The New York herald., 1922-01-29

acterized by one receivership after an
other, so that it is scarcely any exag-
geration to say that private operation
means judicial operation and a greater
portion of the time by the Federal ju-
dietary. The problem may be stated.
then, as judicial operation versus mu-
nicipal operation. These receiverships
have usually been consequent upon the.
swindling of the public in stock mar
ket operations and have frequently
served to shield the guilty parties from
liability. Receivership has been fol-
lowed by reorganization and reorgani-
Zation by receivership."
The speaker said the city's surface
rail system to-day was made up in large
part from franchises granted in perpe-
tuity by the Legislature more than sixty
years ago and without compensation.
The charge was openly made, he said,
that the Legislature at that time was
not only corrupt but shameless. land
now" said Mr.. Craig, ut is proposed to
make the holders of these franchises the
beneficiaries of readjustment plan au-
thorized by the transit act of 1921"
Comptroller Craig sketched the
growth of subway enterprises in New
York That growth. both in Manhattan
and Brooklyn boroughs, he said, had
marked the breakdown of the surface
lines. Then he added: "All the holders
Of perpetual franchises for surface lines.
whether obtained through legislation or
otherwise. the use for which little IL any
longer exists are among those now most
actively seeking legislative interference
in their behalf, as well as in behalf Of
the rapid transit lines, which are under
contract obligations to the city to oper-
ate at five cent fare for forty-nine
years
object of Transit Commission.
''In the face of economic change the
rapid transit companies and the holders
Of street surface franchises seek to flout
their obligations, transfer their losses to
the public and obtain additional grants
through legislative action, and for this
purpose the Transit Commission has
been created and empowered"
Mr.. Craig, directly attacking the atti-
tude taken by Gov. Miller, continued:
Gov. Miller repeatedly has stated
that the Board of Estimate and Appor-
'tiorment was not the proper body upon
which legislative authority should be
conferred. and that it was wholly in
appropriate for it to deal with the tran
sit problem. No reasons ever have been
given in support of this statement. 1t
remains a mere assertion.
THE Board of Estimate Is the only
body authorized to appropriate corpo-
rate stock for the construction of new
transit lines, and it is the only body
that can give a lawful consent to the
use of the streets of New York city for
transportation purposes. The powers
thus possessed by the Board Of Estimate
are beyond the control OF the Legisla-
ture and cannot be transferred to or
conferred upon any other board or body
because of provisions imbedded in the
State constitution.
"And although in the transit act
every power that the Legislature thought
capable of exercising over the City of
New York was given to the Transit
Commission, the constitutional barrier
against the incurring of debt by the
city and the granting OF consents to
the use Of its streets was so manifestly
beyond any legislative trick or device
that no attempt whatever was made
TO take these powers from the Board
Of Estimate and Apportionment or to
confer them upon the Transit Commits
sion.
Seeks Br0adencd Powers.
"The correct way for Governor Miller
to break the deadlock would be by
legislation comforting upon, the Board of
Estimate and Apportionment the rights