New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-02


moss of theig ab.Iity to Aale tie new
enterprise i4n~ac;a.. cceAclaic and
civic success.
matters were plosrcss .ae- are.y and
lust pricr 20 the ently CT this country
iillp us fysT i decentralization OF NC
carrie estimates o. inc probable earn
n@ Dc,.~. Il me new vei4ture warrant
Cd the conclusion that Tie deficits dur
ing Ana leai pefiod Immediately fol-
owing - c~on;ng u the completed
new ss'4eo.A Nou.G be about one third
Of the amoaat originally anticipated.
Then canu. the Tax. The costs Of
everything mounted higher and higher.
l. became necessary, il order to com
34cto lie Interchangeable part OF the
CO.. tfaocs, To raise about $50 900 900 in
addition to the 100000, 600 originally
borrowed. This was doEc In 1913 by
Il snort term rote issue secured by
Sol 10000 OF the first and refunding
mortgage bonds as cola .crai
Operating Costs Scared
...s. OF course, Increased greatly
the liked charges payable for interest
and sinking funds. But, in addition
operating costs SCARED. Wages ard
inatorials wer on war basis in COM
petition with governments having the
taxing power Of the world and ready,
n order to win the Wa, to pay cx.
tgavagant prices for labor and ma
this day, and it is under such circum-
stances that we commence the term Of
the lease OF January !, 1919.
I'm view OF the interest Of tho city
and its taxpayers in the mater, it
seems incumbent upon the company
again to advise YOU, So the taxpayers
repre- scntatives, Of the serious situa-
ton confronting the dual subway en-
terprisc.
"rhe Peterborough had accumulated
a cash surplus OF S1O,000,00O out OF
which TO take care Of operating losses
during the lean years heretofore men
toned. Had it not been for the war
such a sum would have been ample.
with a tive-cent fare. But it is no
longer adequate, and it is rapidly be
ing exhausted.
"t'or the year ended June 80, 1918,
there was a deficit Of subway earnings
OF $620. t3S ard of elevated earnings OF
s2306,SlS. compared with the amounts
the company was entitled to re.>tte
under It's contracts. These deficits are
interest compounded semi-annuslly. be-
tore the city is entitled to any share
in either subway or elevated earnings.
Outlook Grow, Worse
"For the fiscal year ending June 30.
1919, the outlook is much Worse. Based
on the actual igurcs for the four
months ended October 81, 1918, the
trend indicates, thai on June 30, 1919,
the deficit under the subway contract
.ll oq T3'rs 80 AZ Az oo o0e ~ +otsl
."'su ~ e.. 80 &c 900 ooo ,l,o.I
aeciua' iVN cue sea' u 70'oo0.v0o s't 80
OF INC e''$ risnC 20 ,o; !" re1ur. :or .mt
car S,lucu . D'le ~. =" H. - 0''.2 49,
DC aodea inc accrua.S VI lasv sesi, 80
NAV t!1e a@Rrega'e sun"ay accEua's as
CT Suno 81, - ~ MisAoue 'tl.qies., W.
pc HA'0oI'aoc' ana thH e'sva ,No 9 accru"iS'
also Wl'n no ~ I.'oeTes'' T''A'0'0A0' VI
lo'al o. 9l-' - oo'@oo'
"As il IS probable tnat the years 1870
and 1921, with tlVe-cent fare, VIII
accumulate arrears as large as, if not
larger than, 1919, it is apparent that by
juno 80, 1921, the accruals ahead Of the
fights Of the city will aggregate $50
100000 How long this accumulation
of arrears Will defer the receipt by the
city of any interest on its own enor-
nous investment is difficult TO predict,
Lut it would not be surprising il that
period Of pogtponemcnt should be not
less than ten or twelve years.
"T, INV, event. +ho accumulation must
no ,,a; ~" o,,. ~ nsrr,;.,os hagors The citv
viii p hocon,o entitiad 70 snv return.
..17o, w. NV ,hrae vears II the faro
,o'a;,, ~ f, VIZ conts tSe XIV will have
~ o''ra a =. q h., ..a4;n, on accoun+ of in
~ a"4'o ~ s;nS;nm srMd ~, its ;Nrest-
90 Nliu ~ - .La.o,,..,, srhu,a,~r
s'1"s u, ror sas mo- s s13oOO ooo
d 1ur;T ,s+ nsr;oS ;ryesnectve Of no
our'ne ma. pel.ou' te' honds
'e re V'l ',to 10y ?onra Doa' a. soh+
orts me ,an ~ ,r lt.t; ,l, rot oSl