New-York tribune., 1921-03-28
City Will Tie
Up Cash if Car
Fare Is Raised
La Cuardia Says That Esti-
mate Board Will Refuse
Appropriations if Con-
tracts Are Modifie d
Sees Hopeless Deadlock
Funds for New Subways
Will Be Refused if the
Miller Commission Acts

If the new transit commission to be
appointed under the provisions Of the
Knight-Adler bill attempts to modify
contracts between the city and the trac-
tion companies the Board of Estimate
will refuse to expend money for sub
way extensions provided for in the con-
tracts and will refuse to appropriate
funds for new extensions ordered by
the commission, F. II. La Guardia, pres
ident Of the Board Of Aldermen, de-
clared yesterday.
Mr.. La Guardia said he wished to
serve notice that there will be "a hope
less deadlock from the very start" over
the use Of the city's money for trans
portatlon purposes IL the committee
seeks to increase fares.
Appropriations Affected
Explaining what appropriations al
ready determined upon may be tied up,
Mr.. La Guardia said: "For the 1921
program we now have before the Board
OF Estimate acquisitions from the
Rapid Transit Construction Commits
sion amounting to $26,931 1859, ap-
portioned as follows: Under Contracts
! and Gold subway lines), $1,000 900;
Contract 8, $11,223,500; Contract a,
$14 ,103,50o. The investigation division
Of the Board Of Estimate In its report
to the board recommends the author
ization Of corporate stock in the
amount Of about $23,500,OOO
while It is true that the city is
obliged to appropriate this money
under Contracts 3 and 4, shall take
the position and rye that, if there is
any modification of existing contracts
as to fares, that will by itself relieve
the city of its duty to carry out its part
OF the contract. Assuming, then, that
the Transit Commission will endeavor
to compel the Board of Estimate under
Its sweeping powers to appropriate this
money, Section 100 of the law specifi-
cally provides that the commission has
no such powers.
The Issuance Of city bonds and long
term Indebtedness is vested in the citv
government and entirely in the con-
troll of the local authorities under the
constitution of the state. Therefore.
with all the great constitutional ability
marshaled for the framing of this
law the constitutional requirements
relative to the city's bonded indebted
ness could not and cannot be over
come. Ii this commission in the
slightest way modifies the contract
how can it possibly find funds to carry
on the extensions of existing contracts
or the construction of new lines?
"The traction companies are quite
willing to take in the increased fares,
but up to date and judging from past
performances, they show no inclina-
tion to spend one cent in thS construc-
ton Of subways.
Hopeless Deadlock Seen
"The subways have been and shall
be constructed with the city's moneys,
but as long as I am member of the
Board of Estimate before sny addi-
tional city money goes into subway con-
struction | shall insist upon having
every legal safeguard and assurance
that the city's money will not be voted
away by the transit commission and
dissipated by traction companies. In
all likelihood there will be no appro-
priation for construction if control of
it's own property is taken away from
the city government.
"If the present city-baiting proclivi-
ties of the sponsors of this measure
are assumed by the transit commission
there will be hopless deadlock from
the very start. Unless all plans sug-
gested by the new commission are Ell
tirely satisfactory to the city govern
ment and as to existing contract, the
5-cent fare is not increased, l see no
way of obtaining city funds for further
extens ion +"