The New York herald., 1922-01-25
CITY'S TRANSIT LOSS
RUNS INTO MILLIONS
InterbOrough and b. II. r.
Damages Pile Up Fast Under
Hylan Regime Delay.
SETTLEMENT DATE SOON
Board of Estimate in Holding
Up Contracts Creates Bad
Complications.

The Board of Estimate, in holding up
arbitrarily contracts essential to the
fulfllment OF the old dual subway
agreements, it was declared yesterday
by competent legal authority. is pilinS
up against the city millions of dollars
liabilities which will have to be met
and settled later as a municipal charge.
Every days delay in the completion
OF such important contracts as those
wit hthe marlborough for the Forty
second street-Queens extension ann
with the b. r. T. for the Fourteenth
street. Brooklyn. Eastern District line
is not only delaying relief from growing
traffic congestion; 1t also is adding
enormously month by month to the Off
set in the form Of damages due TO lost
revenues witch the operating companies
will set up as a counter claim against
the city in at last part liquidation OF
the nine or ten millions of dollars which
the railway companies now owe the city
in unpaid and overdue taxes, street paw
ing charges and other obligations.
The transit law of 1921 provides that
before the Transit Commission can con-
summate any plan for the unification
and rehabilitation of the city's rail
facilities each of the systems to be abb
sorbed into the combination must iiqui-
date It's outstanding obligations. The
commission now is rapidly approaching
the time When 1t expects TO make known
the valuations which it's expert assess
ors have placed tentatively upon the
various properties to be included in the
unified system. The statutory plan for
reorganization, 1t is expected. VIII take
definite form probably early in the
spring.
When that times comes the subway,
elevated and surface lines will be con-
fronted with the necessity OF making
some kind of a settlement with the
city in LIQUIDATION of the aggregate Of
about $l0,o000o0 representing their ar
rears of taxes and other charges.
Against that liability the operating COM
pa MES then will set up the counter claim
that the city's delay in completing work
to which il was committed by contract
;ial ct legations Line wears ago has with
held from their Golfers millions of dol
lars which they otherwise would have
collected in operating revenue.
When the Board of Estimate on Non
day postponed action on transit appro-
priations 1t referred to committee con-
sisting of the Comptroller, the Corpora
ton Counsel and Mr.. Tuttle. chief en-
Rlneer 10 lnc DOGIu, QucSl4OH HHOtiiti
the recent court decisions made it
obligatory upon the hoard to honor the
commissions contract acquisitions when
made
1--WE will give the board our own
opinion taht tbey did not" said George
McAneny, chairman OF the Transit Com
mission, yesterday. "and will make no
charge for the advice. That responsi-
biiity is squarely UP to the Board of
Estimate"
Mr.. McAneny added that the Transit
Commission did not contemplate taking
any legal steps 10 prod the board toward
the discharge of its duty From other
sources of information 1t
was learned that neither the INTERIOR
ough nor the =. r. 7. contemplateS
court action either for damages or to
compel the city to comply with its con-
tract obligations. IL Is no less certain,
however, that both these operating cor
when the hour OF settlement
with the city has arrived. will not fail
TO set UP counter claims as stated, that
these claims will aggregate many
millions of dollars and that sum IL
being swelled by each added month OF
delay.