New-York tribune., 1922-03-24
Transit Board Holds That
Simpson-.Ecsse Law Is
in Force, G'recluding
Aciion Upon Appeal
Governor AssaiIs
Traction Tactics
Mayor Would Take Over
ihc Subway; O'Brien in
Clash With McAne,v

The Transit Commission rejected
,ad dismissed yesterday ,he Inter
borough Rapid rransit Company's an.
p)ication for permission to charge an
eighteen fare.
Governor Miller. who declined to &C
tede to the request Of the lnterborouch
to Kill the amendments to the transit
bill, followed ZIP his approval of thc
measure by writing James l.. Quacken-
bush, counsel to the lnterborouch. a
sharp letter, declaring that & public
service corporation cannot continue to
enjoy its franchise and fail to furnish
reasonable service. The Governor also
said that public service corporation
bas no guaranty Of immunity for fail
ure 20 discharge its franchise obliga-
tons or the ground Of an insuficiency
Of the fare for which ii has agreed to
discharge such obligations
Mayor Hylen wrote to Corporation
Counsel 0'Brien last night directing
him to take the necessary steps i'm
mediately to take over the INTERIOR
ough subways because of the com
psny's default on its contract with the
city The Mayor also wrote District
Attorney Banton asking him 10 deter.
mine whether the fnterborough's fail
ure to give proper service is not mat
ter for submission to the grand jury
Hedley Coins New Phrase
Frank Hedley, president of the In
terborough, exploited new phrase
when he spoke OF preferential
he u
son OF another 90 not get seats in
the subways during rush hours. Mr..
Hedley says there are plenty of such,
who by getting on forward or rear
tars could obtain seats.
Mr.. Hedley revealed the financial
thin ice on which his big company is
skating, when he testified that the
cash on hand yesterday was $3,580,0o
hat the indicated cash on hand for
April / saturday Of next week. is
$al05 600, with tetal obligations, some
0f them of very peremptory and
Pressing nature, on that date of $9,-
066000.
Mr. Hedley, who was on the stand
nearly all day, said that his company
could not improve the service because
of lack of money.
He blamed the city for its failure
70 live up to its contract with the In
terborough; charged that the company
had 6een obliged to spend more than
100000 Of its own for work that the
city was obligated to do, and blamed
the Board Of Estimate for the five
years delay in building the extension
Of the greensboro tunnel from Grand
Central Station to Eighth Avenue. Mr..
Hedlcy said that the Court of Appeals
had just affirmed q judgment COM
10 ri&r IL
ough $2,260,000 on old contract No. /.
Mr.. Hedley and Mr.. Quackenbush,
counsel to the Interborough, said that
i the lnterborough was permitted to
90 on as usual it would be able by
1925 TO square up all its debts and pay
the city $6.000,000 on accrued preferen-
tlals, besides more than 100000 in
arrears of taxes.
AS soon as the hearing on the Inter
oorough's service, or lack of it, during
rasn hours got under way yesterday
chairman McAneny announced that
Governor Miller had signed the transit
amendments and that the INTERIOR
oughs request for an increased fare
vas rejected.
Unconstitutional, Says Attorney
Mr. Quackenbush gave it as his opin-
ion that the new Simpson-Jesse transit
'aw is unconstitutional.
FORMER Judge Clarence J. Shearn,
vounse. TO the commission, said that if
TIE Governor had not taken the prompt
action he did the commission would
nave been flooded with number of
similar petitions for an increased fare.
Il should advise the commission"
said Judge Shearn, "that it is with
out jurisdiction to entertain the appli-
cation Of the Interborough for an in
crease Of fare and should reject and
dismiss its petition. The law does not
take into account fractions of days, and
It vas the law of the State of New
York yesterday that such 8 petition
could rot be entertained or granted by
this commissions"
Fred ". Lindars, accountant for the
commission, testified that if the charge
OF $35O,000 a month, representing 7
per cent on the Manhattan stock under
Continued on PAGE slnteenl