The New York herald., 1922-03-24
Continued from First Page.

the commission shall direct the COM
pany to cure the default within ninety
days. and if the default be not reme-
died within such time. the city shall
thereafter be at liberty to enter upon
and as the agent of lessee operate
the railroad and equipment at
the rate of fare and in the manner pro-
vided in the lease for the remainder of
the term
IT reminded Mr.. Hedley in my letter
that on his own admissions in proceed
ings before the State Transit Commits
sion. the Interborough Company was
not fulfilling the terms OF this contract
Since that date nothing has been done
by the Interborough Company except to
inadvertently furnish further proof that
the contract Is being wilfully violated
in the above particulars.
1.-THE company's admissions make the
violations of the contract on its part
solely a question OF law-not of fact
and enables the commission on behalf
of the city to act forthwith.
Asks for Quick Action.
This being the case. direct that you
Immediately in proper form and fashion
call upon the State Transit Commission
Qf that body is the legal successor of
<
mated in Contract No. to act as agent
of the city, to forthwith and without
even a days delay issue the orders and
take the preliminary steps to start the
time running against the Interborough
Company in order to complete the nine
ty day period Of default under Contract
No. 5.
"Such preliminary steps will ripen the
city's present inchoate right to enter
nd f1ra n Infer.
borough to operate the subway lines in
accordance with the terms of the con-
tract
..As matter OF law the city will be
free to do this without being obliged
to carry the burden of the Manhattan
T. collateral agreement sor lease be-
tween that company and the INTERIOR
ough which. at the expense of the city
and OF the travelling public generally,
is sapping the financial life blood OF the
Interborough Company.
'sSuch a procedure instituted by us
will protect every honest investor in
the Interborough Company, and at the
same time preserve the public rights to
a. cent fare under the contract"
Mayors Letter to Banton.
In his letter to District Attorney Ban
ton. the Mayor wrote:
'.rhe conditions in the subway DELHI
erately produced by the marlborough
Company constitute a menace to the
life, health and safety OF the travelling
nuisance
IT enclose herewith a copy of letter
which sent to Mr.. Frank Hedley
president OF the Interborough, on March
Q last on this point.
II should like you to determine
whether the whole subject should or
should not be submitted to the Grand
Jury.
''In sitting this matter 1t would be
we'll also to consider whether or not an
offense has been committed under Sec
ton $50 OF the penal law defining con-
spiracy.
II also direct your attention to the
admissions of Interborough officials
that seem to indicate that the intoler-
able conditions in the subway are the
result of a purpose to create a public
nuisance for the financial gain OF the
company. The continuance OF these
conditions may constitute continuing
conspiracy to secure higher fare
Calls Law Unconstitutional.
When the Transit Commission yester-
day morning resumed its investigation
to determine why the PETERBOROUGH
should not be compelled to give better
subway service Mr.. Quackenbush de-
clared that the act approved by Gov.
Miller Wednesday afternoon was uncor-
stitutional ''in that it deprives the Inter-
borough Of the due and equal protection
of the law"
"The Legislature cannot so classify
the police power OF this commission" he
said, as to say that it shall apply only
to those who come in under the plan. and
leave the situation, as 1t would seem to
be this morning, that every railroad
company outside the city OF New York
may go to the Public Service Commits
sion for redress while the Interborough
has no tribunal before which it may 20
and must suffer consequently"
Mr.. Sh-arn retorted: I'VE under
stand Of course. that Mr.. Quackenbush
was not expecting such rapid action by
the Executive. The Governor apparently
was alive to the situation and acted
promptly and vigorously in the public
interest. IL 1t had not been for his
action doubtless the commission would
have been flooded to-day with similar
petitions"
The commission was advised by II,