The New York herald., 1922-06-15
REFUSES TO FORCE
|. R. 7. FORFEITURE
Transit Board Shows Better
Service and Errors in Esti-
mate Board Plea.

Accusing the Board of Estimate OF
misstatement of facts and refusing to
comply with its request. George Nc
Aneny. chairman of the Transit Com
mission. replied yesterday to the reso-
luton passed by the board on April &c
last looking to forfeiture of the contract
between the city and the Interborough
Rapid Transit Company. on the ground
of defaults in the company's service.
The Board of Estimates resolution called
upon the Transit Commission to direct
the Interborough 10 cure its alleged de-
fault within ninety days under penalty
Of proceedings TO forfeit the lease. Mr..
McAneny wrote:
Among other misstatements of fact
contained in the resolutions is the recital
that the Transit Commission has ne
elected TO take the steps provided for
In the contract and by the statutes to
compel the rapid transit company TO full
fill the obligations OF the lease. Your
board, at the time or the adoption of
the resolutions. was aware that thor
Ough inquiry into the service furnished
and the ability of the rapid transit COM
pany. under existing conditions, to inn
prove the service. had been instituted by
the Transit Commission, conducted in
the manner provided by law. and that
orders were on the eve of being issued
designed 20 secure the installation by
the rapid transit company of the maxi
mum obtainable service-orders which,
after PRONUNCIATION by the commission.
have been accepted by the company and
are now in effect.
''Inasmuch as the defaults in service
have. under the order Of the Transit
Commission. been remedied by the rapid
transit company. IL seems to the COM
mission that IL would be futile ana
senseless proceeding 10 serve notice on
the company directing the lessee to
cure the defaults within ninety days
Not only has very substantial increase
already been secured in the amount OF
service given by the Interborough Rapid
Transit Company, but further radical
increases of service have been procldeo
for. to be furnished as rapidly as physi-
cal means placed at the hands OF the
company will permit. the company nav
ing also accepted the commission oroer
requiring the purchase of $50 addltiohsi
cars a..
The commission yesterday began Its
hearing on the valuation of the prop
critics OF the New York Consolidated
Railway Company. which is the oper-
ating company of the subway and ele-
waited portions OF the B. r. t. system
A. NJ. Williams, attorney for the cor
poration. delighted the commissioners
and Clarence j. Shearn. chief counsel
to the commission. by his attitude of CO.
operation.
Mr.. Williams said the Consolidated
had made no independent valuation of
It's properties to offset the tentative
valuation made by the valuation bu-
reau of the commission. He pointed ous
that the book value OF the fixed assets
as of June 30. 1927. as stated In the re-
port of the commissions valuations
bureau. was SIS 497. 742. He said the bu-
reau finds an original cost for the orig
inal lines of the Consolidated amounf-
ing TO s24. .761. .922. which. II the bureaus s
estimated cost TO bring the property up
TO first class operating condition be
taken. will reduce that value TO s22,-
4"4S75.
On reconstruction cost basis as OF
fgi0-l9li however. the bureau reached
valuation of s2i000oo0. or Of sld coo 0J1
after deductions for depreciation: while
on a 1921 reproduction basis at prices
then prevailing the bureau appraisal Is
sif000,0CO. or. less depreciation. about
S2g, 100000
This contrast I'm figures" Mr.. Will
liams said. especially in view of the
earning capacity proven in these prop
critics. invites inquiry. whether or not
the valuations bureau has not been
somewhat too energetic in reducing
values"
The hearing will be nesumed this
morning.