The New York herald., 1922-06-17
HARKNESS DEFENDS
ATTITUDE TO |. R. I.
Says Forcing Receivership
Would Result Only in I'm
paired Service.
CORRECTS HYLAN'S.FACTS'
Shearn Contrasts B. r. T.'s
$34,O0O,OO0 Tax 'Value'
and $7O,OOO,OOO price,

Speaking for the Transit Commission,
Commissioner LIE Roy 7. Harkness yes
terday made the following rejoinder to
Mayor Hylan's statement published by
the morning papers
'The Mayors statement calls for NJ
comment. except that certain misstate-
ments of fact in 1t should be corrected
He makes it appear that the commission
had said that the default provisions of
the subway contracts were 'senseless
The commission said nothing of the sort.
Those provisions are of the utmost
value. and Of course would be applied
in proper case. The commission did
say it was senseless to attempt to ap-
ply those provisions. with the resultant
years of litigation, when the Inter
borough company accepted and obeye |
the commissions order to provide all
the increase in service practicable at
this time.
Service in the non-rush hours has
been very substantially improved, and
for the first time in years the public can
ride in those hours in comfort. Every
possible bit of service is being put on
in the rush hours up to the point OF car
and track capacity.
'In view Of these orders of the Tran-
sit Commission and of the Inter
borough's acceptance Of them, it should
be clear to any one not blinded by po-
litical animus that an attempt to apply
the default provisions of contract No.
8 would be fruitless and senseless.
I'm the Mayors statement it Is also
said that the commissions disinclina-
ton to put the Interborough into the
hands of receiver was dictated by
consideration for private as distin-
guished from public interest. 1t should
be remembered that the Corporation
Counsel opposed before the Federal
court an application for the appoint
ment Of receivers for the Interborough
company. The consistent action of the
commission in endeavoring to avoid re-
ceivership for the Interborough COM
pany has been in the public interest.
THE people in every borough in the
city have suffered from impaired SER
vice of lines in receivership. Brooklyn
has suffered from this especially and
the people in Queens are now going
through a similar experience. 1t should
be obvious that 1t is not possible 10
get the service out of company in the
hands of receiver that 1t Is possible
to get out of solvent company"
When the commission yesterday
morning resumed it's examination of the
valuation of the properties of the New
York Consolidated, the operating sib-
sidiary of the B. r. T. subway and
elevated lines. Clarence j. Shearn. chief
counsel, disclosed the fact that the
company's reproduction figures sub
mittcd to the State Tax Commission in
1920, based upon costs during the five
year period prior to December 81. 1914
were $3f. .744, ,556.61. Its present valuation
were $34. III ,556 VI It's present valuation
is $10O000 900. as fixed by it's own ex-
perts. A. NJ. Williams. counsel for the
corporation. said that he had never
heard of an instance in railroad his
tory Of owners selling their railroad
properties on the basis of reports made
to tax authorities for purposes of taxa
ton.
Not content with hammering dents into
the "bue sky appraisal set up by the
B. r. T. experts, the commission, by
revised and corrected figures. has even
cut down the original valuation tenta-
lively made by it's bureau of valuations.
rhe original tentative sum of $23. 146. :
576 has been shrunk to revised figures
of s22. .567. $50.
The inquiry will be resumed on June
20 at 1870 A. M.