The New York herald., 1920-01-14
ESTIMATE BOARD
LACKS ACCOUNTS
IN TRANSIT INQUIRY
Preliminary Session Marked
by Repartee Between Mr..
Garrison and Mayor.


Investigation by the Board of Estimate
into the financial condition of the trac-
ton companies opened yesterday in the
Council Chamber in City Hall. 4 largc
array of counsel and officials of the com
panies were present when Mayor Hylan
opened the first hearing and Controllei
Craig outlined the programme of thu
city's investigation. Adjournment wa
taken in half an hour until week frou
today pending the production of records
asked for by the Controller from the
Interborough and New York Railways
Company.
Side remayks which passed between the
city officials and the receivers OF the
bankrupt companies indicated that sparks
would fly as the investigation progressed.
The first hearing. however, was marked
by good humor on all sides and an ex-
change of expressions of charity" be-
tween the Mayor. the Controller and Lind
ley NJ. Garrison. receiver of the Brooklyy
Rapid Transit Company.
When Mr.. Garrison had entered his ap
pearance. Controller Craig said that the
programme called for the investigation o:
the Manhattan roads first.
I'VE would like charity TO begin az
home" remarked the Controller, with
smile.
"Yes, l believe there is some charity
in this Investigation said Mayor Hylar.
'T expect that shall have to exercise
good deal Of charity during the course
of this inquiry" was Mr.. Garrisons reply.
Some Records Destroyed.
At the start it became evident that the
lefty was not going to get all the informa-
ton it desired from the companies. al
though due to no fault OF the present re-
lceivers or counsel. Controller Crais
asked Henry l.. Stimson, counsel for Job
lE. Hedges. receiver of the New YORK
Railways, If he could produce records o.
information showing the actual cost OF
the electrificatio OF the surface lines.
Mr. Stimson called attention to the fact
that the records of the old Metropolitan
Street Railway Company prior TO 1902 hac
been destroyed and that electrification
began in 1895 The destruction of the
metropolitan records. Mr.. Stimson re
called. was the subject of investigation
by the Public Service Commission and the
Grond Jury.
| The records OF that investigation by the
Public Service Commission, which lasted
from July to October. 1907. showed that
III. C. Moorehead. then secretary and
treasurer of the Metropolitan Company,
testified that the records had been sold
for junk to Garnstead Courtley & Co..
of South street, in the spring OF 1906. with
the express agreement that they should
Immediately be converted into pulp They
were sold for $l17. at the rate of three
quarters of a cent pound, according 10
Mr.. Moorehead's testimony.
\ James l.. Quackenbush, now counsel for
the Interborough Rapid Transit Com
ipany, testifying at the 1907 hearing eN-
iplained that the records had been de-
stroyed because the Metropolitan Com
pany's storeroom had become over
crowded with old records II appeared
q her Mr MnnrehEa6'S statements
that the Metropolitan Company received
bids for the disposal of its old records
from other concerns. who guaranteed
secrecy" and prompt and complete de
structon of all records OF confidential
nature" by conveying them into pulp.
/ There was $40. 0.e55,00. however, expended
! for electrification of the surface line.
since 1862. which the Board OF Estimate
may be able TO investigate. Orin Root
then general manager OF the New York
Railways Company. testified at the lsr'
Investigation that that amount OF money
had been expended for electrification from
1902 to 1907. This was part Of s23.c0,Wl
! furnished by the New York Railways
Company for extensions and equipment
according to Mr. Root.
! At the opening Of the Board of Estimate
hearing announcement of the programme
for the first work TO be undertaken was
made by Controller Craig. as follows:-
TO ascertain the 5ctusi monetary investment
for the equipment OF first subway under contracy
by him and his assignees.. and the Interhoroueh
Rapid Transit Company: that ls. TO ascertain the
plemented moneys supplied By the city oi New
York FOR the con Construction and equipment OF oris
To ascertain the actual monetary Investment q
New York in the constructicn and equipment OF
the Brooklyn extension OF the oTlginai suo"as uh
To ascertain the facts and circumstances in re
lation 20 the lease Of the lines OF the Msnhsttar
Rapid Transit Company.
! 10 ascertain the actual monetary investment N
the existing surface lines In tho Borough OF Han-
ESpianation of general purposes and scope o:
Appearance of counsel. II any. Tor the stove
Request of counsel for the Intcrborough Rapid
Transit Company Tor the opening VI 81 the nc org sa
going matters in relation TO the lnterhorcrg
subways. and making them available 70 the CcT
poration Counsel and the examiners and account .
ants that may be delegated 70 examine or mas
Ragnest Of receiver FOR New York Railways Con-
pauy and counsel. II any. appearing Tor toe ~
ceiyers or otner COMPANIES operating surface i1ss
Fixing a date for adjourned hearing for intef-
The resolution was read designating
William Il. Burr. Corporation Counsel, to
conduct the inquiry for the city. The
lController formally requested Mr.. Stim-
SON for the New York Railways. and Mr..
produce such original records as the
Board Of Estimate might desire. They
promised 20 cooperate I'm every way with
Corporation Counsel Burr and turn over
to him any and all records asked for.
"tim for Adequate Service"
Controller Craig outlined the purpose -
the investigation. He said
"tn summary way. it may be stated
Ito be the definite ascertainmcnt from
original sources of the facts upon which
must be determined the appropriate &C
tion TO be taken by the city of New York
with respect TO existing transportation
lines now under contract obligation for
the transportation OF passengers and the
rendition OF proper service in the five
boroughs OF the city: and upon the basis
OF such facts so ascertained TO make such
definite final and conclusive action as
will assure TO the people Of tho city ade-
quate and proper transportation service.
Inquiry will be directed toward the
ascertalnment of the present day costs o.
rendering transportation service OF an
adequate and proper character and the
probable tendency of such costs TO In
crease or decrease so far as Il may bc