid
transit act
Cites Transit Act
"Consid erable has been said at vari
ous times about public operation OF the
SuoWays. The Legislature. IN the rapid
!lanSlt act, as long ago as 1906. author
yea the eltY 70 operate sucn roads, but
we la" provided in such case that the
fates O care should De fixed by the
goMnolss .on, with the approval OF the
Board of Estimate. and adjusted iyed
ana readJusted always with a view to
"ccGi1ns, as nearly as may be, sufficient
receipts therefrom to provide for oper-
aVihg expense, maintenance, interest on
we COSY, ali the proper charges and a
SINKING fund to discharge the bonds
issued Tor the construction and eouin-
Fnent OF such road or roads within a
reasonable period. without recourse to
taxation. See 80 Rapid Transit act.)
u IS true that the city did not en-
gage III municipal operation (because.
among other reasons, it did not have
om1ush lunds or borrowing capacity j
ana 1hat the dual contracts arc made
under other sections of the law. but
the spirit OF the law is against re-
course to taxation.
Deplores Taxation
But irrespective Of the theory Of
lHe rapid transit act and simply as =
business proposition in which the ci+l-
mas an interest (aggregatinr in the
dual system $3.50. 000 ,OO0), tie enter
Prise should be made self-sustainine.
",:hout recourse to taxation A re-
asaJuSVment OF fares viii prevent taxa
tloh and the accumulation of arrears
payable ahead of any return to tho
CITY. There is no other way Of solvino.
me problem. The city will be the onlv
posainle gamer, Cor the contracts take
Gaze OF the preferential rights Of the
company IN any event.
ror the city to starve the joint en-
investment, as well as that of its mart.
ner. whose participation it invited j.
50 contrary to good business princjnles
tnat do not hesitate Respectfully but
urgently to request that YOU in1medi-
a'ely talSc tn clare to eight cents to
continue as long as conditions remain
abnormal. 80
he seriousness Of the situation is
sucn as to make US feel that we would
not be dong our duty either to our
seaVes or to the city if we did not call
your attention 30 these plain facts
even on the threshold Of our entry
upon our lease.
Every truly yours,
ct. P. SHONTS.
..r 'President.
40 the Mayor. the members Of the
Board of Estimate. the chairman and
members Of the Public Service Com
! MISSION for the First District"
Company's Officers Retained
Lindley NJ. Garrison. former Sec
rotary of War. who was appointed
temporary receiver of the BROOKLYN
Rapid Transit Company Tuesday niobf
formally announced his appointment
Yesterday. and notified the comparv,s
cfncers that they Will remain at tncir
posts. The same action was taken in
regard TO the officers of the New York
N uMlcipal Railroad Corporation and
the New York Consolidated Railroad
corporation. which are subsidiaries Of
the B. Il. r. -
Mr.. Garrison viii go 10 Washington
to,aay' starting tomorrow morning the
intricate .ask OF Strengthening ou3 Inc
affairs Of the company in his hands
although Mr.. Garrison's trip TO the
! capital Is on private business, it Yves
reported that he might discuss the
company's affairs with government o.
llclals, rs the government took Sl7.OO0.
uoo or the co'nrany's recent $4,000. OO0
bono issue.
The temporary reccivcrship order i
1etTrnablo to United States Court
Judge Julius NJ. Mayer on Monday. at
when time, in all LIKELIHOOD it will be
made permanent
Note Holders Act
Meantime, steps were taken voster-
Day by Kuhn, Loeb Co.. Kidder, Pea
hody and the Central Union Trust
; Company, the principal B. r. I. note
{ holders, to torn protective committee
al body Of the stock holders is to be
formed within the next day or two.
Colonel Timothy s. Williams. nresi-
cent OF the b. r. T., in discussing the
affairs OF the company, intimated that
cHoltS TO get seven-cent fare will be
renewed. He laid much Of the blame
tor the failure on the Public Service
commission and the Board Of EST
maze. out declared that the service
could be improved Immediately by the
Piacins OF moro cars in operation, ana
the hiring of an increased force Of
hotormon and conductors.
The brooklyn Rapid Transit Will
have to purchase 400 new Steel cars.
costing approximately $s.000,0 900, dur
ing 1919. Chairman Whitney, of the
Public Service Commission said. He
said that one of the reasons for the
recevership was TO raise money on
recelvership certificates, to carry out
this and other orders Of the Public
Service Commission for improvements.
Mr.. Whitney admitted Colonel Will
iam's charge that the city's failure to
complete subways on schedule time
and prohibition OF increase of fare had
precipitated the B. r. rs condition.
He added, however, that the Public
Service Commission had control over
neither of these elements, the first
Being due to scarcity Of labor ard ma
,erial. the second 70 thc action Of the
Board Of Estimate.
What effect The receivership will
have OF damage suits growing out OF
the Mai5oue Street Tunnel wreck could
not be determined Mr. " Whitney stated
that claimants could file suits and OBJ