The New York herald., 1922-02-19
CHANGE IN TRANSIT
LAW SOUGHT BY CITY
De Ford Objects to Manner in
in Which Property Is to Be
Tsten Over.
APPEALS TO GOVERNOR
Says the Commission Now Is
Delivered Into Hands
Of the Roads,
APPEALS TO GOVERNOR

William A. De Ford, special assist
ant corporation counsel on transit mat
ters. in a letter to Gov. Miller yester-
day practically asked him to secure an
amendment to that section of the
transit law providing the way in which
the city may take over the property of
the transit lines He was careful not
to make the request in so many words,
because the city has not yet formally
conceded the constitutionality of the law,
although the Court of Appeals has up
held 1t.
Mr.. De Ford requested to be heard
before the Governor in support OF his
opinions. which were expressed some
time ago in a letter to Corporation
Counsel John p. O'Brien.
II think I can convince you, sir, If
given the opportunity to do So" wrote
Mr.. De Ford that the effect of the
transit law, as it stands is to deliver
the commission, as negotiators for the
city, into the hands of the owners of
the roads; that the effect of Section 40
OF the law is to defeat the beneficial
purposes of the transit law as you de-
scribed them in your several messages
and public statements urging its pas
sage.
Il know you have the power Gas a
matter Of fact rather than as matter
OF law to procure the amendment Of the
iransft Act by the amendment Of the Sec
ton 40 in conformity with the sugges-
lions contained In my letter to the Cor
poration Counsel I assume that you
will procure that amendment (by the
force of your influence as Governor and
as leader of the majority party in the
Legislature). IL you are convinced of
its propriety; that 1t to say, II you are
convinced of the soundness of my con-
struction of the act and of my opinion
IS to its effect upon the status and
strength OF the commission in negotiat-
ing for the purchase of any or all of
the existing street railroads within the
city"
Assuming that the Transit Commits
sion will go right along ironing out the
transit problem, regardless Of what the
city may do, Mr.. De Ford expressed the
opinion that Section 40 will seriously
cripple the commission in its negotia-
tions with the owners of the street rail-
roads of the city for their purchase" He
continued:
THE effect of the Transit law. stated
In ultimate terms, is to authorize the
commission to negotiate with the owners
or the roads proposed to be acquired in
language running like this:
We know that none of you need ac-
cept the readjustment plan we propose
orless all of its terms are acceptable to
you; that you need not sell your roads to
us IL you do not like the prices we offer
We notify you now. however, that If
Sou do not accept the plan we propose,
If you do not accept the purchase price
we offer, we are under statutory obliga-
tion to grant you permission to charge
compensatory rate Of fare, even though
1t be higher than the rate to which you
are limited by the terms OF your fran
chises or contracts with the city; and
thus, In any event, increase the earning !
capacity and restore the value of yoar
properties"
He would welcome, Mr.. De Ford said,
having the Transit Commission, "wheth-
er in person or by counsel" heard at
the hearing 'in support of or in oppo-
sition to my views"
In conclusion Mr.. De Ford told the
Governor the city's survey Of the Tran
sit Commissions plan had been begun
before the Court of Appeals decision
and "is being continued without preju-
dice to the city's contention that the
statute under which the Transit Com
mission is working is unconstitutional"
Hearings by the Transit Commission
will be resumed tomorrow at / 80
O'Clock. with the report of the bureau
of valuation of that body. This Neport
in testimony form contains valuations
of street railway properties in this city
made since the commission was organ
lied.
One Of the first acts of the commits
sion was to appoint the bureau of valu-
alton. John II. Madden is chairman and
Frederick w. Lindars. chief accountant
to the committee, is another member.