The sun., 1919-01-25
UNIFIED TRANSIT
SYSTEM URGED
City Club Sends Letter to Hy-
Ian Suggesting Solution
Of Problem.

The City Cluo sent Yesterday TO Mayor
ter signed by the president. Nelson &
Spencer. in which the club contends that
the proper solution OF the transit prob
lem here lies not in increased fares but
companies of new franchises, under
which they wouln agree 10 operate as one
company and tho municipal government
would Ca~cel paving and special charges
and permit the dlscontlnuance or re-
duction II service on certain lines
The letter was based on n careful study
Of the situation made by the committee
on public service Of the City Club The
committees members are: Henry G.
Wright, Or, Deloe F Wilcox. John r.
Fox. Harry c.. Friedman. Charles v.
HALEY, Jr., and Milton II. IRnatus.
The committee came to the conclusion
that IL additional ne, income is neces-
cary II can be obtained only through one
or more of the following methods A
reduction IN operating expenses. re-
duction in hxed charges, an Increase in
gross revenues, and reduction in taxes,
i>av!ng Obligations and other public
charges. or through direct subsidies from
first solution the letter says at seems
probable that the costs OF labor and ma
terials entering into operating expenses
will be permanently higher than during
the p-e-war period"
"A reduction in operating expenses"
the communication continues. might be
brought about by the elimination of un-
essential competing lines and by the re-
routing OF other lines So long, however
as there Is multiplicity OF operating
and owning companies such q solution
does not seem practicable II consolida-
ton could be brought about. marked
economies In operating cost could I'M
douhtedly be effected.
Fixed charges car he cut down orey
by reduction in the amount OF interest
and guaranteed dividends and rentals
which must be paid. 1t Is highly i'm
IN fixed charges could be brought about
by voluntary agreement"
The letter then takes uU the plea for an
Increase In fare. reaching tho conviction
that American experience is practically
unvarying that an Increase in faye
does not result In a proportional Increase
In revenue"
MANY cities In the United States"
Il Is pointed out. have increased fares,
particularly during the last two years
In some cases even the gross earnings
have not been Increased; In others, al
though there was an increase In earn
ings, this increase was no larger than
II would have been at the former rate"
To support this contention quotations
are given from report OF the Public
Service Commission of Massachusetts TO
the special street railway investigation
commission on November 2s. 1917, and
another by the New Jersey Board OF
Public Utility Commissioners on Deem
her 3. 1918, Both these reports in
dicated that the weight OF experience Ia
against an increase. and In the case OF
New York, the City Clue nolds. the
financial ends desired by the companies
would not be fully attained. while the
social ends desired by the city would
be defeated"
1t is then proposed that the city and
State through legislative and possibly
constitutional changes cancel the taxes
and charges for repairing pavement ad-
joining tracks and removing snow near
them and relieve the lines of an an
nual burden OF at least ss.000.000. on
the other hand. II transit cannot lie
put on a self-sustaining basis the city
should furnish a subsidy through tax
levies similar TO the bounty Of $4,000
paid yearly to the Brooklyn and Man
haitian Ferry Company. With respect
TO a modern franchise for the companies
the letter says:
Some OF them are to-day In the en-
joyment of perpetual franchises granted
many years before the public was
awakened to the vital wrong inhering
In the policy granting perpetual street
franchises to any corporation. A seri-
Gus and continuing public Injury is
worked by the companies ownership of
these perpetual franchises"