will come over for a few minutes. The Aldermen are in session

now.

Ask him to come over for just a few minutes.

The Chairman (after waiting a few minutes).— The President of the Board of Aldermen has sent over word that he has several matters there that he must give his personal attention to, and that if we will proceed he will come over as soon as possible. Call the roll.

(Mr. Deering calls the roll.)

Mr. Craig. Mr. Chairman, in response to the suggestion that we prepare a working program, we have one here for this afternoon. The first thing is for the Secretary to read the resolution for the inquiry.

The Chairman.- Read the resolution.

Mr. Deering (reading)—

"Resolved, By the Board of Estimate and Apportionment, that an investigation and inquiry be made by the Board of Estimate and Apportionment into all of the facts and circumstances in any wise relating to the transportation lines operating in the City of New York, and particularly with respect to the franchise rights and actual money investment put into the properties owned, controlled or operated by any existing companies, and the monetary value thereof, and the securities heretofore issued or outstanding against said properties; and the character and extent of service rendered by each of such companies and the adequacy thereof, and the cost of rendering such service and the rates of fare charged therefor; and such facts and circumstances as may enable the said Board to determine upon proper and sufficient transportation and the action to be taken by said Board with regard to any of the franchises heretofore granted by it or its predecessors, or any of the companies owning, controlling or operating lines under or by virtue of such franchises, or any alleged right of any kind whatever; and for the purpose of more effectually conducting such investigation and inquiry, that subpoenas be issued requiring the attendance of witnesses and the production of such evidence as may be deemed to be material to such inquiry and investigation."

Mr. Craig.— The next thing is a resolution authorizing or designating the Corporation Counsel to act in the matter.

Mr. Deering (reading):

Resolved, By the Board of Estimate and Apportionment, that the Corporation Counsel, William P. Burr, be and he is hereby requested to appear before the Board and conduct, as counsel, the inquiry and interrogation of witnesses to be examined in this matter and arrange for the necessary preparation in the procuring of evidence and the production of witnesses required therefor, and employ such accountants, examiners and other assistants as may be necessary, and that the expense thereof be charged to the contingency fund of the Board of Estimate and Apportionment."

The Chairman.- Call the roll.

(Mr. Deering calls the roll. Resolution unanimously adopted.) Mr. Riegelmann.- Mr. Mayor, has a copy of this resolution. been furnished to the companies interested, the resolution of the Board?

Mr. Craig.— I think it is at the printer's.

Mr. Riegelmann.- If not, for their information wouldn't it be wise to furnish them with copies?

Mr. Sullivan. You speak of the first resolution?

Mr. Riegelmann.—I mean the resolution under which this Board proposes to proceed with this inquiry.

The Chairman.- Well, if any of the traction corporations have not a copy of the resolution they can get it without any particular trouble. If there are any of them that wish a copy of the resolution, if they will make application to the Secretary

Mr. Riegelmann.- The Secretary will be authorized to furnish such copies.

The Chairman (continuing)— of the Board of Estimate, they can get a copy.

Mr. Craig. I might say that the matter is in the hands of the printer, and by the next session we will have seventy-five or a hundred copies here, so that any one who wants a copy may have one. Mr. Riegelmann.— We have a few copies here now.

The Chairman.- The Comptroller will announce the program.

Mr. Craig. I might say that we agreed that we would have a working program always ahead of us of at least one week, so that this is intended to answer that purpose. Mr. Deering, you have a copy of it there. Will you read the items? Read down to Item 3-d, a, b, c, d.

The Chairman.— D, inclusive.

Mr. Craig. Yes.

Mr. Haag. Read a, that is where you begin.

Mr. Deering (reading)—

(a) To ascertain the actual monetary investment for the equipment of first subway under contract No. 1 by the contractor, John B. MacDonald, or by him and his assignees, and the Interborough Rapid Transit Company; that is, to ascertain the extent to which funds of the investing public supplemented moneys supplied by the City of New York for the construction and equipment of original subway under Contract No. 1.

(b) To ascertain the actual monetary investment of funds other than those supplied by the City of New York in the construction and equipment of the Brooklyn Extension of the original subway under what is known as Contract No. 2.

(c) To ascertain the facts and circumstances in relation to the lease of the lines of the Manhattan Elevated Railroad Company by the Interborough Rapid Transit Company.

(d) To ascertain the actual monetary investment in the exist, ing surface lines in the Borough of Manhattan."

Mr. Craig. Then there was a general summary statement of the purposes of the inquiry, Item e, if you will read that.

Mr. Deering." Explanation of general purposes and scope of inquiry."

Mr. Craig. The last two sheets.

Mr. Deering (reading)—“ The purpose of this inquiry is fully disclosed in the resolution, and the necessity for it is quite fully set forth in the communication of the Comptroller dated December 29, 1919. In a summary way, it may be stated to be the definite ascertainment from original sources of the facts upon which must be determined the appropriate action to be taken by the City of New York with respect to existing transportation lines now under contract obligation for the transportation of passengers and the rendition of proper service in the five boroughs of the City; and upon the basis of such facts so ascertained to take such definite, final and conclusive action as will assure to the people of the City adequate and proper transportation service.

"In order to reach that objection, and at the same time to protect whatever equities may exist in the investing public for funds. invested in transportation properties in the City of New York, it will be necessary to ascertain as definitely and closely as pos sible the extent to which private capital heretofore invested is now represented in existing transportation properties. In connection with this it will be necessary to determine the obligations and liabilities toward the traveling public and the City of New York that were assumed by the owners of the properties with respect to the rendition of service and rates of fare. This has particular reference with respect to franchise and contract obligations in regard to the use of the public streets, over or underground, for transportation purposes.

Following this, the inquiry will be directed toward the ascertainment of the present day costs of rendering transportation service of an adequate and proper character and the probable tendency of such costs to increase or decrease so far as it may be ascertained.

"Such other facts and circumstances as may appear to be material or necessary in arriving at a definite and final conclusion will be developed in the inquiry.

"At its conclusion the Board of Estimate and Apportionment will be in possession of the controlling facts upon which its action must be shaped, and having such facts final and conclusive action must be taken to end the turmoil, agitation, dissatisfaction, inconvenience and discomfort that now characterize the transportation service of the City."

Mr. Craig. Now the next thing was the appearance of counsel, if any, for any of the companies or lines affected.

Mr. Riegelmann.-Above mentioned. That is in the first four. Mr. Garrison. In those first four items, or in the general subject?

Mr. Riegelmann.- The first four items. "Appearance of counsel, if any, for the above mentioned lines." That limits it to the four items above.

Mr. Craig.

Well, we will take those appearances first; I guess that will be the easier way.

Mr. Garrison. They are all I. R. T., are they not, or New York Railways?

Mr. Craig. Interborough, and New York Railways.

Mr. Garrison. And I. R. T.

Mr. Stimson. If your Honor please, so far as the last item, I think it was item (d), my firm, Messrs. Winthrop & Stimson, appears for Mr. Hedges, the Receiver of the New York Railways Company.

Mr. Cook. In so far as the Interborough Rapid Transit Company is concerned, appearance is noted by Mr. James R. Sheffield, as Trustee of the Estate of Interborough Consolidated Corporation, and he appears by Alfred A. Cook, his counsel.

Mr. Craig. By whom?

Mr. Cook. Alfred A. Cook, his counsel.

Mr. Craig. That is the Interborough Consolidated Corporation?