New-York tribune., 1920-04-30
Tube Company
Reluctant to
Tell Income
Corporation Counsel of
HOboken Is Told to Hire
Accountant, at Fare
Hearing Before |. C.. c.
Rate Raise Denounced
Commission Will Decide
if Further Sessions for
Protest Are Necessary

The first hearing before the Inter
state Commerce Commission on the
application of the Hudson & Manhat-
tan Railroad Company to retain per-
manently the SIX and ten cent fares
now in force on the tubes brought out
little yesterday to indicate whether or
not the company is entitled to the
increase.
When attorneys for New Jersey
towns found it difficult in the course of
the proceedings to obtain specific in
formation from officials os The COM
pany they openly charged they were
not getting "full, fair and frank dis
closure
Yesterdays session, held at II East
Thirty sixth Street, before Examined T
Royal T. Mckenna, was concerned in
tne man with series Of thirty qucs
ticns ~s,ch John !. Fallon, Corpora
ton Counsel Of Hoboken, had put to
representatives of the tube company
and which touched upon the income,
expenditures and number of commuters
carried by the company within the last
two years. After much quibbling
James W. Carmalt. counsel for the
company. invited Fallon to obtain the
information by sending an expert ac-
countant to examine the firms books.
Calls Raise Unwarranted
Associated with Mr.. Fallon in the
fight against the boost were John Bent
ley. Corporation Counsel Of Jersey City,
and his assistant, Charles NJ. Egan.
Just before the opening Of the hearing
Mr.. Tallon characterized the action of
.cc 1r,, IN inr tt.,,
crease after refusing an application 70.
fiat eight-cent fare as unauthorized
unwarranted and presumptuous."
In examining +. H. Silleck, comptroller
of the Hudson company. Mr.. Fallon de-
clared that the company had failed to
give sufficient notice to the public of
the proposed increase. This Mr.. Silieck
denied. 1t was then brought out that
on the lines west of Summit Avenue the
Pennsylvania Railroad paid so per cent
of the salaries of the Hudson & Man
haitian employees. Mr.. Silleck testified
that in 1919 the tubes carried 21.915.900
passengers for the steam railroad COM
panies with which it had agreements.
Mr.. Fallon pointed out that in an ex-
animation in Washington on the fare
proposal the same witness had given a
figure that was $4,000 less than the
number given by him yesterday.
Mr.. Silleck further said that under
long term agreement with the Penn
sylvania Railroad that company re-
ceives 60 per cent and the tubes 40 per
cent of the revenue obtained from pas
sengers carried for the railroad. The
cost of maintenance is shared by the
two roads. In connection with the
present financial condition of the
tunnel company it developed that Oren
Root, the president of the company,
received an advance in salary on March
l of $4,000. Previous to that time
his salary was $4,000 year, his salary
now being $4,000. Mr.. Silleck added,
however. that the company had not
made money since 1915, having been
able to pay but small percentage Of
the interest on it's bonded Indebtedness
May Be No More Hearings
When MIR. Fallon attempted to OBJ
tain some idea of the rentals received
by the tunnel company from the Hud-
son Terminal buildings. the attorney
for the Hudson firm objected, on the
ground that the buildings could not
properly be injected into the fare uues-
the commission had informed him by
letter that the revenue from these
buildings was taken into consideration
IN fixing the six and ten cent fares. The
hearing came to an end when Examine,
Mckenna announced he would place
the question for decision before the
commission.
Examiner McKcnna at first fixed mex,
Thursday for a resumption of the
hearings, but upon suggestion of coun
sci for the tube company. cancelled
the date and said that day will be
set "if the commission decides thai
further hearing is necessary Cor
poration Counsel Fallon objected te
having the hearings summarily closet
without anything being accomplished
and insisted on receiving a guarante.
that the sessions would be resumed
upon request. He was assured by Ex
aminer -McKenna that he would baS, S
no difficulty in obtaining another hear
ing. In the mean time May 20 was Sc
for the fling of briefs.
While the company planned to re
sumo ail-nlght service to Newark yes
terday.. the trains stopped running Al
midnight. Service to other points will
continue from a. m. to : D. m. unit
further notice
At the Office of United States Attor
ney Joseph l.. Bodine, at Newark, n
j., 1t was stated that papers are nov
being prepared for presentation to the
FEDERAL Grand Jury asking for the
Indictment of the leaders of the insur
gent railroad strikers. Action by the
panei' u was said. may be expected
momentarily.
Merchants as Mediators
Omcers of the Merchants Associa-
won announced that in compliance
%''n the suggestion Of Assistant A.
torncy General Amcs that a COMMITTEE
"s meIcha'ts be appointed to make an
o', 10 set'se the controversy beween
uie 'ohHsnorcmcn and the coastwise
Tipping i;nea, such committee had
oeeu CHOSEN. Those designated 10
'"-e' nc longsnoremen and shipowners
are: Alfred L. Marling president Of
,He Ne% York State Chamber Of Com.
merce; William Fcllowes Morgan. nre.-
lneht OF the Merchants association
3heriock Davis, president OF the
brooklyn Chamber Of Commerce. I.o
nohns, p'esldent Of the New YorL
noard OF Trade and Transportat;on
~. Z. Williams, president Of the Cham.
per OF Commerce of the BOROUGH ~
Queens, and James Breckenridge nrcs-
'oehi OF the Bronx Board Of Trade
A3r committee Immediately went in
conference yesterday with r v
CConnor, mead of the Intcrnat;oss al
Longsnoremcn's Association and 49,
saw the leaders Of the Marine Work.
crs' Afiiation, whose strik. en- ~
ierrles and floating equipment of the
Taiiroads was declared by Judge Ames
70 be unJustifed. A conference was
also had with William Il. Ripley md
-. II. aauires, Of the National Adjust