The evening world. [volume] (New York, N.Y.) 1887-1931, 1920-02-03
BWAY BUSINESS HAS BIG
GAIN, SAYS HEDLEY.

He nid the Slbways carried from
eight and one-holt 20 thirteen and
fourteen million passengers a month.
I'VE ought 70 have more subways
right away 10 provide decent accom-
modadons for the public" he added.
''Woudn't the operation Of a few
more trains on the present lines
help7'' asked Mayor Hylan.
Il wouldn't impose on the public in
such a way" answered Mr.. Hedleyr
by reducing the margin of safety"
Mr Hedley admitted the New York
slIbways are carrying more passen-
gers than all the steam roads in tho
country combined. He admitted also
that the contracts provided for a
five-cent fare "and no more"
HEDLEY CROSS EXAMINED BY
MAYOR AND BURR.
After admitting that the Interbor-
ourEh Rapid Transit Company had
borrowed S1OOO,OOO from the Inter
borough Consolidated the holding
company, which company is in bank
ruptCy, President Hedley was sub
jected to a spirited, dual cross exam
ination at the hands Of Mayor HyLan
and Corporation Counsel Burr.
do you know that the subways
made S29O,OOO last year?' asked the
Mayor.
III l am allowed an explanation
began Mr.. Hedley
Don't make speeches, but answer
my question" declared the Mayor,
pounding his gavel.
IT know that we made $29O,OOO
over and above what is necessary to
keep us out of the hands OF a re-
ceiver," replied Mr.. Hedley.
isn't it true" asked Corporation
Counsel Burr, that there is a deficit
due solely to the fact that the Man
haitian elevated lines, whose financial
burdens the subway bear, continue to
pay a 2 per cent. dividend on a
bloated, water capitalization Of 500
OOO, 900, which means a E24OO'OOO
handup to the Manhattan elevated
lines every yearY'
Mr. Hedley didn't think this was
wholly the reason.
"Have you ever applied to the
Manhattan Elevated Company to re-
duce that guaranteed 7 per cent on
the swollen capitalization Of 500
900. 900 asked Mr., Burr.
"a have" replied MIR. Hedley. q
spoke TO Alfred SkiUt, President OF
the Manhattan, just prior to Jan. l,
That was when l went to see him
about seeking a loan from the Man
haitian Company sbockholders TO keep
us going"
MIR. Hedley said he did not Juo-
ceed in getting the reduction in the
per cent. But he thought that the
stockholders might be brought to-
gether.
do you know" asked Mayor Hy-
han, that between the time the lease
OF the Manhattan Railway Company
| to the Interborough was executed
and the time 1t went into effect tho
stock OF the Manhattan was watered
TO the extent of $12,OOO,O0O? And, do
you know that the Interborough has
permission to issue $500, 100000
worth of securiHes-that it has al
ready issued $2lO,OOO,OOO worth and
has cleaned up 1871 per cent in a
comparatively few years? Do you
also know that 20 per cent. dividends
have been paid for several years?"
Mr.. Hedley replied that he had
read something about it in the news
papers"
do you know the difference be-
tween waste and thrift" asked Cor
poration Counsel Burr
I'm surprised that you should ask
me that question" said Mr., Hedley.
I'm surprised that | have TO ask
YOU" countered Mr.. Burr.
In an effort 70 determine TIM cost
OF the advertising campaign conducted
through the Subway Sum and the
Elevated Express" Mr.. Gaynor tes-
titled that Ivy Lee was paid $4,000 a
|
p. Waugh was editor OF the "Elevatcd
Express" He could not furnish fig
ures regarding the total cost OF this
| advertising.
The 'beefsteak'' advertisement in
| the Subway sun" caused MIR. Burr
to refer to the 1877 per cent dividends
amounting to S65.OOO,OOO paid by the
marlborough since 1903, and he asked
Mr.. Gaynor II Eue I. r. T. would
print a notice in the subway Sum
saying "You cant eat your cake and
keep it, too
Attorney Quackenbush for the In
tcrborough reverted back TO the
more. than s., 900 900 strike eNpcndt-
lures in 1916. He said the law de-
partment incurred part Of the cX-
pense by sending more than 700 mer
10 Jail,
"GANr lhtSriSeted Al6sgmaIsi
- J $780,. ----.s--