New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-28
Question OF City Control.

The terms Of the McAneny report pro-
vide that every subsidiary company
having 70 do with the supply Of current,
equipment or other property shall be
subject to the provisions Of the public
service law
TO the extent that the furnishing Of
current. equipment or other property
enters into the cost Of operation and
financial arrangements under the con-
tract" says President Williams, I'VE
recognize the propriety Of the citys hav-
ing reasonable power OF supervision. but
the language Of the requirement is un-
necessarily broad for the accomplish
ment Of this object
President Williams goes on 10 say that
there are details OF criticism and sug
gestion arising out Of antiquities Or
omissions of language which his COM
pany is quite willing 10 leave to adjust
ment at the time Of framing the con-
tract.
There will he no diyisible profits on the
system proposed for from nine 10 four
teen years. according To the figures Of
The Brooklyn Rapid Transit President
Williams ends his letter as follows:
n conclusion and for the purpose Of for
t,fying the reasons advanced above Tor the
qualifications requested We beg 70 call at
tentior 70 the fact that in accepting the
provisions of the report. as proposed by US
10 he modified We can rgure out no results
u-harebV the combined new and old system
en- be operated SO as 10 make divisible
motifs poss bic within period Of from nine
~ fourteen wears from the beginning OF
n1U operation The system will become
self supporting at an earlier date but be
cause ~ the requirement that deficits shall
lie cumulative until made good out Of profits
rhe operator will not get a dollar Of com
p4nsation for many years
This IS because Of the inclusion IN charges
Of a large amount Of interest on capital
Invested in the Centre street loop and
Fourth avenue subway. and In the Jamaica
extension the revenue from which will not
he sufficient 10 make these lines self sup
ortine. and because Of the insistence Of a
Uniform fare of five cents including Coney
Island Certainly any other use Of these
Improbable lines except IN combination
with our system Will produce still more ad-
verse results.
Your committee has estimated that CITY
passenger traific viii Increase during the
next decade at the rate OF 20 per cent.
This T. 5l7 per cent annlls llv. compounded
Assuming hat this IL a conservative est
mate we submit herewith tabulation
showing the effect Of such a rate Of in
crease on the traffic of the lines affected.
with additional allowances for new husi-
ness by reason of the operation Of the new
lines This table shows that with this
annual increase. and with these additional
allowances. and applying the same rate Of
Increase 10 the allowances. IL will be 1923
before the system becomes self-support-
Ing and 1920 before n Yields divisibe profits
The ratio Of operating expense is figured
n inc nd IN q !. a.,
he possible 20 reduce, but even n reduced
10 g. per cent the time for profits would
not he advanced more than three years
Including the allowances for new business
from new lines the total increase shown
is 1922 per cent in ten years showing an
average annual increase Of . y Der cent
Even ~ the ratio OF increase as shown
/ IN that tabulation should be doubled. IN.
! result would not advance the time for Al
visible profits more than three or foui
! years