New-York tribune., 1920-01-13
Traction Fare
'lnquiisition' to
Begin To-day
City First Will Seek Actual
Amount of Money Put
Into marlborough in
1904 Outside of City's
Belmont Will Be Called
Burr to Conduct Inquiry,
Announces Craig, Who
Previously Opposed Him

Comptroller Craig announced last
night that the Board of Estimates
traction investigation, which begins
this afternoon in City Hall, would first
deive into the financing of the original
lnterborough subway, opened in 1904.
August Belmont, Craig said, was "1ike-
II" to- be called, with other subway
fnaY ciers and engineers, during the
course Of the inquiry
Thr inqusition, as the Comptroller
caliesi 1t, will at its start endeavor to
discover the actual amount of money
put into 1nterbOrough equipment, in
addition to that supplied by the city.
Craig declared that In this way, the
investigators would find out just how
much of the $14O,0o0,000 Of Inter
borough stocks and bonds sold TO the
public was actually used in buying
material necessary in operation.
To BE Basis of Solution
This actual physical value of the sub
way will be taken as the basis of any
solution Of the traction problem,
whether by grant of increased fare or
5oy taking over OF the rapid transit
lines by the city itself. Comptroller
Craig has emphasizcd the fact before
that the municipality will pay only for
actual property value, not for stock out
standing.
William P. Burr, Corporation Coun-
sci, will conduct the investigation in
person and question all the witnesses.
This was decided upon at meeting
last night in the Cmptrollers office, at
tended by Mayor Hylan, the other
members of the Board of Estimate and
Mr. Burr. Craig said several days ago
that Burr would not act as counsel,
vDo to- %L,%
ate change was forced on him.
THE program for the opening scs-
sion is to get started" said Comptroller
Craig, after the meeting 1--WE haven't
formed any opinion, which we are try
ing to prove, but we're openminded
about the whole problem and are mere
~ trying to get at the facts
Want Information Quickly
We're going to outline to the coun-
sci for some of the companies, first,
the information we desire produced
and by hwom. We are going TO ascer-
tain how quickly we can produce the
information, and the persons necessary
TO subpoena to get it.
II don't know how long the investi-
cation will take, but personally / think
It will be finished in a short time"
"In three months ?" was asked.
within that time. A lot of the data
already collected, but much of the
information wanted is ten and fifteen
years old and more difficult to get Be-
sides, the investigation will be inter
rupted from time to time because Of
other work that the board has to at
tend to.
"Whatever solution we arrive at will
ne based on the facts as brought out
during the inquiry, and nothing else.
we Will begin by aScertaining the ac-
tual amount of funds which went into
tho original Interborough subway-.the
Broadway-Fourth Avenue subway
other than that put into it by the City
Of New York.
"This will be for the purpose of as
certaining how much money, nut into
The subway by the public who bought
Interborough stocks. can be considered
an equity in any solution of the pres
ent problem.
Value of Equipment
"One line Of interrogation will he
with respect to the equipment fur
rished by the Interborough for the
iirst subway, and its money value, 1t
might be Of interest to note that the
contract required the Interborough to
ale schedule of the equipment and
its value as soon as the road started
operation. Although operation began
not been filed yet"
Comptroller Craig said that the
Board Of Estimate would conduct the
investigation as a body, requiring a
quorum at every hearing. He said
meetings would be held as often as
possible, probably four sessions a
week. These will take place in the
Board Of Estimate council room.
No witnesses will be examined to-
day, Mr.. Craig said, the session being
devoted largely to organization and to
laying pipe lines" of information.
which are expected to give up a rich
yield later. Hereafter. he said. as
many subpoenas as required will be
issued.
Financiers to Testify
august Belmont is likely to he
called he replied, when asked to name
some important witnesses. He would
give no other names, but said that
q any OF the fnanciers and engineers
connected with the equiping of the
original subway, or the floating of it's
securities, would be called upon to an
pear before the board
Comptroller Craig said that the
whole purpose of the investigation was
to decide the merits of security hold
crs claims for increased fares for
their companies, on securities which.
they said, the city was responsible for
directly or indirectly
Con WnoLsrsN MIL