New-York tribune., 1921-02-15
City Is Facing q
$2O,OOO,OOO
Suit by B. L.
Garrison Tells F g d "a l
Judge Damages VIII Be
Asked for Delay i'm APP
proving Transit Contract
Wants Is Lines Closed
Craig Announces Fight on
Constitutionality of the
Governors Traction Plan

Lindley NJ. Garrison, receiver for the
B. F. T., informed Judge julius M.
Mayer Of the United States District
Court yesterday that he was having a
complaint in q s2o,0oo,o00 action
against the city prepared on behalf OF
the company for submission to the
court The s2o,ooo,OOo, he said, was
the cost of the city's delay in approx
ing rapid transit contract No. 4.
He sought the courts permission
also to discontinue service on fifteen
surface lines or to have fare zones
established on thirteen of them.
Notice that the city Intends to AZ.
tack the constitutionality OF Governor
Milier's traction plans, whicf, are TO be
incorporated in bills to be introduced
in the Legislature this week, was given
by Comptroller Charles l.. Craig at a
Tammany meeting held yesterday in
the chamber of the Board Of Aldermen.
AS an Offset TO the Governors pro-
posals, Mr.. Craig announced that he
was preparing bill also TO be intro
duced this week. which would six def
nitely the right of municipalities to
control public service corporations
which derive their franchises from the
cities"
Mr. Garrison informed Judge Mayer
ne would ask the court for instructions
concerning the $20,0000o0 suit against
the city. He charged that in some
n "a rpvly 81 ia l.. 4
contract the delay had extended over
eight years. The amount which the
receiver contemplated suing for. he
said, represented losses sustained by
the company due to the delay.
Contract No includes the Four.
teenth Street-Eastern Nassau Street
line, the Fifty-ninth Street Plaza Man
haitian line, Montague Street tunnel
and the Culver line. The original esti-
mate for the work, it was said, was
SEC, 100000. Now the B. R. I. receiver
asserts the work when completed will
cost $80,000,000. The suit, if permitted
by the court, is contemplated for the
difference of $20,oo0,0o0.
Three petitions dealing with B. r. T.
questions were argued before Judge
Mayer. They were applications for dis
continuance Of fifteen lines, or for fare
zones on thirteen OF the lines, for dis
continuance of the Bushwick Avenue.
Grand Street, Nostrand Avenue and
Tompkins Avenue lines over the Will
liamsburg Bridge, and for modification
of the court order discontinuing the
Church Rogers and Ocean Avenue lines.
Suggests Two-Fare Line
The financial distress OF the Wilson
Avenue line. discontinuance of which
was asked, was explained by Mr.. CARR
son. He said that in November last
the net earnings of this line were
S35 900 and operating expenses SAC, 600,
with a net loss of $l1 900. He sug-
gested a division of the line with two
fares as a remedy. The same remedy
was urged for the Ralph -Rockaway
line, which was said TO be operating st
loss of $1,000 month. Cutting OF
of the twelve-mile Ocean Avenue line
and operation OF cars only from Bergen
Street south was recommended.
Mr.. Garrison reviewed the financial
condition of the fifteen lines Of the
Nassau Electric Railroad system, after
which Judge Mayer said it was evident
that measures must be taken to pre-
serve the service, either modifying the
service or by increasing fares.
| The court adjourned discussion OF
the questions involved until February
| 28. Mr. Garrison in the mean, time was
Continued next paas)