New-York tribune., 1922-04-27
Estimate Members Back
Mayor; Direct Transit
Commission TO Serve
Ultimatum on Company
McAnenv Foresees
Quick Receivership
Hvlan Saws He Will Show
Them How TO Run Lines
Valuation Fight Starts

Ire Board Of Estimate A. spec,al
,seting yesterday adopted the resoIu-
ron offered by Mayor Hylan on March
& -equestng the Transit Commission
Il, give notice to the Interborouch
Rapid Transit Company that unless the
urce on rs subway lines Is improved
si.hin ninety days the city will bring
5stault proceedings with view - tax
ng over and operating the subvays
!uigrated In Contract Ne. 8. The
,osrd held meeting OF che committee
tn. whole and discussed the Mayors
,.solution for sn hour before taking
,:tion.
George McAneny, chairman OF the
1arst Commission, commenting OF
lie sction OF tho board, recalled that
lie city authorities were we'll aware
u the fact that the commission had
repaired and WAS about ready to issue
L. service order to the Peterborough
ealing upon that company to improve
u service and give the utmost that the
money At its command will permit
NJ, McAneny, while saying that the
commission would give consideration
70 any communication from the Board
Of Es.iInste, declared that it would
not be a partner to any unnecessary
sud destructive enterprise" He also
ssid that any such action. II seriously
contemp plated by the municipal author
ties, would result in throwing the In
ieIboroVgh into receivers hands, a
thing that everybody concerned wss
trying to avoid. and also would open
the door for interminable litigation.
Charge Contract Disregarded
The Hylan resolution alleges that
The Peterborough ss lessee under Con-
,ract No. 8, has disregarded agreements
by failing to furnish adequate service
and equipment, and in operation Of the
road. The resolution also provides that,
Cpon the neglect or refusal Of tl!e
transit Commission TO comply with the
Iequest of the Board Of Estimate, the
Cprporation Counsel shall be instruct
u 10 brlrg the proper action or pre-
ereGng in the courts to accomplish its
rurposc. Copies Of the resolution also
are to be served on the Interborough
company.
Move Of the members of The Board
81 Estimate appeared to entertain any
frous belief that the Transit Com
mission would act as requested, a.
though some OF them declared that Il
vas obligatory upon the commission TO
carry out tho wishes Of the Board Of
Estimate. The question was asked II
the Board of Estimate felt 1t obligatory
20 instruct the Transit Connu1i ion TO
notify the Interborough Of It's alleged
default
"The Transit Commission IS supposed
70 do this on it's own initiative," said
ComptroleF Craig. "Of course, that
would never happen, and ne will have
70 put it up 10 them. The contract pro-
7!des that the commission shall act as
The clty's agent"
Asked what would happen IL th.
commission did not follow the direc-
tons Of the board. the Comptroller re-
Piled that the city would have to ap-
ply to the courts to have the company
declared in default. He said, however,
IN his opinion, 1t wss obligatory on the
Part Of the commission to carry out
Ms Board Of Estimates wishes.
Hubert Sees Receivership
Murray Hubert, President Of the
Beard Of Alderman, ventured the sug~
s.stion that about the time the Tran
ut Commission was authorized to give
notice the Tnterborough would 20 into
,eeeivership. "and then you would have
70 give the receiver notice. Mr.. Hull
cert wanted to know why the recap
ture clause" had been inserted In Con
tract No. 8. which was made in March.
1918, when Mr.. McAneny represented
the cit on the BOARD Of Estimate and
was party TO the contract, If it was
not intended to be exercised BY the
CITY In case OF default. The recapture
cause in the contract would not oper-
Me until 1929, unless default is shown
N the mean time.
=, Comptroller Craig said that while all
ttae marlborough subway lines could
oe recaptured under Contract No. 8.
!1e city probably would base ita &C
.on on the East Side line. the Lexing.
ION Avenue route. He estimated that
y would cost the city s105, 100000 to
axe over this line and he anticipated
10 trouble in getting the money.
:, we had one of the lines" said
ASyof Hylan, I'VE could give the peo-
PIE al object lesson as to how the city
ttan the subway and how the Inter
'Ofough ran it. Then the people
(condnuod on page siD