The sun., 1919-10-23
HEDLEY SEES NEED
OF FLEXIBLE FARE
Tariff Should Be Based on the
Earnings Of Subway and
"L," He Says.
8 CENT RATE MUST GO
Willing to Sell I. r. T. to City,
but Does Not Believe Re-
ceivership Is Near.

dent of the Interborough, yesterday de-
ciared himself in favor OF flexible
transit fare In New York city. based on
the earnings Of subway. elevated and
surface lines
I'VE have been making an effort to
get the city officials to look into the
situation and see just what II really is,
but we don't seem to be making much
headway," said Mr.. Hedley. 1T Is GER
tainly for the best interests of the people
of New York to see II some equitable
Arrangement cannot be made which will
yield a fair return, both to the private
capital invested In the transit system
and to the money the city has put In.
At present the city Is not receiving
cent Of the s13.o0o,00o yearly interest
due on its $3.50. 100000 investment. and
Il ought to figure out some way OF get
ting It
''From the standpoint Of an operating
man I say unhesltatingly that It is i'm
possible to give the present grade OF SER
vice for a cent or even cent fare
It can't be done. In my judgment.
flexible fare should be adopted. am
not in favor Of charging s. or 10 cents
now and then in a year or two having
the cost Of things slip down and the
company take advantage OF It
"As the prodts accumulate over
fixed sum. and our stated obligations are
taken care Of, I would favor some base
of share and share alike between the
city and the private investors, or the
creation Of a fund through which the
city might buy out the private interests
from its earnings. When we exceeded a
certain amount of cash on hand pro-
vision should be made SO that the rares
would automatically be decreased. and
this could be worked out under the plan
Of making them flexible. do not be-
lieve that the time will ever come when
the transit system here can be operated
proftably again for cent fare.
Fair Agreement Sought.
The company is perfectly willing to
sit down with properly constituted bodies
and figure out what they would con-
slider a reasonable readjustment or the
subway contracts. What we want Is to
have the city authorities meet us around
the council table and nnd out what the
situation really is and then try 70
reach some agreement that Is fair to
both sides.
IT believe that, under present condi-
.tions, q reasonable fare would be some
where between eight and ten cents. That
would pay the interest on the company
bonds and provide enough money to pay
the city interest for the $250.00O.000 II
has invested and for the gradual taking
over of private interests In the company
We are not paying interest on any ol
our four and a half per cent. BONDS a.
present"
"If a fare increase is not granted be
fore January 1. does that mean re
,ceivershipy' Mr.. Hedley was asked
-t-h NH VN0N
u. .ooo. 900 or $1,000. 900 in interest a
that time but we may be able to borrow
some money. 1t Is obvious that ou
ability to borrow will be greatly af
fected by the outlook regarding highe
fares. II the situation looks promising
posstbly we may be able to raise tn
money.
-What we have asked for and wan
is a conference with the proper cat!
authorities. We are simply drirtinl
along at present and II is not for tn
hest interests of the people OF the cit,
who are now being taxed $13,0oO.oo
annually to make up for the interes
which the company should pay on tn
municipal investment but cannot unde
present conditions. It goes into the Ia
burget and Is passed along to the ren
payers.
1--WE are perfectly willing to sell tn
road to the city at any time. sc
no objection to the company turnin
over the operation OF the subways an
elevated lines to the city II II wi
guarantee a fair return on the bond
But when you want to operate raj
road property you want a man who ha
been trained in the business to do
not men who have been elected 10 oi
fice by a political party.
IT don't want to be quoted on whs
basis we would be willing to sell to tn
city. That is a bridge We will eros
when we come to It. What we prefer
To operate the lines, with fair returi
under our leases, which have forty mir
years to run. The present condition
where we are operating at a loss ma
only be temporary ones"
No Secrets, Says Hedley.
Mr.. Hedley's discussion Of the trans
situation took place at the first confe
ence he has held with newspaper me
since assuming the duties of president I
( the Interborough az a result OF Il
death of Theodore p. Shonts.
Z "I want to say to you now" he b
Il San. "that we have no secrets and wi
j not have any under my administratio
II don't want 1t said that reporters can
: sec me- I'm not a damned bit differel
now than / was when l was a switcl
man. I'm Just the same kind OF RAJ
= bit / may not know all the things ye
& ask me about. but I'll find out for yo
n The system is owned by private ind
! x,Auaia and tha city and I don't see WI