The New York herald., 1922-05-28
Transit Board Is Held to
Have the Sole Authority
i'm Such Cases.
$4,000 REVENUE LOST
Whelan Announces Injunction
Will Not Stop Other Lines
From Running.

IlyidH administration yesterday got
the most terrific jolt from the Supreme
Court which it has yet received in it's
several legal skirmishes, when Justice
Francis B. Delehanty granted tenn
porary injunction to the Belt Line
Railway restraining the city, the
Board Of Estimate and Grover A.
Whalen, Commissioner Of Plant and
Structures, from operating bus line
on Sixty-fifth street from Avenue A
to West End avenue through Central
Park. The line was established March
Is by the Board Of Estimate. IT has
been operating fifteen buses. The de-
cision Is the first directly affecting
Manhattan bus lines.
Justice Delehanty finds the city vio-
lated provisions Of the city charter. the
transportation corporations law and
the public service commissions law.
The provisions which he finds violated
have to do with the granting of fran
chises only after public hearing and OBJ
tanning of certificates Of necessity and
convenience" for the operation of motor
vehicular common carriers.
No pretense is made that the law has
been compiled WITH" Justice Delehanty
wrote, "aud the only defense interposed
by the-ctty.is the plea that an emergency
exists In the city of New York and that
requests have been made by citizens and
organizations located near the Sixty-ffth
street crosstown line for the establish
ment of that line and-that there is a
necessity therefor"
Justice Delehanty denies that an
emergency In the transit situation justi-
fies the cltys action and citing the ap-
peal taken in the injunction obtained by
the Brooklyn City Railroad, together
with the establishment OF the Transit
Commission as the exclusive and sole
agency created by the State for the re-
lief of the emergency he holds that the
transit situation may be better described
as a deplorable chronic condition and
not as an emergency.
whnlen Explains.
When Commissioner whalen learned
of the injunction through THE NEW
YORK HERALD last night he said that 1t
was most disappointing and unfor-
tunate." He explained that the city had
not granted franchises to the bus
operators. but was granting permission
from day to day in accordance with what
1t recognized as an emergency. He de-
MED that the budgetary allowance of
$4,000 for supervision of the lines was a
waste of public money, as contended by
the Belt Line Railway. and emphatically
declared that the thirty-fve lines in the
city are serving public purpose. Asked
il this latest restraint would curtail the
operation of lines. he replied:
mo. sir. you may say that we shall
keep the buses running"
Justice Deehanty In his opinion notes
that permission in the form of mere
starters car Is given to private owners
of motor buses to run on the city route;
that the operator has State omnibus
license. chauffeur's license and a
policy of insurance to indemnify the
owner against accidents, but not the
city: that the buses are run under the
supervision and inspection of the Com
missioner of Plant and Structures, with
"chief bus supervisor" two deputy
chief supervisors and by about twenty
bus starters as employees of the
city. with salaries ranging from $1,000
TO $500 per year. costing the city
about s46 900 per year.
although the owners OF the buses
are acting as common carriers of pas
sengers for hire. and the operation of
receives no revenue therefrom and all
the profits 90 to private individuals"
he remarked.
"The city does not have. nor claim to
have. any power or authority under It's
charter to act as a common carrier or
10 operate motor buses on its Streets.
In fact, the city at each of the last
four sessions of the Legislature has
sought unsuccessfully to obtain such
power for the Board of Estimate and
Apportionment."
The Emergency Question.
Justice Delehanty refers to Section
1853 OF the City Charter. which prohibits
the operation OF any stage or omnibus
route on streets OF the city until
franchise has been obtained from the
Board of Estimate. and such franchise
to be granted only after publication of
the petition therefor and the holding OF
a public hearing. AS second point
in the legal background he cites a pro-
vision of the Transportation Corpora
tions law which requires that no bus
line or motor vehicle line carrying
passengers for fifteen cents or less'' IN
competition with another common car
rIer shall be operated or receive a
certificate of public convenience and
necessity" until the owner of the pro-
posed route after public notice and
hearing until the duly constituted local
authorities make such terms and pre-
scribe such conditions as will compen-
safe the municipality for wear and
tear of pavement. and among other
things provide for the safeguarding of
passengers. The Public Service Com
missions law, also cited by Justice
Delehanty. provides that no common
carrier shall exercise any franchise
without first obtaining from the COM
mission having proper jurisdiction Of
the proposed routes a certificate show
ing that tho franchise desired is "neces-
Continued on Page Ten.