New-York tribune., 1919-08-04
Nixon Suggests
Flexible Fares
On City Lines
Service Commissioners for
Rail Merger, Abolition
of Holding Companies
and Limited Franchises
Need for Cooperation
Wants Relations Between
municipalities and Car
Syste e m Readjusted

Public Service Commissioner Nixon
yesterday offered suggestions for the
improvement Of the transit situation,
which he described as ntolerable. He
would merge all subway, surface and
elevated lines, the abolition Of inter-
company leases and of holding COM
panies, the limitation of franchises,
representation of the city on all di-
rectorates and flexible fare" Those
persons were deluded, he said, who be-
lieved that transit lines were ready to
fall into the hands of the city or that
the city would be able to operate them
more economically than their owners.
( There was need for readjustment in
the relations between municipalities
and railroads, he said; cooperation
must succeed conflict. flexible fare,
varying with conditions, ne thought,
would give both city and investors
fair return and enable the city to take
came. At present, he declared, the
ability of the lines even to meet the
needs of and protect their. passenger
service was suspended or threatened.
Solution Is Outlined
"My study of the question:" he said,
confirms my earlier conclusions. From
the viewpoint of the city, of the public
and of the investor, the solution OF
the present emergency must be along
the following lines, which in the main
repeat the views | have heretofore
stated.
"1-Each of the present transit sys-
TENS to be simplfied by the consolida-
tion or merger of the constituent COM
panies into one railroad corporation.
"Of course, it may be found desirable
to have separate corporations for sur
face railroads and rapid transit rail-
roads, respectively. Personally trust
to see such steps taken as will insure
one corporation only with which the
city and the commission can deal, but
this is a detail.
"2-All holding corporations, so
called (not railroad corpora tions) to be
abolished.
"3-Leases of roads to be terminated.
"4-Perpetual franches to be changed
to franchises limited to fixed periods
within city charter limitations or to
what are known as ndeterminate
franchises.
"5-Values of properties to be agreed
upon or arrived at by such means as
will leave them unquestioned.
"6--The city to have the option of
acquiring the properties within a fixed
period at the agreed valuation plus the
cost of additions, extensions and i'm
provements. CIT may be desirable to
provide for amortization Of purchase
price out of earnings.)
"a flexible fare to be established
whereby fares shall be automatically
adjusted to meet the cost of service,
together with reasonable return both
to city and investors upon the agreed
fixed valuations and upon the cost of
additions, extensions and improve
ments. The variation in fare to be
secured mainly by maximum and mini
mum limits in surplus fund. the op-
Grafton of which shall be so simple ,
that it can be taught to and understood
by the pupils in our public schools.
"8-The city to have representa-
tive on the directorate of all COM
panies.
"If the transportation companies arc
disposed to take up this matter along
such lines, am prepared to use all my
official power to bring about a salts
factory, and, it is to be hoped, a per-
manent settlement Of the whole situa-
tion.
"1f the corporations consider their
situation as bad as represented, it
should be possible to work out an
agreement along tne ABOVE lines With
out too serious delay.
Contract Problems Solvablc
"Difficulties, of course, will present
themselves in connection with the rapid
transit contracts, but they can be over
come. Legislation may be necessary to
empower the city to act, but with all
parties in agreement this should not
be difficult to secure, provided it be
fair and equitable settlement, advan-
tageous to the city, protective of hon
est investment and serviceable to the
public. Other cities facing similar
emergencies have entered INTO some
what similar agreements.
The very ones who have been most
bitter in their announcement of tran
sit contracts can find in the present
situation New York's great opportun-
ity for the permanent settlement of
its greatest problem directly in the
public interest.
"As regards the changes in transfer
arrangements, they have gone very
easily into operation, the common
sense of the people being perfectly
able to understand the necessity
which for a time put the travelling
public to much inconvenience"