New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-03-28
Thompson Committees
Report Will Be Submitted
To Legislature To-day.
WOULD SHIFTCONTROL
OF SUBWAY BUILDING
Report Demands That City Be
Made Co-Partner in Transit
Enterprises.

The preliminary report OF the Thomp-
son committee will be submitted to the
Legislature to-day The report will
recommend the following changes in
the law:
Divesting the Public Service Com
mission OF this district of its pow
ers and duties in subway construction
and placing them in a newly created
Board Of Rapid Transit Commissioners.
Making the Mayor and Controller
members Of the boards Of directors OF
every corporation leasing or operating
any railroad or other transit facilities
belonging TO the city.
Giving power to the Public Service
Commission TO compel PREPARATION 10
consumers by corporations complained
Of for excess payments made during
the determination Of rate cases.
Putting all water supply companies
in the state under the supervision Of
the Public Service Commission Of the
I'd District.
Thompson's Recommendations
The report, after setting forth the
work the committee has accomplished
TO date, sets forth its recommendations
and then backs them up with the com
mittees reasons for the changes il pro-
poses.
Concerning tho recommendation for
the transfer Of jurisdiction over sub
way building the report says IN part:
1.-THE contraction by the Public Ser
vice commission as rapid transit COM
missioners of the new subways involves
contracts and expenditures aggregat-
ing approximately 100000. This
vast enterprise of money and property
IS imposed by Law on the Public Ser
vice Commission for the lSt District,
and is an enterprise Of such magnitude
that your committee believes that u
can only be efficiently and economically
carried out for the best interests Of
the city Of New J ork by a separate and
distinct body, dcvotinC its entire time
and ability 10 the problems involved
therein. exercising exclusively the pow
ers and duties provided for in the rapid
transit act and directly responsible to
the taxpayers and electors Of tho city
Of New York
"Thus while the Public Service Com
mission Of the 1st District constructs
and maintains the subway transpOrta-
tion facilities, IL is also called upon to
regulate and supervise its own trans
actions in relation thereto.
Un@ise Contracts Approved.
"The administration Of the regula-
tory function has been inefficient 10
extremely unsatisfactory, both TO the
public and the consumer, and there ia
widespread feeling Of distrust of
the discussion as partial 90 the cor
porations and interests to be regulated
and supervised. As TO the rapid tran
sit WORK, the conclusion is uuavOid-
able that unwise and improvident con-
tracts have been approved and entered
into by the commission, thereby l,n-
posing upon the property Of the taN-
payers OF the city and upon the users
Of its transit facilities, for many years
to come. burdensome and unjust Dc
mands. Y not to imperil the solyency
Of the city itself"
IN regard 10 the recommer dation for
municipal representation on the boards
Of directors of transit companies h5v-
ing contractual relations with the ci.y
tho report says:
The need for legislation giving nv
inequalities representation on The
boards of directors Of corporations
leasing or operating transit facilities
owned by any municipalities is pc
culiarly demanded at this time, n "A
protection TO the rights OF the City Of
New York growing out Of the subway
contracts existing between the city AID
the Peterborough Rapid Transit Com
pany, and the city and the New York
Municipal Railway Corporation a 3.
h. T. subsidiary.
Would Limit r. s. C.'s Power.
Under these contract. the part.c
have assumed relations and will enjoy
rights IN their nature similar 10 that
Of co-partners. which relations AID
duties Will subsist in all probability
for tho entire period Of the leases,
namely, for the period Of forty-pIne
years from the date Of the commence
ment of operation under the leases.
The city and corporation under the
contract each contributes millions o.
dollars toward tie construction Of She
railroads, and will share in whatever
net profits or net earnings accrue fcom
the operation thereof. The credit Of
the City of New York is, i'm effect. be
hind the operation Of the railroads, ~
well as the construction therco.. And
finally. your committees investigation
has demonstrated that. regardless Of
It's broad powers, the p. S G. inherent
ly is. and perhaps properly must be,
limited IN its control over the tran sec
tions incident 10 the business and final
management of the corporations 10 SUI
peryises. The city. either as co-pa.t-
ner or as owner and landlord of this
subway enterprise, mus ,. protected
in its large Investment OF money and
credit b. more direct and accurate
information with respect TO the bust
ness thereof than can be afforded b,
commission supervision"
Regarding private water companies,
the committee says 10 has taken a
large amount Of evidence disclosi' 2
that the companies IN many parts of
the state have cornered the water SUP
ply and are selling u at eXorbitaut
rates.
Senator Thompson. in making public
the report, said ~ will not be signed
until some time to-day. lie says there
may be few changes made IN it, bat
that these will not he important.
DUELLISTS SLASH POLICEMAN
His Interference Resented, He Escape.