New-York tribune., 1920-03-05
Burr Makes
at to
Take Subwa,
Continued from page 1

by the Comptroller, he managed to get
the company's case on the record. Ho
reviewed the conditions under which
the surface lines operated since they
came out of the old receivership, in
1912, UP to the present receivership
and since then. Mr.. Stlmson summar-
lied the testimony given for the COM
pany as follows:
"New York Railways Company began
paid a dividend It's first mortgage
is for S18,0O0,000 bearing 4 per cent in
tcrest. Its second mortgage of $30,000,-
600 bears interest only when earned.
This has earned only % per cent. It's
second mortgage has paid no interest
since 1915. Both mortgages are now
in default.
"When Mr.. Hedges took possession
on March 21, 1919, it was composed of
150 miles of railroad track in the Bor-
oagh Of Manhattan. Owing to lack of
disintegrated. Certain leased lines
have been taken back by their owners
because of non-payment Of rents.
THE lines taken back are the Eighth
Avenue line, the Ninth Avenue line and
the Fourth and Madison Avenue line
Passengers who formerly got transfers
over the Eighth and Ninth and Madison
Avenue lines now have to pay all extra
fare.
Ninety-fiv Miles Left
"Mr. Hedges has now only ninety-five
miles of railroad, of which only sew
cnty-eight miles are operated. Four
downtown crosstown lines have been
temporarily discontinued. Operation
over the Williamsburg Bridge has been
ordered discontinued on March 6. Re-
ports of operation Of the lines still re-
naming in Mr.. Hedges's hands show
that the receipts fail to meet the cost
of operation and taxes by more than
$1,000 a day.
The recent snowstorm is calculated
$S00,OO0 and 100000. The cash in the
receivers hands has shrunk from ST.
100000 last summer to $638,000, with
the prospect of being down to little
over 100000 in another month. The
plight OF the company is shown not to
be due to any temporary emergen ~.
During these eight years the cost of
operation has risen over 100 per cent"
Corporation Counsel Burr brought
out on the crobs-examination Of Mr..
Wood that the improvements made by
the New York Railways on the lines
which had been turned back to their
original owners amounted to about ST.
100000. He called particular atten-
ton to the fact that the original COM
panics got all these improvements free
in taking back the lines. The witness
admitted that it was disastrous thing
for the NeI York Railways. Mr.. Burr
declared that it was the burden of the
big rentals paid by these leased lines
which "brokc the back of the New York
Railways"
Mr.. Samuelson testified that, exclud-
ing all fixed charges, the operation of
the surface lines during January
showed deficit of S78,2s3, which meant
an average loss per day Of $o,525. The
deficits for the five months prior to
that had been larger.
long controversy ensued between
the Comptroller and Mr.. Stimson in re-
gard to the assessed valuation Of the
company's property on which it had
to pay taxes to the city. Mr.. Stimson con-
tended that the rate Of taxation per car
mile was more than double that Of com
panies in any other city in the country.
Mr.. Craig again pointed out that the
company was "obligated," but was in
arrears on the taxes