New-York tribune., 1921-11-30
1. r. I. Chiefs
+ ear Suits In
Transit Deals
tc.estaaed spm pss. enc,

tcsestaaed from page enc,
political complexion Of our city govern
ment.
II would not hesitate to say that
within five years with this three to
three arrangement and people decryin2
the odd mans motives, wondering who
got him and who will get him, there
will be q movement to repeal that bill,
and the city will go into municipal
operation and ownership
Mr.. Hedges declared that his attitude
was one of constructive criticism when
Commissioner John r. Organ sug-
gcsted that he wns pessimistic.
1T is q question of the morale of the
people," Mr.. Hedges went on. 81 do
not believe New York is going to lose
itself will be glad to 60 with it if it
does-aor do believe there is a
'moneybund wandering around the
streets: II ! ever get my hand on that
'noneybund' nobody will ever take it
from me"
Funds for Surface Lines
Questioned as to the service rem
dered by the surface lines, Mr.. Hedges
admitted it was not what it should be,
but said it was all that could be given
with the funds available. He admitted
that since transfers had been curtailed
many passengers paid as high as is
was paying $325, 900 q year for second
and third rides on the New York Rail-
ways system.
Reviewing the economies he had
effected in power, handling of receipts,
disposition of improbable realty leases
and franchises discontinued, Mr.. Hedges
said: eve are running practically
under bare poles now
Mr.. Hedges smiled when Mr.. Shearn
referred to the dreadful appearance
Of your cars, which look as if they
never had been cleaned or painted
since they came out Of the ark"
cit wouldn't do any good to paint
them If they fell apart" he said.
Mr. Wood, who preceded his chief,
gave the commission long, technical
outline of the operating condition of
the various surface lines in the sys-
tenn. He told how the need for econ
omy had forced the system to patch
rails by welding instead of replacing
them. This condition Mr.. Shearn de-
scribed as Giving from hand to mouth"
but Mr.. Wood declared that the ele-
ment of safety never had been i'm.
paired. Mr.. Wood admitted that the
New York Railways service had been
inadequate for the last two or three
years, particularly in the densely pop
ulated districts.
Buses Not Fit Service
A blow at Mayor Hylan's proposal
for the installation of a large bus sys-
tenn was dealt by Mr.. Wood. He said
that from his twenty years experience
he did not believe busses suitable for
long and heavy hauls, although they
might be helpful as feeders" In this
connection Mr.. Wood pointed out that
busses in London caused six times as
many deaths and accidents as tram
cars.
While Mr.. Lindars was on the stand
several charts showing the rise and
fall of Interborough stocks were offered
in evidence by Mr.. Shearn, who con-
the revelations of Monday. Mr.. Lin
dars traced the range of Interborough
Metropolitan preferred stock from the
time of the organization of the COM
pany in 1906 until the merger with the
lnterborough Conolidated in 1915.
= Starting on the market in April, 1906,
at 81, it was shown that the stool;
dropped to 10 in 1907 and climbed to IS
in 1915. Mr.. Shearn called the attention
of the commission to the fact that the
rise in 1915 was "coincident with the
ON Intcrborough Consolidated stock"
With the formation of the INTERIOR
ough Consolidated, it's preferred stock
started at Y in June, 1915. The high
est point-S2-was reached in Novem-
hcr, 1915. From that time, Mr.. Lin
dars testified, although there were a
number of sharp rises, the general
trend was downward, until the end of
October, 1921, when it reached the
low level of 6. Interborough Metro
politan common stock, it was shown,
started at so in 1905. had similar fuc-
tuations and settled to 2.
Following the course Of the Inter
borough Metropolitan Az per cent
collateral trust bonds, Mr.. Lindars
testified that they started at 90 in
May, 1906, touched 80 in March, 1915.
and declined to Ia in 1920.
THE commission will notice." said
Mr.. Shearn, chat every dollar paid
out of the Interborough Consolidated
Corporation depleted the assets which
constituted the securities for these
Ss7,000,000 Of A per cent bonds"