The New York herald., 1920-01-29
$25,OOO,OOO LOST
BY I.R. Il. DELAYS
Estimate Board Inquiry Shows
Equipment Cost S47,ooo,ooo
:nStead Of $4,000, 900.
MAYOR TILTS WITH HEDGES
Company Officials Make Only One
Copy of Reports, Pleading
Economy.

Hardness OF the Interborough Rapid
for the Seventh subway line and other
branches opened at the same time in 1918
resulted IN an increased cost of SIS 200 900
in the purchase of that equipment. ac-
cording to testimony extracted by William
p. Burr. CORPORATION Counsel, from Ed
ward +. J. Gaynor. auditor of the Inter-
borough company, and other witnesses in
Yesterdays session of the Board of Esti-
mate inquiry into the railroad companys
Flea for immediate permission TO charge
higher fares.
Mr.. Gaynor's testimony was that the
original terms of the dual subway con-
tract Regarding equipment. made in 1913
estimated the cost of the equipment at
G2,o00o0o, whereas the eventual expendi-
tures. made in 1917 and 1913 amounted to
10000. Mr.. Gaynor blamed this diff
ference on the increase on material prices
caused by the wsr.
Mr.. Burr maintained it was because the
Enterborough failed to make contracts for
the material lin good season"
Mention that sS9 100000 bond issue had
been floated in large part through j. p
Morgan & Co. drew queries from Mayor
Hyian, who sought TO find out how much
profit the banking firm made by the
flotation. The Mayor apparently was
unable to get the information from Mr.
Gaynor.
Tilt With Mr.. Hedges.
The session opened with a lively tilt
Job Z. Hedges. receiver for the New York
Railways Company. and Alfred a. Cook
representing the Interborough Consoli-
dated Corpora ton bondholders. opposing
Mayor Hylan and Mr.. Burr.
Mr.. Hedges remarked that he had no
connection with the Interborough and
pleaded that perhaps the New York Rail-
ways matter might be injected into the
investigation "on odd days, or something
OF the sort
Mayor Hylan referred him to Mr.. Burr.
who said
II am endeavoring TO carry on this in
Iuiry in accordance with the resolution
which this Board has adopted, and the
preliminary inquiry under that resolution
IS as to the monetary investment of the
Interborough under contracts Nos. and
?, after which will come an examination,
so far as we can make it, into the ac-
QUESTION of ths elevated railroad lease.
and after that the New York Railways.
Now you say you have no connection
with this whatever, but for good or for
evil you are tied up in it,
"Oh, no." protested Mr.. Hedges.
"Oh, yes you are" Mr.. Burr said. ''be-
cause the New York Railways was one of
the things that caused the present de-
II.
ways, tied up to the Interborough and to
the elevated-that consolidation is what
brought about and precipitated the
trouble
Mr. Cook sought to explain matters
from the viewpoint of his client, but was
shut off by the Mayor whereupon Mr..
Burr offered to receive any suggestions
from the two later at his office.
will you see me this afternoon" asked
Henry L. Stirnson, of counsel for Mr.
Hedges.
Don't make any promise to see any,
body. and don't get mixed up In this
matter" the Mayor interrupted.
Company EconOmizing.
Mr.. Burr called Mr.. Gaynor to the
witness stand, and also Horace NJ.
Fisher. secretary Of the Interborough
company. Both men were questioned
at length by the Corporation Counsel
and by James L. Quackenbush. the In
terborough counsel, regarding various
tabulatons, charts and statements that
Mr.. Burr had asked for. The INTERIOR
ough officers had the reports, but in
most instances there was only one copy.
and when members OF the Board OF Es-
innate protested that all should have
copies Mr.. Quackenbush explained that
the company had been trying to econo-
mize. but that the Interborough would
have copies made, irrespective of
economy. II the Board so ordered. Mr..
Burr said he would take up the point
later.
Details of the Interboroughs pur-
chase of the trolley lines in Queens as
expected feeders for the Interborough
subway lines in that borough were
delved into further. one disclosure be-
ing that for one of the lines purchased
forty-six heavy cars had been bought,
supposedly for use through the Stein
way tunnel. but which now are running
on one Of the surface lines. Mr.. Burr
alleged that they are expensive TO oper-
ate and have Increased the accident