New-York tribune., 1921-01-31
r. T. Charged
With Padding
Operating Cost
I)elsney Says Propaganda
for Higher Fares Has Been
Included in Regular Ex-
penses; City's Profit Cut
objects to $423, 900 Bill
Commissioners Says Ivy Lee
Cot 81, ,OOOMontllly assAd-
wiser of Public Relations

charges that the Interborough Rapid
transit Company in the last two years
Il been including the cost of propa-
|. .snda for higher fares among its op-
srssing expenses were made yesterday
& kxs1ohn H. Delaney, Transit Construc-
M Commissioner. Mr.. Delaney an
4 ,s,,ueed he had served notice on the
,au6any that he objects to expendi-
hres aggregating s42s,0oo. which, he
avs. being charged to operating ex-
,.n,es, have tended to minimize the
sompany's profits, in which the city is
concerned.
OF the amount, the commissioner as
..rfs. s1S1, ,047.5S has been spent by the
marlborough sin connection with its
wopaganda for increased fares" The
srnense was declared to have been "in-
.;dental to the publication of The Sub
~sv Sun, The Elevated Express and
cther higher fare propaganda"
aOne item of this expense is q pay
( ,cent of 81 900 monthly to Ivy Lee, 'ad-
v;ser of public relations, who super
.;,es the preparation of literature for
rronacanda purposes" SAYS Mr.. De-
isnev. "The contracts with the city
r,ov;de for five-cent fare, and the ex-
nense Of any propaganda or expendi-
tnra looking to change in the terms
os the contract should not be charged
AGAINST the accounts in which the city
hes an interest. but should be betrayed
ss,t.of the corporate funds of the Inter
Borough"
where Rest of Money Went
The rest of the money, Mr.. Delaney
asserts, was used "in connection with
examinations made at the instance of
hnlders of Interborough- metropolitan
and other securities involved in the
svstem." These payments, he declares.
we're to various accountants and law
dyms and the receiver of the New York
Railways Company.
Mr.. Delaney's objections were con-
tained in statement Issued by him.
The statement continues:
"The vouchers rendered indicate that
the payments were made, among other
things, for thorough consideration of
the Brooklyn strike and of the success
ful unionizing of the Brooklyn roads
BY the Amalgamated, with the assist
ance Of Hearst and Hylan;' also for
Examining charge made by Mayor Hy-
Ian to the District Attorney of conspir-
acy between the Interborough Company
and it's brotherhood TO bring on q
strike; also examining various sec.
tions of the penal code referred to in
his communications to the District At
torney with respect to the coercion OF
public officers;' for the purpose of pro
curing an amendment to the public
service commissions law extending the
jurisdiction of the Public Service Com.
mission over the rates, fares and
charges filed by agreement with the
local authorities;' and for examina-
tons made for the Interborough- Met.
ropolitan Az per cent collateral trust
bondholders' protective committee and
for similar purposes ~-~x -..A~ .,.
"These expenditures were not incurred
for the operation of the subway OF
Manhattan elevated line, and in sew
eral instances we're not initiated By
the lnterborough, but by committee
representing stocks or bonds. Under
the terms of the contract between the
city and the Interborough only such
expenditures as are necessary for the
operation of the system can be charged
TO operating or construction accounts
Democrats to Discuss Charges
Democratic members Of the Legisla-
ture, who have called a mass meeting
to be held in the chamber of the
Board of Aldermen at noon to-day to
organize their opposition to Governor
hliller's proposals for solving the city,
traction problems, it was learned yes
terday, expect to discuss Mr.. Delaney's
charges in its bearing on the question
cf increased fares.
Senator James ]. Walker and AS
semblymen Charles B. Donohue, lead
ers of the Democratic minority, who
arranged the meeting last week after
Tammany Hall had adopted resolutions
eondemning the Governors plans, said
yesterday the discussion would be open
to the public.
"The issue is not merely whether
Nv Workers are to be taxed with
higher fares, as the Governor pro-
poses, but also whether a commission
sitting in Albany is going to have
autecratic power to determine how
much we shall pay for gas and cleo
tricity," said Senator Walker. "We do
not know in advance what program of
action will develop at the meeting, but
we are certain that public interest is
stirred up against higher fares and
We will have q rousing meeting"
Meetings to discuss the Governors
proposals, as outlined by him in a
message to the Legislature last Mon
day, will be held almost every night
this week.
Travis H. Whitney, formerly Public
Service Commissioner, will give his
Views before the 7th Assembly District
Republican Club. at Broadway and
Eightieth Street, tonight.
Open Drive on Governor
The government board of the city
Parliament of the Community Councils
announced it would begin campaign
against the Governors proposal to "de-
prive the city of home rule" with a
meeting tomorrow night in the cham
Der Of the Board Of Aldermen. r. H