The New York herald., 1922-07-08
POWER HOUSE COSTS
$5,SOO,O00 TOO HIGH
Shearn Applies Shrinkage
Test to N. Y. Railways Ex-
pert Appraisals.

When the Transit Commission re-
sumed its valuation hearing yesterday
in the case Of the New York Railways
Company Clarence j. Shearn, chief
counsel for the commission, continued
to apply his shrinkage process to the
$14S,000,000 appraisal figure placed
upon the properties by the experts of
Stone & Webster. in behalf Of the
company, on basis of reproduction
cost.
In the schedule of company expenses
during the period Of theoretic recon-
struction-Herman Joseph Strobel, one
OF the Stone & Webster engineers. had
included charge of s1,6Os, 900 for taxes
to be levied during the construction
period.
L think the commission will take
note." commented Judge Shearn, that
no taxes are levied on work under
construction in the city of New York"
When tho appraisal of $4,000. 900
placed upon the Ninety-sixth street
power plant was under consideration
the cross-examiner asked DR.. Charles
w. Kellogg, another Stone & Web
ster expert. II he would advise anv
client who wanted a power plant for
the purpose of producing electric
power to pay anything like $12,3o0, 900
for that particular plant. The witness
admitted that he would not.
1t was asserted that the plant is obso-
lescent IN type and equipment, whereas
the Interborough's Seventy fourth street
power plant, which cost only $1,000, 600,
Is the most modern, up to date and
efficient power plant in the city.
| The company appraisers also had
charged In large item for interest to
be paid to stockholders.
! III l am right In my assumption -
Shearn asked, your estimate on in
terest would be about $2,25O,000 too
high?"
| If you are right In your assump-
ton. yes." the witness admitted.
The hearing will be resumed mex,
Monday morning.
Bids will be received July Is fol
changes In the Greensboro Plaza sta.
ton to permit the operation of b. r. T.
shuttle trains over the Corona and AS.
tofia extensions, as well as other work.
Corporation Counsel John p. O'Brier
issued statement yesterday concern.
Ing the power house breakdown a fort.
night ago. which caused an interrup.
ton OF service. 1T is now two weeks
| and half.' he said, "since a serious
breakdown occurred in the operation O,
the Interborough elevated and subway
| system, but the Transit Commission
has conducted no public hearings MOI
made any move to treat that unusual
and critical situation with any degree
of seriousness.
I'm behalf of the Mayor I demand
that 1t hold public Investigation. SC
| that the public may understand Just
what are the shortcomings of the power
plant management Of the Interborougl,
Company and what should be done tc
furnish an immediate remedy.
incidentally, all this talk about Door
quality Of the Interborough's coal
sounds strange when We recall the
testimony of Mr.. Hedey given recently
In defense of the purchase by the Inter.
borough of coal from It's director, Z. j.
Berwind.
THE breakdown and interruption oi
service has presented a serious ques.
tion which should not be smeared over
by perfunctory. sophomore report OF
the Transit Commissions engineer. The
public will expect Chairman McAneny
to conduct In this matter a serious pub
lie investigation, where Mr.. Hedley and
his engineers may be searchingly cross
examined"