New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-13
Mitchell Opposes
Transfer Charge
On Surface Lines
Declares War Conditions
Should Not Be used for
Corporate Enrichment"

Replying yesterday TO a recent letter
from Theodore p. Shonts, president OF
the New York Railways Company, con-
corning the application OF the company
for permission to charge two cents for
transfers on its lines, Mayor Mitchell
declared that such an application at
this time was inopportune, and shouia
not be granted by the Public Service
Commission. He said he trusted the
petitions of the street railway COM
panies were not based upon the hope
that war conditions might be used ior
their corporate enrichment.
"The whole community, including
and not excepting the street railway
companies. must bear the burdens OF
the present war crisis, the Mayor
wrote. perhaps this will entail
temporarily reduced income, but 1t
seems TO me that the New YORK Kali
WAYS Company may fairly be expected
TO do its Bit and carry its share OF
the burden with the rest of the coun-
try"
Mayor Mitchell has already sent a
letter TO Chairman Oscar S. Straus, or
the Public Service Commission. point
ing out why he was strongly opposed
10 any increase of fares, or charge TOR
transfers. Corporation Counsel Hardy
was delegated by the Mayor 70 appear
at the hearings before the commission
and oppose the applications OF the
various surface line roads.
The Mayor emphasized the points in
opposition TO the applications in his
letter TO Mr.. Shonts, in which he SAID
in part:
Principle Well Established
"The principle of five-cent fare for
a continuous trip in the same general
direction for single street railway
system is the established policy Of the
city and state and has long been rec
ognized in franchises and statutes
The existing legal provisions ought
not to be set aside and higher rates
permitted by the Public Service Com
mission at the request of the COM
panies unless and until it is shown
that the need for increased rates .
is imperative, permanent, absolutely
necessary, and cannot be met in any
other way.
THE analogy cited by you between .
the street railways and the steel COM
panies which have charged higher
rates, declared vast dividends and
piled up huge SURPRISES because the
supply of steel has been limited and
the public has been compelled 10 have
it at almost any price, it would seem
to me is not fortunate. | trust that
the petitions of the street railway
companies are not based upon the
hope that war conditions may be used
for their corporate enrichment.
az 70, ,lls
increase in postage rates. II this be
done il will not be for the purpose Of
declaring dividends, but as a form of
to assist in defraylng the eX-
penses of the war.
ITO my mind it would seem that this .
appeal for higher rates to avoid bank
ruptcy is in striking contrast to the
attitude of your company at the time
OF reorganization.
Should Not Be Permitted.
From the point of view of the com
pany itself. permit me TO point out
what understand has been established
by experience elsewhere, namely, that
an increase of fares may not neces-
ssrily produce an increase in net in
e ne. A decrease in fares often pro-
duces larger profits. No plan likely Sc
riously 10 inconvenience the public, un-
less based on a demonstrate neces-
sty Of the operating companies and
fortified by moral justification drawn
from the record of the past, should
ever be permitted.
I'VE have heard no suggestion that /
during this temporary period of stress
the abnormal present profits OF the
subway be divided with the public. IL .
is currently reported that the Inter
borough Company has recently de-
clared quarterly dividend of per I
cent, thereby placing the company /
upon 20 per cent. annual divided
basis. As the stocks of the New York /
Railways and the Interborough COM /
panies are held by the same company, /
would it not be quite equitable TO re-
gard the excessive earnings of the one |
as fair Offset to the reported prospec- |
tive deficiencies Of the other? II would /
seem TO me that the public ought not
TO assume the losses If II cannot share
the gains