New-York tribune., 1919-11-22
g. Gent Fare
Is Not Enough,
Say Experts
Even With Two Cents for
Transfers, B. II. T. Could
Not Pay Fair Return on
Value, Court Is Told
More Capital Is Necessary
Copy of Report Sent to City
Officials and Others Inter-
ested by Order of Court

The Public Service Commission yes
tcrday denied the application of the
Brooklyn City Railroad for. permission
to charge a ten-cent fare on the Flat
bush Avenue line. Attorneys for the
company Immediately started action to
obtain a writ of certiorari to review
the order. thus bringing the case into
the Supreme Court
Federal Judge Julius NJ. Mayer made
public yesterday a report drawn Up
by Stone e. Webster accountants, urg-
ing an eight-cent fare, with an ndd-
tlonal two cents charge for transfers,
as the solution OF the financial diff
culties of the Brooklyn Rapid Transit
Company.
In this report the following conclu-
slons were drawn:
!. Unless there is an increase in
ares the operation OF many of the
surface lines eventually will have to
be discontinued because Of their fail
are to earn operating expenses and
axes.
2. Nothing less tnan an Scent fare.
with charge of 2 cents for transfers.
Will provide q safe margin Tor the
operation of the surface lines as one
system, with reasonable provision for
lpkeep.
Eight Cents Not Enough
). Even an Scent fare will not yield
fair return upon tho actual invest
ment III the surface lines or upon
5hell reproduction value. For that pur-
pose higher fare would be necessary.
4. Without increased fare the
rapid transit lines will not be able to
sarn even the fixed charges upon the
lnderlying bonds aggregating S22 ,967,-
900. and the notes, bonds and receivers
certificates, together aggregating S73-
o,0OO, which represent fresh capital
provided for the rapid transit lines
subsequent 10 March 10, 1913, the date
Of Guy Contract !, to say nothing
ot the S14,654,794 OF certificates of
Indebtedness, representing but small
oart of the cost OF the elevated lines
contributed by the company to the
rapid trarsit system.
5. 1t will take an cight-cent fare to
cover the company's preferential and
provide q substantial return upon the
city's investment Cincludinp cost of
completion) of more than $3.50, 100000
in the city-owned subways, although a
seven-cent fare Will yield a surplus
above the company's preferential and a
somewhat large surplus above the fixed
charges.
Additional Capital Necessary
8. Neither the rapid transit lines nor
lhe surface ilnes can be permanently
maintained and developed by the oper-
ating companies without an assurance
OF sufficient earnings to justify the in
vestment Of the additional capital that
VIII from time to time necessarily be
required to keep up with the increasing
demand. OF the traffic of the city.
In memorandum appended to this
report Judge Mayer said it is plain
that tie receipts .Or the current hscal
year would not be sufficient to pay the
operating expenses aNd taxes on the
surface lines, and won d fail far Wv short ["t
OF paying the prefercntials, either to
the city or the investors in the COM
pany.
There are, Of course. many sides to
the problem" continued the court, dis
cussion of all of which need not now be
repeated. but there Strc some features
peculiarly applicable to the Brooklyn
Rapid Transit system and territory it
serves to which attention may be called.
Disintcgration due to lack of
funds is necessarily followed by han
hazard results of great disadvantage to
those who happen to live within the
zone OF dlslntegration. But disintegra-
ton is bound to take place where there
is not sufficient income to support 81
cohesive uified system of transporta-
tion.
go The crowded condition of the
city makes it desirable for every rca-
son that the outlying districts should
be made attractive to as much of the
population as possible If some of
these districts are Disseminated
against, as they must be, if disinte-
grafton takes place and the roads are
operated separately with fare to
be paid on each, then such outlying
districts are at a great Disadvantage
and development OF the city is re-
tarded, all of which would be avoided
If there were a unified system operated
with just fare which would not
discriminate against any of the outly
ing districts of tha various boroughs."
Judge Mayer deplored the fact that
the shortage of funds had been holding
up the payment Of damages resulting
from the Brighton line wreck of No
vember /, 1918. In conclusion, the re-
ceiver of the company was instructed
TO furnish copies of the report to pub
lie officials and civic organizations
which wish to verify the facts pre-
sented.
Police Commissioner Enright ap-
pearcd yesterday before the grand jury
IN Brock 'yn to explain why the muni-
clpal buses were allowed to run in
Brooklyn without licenses. District At
torney Lewis was in consultation with
the grand jurors
Grover A. Whalen, Commissioner of
ant and Structures, notified Mr.
Lewis that he was unable to be present
owing TO an engagement at Piping
Rock with the Prince of Wales. He
arranged to appear before the grand
jury on Monday.
WaIen Says Bus
Limos &In,r f.4