New-York tribune., 1919-01-08
Car Lines Deal Dictated
By Mayor, Shonts Says


would prove disastrous, and illus
trated 1t by saying that in my judg
ment that at the time the steam rail-
roads were taken over by the govern
ment they we're in the same condition.
Of course, the stronger ones would last
the longer and the weakest would go
over the dam first but the action of the
government in taking over the roads,
guaranteeing certain returns, and then
in raising rates-both fare and freight
rates--had protected the situation, and
that IN my Judgment the electric lines
were going in the same direction, and
unless relief was given them they
would have the same result"
Reason for Hearing Explained
Answering an objection by Corpora
OF. the hearing, acting Chairman Travis
whitney stated that the New York
Railway Company had made applica-
ton for an increase of fare to the
commi ission. and that it was necessary
to know whether other means Of re-
lief were being sought, such as a modi-
vcatlon of franchise, before the COM
mission would act.
=, After further objection by Mr.. Burr
MIR. Shonts continued, telling of his
second meeting with Mayor Hylan and
lawyer:
81 received message from my Of
fee that Mayor Hylan requested me to
be. at his Office the next morning. I
think, at 10 o'clock or half past 10,
Whatever the hour was. The Mavor
took me into his office, and a gentle
nan followed me in, to whom the
Mayor introduced me- He said: 4 want
you TO y, kncw Mr.: Macfarland, of Bos-
ton. This gentleman wants to help
you get a 1-cent fare for your various
lInes, lit: ana think under certain con-
dltions he can succeed told him
that sounded very good. He said Be
1ore we so further, want you to know
VINO Mr. Macfarland it. He represents
Mr- hearst's interests in New England.
nc Is his lawyer in New England
Macfarland Hcarst's Policy Writer
Il then asked Mr.. mcfarland if he
pore the same relation to Mr.. Hearst
IN IN New England that Mr.. William De
ford Did in New York. He said, No
and that in addition to beinq Mr.
hearst's counsel in New England he
was his policy writer of editorials in
that district
The Mayor then said to me that Mr.
Macfsrland was probably more respon-
siole than any one else for the adop-
LION OF the Boston solution Of the
rapid transit lines of that CITY. He
asked ME if I was familiar With the
nature of that arrangement. told
INN 'hat was, but only in a general
way. The Mayor then said that MI
Mac1arland was then working on
similar solution of the transit situa-
:,on IN Chicago, and wanted to know
AZ ! knew what was going on out there,
ano .0r, l sad that l did not.
:. ne Mayor said be would like then
~ would listen to Mr.. Macfarland's
ana 1 think l listened for the better
PAT or an hour to Mr.. Macfarland's
elaboration of the things that tbev had
uoue IN boston and what they were
trying to do in Chicago.
Wanted Pay for Control
When he finished I said that ne
near as l understood him. VIC had ar
compilshed good MANY of the th;nre
"a our negotiations that he thought he
prougn1 here, and had them embodied
10 ~ our contract with the citv: that
mere was one distinctive difference.
uSalnely' That we had invested some,
,nlng more than $200,OOO,OOO in the
ne" ork enterprise and had then sold
81 ~ ~ 10 me c'1y, retaining only control
OF the property for the period of tho
tease, torty-nine years, for the pur-
pose of being in a position TO see that
the terms of the agreement were car
rled out; that the control of the nron-
erty was all that we had left: that
n now his plan was that we should
turn that control over to board of
trustees to be appointed either by the
municipal or state authorities. or both
we would of course have to be paid for
that. f'' A0i
Whlle the proposition was new to
me and all could do was to think out
loud, could not think of but two
ways in which they could pay us.
Better Security Demanded
"One was to pay us more money
IMAM our contract with the city called
Tor, and the other was to give us a
better security for the same sums of
money that our contract with the CITY
called for, and in as much as the redi-
cal papers had criticised the city gov
crnment for, as they claimed, allowing
US too much IN the present contract,
they could not with any great consist
ency offer US more than the contract
called for, SO that there was nothing
left that J saw except to give us a bet
ter security for the same amounts than
our contract provided we should re-
ccivc.
"I said to the Mayor, 4 am much
obliged to you for the length of time
that we have taken up of yours, and
would suggest that Mr. Macfarland 90
with me to my office and | will call
lr our general attorney, Mr.. Quacken-
bush, and we will try to get in concrete
shape all the ideas that Mr.. Macfarland
has, as applicable to our situation. and
after that is done the matter will re-
ceivc fair considerations
Shonts's Attitude Receptivc
"The Mayor asked me how I, pcr-
scnally, felt about the situation. and
said that all | could say was that until
Mr.. Macfarland's views we're worked
cut concretely ! could not saw more
than that would be in a receptive
mental attitude.
The Mayor then made some compl,-
mcntary remarks about mysclf--that
IL this change was made, why it did
not necessarily mean my elimination
from the situation. | replied that |
thought that we might better leave
personalities out of it, because 7 felt
AZ the chief executive Of our various
companies, that if he (thc Mayor) or
any other responsible person brought
forward 4 proposition that was better
for the interests Of our company than
anything we had. and that that proposi-
ton was enforceable at law, would feel
1t my duty to present the same to the
owners of the property, regardless Of
any personal relationship of mvsolf
to the changes.
Boston Situation Cited
By Commissioner Whitney.-"What