New-York tribune., 1919-12-29

cPCiotthk 0IlUcI COuJIdCLSs
limited in duration, which provide
city of all the power plants, equip
ment and other property used in the
operation Of the lines
8. The Manhattan elevated lines
to be dealt with in accordance with
the general principles herein set
forth in such manner as investiga-
tion and conference may demonstrate
to be just and practicable.
4. In the case Of the surface lines
in all boroughs. provision to be made
whereby their perpetual franchises
should be exchanged for limited
franchise for definite number Of
years, with provision for the acquisi-
ton by the city upon the termination
of the franchises of the power
houses, equipment and other proper
ties required in the operation of
these lines.
The period of the new franchises
could be the same as the Mne"pircd
portion of the subway contracts or
even shorter period. If there
should be any cases in which such
surrender would be impracticable,
then provision may be made for an
nual payments out of earnings into
fund by which the city may ac-
qulre the lines at the end of a desig-
mated period
.. Under the existing subway con-
tracts between the companies and the
city the leases to the companies ex-
pre- IN fortynine years after the
commencement of operation of Ger
tam named lines. The time has be-
gun to run IN the case of the Inter
borough, but not in the case OF the
q. r. 1. If the sinking fund for the
ponds provided for in the two con-
tracts should be earned and paid the
bonds which represent the invest
ment of the companies in the city
owned lines would be retired out of
earnings in about thirty eight years.
Thirty-cight Year Period Suggested
A suitable provision could be made
for the amortization of the re-
malnder OF the companies invest
ment within the same period, and
the question therefore arises, and is
a proper one for discussion, whether
under any new arrangement it
should be provided that all fran
chises should fall in at the end Of
thlrty-eight years instead of at the
end of forty-nne years.
6. In the case Of the Brooklyn ele
waited lines which existed prior to the
contract and certificates Of March 10.
1913, provision may be made either to
limit their franchises so that thew
Will expire simultaneously with the
expiration of the term Of the oper-
atlng contract as provided in Con-
tract No. a, or, if for any reason such
n trn nr,o CT, Il L..
Bile. for annual contributions out of
earnings toward a fund for the pur-
chase of the property at the expira-
ton Of such period. The period in
which the elevated extensions NAV
be acquired by the city might also
be shortened
7. Subject to provision for arrears
Of interest, the Interborough and
Brooklyn Rapid Transit companies
TO waive any accumulated preferen-
tails which have accrued up to Jan
uary |, 1920, in excess of accrued
fixed charges, so that the city may
from that date have the full benefit
of any new plan for the division of
earnings.
No Adjustment of Preferentials Now
1t is manifest that beyond these
provisions no intelligent determina-
tlon can be made at this time even
IN a provisional way. as to the extent.
if any, to which the preferentials Of
these companies should be readjusted.
s. The various surface line COM
panies whose lines have been leased
by the New York Railways Company
or by the Brooklyn Rapid Transit
Company, or any of the corporations
controlled by those companies should
agree in principle to accept some
other form Of security fairly repre-
senting the value and earning ca
pacity Of their properties.
9. The corporate structure Of the
companies should be simplihed so as
10 eliminate holding companies wher-
ever possible, and in those cases
where because OF legal necessities
holding companies are retained or
created. then such companies are to
be subject to the jurisdiction Of
public bodies in the came manner as
public utilities are thus subject.
10. In case the public authorities
SO desire, the companies should ac-
cept the principle that the lines be
consolidated in the ownership of
one or more corporations upon a
proper basis for the distribution of
securities in accordance with the
values and earning capacities of the
various properties.
II. Provision should be made for