New-York tribune., 1920-03-05
1. r. r. Told That Legal
Steps Will Be Taken
Within 90 Days Unless
Service Is Improved
Agreement Broken.
Is Claim of Citv
Stimson Accuses Craig
Of Unfair Tactics in
N. Y. Railways Hearing;

Prior to yesterdays traction hearing
before the Board Of Estimate, Corpora
tion Counsel Burr announced that, un-
less the 1nterborough greatly improves
its service within the next ninety days,
he will take legal steps to seize the
subway and have it operated either by
the city or by tenants other than the
present operators.
He declared he would Immediately
call upon the Public Service Commits
sion to insist that the terms Of the con-
tract be carried out to the letter, and
if the company failed to comply within
ninety days it would be considered in
default Of It's agreement with the city.
Mr.. Burr pointed out that the failure
of the company to furnish adequate,
comfortable and rapid service" for
scent fare, as required under the con-
hearings before the Board of Estimate.
Craig and Stimson Clash
The pleasantries exchanged at previ
Gus hearings between Comptroller
Craig and other members of the Board
Of Estimate and counsel and witnesses
for the Interborough vanished yester-
day when the traction Investigation
reached the point of inquiring into the
affairs of the New York Railways Com
pany, which operates more than half
the surface lines in Manhattan, or did
prior to their disintegration.
A belligerent attitude prevailed
throughout the hearing between Comp
troller Craig and Henry L. Stimson,
counsel for the receiver of the surface
line company, with Corporation Coun-
sci Burr joining in the sharp verbal
exchanges.
Mayor Hylan's failure to arrive from
Palm Reach somewhat weakened the
attack of the city officials, as he has
always in this matter-if not in other
matters--supported the Comptroller in
prodding the traction representatives.
The controversy eliminated in charges
of unfairness and "sneering attitude"
on the part of the Comptroller. made
by Mr.. Stimson at the close of the
meeting.
More Figures Wanted
Comptroller Craig objected to large
part of the evidence submitted in re-
gard to the financial status of the New
York Railways as unsatisfactory and
too theoretical. Both he and the Cor
poration Counsel wanted Mr.. Stimson
to present more actual Figures and
facts" The Comptroller remarked that
some of the evidence produced was not
enlightening and was not the kind of
evidence that would get any one any
where in that kind of an investigation.
1t was like waving a red flag in front
of d bull, to point out, as Mr.. Stimson
did, that certain calculations were based
on the report of Stone & Webster, ex-
pert accountants, whom the Inter-
borough paid 100000 to determine the
valuation of that property. Mr.. Slim
son declared that on the first day of
the hearing, when he told the board
that he was fortified with appraisals
made by Stone & Webster, the Comp
troller "sneered" at him and said, "Ah,
Mr.. Stimson, we want real money"
II never said anything of the kind"
the Comptroller retorted yesterday. 81
said we were not interested in ap-
praisals, and l say SO now. You have a
witness here theorizing upon the in
crease in the cost of labor and ma.
terials, and he wants to go on percent
ages. What we want is payroll costs,
and we will draw our own conclusions
from them"
Will Produce Payrolls
Mr.. Stimson said that he had the
payrolls and would produce them. He
declared, however. that it would be too
much to expect that a company which
was losing $1,000 day could assume
the large extra expense required to en-
ploy new accountants to get all the in
formation desired by the Comptroller
and Ny. Burr. He said if the board
wanted the service of experts on the
companys books the expense would
have to be borne by the board
Mr.. Stimson called two Witnesses
Frederick 7. Wood, manager, and Frank
Samuelson, auditor, for Receiver Job
Through them. with MANY interrupt;ons
Continued on page eight