New-York tribune., 1920-03-18
City Threatens
To Seize Lines
OF Interboro
Burr 1nstructs Delaney to
Serve Notice Giving
Ninety Days to Improve
the Service on Subways
Compliance Is Expected
Agrees to Carry Out the Or
der for Extensive Inn
provements'' by March rs

provements'' by March rs
Corporation Counsel William P.
Burr yesterday formally notified Tran
sit Construction Commissioner De-
larey to serve notice on the INTERIOR
ough Rapid Transit Company that un-
less it provided more satisfactory pas
senger service within ninety days pro
ceedings would be begun by the city
to take over the subway lines and
operate them.
The action of the Corporation Coun-
sci is in line with his promise at a
recent hearing before the Board of
Estimate on the traction investigation
that the city would find way to seize
the lnterborough lines unless the COM
pany afforded "an adequate and com
Portable service" for the scent fare,
\as called for in the contract with the
city.
Since the traction hearing, however,
at which the Corporation Counsel
threatened the seizure of the subways
the Public Service Comm ssion has is
sued an order requiring extensive i'm
provements in the service on the In
terborough lines. The company has
agreed to comply with the order by
March 25. If the order is complied
with the city is not expected to take
the steps threatened by Mr.. Burr.
Burr Quotes Hedley
In his letter to Commissioner De
ianey the Corporation Counsel pointed
out that the terms of the contract give
the city the right ito enter upon and,
as agent of The lessee, operate the rail
road and equipment and existing rail
roads and equipment at the rate Of
fare and in the manner provided in
the lease for the remainder of the
ierm.'
The lessee, under the contract. agreed
to operate the railroads carefully and
skillfully, according to the highest
standards of railroad operation; to sup
ply adequate equipment, to run trains
50 as to furnish adequate service, to
use the best safety devices, to keep the
railroad and equipment clean, dry, we'll
lighted, heated and ventilated, and to
do various other things set forth in the
contract tor the safety, convenience and
accomm odation Of the public
MI Burr quoted from the testimony
OF Frank Hedley, president of the Inter
borough. at a recent hearing before the
BOARD of Estimate, to the effect that
the traffic on the subway was neither
adequate nor comfortable. and had
reached the point of saturation and
suttocation,' and that travelling con-
ditions were indecent and ntoleralJe
Mr.. Hedlcy testified that these con,
dItlons were due to lack of facillcrs.s to
tandlc the great number of passengers
who used the subway. Mr.. Burr also
referred to the investigation bv the
Public Service Commission, which de-
tcrmined that the service provided was
inadequate and led to the order for
better service, on which the time ex-
rires on March 25
So. said Mr.. Burr an addition to
the admissions of the pres dcnt and
general manager of the marlborough
Rapid Transit Company. we thus have
The finding of the Public Service Com
mission IN its official order that the
seI''ce IS '1nadequate' and contrary to
tne requirement of the contract
Hearing Resumes To-day
Il would recommend and advise that
ON failure OF the lnterborough RapNd
ransit Company, lessee, to comply
"ith your request to cure such default
within the time (ninety days) allowed
YOU thereupon notify the Board Of E,st;.
mate of such fact and arrange for a
conference to determine upon the par
flcular application of those remedies
prescribed by the contract it NAV be
deemed necessary and proper to en-
iorce.'
Corporation Counsel Burr said YES
'crday that the traction hearing be-
tore the Board of Estimate would be
resumed to-day and would be confined
affairs of the New York Railways
Company No effort will he made at
present to subpoena officials of the
company as witnesses, but Mr. Burr
SAID there were several matters he
expected to clear up through witnesses
from the office of the Commissioner
of Accounts.
One important question: according to
Mr. Burr, is to determine what be-
came Of large part of fund of Sa.
SVo,ooO which was turned over to the
New York Railways COMPANY in 1915
by the old Metropolitan and New York
City Railway Company.
The New York Railways and it's
affiliated companies became entitled to
recover this sum in the settlement
made by the two old companies fol-
towing the discharge of the receivers in
March. 1916 Part Of it has been ac.
counted for. according to the Corpora
'ion Counsel, including the payment Of
$95o.OO0 mortgage on certain prop
crty of the New York Railways Com
pany' and $65O,Oo0 in paying a general
opilgaton contracted by tho Metropol-
tan bondholders' reorganization com
mttee.
The purchase of car barns at Eighty
siA.h Street and Madison Avenue and
AT Ihirty-third Street and Fourth Ave
nue. also cost S7S3. .0O0, making total
eSpend'ture of $2.3SS 900. The balance
~ Understood to have been used for
operat'ng deficits up to the time of the
feceivership of the New Yorl, Rn;l-
ways. bit the Corporation Counsel is
anNious to obtain more complete bin
vi particulars in regard to tho matter.