The New York herald., 1921-12-20
Lawyer for 5 Cent Fare and
Fears No Political Taint
i'm Board of Control.
HYLAN AND CRAIG ABSENT
Comptroller Offers to Testify
if Transit Commission
Answers His Queries.

Grover A. Whalen, Commissioner Of
Plant and Structures testified yester-
day before the Transit Commission
that the Staten Island Midland Rail-
road, now operated by the city under
a contract with the receiver had
made a profit of more than $4,000
during the last year on a five cent
fare.
But under the Questioning and eX-
animation Of Clarence J. Shearn,
counsel for the commission, it was
shown that in his estimate of profits
Mr.. Whalen had not taken account of
interest, taxes. both State and local.
on gross earnings. maintenance
.snarges and many other items which
the profit from the Midland's balance
sheet
The balance sheet submitted by Mr.
Whaien covered the year ending No
vember 80 last. 1t showed net in
come balance OF $4,0S7.s2, but this
rvaporated when the examiner showed
that, although the property is owned
by a corporation and is subject to the
state franchise tax on gross earnings,
no entry or This mad Deem made nor
were there any entries covering the
other factors mentioned. When Mr..
Shearn called attention to these seem
ing oversights which wiped out the
roads fictitious profit, Mr.. Whalen
said that the attorneys view "was
probably correct
Favors Control by the City.
Mr.. Whalen followed Samuel Inter-
myer on the stand. and Mr.. Untermyer.
testifying at length. vigorously assailed
some of the pet features Of the Transit
Commissions plan for the reorganiza-
ton of city railway facilities. and de-
clared himself an unqualified advocate
of municipal operation as well as
municipal ownership.
He had become a convert to the mu-
nicipal operation idea, he said. since
he delivered his critical address last
October before the City Club. The SEN
sational revelations developed during
the present Transit Commissions ex-
animation. the chief counsel to the
Lockwood committee said. exposing
shamefuly bad railroad management
under private control had been instru-
mental in changing his views in favor
of public operation. Under public
ownership and control. he said he could
conceive OF nothing worse.
Mr.. Untermyer took the position that
the absolute maintenance of the five cent
fare Is the prime requisite of success.
For the commissions projected barom-
cter fund. which he said he preferred to
call it's flexible fare feature. he han
nothing but unsparing condemnation.
one of Its Objectionable phases, he
thought, was that II placed premium
on incompetent management by provid-
ing that wastefulness should be met
simply by an automatically increased
fare. thus throwing the burden upon the
public.
Except for this and one or two other
features the witness found much to
commend in the tentative project-ts
provisions for unified control of all sys-
TENS and for pooled receipts. So far
from shying at the peril OF a political
taint in the proposed board of control
Mr.. Untermyer preferred to give to the
city an even larger representation
therein.
Expressing the opinion that in the
matter of determining valuations the
commissions present powers are too re-
strcted. he recommended amendatory
legislation comforting upon 1t the right
of eminent domain to take transit prop
critics which their owners may refuse to
sell at the proffered terms.
Arrnigns Private Ownership.
Mr.. Untermycr scathingly arraigned
the sins and scandals of private owner
ship and operation Of transit properties.
One OF his strongest objections to the
drafted plan was that II tended 10 turn
back tho properties Into the hands of
owners from whom they have been pur-
chased and leaves the future operations
practically at the mercy of the same
interests that have looted. slaughtered
and mismanaged them. The idea." he
said. lis unthinkabe"
Lawyer Untcrmyer. appearing In the
unaccustomed role for him of witness
rather than examiner, was smilingly
immaculate. At the outset of his testi-
mony hc said he had no interest and
represented no interest personally. pro-
fessionally or otherwise in traction Sc
curities or properties, directly or in
directly" He added that for eight
years he has had no personal interest in
the law firm OF Guggenhemer Inter
nyer g. Marshall. Notwithstanding the
contrary impression sought 10 be Great
ed during the recent political campaign"
Mayor Hylan had made this mistake.
he said, when he referred last Saturday
to suit In which the firm named had
secured an injunction against certain
unauthorized acts on his part"
Mayor Hylan knows I have always
been a consistent champion of the five
cent fare and have at all times bitterly
opposed the traction interests" Mr.. I'm
tcrmyer continued. "If he had taken
my advice the city would not have been
IN its present prcdicament. duo 10 his
obstructive and do-nothing policy. If
Continued on Page Eight.