New-York tribune., 1919-08-15
Commissioner Tells Federal
investigators He Fears
Company Cannot Survive
Crisis OH January l, 1920
Higher Fare Imperative
Predicts Eventual Munich
pal Ownership Despite
Colossal Cost TO City
Ne,r York T r,b,tne
Uu . l. ,atntnt. I2nrcntt

T.
ship for the lnterborough Rapid Tran
sit Company of New York and eventual
municipal ownership of street railway
properties there were predicted by
Lewis Nixon, Public Service Commits
sloner of New York, in testifying to-
day before the Federal Electric Rail
way Commission.
MIR. Nixon also declared that the .
cent transfer charge recently inaug-
urated IN the greater city upon an
order signed by him had not been un-
popular, although it is being opposed
vigorously.
In reviewing the history Of the vari-
GUS companies Mr. Nixon declared that
the United States government holds
S11,000.000 OF the S57 900 900 worth OF
the Brooklyn Rapid Transit stock. Pay
ment OF large dividends by the Brook
lyn Rapid Transit, he said, was respcn-
slbie IN measure Tor us present stu
alton. The lnterborough, he added has
been more conservative IN its manage
n.cnt and was able to pass July | with
out recelvershlp.
Fears Crisis January
Il very much fear. however, that it
cannot pass the first Of the year. Mr..
Nixon said.
The recent strike on the Brooklyn
Rapid Transit, Mr.. Nixon said, brought
about an "intolerable condition.
More relief than that afforded by
the recent two-cent transfer charge
must be given the roads. but it has
not been determined what form this
relief shall take, Mr.. Nixon said est-
mating that the two-cent transfer
charge VIII raise S750,OOO in Manhat-
-an and $1,250,000 in the greater city
q month.
We now face the necessity" he
continued, "of bringing about more
returns for the lnterborough between
ROW and January /. How this can be
done has not been determined.
One difficulty which the city officials
and the commission face. he said, is
that many Of the contracts call for
tve-cent fare.
Must Increase Revenue
How we can bring about a change
IN these contracts must be deter
mined" he said "If we are to escape
the consequences of receivership there
must unquestionably be notifications
which Will bring about further re-
turns"
Under the straight fve-cent fare,
their highest state of efficiency, andjt
was with extreme regret that Ne
transfer charge was put in
Mn Nixon pointed out that the great
est number of passengers in New York
is carried each day between Fifty-ninth
Street and the Battery, which totals
only one-fortieth of the entire space
occupied by the greater city. Two
billion passengers are carried in the
't,- j i
increase yearly is SO000,OOO.
During the war this dropped, how
ever, until in 1917 there were 2O,OOO.-
OOO less persons carried than in 1914
Now traffic IS surging back, he said.
Might Cost ss0oooo,OOo
MI. Nixon declared that although the
city government of New York is com
mitted TO municipal ownership of the
car lines. which. he added. might be
for the best, this is not possible at
present chiefly because the city can
not afford to buy the lines at cost of
from S600,000,000 to $500 900 900
Mr.. Nixon said that it was not ex-
actly true that the lease charges paid
by many of the New York companies
were "cxorbitant" He explained that
in many cases the lessees had doubt
less put many millions into the com
panles to get them in efficient oper
ating condition. Mr.. Nixon urged the
institution of some sort of state board
which would examine this whole ques-
ton Of leases and be able to determine
what lease charges were fair and what
were eXorbitant.
He also favored some power which
would limit the amount to be distrib
uted by railway companies as dividends,
cN RI hi,c I'M, 10 inr, cf
a reserve fund o tide the companies
over rainy days.
Twenty Miles for Cents
Mr. Nixon also went into the theory
cf transportation under the conditions
Of congestion faced in New York. He
estimated that the tendency was for
the population to distribute itself over
q territory where no one would be more
than an hours travel distant from his
place of business 20 his home.
'ln New York we now carry passen-
gers twenty miles or more for five
cents, against higher charge for the
same distance by the steam railways"
he SAID. But so rapid has been the
Improvement in electric railways that
it is possible the area of dense activity
in New York may be greatly extended.'
Commissioner Nixon recommended d
adjustment of the fare to meet the
fluctuations of the cost of service. Re
garding the projected abandonment Of
the Twenty-e eighth and Twenty ninth
street lines in New York, the Pelham
Bay line and the bridge line, the New
York Commissioner admitted frankly
he saw no way to prevent this with
drawal Of service
Mr.. Nixon described the INTERIOR
ough's condition as Sweeping along
to crisis"
Flexible Fare Solution
What is the prime reason for all
the difficulties in New York" asked
Chairman Elmquist.
"The increased cost Of labor and ma
terials," said the New York Commits
sioner, adding that aex bic fare plan
might solve them.
The real diKculty. however," said
Chairman Eimquist "is the franchis Sc
limitation on fares"
Yes, the constitutional fare"
"W ould you be able to operate all the
New York City lines under a fve-cent
fare if they We're all consolidated ?"
'No," said Mr.. Nixon. "Consolidation
would possibly save some salaries, but
this would be very small compared
with the expenses of operation"