New-York tribune., 1919-12-31
City Orders
Wide Inquiry
On Traction
Continued from page I

ing in the reports of the receivers Indi-
Gates the actual monetary investment
that has gone into the properties. The
reports show figures carried on the
books of some Of the companies as
cost OF construction but it is obvious
that such cost Of construction and the
actual monetary outlay for construc-
tlon have no necessary relation.
1T is quite manifest that justice
alike to security holders and to the
publ1c requires that rates of fare be
based upon actual and not fictitious
values. At this time and at this stage
OF the controversies preciptated by the
recelvershlps it is of the highest i'm
portance that the whole truth should
DC made known in regard to these mat
ters. Whatever equities security hold
ers may have should be protected; but
OF paramount Importance is the rem
ditlon of proper service to the public
at large for whose benefit the trans
portation lines exist and must be main
tanned.
1T is unquestioned that operating
costs have increased as the result Of
the war. Every plan put forward.
however,. by the spokesmen for the
traction interests to meet the new con-
d!tlons thus created proceeds upon a
lS
increased fare. 1t is quite manifest
that there are companies that could not
DC made profitable by an increased
larc whatever the rate might be-
"bcslnnlng with demand agitating
an increase of two cents, the propa-
gandlsts for high fares have raised
their demand to an increase of three
cents, and in many quarters it is
openly stated that 10-cent fare will
be necessary. Some idea may be had
or the enormous tax that would be
levied upon the people of the city of
New York by these increased fares
when it is understood that without any
increase whatever in the traffic or
number of passengers carried. an in
crease OF three cents would yield an
nually $59,816,753.67 over and above
the fivc-cent fares, while a 1O-cent
fare would tax the public to an expense
of $o0.694 ,5S945 if no increase in
traffic followed.
IN round figures the right to charge
a lO-cent fare where the rate is now
five cents would take from the pas
Sengcrs using the transportation lines
IN the city sl00,000,000 year and
transfer that sum to the security
holders. The proposal to exact this or
any other sum from our citizens for the
alleged benefit of security holders nee
essarIiy demands consd GRAFTON of
the character and extent of the securi-
ties whose holders are claimed to be
entitled to be benefited in this way.
The fact that huge losses have been
incurred b. purchasers Of traction Sc
curitles has long been matter OF
common notoriety. Great losses of this
character were made, however, long
before there was any question of in
creased costs of operation, or any
alleged necessity for an increased fare
IN most cases such losses have resulted
from the ordinary market operations
conducted On the Stock Exchanrn
Enormous losses have been inflicted
upon the victims Of these market on
erations."
commissioner Dclaney's communica-
'ion TO the board, stating that repre-
senjativss CT the lnterborouph and iho
New York Municipal Railway Corpora-
ton. b. r. 7. subsidiary. were ask
ing Tor formal conference TO revise
their contracts with the city. was re.
ferred to the Committee on Finance
and Budget
After going over the history Of his
conferences with traction officials
oommissioner Delaney said that he mad
given his idea CT new contracts. pro
viding for absolute and Immediate
transfer TO The city of title to all rapid
transit railroads, including he per
pctua' franchises of the elevated lines
for the buying up OF the holdings by
the city within thirty eight years anc
for flexible fares.
Delaney quoted in full letter re.
ceived by him from President HedleS
AID Receiver Garrison, and sent witt
the approval of the court. Referring
to the principles of the Delaney pro
rosa S. the JOINT letter says:
"Thc result has been cons derablt
progress toward an agreement upon the
general principles which should obtain
if this course is to be adopted.
~ IS deemed By every one to b,
desirable TO have the city authoritio.
cooperate in the formulation of tn,
new contract, if one is to be made
and this could best be done in tn