New-York tribune., 1919-12-16
Delaney Confers ON Plan
for Recapture of Fran
chises and Operation
by the Municipality
Hylan Denounces Project
Thinks 1t Includes Bank.
rupt Surface Lines; In
~oives Train Service Only

A quarter Of billion dollars will
be sdded to the borrowing capacity of
he city, Corporation Counsel Burr de-
cIared yesterday. if a proposition for
The taking over of the rapid transit
systems of the city is accepted by the
companies and agreed to by the Mayor
and the Board of Estimate. and if mu-
nicipal operation proves self support
ing.
The proposal, which has not yet been
worked out in detail, is the result of a
number of conferences held by Transit
construction Commissioner John H.
Delaney with Interborough Rapid
Transit and Brooklyn Rapid Transit
company officials. Commissioner Della
aey emphasized yesterday that the plan
vas only in the discussion stage, and
represented his own views, not those of
me company or of the city representa-
ives.
Some OF the propositions discussed,
se said, were the transfer to the city
Of all titles held by the companies in
ssilroad properties, guaranteed pay
.nent by the city of reasonable rate of
interest on fair appraisals, and setting
side of / per cent as sinking fund
or the purchase of the properties at
ne expiration of thirty-eighs years.
Nr. Delaney denied that fare increases
asd even been discussed.
Municipal Ownership Recognized
Corporation Counsel Burr said that
250OO0O0o of city money was tied up
i the Interborough, and that if the
marlborough were made self-support-
nr and returned interest on this in
,estment that sum would cease to be
A charge against the citys borrowing
apacity.
Mr.. Burr said that the proposition
IN principle, recognized the platform
t municipal ownership on which the
;ty administration had been elected
Mayor Hylan in a statement made yes
erday looked uspiciously at the plan
however, as being an attempt of the
traction ring" to dump their bank
rupt surface car properties on the city
although Commissioner Delaney took
particular pains to point out that the
streetcars were not included in his
solution
Commissioner Delaney said that in
lis conversation" with traction
heads the fact that the Interborough
had to pay per cent on an agreed val
uation of S60,000,O00 to the owners of
he elevated system was the greatest
s,umbling block. He said it was ab-
solutely necessary first for the Inter
orough to acquire the IL" lines.
Expects Companys Cooperation
Mr.. Delaney said he did not know
neither his views would be passed
tpon by the directors of the various
companies, but he said he was hopeful
and thought the time had come when
hey would look on such a proposition
with favor.
Comm ssioner Delaney held mother
conference yesterday at his Office with
rank Hedley, president, and James l.
'luackenbush, attorney, of the Inter
borough; Lindley NJ. Garrison, receiver
+. l.. Royce, general manager, and Carr
Owen, counsel, for the B. r. T. Later
in the day Mr.. Garrison went into an
extended session with Federal Judge
Myer
Neither Mr. Hadley nor Mr.. Quacken-
tcr the conference. The directors OF
the Interborough have their regular
weekly meeting to-day, and the views
of Commissioner Delaney may be
ihresned out then and the attitude OF
The company toward them possibly de-
nned.
Hylan Issues Statement
Judge Mayer refused to comment or
ne plan, but it was learned that any
bankrupt company considered in il
could accept the propositions made
only by joint consent of the court
bondholders, directors, and all other:
Who have financial or fiduciary inter
ests in the company.
In commenting on the views of Com
missioner Delaney, Mayor Hylan said
The traction crowd would like t
sell us every old junk heap the,
possess. With the proceeds they woul'
Euy buses, which they have consistent.
tOHuenNeU. uOn tnlNk the Guy 0
New York wants to take over and pa.
large sums for surface lines whicl
are bound to be discontinued in tn
near future. The traction interest
would like to get rid of their non
paying lines right away. If they woul
accomplish this, you would find then
appealing to the Board of Estimat
tor bus franchises"
The Mayor then narrated what pur
ported to be an interview he had ha
with the late Theodore p. Shonts
former president of the Interborougf
In this talk, according to Hylar
Shonts had said that the surface line