New-York tribune., 1922-03-21
New Law Kills
Transit Plan.
|. II. L. Insists
Continued from page ono)

NN'ai" si'.s NicN NNcuio nc pfcScNtc1 to
The Governor az once ! believe tbat
i he approves thc hll in its present
form you will have doubt cast upon
your present securities and much iiti-
cation forced upon you by an antsgo-
nistic city administration
Mr.. McAneny said that tic commits
sion did not share the counsel's fears.
"As we view it, the act in question
merely restores the situation existing.
before the legislation OF last wear"
said the chairman. "The commission
then had no authority TO change the
cortractual rate TIE act row bcfoac
the Governor puts It again in that no
siticn, changing what was done a wear
age aud Ill sense possibly correct
ing it,
be the rock on which your whole plan
VIII be smashed. and YOU cor verv well
call the Governors attention to IT,
said Mr. Quackenbush.
The commission received let
ter OF protest FROM Paul y. Crayath.
counsel -fos Kuhn. loeb & Co.. and Kt-
der, Peabody g. Co, as committee fer
noteno4deYs and bondholders Of the
Rrooklyr Rspid Transit Companv rep.
resen.,ne securities o. 100000. .a6o.
Ohio letters were from Frank Hcd-
leg, snd from Alfred SKI. dent
a. the Msnhattan Railway Company.
Ina burden of the letters from these
r1en and other companies was substan-
tlally The same. All said that the
commissions tentative valuations we're
100 Low. based upon unsound principles
and methods. that the proposal was
rc,, Ecf yHV ~
process % law
The, board OF direcsol's Of the Brook
!yn City Rsilrcad,doclineti to submit 10
the Shareholders. vf the conpary the
proposal OF the r~ansit Comnissf ton
for the, solution OF the citv's transpor-
tation problems
Chairman McAneny ordered that Sill
tf tho letters be read into the record.
',hey included protests from HALEY
Fiske, chairman Of the committee Of
holders OF first mortgage gold bonds Of
the Brooklyn, Queens County and
Suburban Railroad. Coney Island aud
Brooklyn Railroad Company, Brooklyn
City and Newtown. Job +. Hedges. re-
ceiver OF the New York Railways Com
nan: Christopher and Tenth Street
Railway, NJ. T. Murphy, chairman Of
no lnterborough Metropolitan bond
l'onders' committee; New York &
Harlem Railroad the Eighth and Ninth
Avenue lines. the Lexington Avenue
and Psvonia Ferry Railroad, Broadway
and Seventh Avenue South Ferry, the
Third Avenue Railroad Company, the
Second Avenue Railroad and the Rich
mond Light and Railroad Company.
Shearn Rebules Directors
The tenor OF the letters apparently
>, I. i
aIr. McAneny:
at Is very peculiar that they take
such position, when YOU consider that
the Brooklyn Rapid Transit Com
pany has spent over 100000 in having
careful appraisal made of nll Of It's
properties by 3. ]. Arnold II add
ton there has been an appraisal made
oy Stone & Webster. for which enor-
NOUS sums were paid by the receiver
Now, il it ia true that The appraisal
Of your experts is so low as to be ab-
surd and is founded upon wrong prin-
ciples, Why is it that they do not even
suggest that they are willing 10 lay
before you for comparison these ap-
hundreds of thousands Of dollars :?
They do not even say that they are
willing to stand on their own ap-
rraisa!s. Why? Because they are not
Because their own appraisals would not
provide 100 cents on the dollar for
every kind Of cat and dog security that
has been issued in this system"
Cravath Makes Disclaimer
Paul D. Cravath said his clients had
from the beginning sympathized with
the aims of the commi sion, and there
was nothing in any communications to
the commission for which he was re-
sponsible that indicated the B. r. T.
interests would ask TO be let alone.
"We have no hope Of being let alone"
said Mr.. Cravath, 'and we don't dispute
the right of the commission to insist
upon reasonable service. Tho commit-
posal Of the commission the reports Of
Byron. Arnold and Stone & Webster
and all other reports and data. They
can have them now"
The valuations hearings we're ad-
journed, on the request OF Mr. Quack
enbush, until Wednesday Of next week.
The Interborough service hearing is
scheduled for tomorrow.
Extension To Be Hasteencd
The committee Of the whole of the
Board Of Estimate will report to the
full board a resolution conserting to
contract to be entered into between
the Transit Commission and the Pow
ers-Kennedy Company for the con
struction OF the extension of the
Queensboro subway, from Vanderbilt
to Eighth Avenue. it was decided at
meeting yesterday. 1t is estimated
that the extension will cost 100000
The work is TO begin as soon as the
Board of Estimate confirms, the con-
tract, and will take three years to com
plete. The extension will be from
Grand Central Terminal, under Bryant
Park to Forty-frst Street, crossing
Broadway and Seventh Avenue, to
Eighth Avenue. There will be stations
at Fifth, Seventh and Eighth avenues
Dock Commissioner John II. De
laney, who had the plans prepared
when Commissioner Of Transit Con-
struction. appeared in favor OF the
confirmation Of the contract. The
Mayor was the only member OF the
committee voting against confirmation
Transit Commission Plea