New-York tribune., 1919-12-29
Continued from page 1


penses of $9,43o,SS7. will, according to
the estimates of the experts, fail to
by more than $2.00O,00O during the year
ending June 80. 1920, if they were
continued in operation as two systems
without disintegration as before the
receiverships
Such conditions requiring increased
fares, says Judge Mayer. are found
throughout the United States.
I'm the twenty one cities of the
United States having q population of
more than 100000 explains Judge
Mayer, "the fares have been increased
in at least fifteen. The increase has
been to 10 cents in Boston and Pitts
burgh, to 8 cents on the elevated
and cents on the surface lines in Chi
cago, to 7Ea cents in st. Louis. to T
cents in Baltimore, Buffalo, Cincin-
patti, Washington and Kansas City. Mo-;
in Newark and Jersey City to cents,
with l cent for transfer subsequent to
the recent abolition OF the zone system
and to 6 cents in Portland, Ore. and
New Orleans.
Situation in Other Cities
"1n Cleveland and Detroit the fare
has been increased to cents from
previous lower rates. Of the remain
ing cities, Seattle has changed to
municipal ownership in the last wear
and an increased fare is proposed; IN
Philadelphia the fare is 5 cents, plus
Scent charge for exchange tickets
which it is estimated yields an in
como of more than S1.5OO.OOO wear;
in Los Angeles hearings are being
held upon the proposed zone system,
and in San Francisco the local traction
company has not paid dividends or in
terest on its bonds for years OF the
cities with populations between 1O0.-
900 and 100000, a large majority have
granted fare increase in varying
amounts"
In concluding the introduction to his
proposed plans, Judge Mayer says:
he immediate problem presented is
to work out temporary solution Of
the difficulties of the traction situation
which will give to the travelling public
the service to which it is entitled while
the final problem is being worked out
and to prevent further disaster On
the other hand, the way must be left
open for further discussion to settle
the various doubtful questions so that
1t may be certain that the travelling
public shall not pay higher fare than
is proper; that the city shall lose none
OF the concessions to which it is en-
titled. and that the investors shall be
fairly dealt WITH
Temporary Plan Proposed
The following temporary plan is pro-
posed to meet these tests:
by concurrent action of the
Board of Estimate and Apportion-
ment, the Public Service Commission
and the Transit Construction Com
fare to cents to be granted, such
increase to terminate June 30 1920,
unless it is extended by proper Of
fetal action This increase to be
open to all companies operating sub
way, elevated or surface lines in
New York which accept this plan. so
far as it affects their respective
lines.
lin the case of solvent COM
panles the acceptance to be by the
corporations themselves by resolu-
ton Of their boards of directors. In
the case of companies whose prop
erty is in the hands of receivers. the
acceptance to be by the corporations,
by the receivers with the approval
of the court. and by the committees
of security holders in so far as such
committees have been organized.
Conditions for Surface Lines
1II-ln the case of surface lines,
the following conditions especially
applicable to them should be accepted
for the first half of 1920:
/. In respect of the lines formerly
embraced within the New York Rail
ways system:
(a) SO far as affects transfers and
public convenience. they shall be
operated as one system substantially
as they We're operated by the New
York Railways Company prior to the
receivership, the fare to be 8 cents
with no extra charge for transfers.
b. No rentals are to be paid ex-
cept by way of maturing interest
upon underlying bonds held by the
public.
(c) No interest is to be paid upon
the first real estate and refundlng
mortgage bonds or the adjustment
mortgage bonds which are now in de-
fault.
Surplus on Betterments
(d) Any surplus earnings after
the payment of operating expenses,
taxes and interest on underlying
bonds as aforesaid shall be spent as
may be jointly approved by the
court and the public officials upon
additions and betterments, including
equipment, the aim to be to dstrib-
ute this expenditure among the var
rious lines as nearly as may be prac-
tcable in proportlons TO their contri-
button to net earnings. The balance,
if any, to be paid in satisfaction OF
or on account of tort claims in
Cured prior to receivership.
2. In respect of the lines formerly
embraced within the B. r. T. system:
(a) They shall be operated so far
as affects transfers and public CON
venience, as one system substantially
as they were operated prior to the
surrender Of the Brooklyn City lines,
the fare to be eight cents, with no
extra charge for transfers.
No Rentals To Be Paid
(b) NO rentals are to be paid, ex-
copt by way of maturing interest
upon underlying bonds held by the
public
Co No interest is to be paid upon
the certificates Of indebtedness is
sued by the various surface lines COM
panics.
Cd Any surplus earnings after
payment of operating expenses,
taxes and interest upon bonds as
aforesaid shall be spent as may be
jointly approved by the court and the
public officials, upon additions and
betterments, including equipment.
the aim being to distribute this cx>