New-York tribune., 1919-09-13
Manhattan and Queens Line
Franchise Provision Con-
flicts With the State Law
and Is Null. He Says
Calls Burr's Plea Strange
Ciiy's Attempt to Prevent
Raise Is Aired in Court;
Decision Is Reserved

The authorisy Of the Public Service
fares within the limits of New York
City was argued yesterday in the ST.
preme Court before Justice Finch
Corporation Counsel Burr urged that
the writ of prohibition restraining Pub
lie Service Commissioner Lewis Nixon
from acting further on the application
of the Manhattan g. Queens Traction
Corporation for an increased fare be
made permanent.
Afiidavits were filed by the Corpora
tion Counsel, the Commission and Wat
son B. Robertson. attorney for WILL
lam K. Begg and Arthur c. Hume. re-
celvers for he traction corporation
A detailed history of the traction
company's fight for existence w.s heard
tended relief should be sought from
the Board of Estimate anc that it
would be illegal for the Public Service
Commission to grant the company an
extra fare. The Corporation Couns i
said the citys franchise contract with
.he company contains a provision for
scent fare.
The courtroom was filled with law
yers representing various traction
lines in the city.
Burr Presents City's Case
Mr.. Burr said the corporation ap-
piled to Federal court for an increase
in fare and that the application was
denied on the ground that a contract
existed between the corporation and
the municipality, which could not be
changed without the consent Of the
contracting parties. He declared that
if such a power were given the COM
mission could grant perpetual fran
chises with five, eight and ten cent
fares.
Affdavits filed by Commissioner
Nixon and Terence Farley, counsel to
the commission, denied the right of the
city to interfere. Commissioner Nixon
pointed out that in the contract be-
tween the city and the South Shore
Traction Company. predecessor of the
Manhattan and Queens Traction Corpo-
ration, it is provided that the franchise
grant is made upon condition that the
provisions Of the railroad law shall be
strictly complied with by the company.
Nixon Calls Terms Void
He was advised by counsel. he said,
that the Court Of Appeals. in the South
Shore Traction Case, held that the
municipal authorities had no power to
insert in their contracts terms and
conditions in conflict with the general
laws of the state, therefore, all such
conditions and terms were null and
void.
Commissioner Nixon declared that
the Corporation Counsel had cited Ger
tain acts of his. probably with the idea
in mind OF preJudicjng tn, court
against me" The Commissioners
statement refers again to the Corpora
tion Counsel discussion as "a strange
mixture of law and fact" He SAID the
CorporatioN Counsel failed to tell the
cour. that ne company operates in two
districts, ,.e 1st and I'd, and that the
Public Service Commission merely fol
lowed the ruling OF the commission
for the I'd District in establishing zone
rates.
The affidavit of the commissioner
concludes: at is the duty of the COM
mission to provide the public with ade-
quate transportation service, and when
a railroad company notifies the com
mission that it will be compelled to
discontinue operation if its income be
not increased it is the commissioners
duty TO investigate its financial con-
ditlon and ascertain the facts. That is
what was done in the New York 4
North Shore Traction Company and the
City OF New York did not attempt to
cnjoin the commissioners action. Sub
sequently it requested and received a
rehearlng.'
Justice Finch gave the attorneys
unit! next Wednesday to file briefs
He is expected to announce decision
on Thursday.