New-York tribune., 1919-12-29
Federal Judge Recon-
mends Companies Ap-
peal to City for Relief
Until Plan Is Adopted
City Ownership
Meets Opposition
Detailed Program Sug-
gested, With Flexible
Rate After the Change

tlon of the local traction muddle.
which he deems "too important for
thoughtless or irrelevant controversy,
personalities, abuse or appeals to
passion" Judge Julius M. Mayer has
filed memorandum in the Federal
Court directing the receivers of the
bankrupt roads to call upo2.athe Board
OF Estimate for a public hearing.
Embodied in the memorandum,
which Was filed late Saturday after
noon, are detailed plans carefully
drawn by Judge Mayer suggesting
methods of relieving the situation. He
recommends incntased fares and
frowns upon the talk of municipal
ownership q
NO matter what may be said for or
against the wisdom of ultimate mu-
nlcipal ownership and operation" says
Judge Mayer, "it is clear that munic-
ipal operation in the near future will
be impractcable. 1t is matter of
common knowledge that the city is
perilously near, if it has not actually
L.
possible machinery whereby the city
can take over the traction properties
without the investment of large sum
of money"
Eight-Cent Rate Urged
Judge Mayer recommends that the
fares on all subway, elevated and sur
race lines be raised to 8 cents for
period running until June 80, 1920
At the end of that time, if Judge
Mayors plan for permanent rcadjust-
mcnt between the city and traction
companies is ready to be put into force,
the eight-cent fare will be dropped and
a flexible fare" which will huctuate
With the change IN earnings of the
companies, gill be established.
"ln the absence OF financial assist
ance,' says Judge Mayer, "a default on
January l 1920. by the Interborougn
Rapid Transit Company IN the pay
ment Of the interest on it's obligations
seems inevitable" More than SO ,0OO,-
900 in cash is required to pay this in
terest. From the reports at Judge
Mayors disposal the condition of the
other traction companies is about the
same.
Facts of Situation Here
$50 that before approaching sugges-
tions for the solution of the problem, y
continues Judge Mayer, "these under
standablo facts may be summarized:
|. The Brooklyn Rapid Transit
system, subway, elevated and surface,
in receivership.
?. New York Railways Company in
reccivership.
g. Interborough Consolidated Cor
poration in bankruptcy.
A. Surface lines in Manhattan and
Brooklyn disintegrated, with extra
fares, largely decreased transfer
points and some important routes
temporarily discontinued.
B. Interborough Rapid Transit
Company short more than $3000,000
in cash, which must be provided to
meet its obligations on January /,
1920.
6. No solution Of any kind as yet
arrived at.
"In this last connection it is but
proper to state that conferences of a
most earnest character have been had
during many weeks with Commissioners
Nixon and Delaney in respect more
particularly of the rapid transit stu
alton. AS Commissioner Delaney has
certain powers and duties in relation
to Contracts Nos and A, the receiver
Of the Brooklyn Rapid Transit and the
president of the Interborough Rapid
Transit Company and their counsel
have discussed with the Commi ssioner
suggested bases Of settlement, and the
court desires to make it plain that,
while there have been differences in
point of view as to some features, both
Of these state officials have Indicated
the fullest appreciation of the gravity
Of the situation and their desire to
bring the problems to conclusion"
No Constructive Result
After reviewing the traction situa-
ton for the year Judge Mayer said:
Unfortunately out of all the events
and all the discussions of the past
year there has not yet come single
constructive result of permanent
character, and the final solution of the
vexed questions involved seems at the
moment as far off as it did on Decem-
Der 81, 1918, and while these ques-
tions await solution the public and the
investors SuUeT, Will HO lululculdte
prospect of relief"
In discussing the costs Of operation,
Judge Mayer continues:
"The extent and suddenness Of the
increase of operating costs and the de-
crease in earnings on the traction
properties of New York may be shown
by few startling figures. The Inter-
borough Rapid Transit lines, which
earned a surplus above all fixed
charges of $S,885,359 in 1917 and $4,-
G62, ,759 in 1918. suffered a deficit of
S3,S1O,339 in 1919, and the estimated
deficit for the year ending June 30,
1920. is SS,77S,00O.
The Brooklyn Rapid Transit lines.
which in 1913 earned a surplus above
liked charges of 81 ,546,95l. suffered a
deficit of Sll7,O30 in 1919, and the es-
Jimated deficit for the year ending
June SO. 1920, is 1,354,000
Surface Lines Lose Heavily
The surface lines OF the New York
Railways and the B. r. 7. systems,
which during the year 1917 earned an
aggregate surplus above operating ex-
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