The New York herald., 1922-06-06
SHEARN RIDDLES u
VALUATION OF I.R.T.
Uses Its Own 1909 Figure
of S54,980,674 to Rcfute
S1O7,OOO,OOO Claim.
CONTRACT CUT S63,268
Transit Board Says Temporary
Car Shop Ate Up Any
Saving to City.
CONTRACT CUT sea,2es

| The Manhattan Railways reproduc-
ton valuation, s1o7,000,o00, which 1t
has set as its asking price for it's ele-
waited railway properties. shrank like
suit of outing flannel when Judge Clar-
ence ]. Shearn. chief counsel for the
Transit Commission, gave it cold bath
yesterday.
As estimated by the valuations bu-
reau OF the Transit Commission, the
original cost of the Manhattan lines was
$55.417.949. Judge Shearn showed that
in 1903 the Interborough Rapid Transit
Company, to which the Manhattan Is
leased for period OF 500 years. placed
upon It's elevated lines and other prop
critics an appraisal of s54,9S0.674 on a
basis of original cost. Figuring in SUBJ
sequent capital expenditures aggregat-
ing $4,303,o00 by the Manhattan. the
commissions counsel argued that, ac-
cordfpg to the Interboroughs appraisal,
the original cost could not be in excess
of $59,2S4,420.
George Wildwood Murray, counsel for
the Manhattan company, repudiated the
figures sponsored by the Interborough
and held that. in any event, they could
not be binding upon the Manhattan to-
day. The 1909 appraisal by the !. r. T.
and James L. Quackenbush its counsel,
was made in the course of franchise
tax case. The brief In which they were
presented was prepared by Richard Reid
Rodgers and Mr.. Quackenbush.
Not n Buying Expert.
George w. Burpee occupied the wit
ness chair all day. He was called as
witness for the Manhattan company,
being a representative of the firm of en-
gineering experts who had prepared the
s107,o00,000 appraisal One of his
firms specialties is the appraisal of cor
porate properties in behalf OF interested
bankers or other prospective investors.
Would you recommend to any firm
OF bankers paying the sum of $107, ,000.-
900 for the tangible property of the
Manhattan Railway Company" asked
the examiner
i cannot answer that question:" re-
piled the young engineer because
have not examined the property with
that exact point Of view Our appraisal
was primarily an estimate of the cost
to reproduce. If we were representing
financiers with view to purchase of
the property we should necessarily in
vestigate the past. present and future.
earning prospects of the property"
Mr.. Murray contended that whatever
financial troubles the Manhattan had
encountered had been thrust upon 1t by
the Interborough. Without the exten-
sions and the third tracking. which the
j. r. T. imposed, the Manhattan could
be running still without a deficit, he
declared. and promised to produce rec
ords later to prove the assertion.
Another Delayed Contract.
Bids were received by the Transit
Commission yesterday for construction
OF second addition to shops at the
I.enox avenue yard and barns OF the
1nterborough Rapid Transit Company at
147th and 14Sth streets. A contract for
the same work was sent to the Board
of Estimate more than a year ago and
rejected. The board declined to approve
again last month when the bidder, Mat
thew F. Kelly. Inc. appealed.
The lowest bidder yesterday was
Jacob Schleisinger. whose proffer was
$313.154.50. as against Kelly's bid OF
$376,42 made in February. 1921.
kelly's tender yesterday was $335,634.-
IL.
The difference between the Kelly bid
OF last year and the Schesinger bid of
yesterday, $63.26s.20. members of the
Transit Commission say, will not repre-
sent any material saving to the city.
Because of the fact that the permanent
addition to the shops has not been con-
stfucted, the commission has had to re-
ceive bids for a temporary shop, shed
and other work at 147th street. the cost
aggregating $50,610. Extra work may
add $4,000 to this sum- not to mention
the cost of readvertising. printing and
other items of Office overhead.