The New York herald., 1922-03-24

Wednesday, it was without power to en-
tertain the Interborough's petition for an
increased fare and should reject it.
To Dismiss Plea Wednesday.
Chairman McAneny said the commits
sion wouio act upon that advice. The
petition will be formally dismissed in
executive session, probably next Tues
day.
Fred W. Lindars, chief accountant or
the commission, testified that the Inter
borough for the twelve months would
have had an operating surplus Of $780,
362 for the combined system, but the
Manhattan IL" incubus caused 1t TO
show deficit Of $3,T19,630. The sub
way division alone earned a surplus of
S1,552,305, but the elevated division,
eliminating the rental. showed an
operating deficit of $1,071,936.
Mr.. Hedley. who followed and held
the witness chair throughout the day.
was examined by his own counsel, Mr..
Judge Shearn's cross-examination to-
day. Corporation Counsel O'Brien en-
tered the hearing room while Mr.. He'd
ley was testifying.
The marlborough chief placed respon-
sibility for limited subway service on
the shoulders OF the city authorities.
The city had failed to comply with its
contract obligations in the case OF the
Belmont tunnel extension from the
Grand Central to Eighth avenue, to re-
lieye congestion in the Queens traffic
and intolerable conditions in what Mr..
Hedley called the "Forty-second street
shuttle abomination."
Inspection Yards Held Up.
1t had held up work for the develop
ment OF necessary inspection yards in
six different quarters OF the city. His
company had bought 500 new cars, but
for lack of requisite yard and inspection
facilities they have to be stored on the
center tracks and inspected by lying
under them exposed to all kinds OF
weather. The Interborough itself had
financed various needed improvements
at the Grand Central and Times square
stations which would not admit of delay.
On one item, which the city should
have paid for, his company had spent
100000. 1t had received the assurance
several years ago that it would get the
money back from the city. And we
are still hoping" said Mr.. Hedley.
Commissioner O'Ryan asked II there
was any claim by the city against the
Intcrborough that might be considered
as an offset to the conpary's claim
Mr.. Quackenbush replied: II have
just had affirmed by the Court of APP
peals two days ago an order requiring
the city to pay the company s2,260,o00
Of the balance remaining on the original
contract No. / and we have claims
aggTegating many millions of dollars.
No suggestion has ever been made of a
counter claim"
O'Brien Raises n Storm.
Gen. Organ inquired IL the Corpora
tion Counsel could explain why the
Board Of Estimate has refused to pro-
vide funds for contracts approved and
in their hands for months. This brought
Mr.. O'Brien to his feet and a peppery
interchange developed between the Cor
poration Counsel and Chairman Nc
Aneny. Mr.. O'Brien described the ses-
sion as "an alibi meeting" and charged
that the commission and the INTERIOR
ough officers had arranged to throw
upon the city and the Board OF Estimate
the exclusive blame for deficient subway
service.
II mean what I say" Mr.. O'Brien
cried. 1.-THE testimony is being diverted
and this is nothing but an alibi meet
ing where everybody is trying to put
the blame for something on somebody
else"
"Your light references to elibi meet
ings," Mr.. aTcAneny said. "I presume
may be aiken at their usual worth, but
as to the
NOW Mr. Chairman, T want to say
this to you right here as chairman 70
shouted Mr.. O'Brien in his most COM
pelling tones.
O'Brien Ordered Into Seat.
The chairman raped sternly with
his gavel and exclaimed: ''You take
your seat, Mr.. O'Brien.''
'I want to put in my objection right
here to the sneering remark OF the
chairman, said the city's legal adj
wiser. II am not here by courtesy.
am here as a matter of right and my
statements. sir, are important to this
record"
your statements" retorted Chair
man McAnany. 80 long as they refer TO
matters OF fact in this inquiry. will be
received gladly, but when you lapse
into your vernacular and persist in
bringing in language that does not conn.,
port with the dignity OF these proceed
ings. and when you throw about impii-
cations that are distastefui to this conn.,
mission. this commission will place its
own construction on what you say and