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The New York herald. [volume] (New York, N.Y.) 1920-1924, October 13, 1921, Image 6

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Places Deficit at $75,000,000
With Eight Cent
Fare as Assured.
Says Purpose Is to Release
Companies From Contracts
and Mortgage Lien.
Declare Commission Would
Let in the Water on Company
In a statement of 6,000 words Comptroller
Charles L. Craig: elaborated
yesterday the charges ho made last
week that the readjustment plan of
the Transit Commission is a scheme
to give the transit companies an eight;
cent fare, rehabilitate the properties
and securities at the expense of the
public and foist worthless property
upon the city. The properties rehabilitated,
Mr. Craig says, then would be
returned to the original owners by
mortgage foreclosure. He discounts
the utterances of the Transit Commission
as "irresponsible."
"The primary and ill concealed purpose
of the Transit Commission's
plan," he said, "is to release the In
terborough and the B. R. T. from their
contract obligations to operate the
dual subway system for forty-nine
years at a live cent fare. This is the)
first and essential step in order to
open the way for the 'service at cost,' j
or 'cost plus' fare; for the companies
must be released from their present
contracts before they can charge more
than a five cent fare."
Estimates Higher Deficit.
The Comptroller substantiates his allegation
of an eight cent plot after cancellation
of the dual contracts, by refusing
to accept the commission's annual
deficit figures of $41,000,000, less
15,000,000 through recent wage reductions,
and the commission's statement
that It will effect economies to cover
the $36,000,000 deficit and make a
five cent fare sufficient.
The Comptroller adds to the commission's
deficit estimate, $14,000,000 to
provide adequate service, $10,000,000 interest
and amortization charges on proposed
new securities, makes no allowance
for the $5,000,000 wage reduction,
and adds $10,000,000 more for "errors
and omissions" In the commission's
Thus, the Comptroller arrives at a
total estimated annual deficit of $75. >00,000.
Estimating that one cent
increase In fare will produce $25,000,000
u year, he figures that the commission's
' plan will compel an eight cent fare to
make up the $75,000,000.
The Comptroller declares that the determination
of the commission that the
l'are shall remain, arbitrarily, at Ave
ants for the first year of operation
at Its plan "is Intended to chloroform
the public" while the contract obligations
of the Interborough and B. R. T.
the city are being cancelled, and
I adds: "The hope held out that the
L lines can be operated at a five cent
fare under the Transit Commission's
B scheme will not be rcaliied for half
T a century. If ever."
\ He also quotes .T. L. Quackenbush,
3 general counsel of the Interborough, as
saying a ten cent fare Is necessary, and
George McAneny, chairman of the
Transit Commission, as saying that he
hopes not more than seven cents will
he needed, and insinuates that they are
"Insiders'' on an eight cent fare scheme.
Sees Xo New Con tracts.
/ The Comptroller states that new cantracts
after the cancella'ion of the dual
contracts would be Impassible, at which
conclusion he arrives by the following
line of reasoning:
The proposed new operating companies
would be none other than the
Interborough and B. R. T. under new
names, but these companies being "?n
default In rendering the character of
service to which the city is entitled under
the dual subway contracts," no new
contract could be entered Into, because
"the Greater New York charter piohlblts
the city of New York from entering
into a contract with a defaulter."
Mr. Craig then points out that under
the dual contracts the Tn .erborough and
the B. R. T. are under obligation to the
city to the extent of bonds for pt.iformnnce
amounting to t-'.SOO.QOO and a
I SfVr
| West 42nd Street
I Excellent
I 39 inches
I Our Regular
I Black Chil
I 36 inches
! Our Regular
j Attempt Thwarted to Ere<
Staten Island in Plot D
Died in the
An attempt was made yesterday to
put up a flagpole bearing an emblem
and the names of M3j*or Hylan and
other Democratic candidates In Thompson
Park, In the heart of Tompkinsvllle,
| Staten Island, which was given to the
J city two years ago in memory of the
i Staten Island soldiers who died In the
Miss Nellie Leahy and Mrs. Adolph
trlotio Association of Tompkinsvllle,
stopped it. Their curiosity was excited
by two workmen digging the hole for
the flagpole and when they were told
that a Democratic banner was to be put
$35,000,000 mortgage lien on their properties,
release from which would ba "almost
The Comptroller charges that the
Transit Commission's assertion that Its
valuation plan will squeeze the water
out of securities Is "contrary to the
fact," and adds: "The water Is out
now. The Transit Commission's plan
will let It In again." In substantla'lon
he quotes the present market prices cf
transit securities, showing that the
bottom has dropped out of their values,
and declares that "a speculative value
will result from their Inflation for
which the public will have to pay."
The commission's valuations, Mr.
Craig avers, "will be fixed by the security
holders," since, "while the Legislature
attempted to give the Transit Commission
authority to compel the city of
New York to comply with its determinations,
no such attempt was made in the
case of the traction corporations."
"The effect of this," Mr. Craig explains,
"la that while the valuation will
be proposed by the Transit Commission,
It will be fixed by the holders of
securities well organized In groups and
committees of skillful financiers. For
the Bum thus fixed as the 'real values,'
guaranteed 5 per cent, bonds secured by
a purchase money mortgage and backed
by the city's subway Investment are to
be delivered to the holders of traction
"The purchase money mortgage provision
is a confession that no confidence
can be placed in private operation, and
that default In the obligation on the
bonds will necessitate the foreclosure of
the purchase money mortgage and the
return of the properties to their present
"Fraud on the Public.*?
Mr. Craig calls the proposed exemption
from taxation of the properties now
privately owned by vesting title in the
city, "a plain fraud upon the public,"
"The companies are not to be deprived
of the benefits of operating the lines by
change of ownership for they are to receive
a new lease or agreement for private
operation by them for two generations
to come. The effect of it may be
illustrated a simple transaction. Any
house owner could profitably give the
title to his property to a stranger, provided
the stranger would give him a
lease to occupy for his life at a nominal
rental, with authority to will it as he
pleases upon hiH death. All of the burdens
of ownership, such as the payment
of taxes and assessments and repairs,
arc thus cast upon the new owner, while
the benefits of use and occupation remain
with the tenant."
Moreover, the Transit Commission's
plan would not take transit securities
out of the realm of speculation, In that
It proposes to give the security holders
l*i per cent, out of the accumulated
surpluses in addition to the guaranteed
5 per cent Mr. Craig foresees that the
"inside Board of Control" could determine
in advance whether the new bonds
. wouia receive oniy ine guaianiwu u ?e.'i
! sent, or the Increased return, and he
I fea rs they then would go Into the market
and purchase the bonds from uninformed
holders and sell "at a handsome profit"
when the prices should advance upon announcement
of the increased return.
Further, they could go "short" of the
market, run up operating expenses so
that no additional return would be possible,
and then purchase at substantial
declines. "A cost plus fare," Mr. Craig
concludes, "Is a device for market
manipulation unsurpassed by any other
used for plundering a confiding public."
Mr. Craig also views with alarm "a
vista for private graft upon a huge
scale." in that "there Is nothing to prevent
the Insiders and the operating companies
from organizing equipment and
supply companies from which they shall
make all their purchases of fuel, suppiles
and materials of all kinds."
The Comptroller attributes to Chairman
McAneny a statement that the
city's debt margin is only about $10,000.000.
because of which release of the
city's $240,000,000 credit tied up In subways
would be imperative. The Comptroller
disputes the accuracy of that
figure and declares that "tho city's debt
margin of $137,000,000 is absolutely
puncture proof."
The Comptroller closes his statement
by assailing "critics and uninformed
writers" who are "constantly asserting
ti Brotl
(Between 5th and 6th Avenues)
quality and weight. A
win* 5R3.RS
Y W( W "
Price for this Quality:
Ffon Dress VI
cellent weight and quali
wide $1.75 Per 1
Price for this Quality
" V"
:t a Political Flagpole in
dedicated to Men Who
Late War.
up they took a quick vote among themselves
and decided that as the purk had
never been used for political purposes
the Mayor should not be allowed to use
if for that purpose now.
x uey cciiicu up uvivjugu iiaii in
George and then City Hall, Manhattan.
"Who ordered that flag up?" they def
manded. The answers were evasive.
"Well, anyway, we're not going to stand
for It," they stated. Only sputters came
over the wire In reply. But on their
way home the women noticed the workmen
had picked up their tools, covered
the hole and had gone elsewhere. They
were found digging; busily in a city park
in St. George later. The Hylan banner
probably will f:y there to-day.
that the Board of Estimate and Apportionment
could have cleared up the traction
situation and that It has no constructive
plan." "This has no foundation
In fact," Mr. Craig says, and explains
"The Legislature has stripped the
Board of Estimate and Apportionment
of any power except to consent to the
exactions of the traction compn.nl?s.
"As to a constructive plan. It Is sufilcient
to say that the city of New 'fork,
after extended public discussion and
mature deliberation, has entered into
elaborate contracts with the Intcrborough
and the B. B. T. for the constiuction
and operation of municipally owned
rapid transit lines.
"The flagrant disregard of their contract
and franchise obligations by the
rapid transit and surface railway companies
agd their indecent defiance of
public opinion afford no basis for new
contracts to bo made with them by the
city of New York-"
Criticised Judge for Acquitting
Liquor Cases.
Bedford Citt, Va., Oct. 12.?Holding
that preachers are dealing too much In
politics now instead of preaching the
Gospel, Judge B. C. Scott of Richmond
yesterday fined the Rev. T. E. Boorde
$25 for remarks concerning Judge V. H.
Dillard. who, It was alleged, was referred
to by the minister as a "wet"
Judge Scott held that citizens had a
right to criticise court decisions ana
Judges that rendered them, but he said
he did not think any man should be
harangued when he is not present to
defend himself.
At a recent meeting of a church association
Mr. Bocrde is alleged to have
"Brave revenue officers risk their
lives right here in Bedford county only
to have evaders of the law, whom they
havo taken such efforts to catch, acquitted
by a 'wet' Judge. I am speaking
of Judge D. II. Dillard and In case any
of his friends are present or hear what
I say to-day my name is T. H Boorde."
Senators Dislike House Rules
on Conferences.
' "Washington. Oct. 12.?A deadlock ol
the Federal Good Roads measure waf
reached to-day by Senate and House
conferees on the Townsend-Dowell bill.
Senate conferees said It threatened to
bring to a head the long dispute between
the two bodies over House rulee governing
conferences which. Senators declare,
deprive the Senate of power In
shaping legislation.
Tho Sencte conferees Insist on an appropriation
of $75,000,000 to < ontinue
State aid In road constructh n. The
House conferees are resisting a direct
appropriation and demand merely an
Tlio House conferees. It was explained,
take the position that House rules prohibit
their agreeing to a direct appropriation.
Senators Insist on Senate prerogatives
to make an appropriation.
France Names General Counsel In
Demurrage Cases.
Washington, Oct. 12.?Leopold Dor
of Paris and Marseilles, a prominent
French Admiralty attorney, was to-day
appolned general counsel In France for
the United States Shipping Board Emergency
Fleet Corporation.
Mr. Dor, who is at present in Washington,
will sail for France Saturday
Authority has been given him to settle
a number of demurrage cases brought
by the Fleet Corporation. Mr. Dor will
have charge of suits totalling $1,000,000,
It was said at the board to-day.
West 43rd Street
$6.50 yard.
ty, |
: $3.00 yard
Mrs. Robinson Asks Support
of Women Voters for
Mrs. Corinne Roosevelt Roblneon, s'ster
of the late Theodore Roosevelt, yesterday
Issued a call to the women of
New Tork city to support President
Henry H. Curran and Senator Charles
C. Lockwood, Coalition candidates for
Mayor and Comptroller respectively.
"Curran and Locliwood aro the chief
candidates who Invite the Bupport of
the women at this year's election," said
Mrs. Robinson, "but they are by no I
means the only ones. I hope later perhaps
to refer to some of their associates
on the ticket opposed to Tammany and
what Tammany has come to mean to all
Intelligent and discerning and public
spirited New Yorkers."
Declaring that 1921 was a year of opportunity
and obligation for women voters,
Mrs. Robinson added:
"The New York municipal campaign
is to a great extent a woman's flght, a
battle for the things that count In the
home, for the family and for those better
and brighter things for which we are all
struggling and which we hope to see
secured for those who are to follow us.
As a New York woman, born and reared
here and deeply concerned In everything
which relates to the welfare of the
city and all Its people?and the poor
rather more, perhaps, than the Hen?I
feel that In this year's flght for Curran
and Lockwood and a better New York
women should do their full part.
"Among the issues of the campaign I
put the schools first, for upon them depends
not only tho well being of the
, present generation, but the best hopo for
1 the succeeding one. What Is the school
situation here? There are 100,000 children
on one-half time. Think of it.
The building of new schools, so necessary
in growing neighborhoods, has been
delayed, not abandoned. Many of the
old school buildings, especially in the
poorer neighborhoods, are dilapidated,
unsanitary and dangerous to the lives
as they are certainly to the health of
, both pupils and teachers.
"Mr. Curran, candidate for Mayor, I
know and can approve very highly. He
Is a man of character, experience and
purpose, who believes in what my
brother, Theodore Roosevelt, described
a3 'the call to service'?the necessity
that every one who lives in a community
should do something to help It and
to improve the conditions under which
others are living. He haB had long and
useful experience In public life and in
city affairs. He is a man with an untarnished
record in public and private life,
a good man of high Ideals and practical
experience, a good citizen, able,
patriotic, honest and courageous. What
woman knowing all this could hesitate
to vote for him?"
Next to the schools comes the housing
problem in Importance. In the opinion
of Mrs. Robinson. Referring to the
work of tho Lockwood committee, uhe
"Senator Lockwood Is a typical and
, representative New Yorker?a real
1 American in the broadest patriotic
i sens??and he has been un assiduo'is
1 and Intelligent worker in the Legislature
for every good and worthy cause which
l appeals to women. He is a champion
' and adviser of that splendid body of
women, the school teachers; tvs is an advocate
of good laws and an adversary of
evil ones. lie will make a splendid
. Comptroller and deserves a record majority."
i. A
j Thirty-fourth Streei
are featured
at |
These uniforms &
audi are cut and t
distinguish all '
qualities are allso
; Chauffei
made of dark gn
worsted, the
at |
are shown at
Mayor Has Failed All Hi*
Pledges, Says Behning.
Business men have received little return
for the tremendously high city i
taxes they have hud to pay, asserts
Albert Behning, who lo organizing these
forces in the community for the
Coalition ticket. lie said yesterday:
"We are not willing to place again |
the finances and the business of a great
cooperative enterprise like New York in
the hands of u man who asks us again
to elect him Mayor and displays the
astonishing record of not a single, soli- I
tary one of hie pledges kept and the j
business men of the city suffering under
the most excessive tax rates they
have ever known. 1
"During tho nearly four years of Mr. e
Dylan's administration there has been a
practically one unsolved murder for al- .
moat one day in every four. The loss
from burglary has amounted to hundreds
of millions of dollars and com- I c
h?>?i in htir^inrv insurance I r
have been wound up, In spite of an advance
In premium, which the people
have had to pay, which was heavy
enough to drive many of the people Insured
out of business. Robbery with
violence has correspondingly Increased."
The so-called "business administration"
of Mayor Hylan, Mr. Behnlng declared,
takes more than fl,000,000 from
the people's pockets In taxes every
twenty-four hours. This Is ?100,000 more
than was taken under the previous administration.
Mrs. James Parsons in Charge
of Women's Work.
Senator Charles C. Lockwood, Republican-Coalition
candidate for Comptroller,
announced last night the composition
of his campaign organisation.
Thomas J. McGann is chairman of the
general committee, Herbert E. Muller is
secretary and John V. Dunn Is treasurer.
Ernest Ilarvier Is chairman of the
men's executive committee and Mrs.
James Russell Parsons head of the 1
women's oxecutlv.5 committee.
The main headquarters are In che '
Bristol Building, Fifth avenue and For- J
ty-second street; Brooklyn headquarteis
are at 202 Patchen avenue; Bronx head- 1
quarters at St. Ann's avenue and 161st *
street, and Queens headquarters at Jamaica
avenue and Herrlman street. '
Among the activities undertaken by 1
the Lockwood committee are the organ- *
lzatlon of women voters and Democrats '
opposed to the reelection of Comptroller '
Charl-js L. Craig. <
Now Recovering From Operation
for Vertigo.
Albant, Oct. 12. ? Representative
Claude Kitchin of North Carolina Is in
a hospital here recovering from an operation
for vertigo which he underwent
several days ago, it was learned to- ,
Representative Kitchin has suffered
from dizziness for some time. About a
week ago he came here and consulted
with Dr. U. M. Dowllng, who performed
the operation, which is believed by hospital
offlicals to have been successful.
Mr. Kltchln's condition was said to be
favorable, although he probably will be
confined to the hoslptal for several
Washington, Oct. 12.?Federal Judge
John A. Kiner of the Cheyenne district
In Wyoming, sent his resignation to the
President to-day and will retire from the
bench after thirty-one years of service.
Judge Rlner, who is more than 70 years
old. was appointed September 22, 1890,
by President Harrison.
[f matt $
fifeuirs' Unlf
' Autumn and W5
in toe regular stock c
Bepartsmemt, on the Sfa
>45.00 & 5(0
ire made of serviceable da;
tailored with that style and
"Alt man Standard" prod
i found in
urs' Winter
ay frieze or whipcord, the
yoke off satin; priced in rc
>45.0(0) & 55
urffeurs' Ci
moderate prices in tlh
irtment on the First Fl
3, 1921.
111 on Ticket Invited to Pass
on Declarations at a Meeting
Candidates on the coalition ticket have
>een Invited to expres their views on the
ilatform to-day. The platform was cotniloted
in tentative form by the sublommittee
yesterday and will be passed
Ipon by the full committee and such
landidates as accept the Invitation to
ittend the meetinr this afternoon at the
durray Hill HoteL
It la hoped to have the declaration
if principles published before the end
if the week, but It looked last night as
hough there might be some serious dlferences
of opinion. In many respects
he platform of the coalition committee,
if which Joseph M. Price Is chairman,
Uffered radically from that adopted by
President Henry H. Curran, the candllate
for Mayor. The latter has said right
klong that they might change the
ihraseologry of his platform and add to
t to some extent, but after all he would
lave to stick to his principles as enuniiated
in the primary campaign.
A finance committee of fifty has been
lelected. but was not made public last
tight because acceptances had not been
ecelved from all the members. The
ack of this committee has hampered
Jio work of the campaign because so far
tot a five cent piece has come Into the
There also is some uncertainty about
he budget committee of three, which
ilso will be the Board of Strategy.
United States Senator William M. Caller,
Charles D. HUles and Joseph M.
Price had been selected, but Henry W.
raft, chairman of the Coalition cornmit;ae,
said last night there might bo some
:hanges. F. J. H. Kracke may be subitltuted
for Senator Calder, who will
lave to spend much time In Washington.
President Curran had a long confersnce
with John J. Lyons, his campaign
nanager, and later they talked with Mr.
raft, Mr. Price and Richard W. Lawrence
in regard to the finances of the
"Mayor Hylan talks a great deal
lbout a five cent fare," said Mr. Curran,
when asked If he had any comment
.0 make on Mayor Hylan's criticism of
>is stand on the traction matter, "but
te doesn't have to hang to a strap twice
1 day, in the middle or a car packed
:o suffocation, the way the rest of us do.
"I am for a five cent fare, but I also
tm for a decent service with it. That
s Just where Mayor Hylan and I differ."
"I wonder who wrote the Mayor's
jtatcmcnt for him," added the candidate
with a chuckle.
Major and Mrs. Curran celebrated
.'heir sixteenth wedding anniversary
yesterday by dining together at home
?nd attending the theatre in the evening.
t ?s
Best French Style
$k 7?.p!lnt
ii ap- mmgj}
$***? Wrirt
$Sss* W
Combinations: Black, vh tc. mode,
brown, gray and pattelle.
404 Fifth Ave. New York 253 Broadway
effio. J
Thirty-fifth Street
ornms !
>f the Men's
:th Floor
rk gray worsted,
1 smartmiess that
motions. These
Ulsters i
body lamed with
tgular stock
le Merc's Hat
i ' ' -1
Curing W
These walrus skins are st
ice to cure in the sunshir
ther is highly valued by
North for harness, dog v,
purposes where a subst
needed. Many walrus ski
to civilization where they
ces for traveling bags, ma
ZVo. 71?h
?T lyiM %m
riitn a venue at 5
IMade of real old Pigskin, 1
leither of fifteen years ago. ]
nagc. Lasts and patterns excl
eVueouiMi Onu UO.T> Buks. KXK
KJ La Couleur de "rie
rPJi A NEWColorofstockingha:
ef^-j jf\ eye's horiion. It's"the
jh at all." At dancing garde
and Ostend, it was quite th<
P stockings, and the Peck ar
in this new color gives the
JT bering and the appearance
|S peck on
V^Sl 586 Fifth Avenut
*OC> ALSO *T 4 NO- michioaw BOO
Ptlm Beach Bonthamptmi
Some Studies in the
Science of Investment?No. 3
Is You
Money a Pla]
There are games of c
Some are played for fun, sc
Some games are charac
ments, some are designatec
We sell first mortgage
the Bond & Mortgage Gua
For us.it is a game of skill
skill in selecting the morlg
in being mistaken. The B
Guarantee Company carri<
you it is a sure thing.
If you are looking for (
is no great fun in our gai
the "sure thing.-" that nevi
know the outcome in adva.
You can buy these mort;
in any amount even as low
Title Guarantee &
Capital *6,000,000. S
176 Broadway, Now York. 175
137 We.t 125th St., New York. 350
370 Eaat MQ?h St., New York. Bridi
00 Bay St., St. George, S. I. Mint
? \
liance and skill,
ime for stakes,
terized as invest1
less kindly,
s guaranteed by
rantec Company,
and chance, our
;ages, our cnance
ond & Mortgage
ts the risk. For
:xcitement, there
Tie. It is one of
er loses and you
gage investments
as $200.
1 Trust Co.
urplua $11,000,000.
Remaen St., Brooklyn.
Fulton St., Jamaica,
ge Plaza North, L. I. City,
tola. Long Island.
aked out on the
le. Walrus leanatives
in the
rhips and other
tantial hide is
ns are shipped
bring good prichinery
'tinting In tho North.
nler punch on tip. I
ike the favored
Light shade tan- J
lusively our own |
>Hardy 1
KtRtOCHKR Builoimq I
a?-?i ,
'r'n' i|
l fel !
2 E j1
n du tout" K
?appeared on the I* yS
colorof nothing :
ns of Deauville ri A
e thing to forget
id Peck hosiery tq
fact of remem- *
of forgetting.
>eck ?
;or Fifth Avenmt i

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