New-York tribune., 1919-01-11
Cable Seizure City Offers to
Upheld; Wilson Run Car Lines
Must Fix Pay IL /. II. I. Quits
Board of Estimate Refuses
Request of Railways to
Raise Fares to 8 Gents

Mayor Hylan and the other members
of the Board of Estimate announced
yesterday that the city administration
was ready to take over the INTERIOR
ough lines, both subway and elevated
! if the corporation should abandon its
contract.
The statement was made after the
board had formally refused the Inter
borough's request TO charge an eight
cent fare and had announced that a
similar fate awaited the petition of the
New York Railways Company for an
eight-cent fare and three-cent transfer
privilege.
The unanimous action of the board
was based on the report of the Com
mittee of the Whole, which said:
"There is no reason 20 expect that
the public would receive any benefit
whatever from the payment of an eight
cent fare to the present operator or to
any private operator. If the INTERIOR
ough abandons its contract obligations
the Board Of Estimate and Apportion-
ment is ready to undertake municipal
operation and management"
City Might Raise Fares
Mayor Hylan, who was present as a
member of the board, said
In other words, if the Interborough
is unable to comply with all the terms
of the contract with the city, all the
Interborough has to do is to turn back
the lines to the city and the city will
operate them"
Although the city administration re-
fused the increase to the Interborough
on the ground that the additional rev.
onue was not needed, the Board of Es
innate report, almost in the next SEN
tcnce, declares that the city may have
to raise fares if it starts management
of the lines, because Of conditions and
increased expenditures.
Under municipal operation" it read,
fares would have TO be adjusted to
meet costs and raised and lowered from
time to time as conditions require"
Service Worse in Boston
The members of the board evidently
had in mind the experience of Boston,
where the trustee management" form
of municipal operation is being tried
out. In Boston fares were raised from
S to cents, and the city authorities
are considering another boost to 10
cents.
On municipal ownership the report
says: "lf the Interborough desires to
cancel the present contract, terms can
doubtless be agreed upon that will take
into consideration the actual cash in
vestment of the Interborough in the
property, and avoid the necessity of
the complete wiping out Of the equi-
ties Of its security holders, which
otherwise must inevitably result if the
present claims of the Interborough are
true.
Hylan Attacks Whitney Again
"When the City of New York made
the contract with the Interborough, it
was upon the assumption that the In
terborough was of sufficient financial
responsibility TO perform it's obliga-
tions and would do so in good faith.
giving to the public the benefit of the
5 cent fare for the forty-nine- year
period of the contract.
1T would be a matter of very seri-
Gus concern to the members of the
Boarc of Estimate and Apportionment
If the 1nterborough, either from un-
willingness to perform its contract OBJ
legation or LACK of financial response
lbility, should, as has been threatened
by its representatives, seek the ad-
vantages of receivership."
Mayor Hylan, during the meeting.
took another rap at Travis H. Whitney,
chairman of the Public Service Com.
mission, who had threatened to bring
suit if the Mayor did not retract the
statement calling him an "ever-ready
adsocate OF the Interborough"
Craig and Moran Join Attack
The Public Service Commission had
asked for supplemental appropriation
so that 323 employees dropped for lack
of funds could be reinstated. When