The New York herald., 1920-01-08
TRACTION LINES
URGE CITY TO
INCREASE FARES
Petitions to Estimate Board
Follow Plan Suggested by
Judge Mayer.

Petitions were filed yesterday with the
Board of Estimate by the receivers for the
New York Railways Company, the Inter
borough Consolidated Corporation, the
holding company for the Interborough
Rapid Transit Company, and the Brooklyn
Rapid Transit Company, asking for i'm
mediate and serious consideration, at
public hearing, of the transit situation.
Temporary relief is suggested according to
the plan recently announced by Judge
Julius NJ. Mayer, of the Federal District
fare until June 80 pending the working
out of permanent settlement.
Lindley NJ Garrison, receiver for the B.
L. T., Declared the situation in regard to
the Brooklyn roads SO serious that with
out speedy relief ''tte date is not far
distant when it may be necessary entirely
to suspend operation, situation which
would be disastrous to the interests Of the
people of Brooklyn"
Consideration of the petitions cannot be
had by the Board of Estimate at its regu-
lar meeting tomorrow, except by special
order, because of the lateness of the filing.
Mayor Hylan and other members Of the
Board would not say whether an effort
would be made to bring them before the
Board at this meeting. The Mayor had
nothing to say as to the petitions but he
has made it clear that he will not bulge
from his determination not to vote for
any proposal that Includes an increase In
fare. Controller Craig and Borough Presi-
dent Connolly, of Queens. are understood
TO be equally as determined not to vote
Tor an increased fare. That means seven
practically certain votes against any plan
of relief as suggested by the companies.
and 1t is likely that Borough President
Riegelmann, of Brooklyn, and Borough
President Bruckner, of the Bronx, also
will support the Mayor. That would mean
majority of the sixteen votes in the
Board.
Predicts s1.OOOOOO Deficit.
Mr.. Garrison estimated in his petition
that the lines formerly comprising the
B. X. T. surface system will. for the year
ending September j. 1920 suffer a deficit
in mere operating expenses and taxes in
excess of 100000. He urged the Board
of Estimate to give its consent to the
making OF a contract providing for per-
manent plan of readjustment between the
city and the companies, along the lines OF
that suggested by Judge Mayer at the
same time he proposed the temporary plan
OF relief The permanent plan provides
for flexible fare to be determined upon
as the necessity demands.
Job r.. Hedges, receiver for the surface
lines in Manhattan, declared that the
roads in his hands were not earning suf-
fcient money to pay their operating ex-
penses, including proper charges for main
tenance and taxes. and excluding all fixed
charges. such as rentals. bonded interest
or dividends. He said that expenditures
for maintenance had been reduced until
the physical condition of the system was
rapidly deteriorating and the point OF
physical safety had been reached
"A severe winter said Mr.. Hedges,
with the additional expenses due to snow
removal, might cause dangerous encroach-
ment upon the funds i'm my hands. even 10
the extent of causing the discontinuance
OF further lines. The immediate command
ing problem is temporary relief"
All Books Open, Snys Mr.. Hedges.
Mr.. Hedges said it had been his endeavor
in every way possible since his appoint
ment as receiver to inform the public au-
thorities OF the details of his administra-
ton and TO invite inquiry. During that
time, he said, all the books of accounts
and records in his possession had been
open to examination by the Board of Es-
innate, and all the facts which he pos
sessed were at its disposal
James X. Sheffield trustee in bankruptcy
for the Interborough Consolidated Cor
poration. reviewed the situation of that
company since it's bankruptcy on March "a
last. and referred to Judge Mayors plan
as n basis for discussion toward a settle
ment of the whole traction problem. He
said the increase in the cost OF operation
of the elevated and subway lines had So
affected the earnings of the Interborough
Rapid Transit Company, that whereas In
1917 the combined earnings OF the subway
division and the Manhattan division (ele-
vated) left a surplus above all fixed
charges Of s., ,SS5,359. and in 1915. A662.'6e
the company in 1919 suffered deficit OF
s3 siO.s-l9 with the estimated deficit for the