New-York tribune., 1919-12-29
Judge Mayer Suggests 8-Cent Fare
To SAFE City's Traction Systems

penditure among the various lines
ms nearly as may be practicable in
proportion to their contribution to
to be paid in satisfaction of or ON
account Of tort claims incurred
prlor. to receivership.
Brooklyn City Company's Status
(c) 1t is recognized that in the
case of the Brooklyn City Railroad
Company, by reason of it's relative
ly low bonded debt, this temporary
plan furnishes smaller return "a
compared with its total securities
than in the case Of most of the other
surface lines of the b. R. T. system.
Some fair disposition can no doubt be
made of this situation.
.. No income is to be used in the
payment of other rentals or divi-
dends to stockholders.
a.. If deemed preferable by the
public officials. the surplus above
underlying fixed charges could in
whole or in part be paid into a sus-
pense fund. the disposition of which
would be determined by the ultimate
plan.
1nterborough Agreement
lN-Ihe lntcrborough Rapid Trnn-
sit Company to agree as follows:
(a) Its income, after paying op-
Grating expenses and taxes, to be ap-
piled to the payment of its fixed
charges, including interest on bonds
and notes and the payments under
the Manhattan lease.
CO.. The balance, if any. to be dis
posed of only on joint approval of
the court and the public officials.
YIN respect Of the subway and
elevated lines of the Brooklyn Rapid
Transit system:
he income, after the payment Of
operating expenses, taxes and inter
est on underlying bonds and receiv-
ers' certificates, to be applied as fol-
lows:
% An amount to be approved by
the court and the public officials to
be paid into a fund for the satisfac-
tion or reduction Of the tort claims
that accrued prior to the receiver
ship.
Remaining Earnings
(2) The remaining earnings to be
applied as follows: (a) The receiver
to retain the company's prefcrentials
as provided in Contract No. a. (b)
Inc city then to receive its preferen-
tlal under said contract.
g. Under the terms of the order
creating the receivers certificates 20
per cent of the earnings received by
the receiver must be impounded for
the security and payment of the re-
celver's certificates, the remaining 80
per cent to be available for cxpendi-
ture upon the property.
Nl-both the lnterborough and B
K. T. companies and the receiver of
the latter are to waive for the first
half of 1920 any right to have the
earnings for the half year applied
toward the reduction Of accumulated
arrears of their preferentias.
Temporary Arrangcmen,
VII The foregoing plan provides
for a temporary arrangement. in
cluding an increased fare, which Gun
less extended by the public officials
will end with the first half of the
calendar year 1920. 1t is hoped that
before then plan for readjustng
the relations between the various
companies and the city and plans for
the reorganization of such Of the
traction companies as are nsolvent
or require reorganization VIII have
been worked out and agreed 10 by all
the necessary parties. If this should
prove impracticable the extension of
the temporary arrangement for few
months more would be in the hands
of the public officials. to be dealt
with in their discretion.
Il is manifcstly imposs bic to pro-
pose in advance the terms of any
new arrangements for final solution,
as they will involve conference and
careful cons liberation. Nevertheless.
it is desirable to promote prompt
discussion. and to that end some gen
eral principles may be suggested.
Permanent Plan Diseased
Judge Mayer then goes on 70 outline
as follows the Fundamental princip es
OF permanent plan of reimbursement
between the city and the traction com
panies'
l. The city is entitled to secure
under fair terms provisions for the
ultimate surrender Of such perpetual
franchises as are now outstanding
and for the ultimate acquisition by
the city of all the traction proper
ties. When the city shall acquire
the properties, it will then have the
power TO deal with the question of
operation as it may deem best
. No new arrangements to this
end are necessary so far as the city