New-York tribune., 1920-03-03
cessions from tho companies, should
not be considered under any circum-

cessions from tho companies, should
not DO considered under any circum~
stanecs.
Perpetual franchises for surface
lines. should be abolished. The se.
curities should hc refunded and based
on q fair nppraissl Of the properties
and amortization should be provided
TO vest title in the city after COR
tain term Of years.
"a flexible cost Of service fare
should be established, controlled by q
surplus fund, and confederation
should be given to the remission Of
taxes and paving charges because all
expenditures are reelected in the
fares charged
Cost of Service Plan
Commissioner Nixon suggests six
months as the tentative period for
such a cost Of service fare. the re-
ceipts from which should be used only
for cost Of operation and maintenanca
and not one cent for dividends Of any
nature. AT the end Of six months the
fare can be determined for the next
six months. Tho reorganization plan
should include the modification of the
dual subway contracts.
The report says the situation in New
York City is different only in degree
and local conditions from that of all
other cities in the United States hav-
ing electric street railways, as all such
railways were hard hit by the war
costs. Speaking Of the effects of the
war and the lack of action by the
City of New York, the report says:
"As the result Of corporate extrava-
gance in the past and municipal mac
tion, the City of New York is now
reaping whirlwind in transportation
shortage, bankruptcy of companies $,
disintegration OF long established sys-
tens, double and in some cases triple
fares resulting therefron1, the absolute
stoppage Of several important lines and
the ever present threat of further de-
moralization and bankruptcy.
"Critics of the traction corporations
insist that the companies have them
selves to blame and should not be
granted increased fares. They point
to the large capitalization, extrava.
CANT leases and the huge dividends
paid in past years, and from these
considerations argue against higher
rates. Their conclusion is not war
ranted. The situation to-day Is that
many companies cannot continue oper-
alton unless they get more revenue.
New York City cannot get along
without it's street railroads, and gen.
cI al SuSpSlctOIi WOulU uS q CAlaIultys
The commission, however, is not in
favor of permanent increase in street
car fare.
"That is the actual condition-the
hard facts of the present situation. No
matter how much money was made in
the past, some of the companies have
no money now. The situation should
be met by the public authorities
must be met if a calamity is to be
avoided-by the prompt passage Of re-
lief legislation. If this commission
had been empowered to give adequate
relief I believe that the present situa-
tion could have been avoided.
"Now is the time to take steps to
guard the future. The companies dis
tress is the city's opportunity. They
will, they must, make concessions to
the city in return for permission to
raise rates, and if the municipal au-
thnrities would enter into negotiations
to that end I feel confident that the
situation can be saved. For months l
have endeavored to bring about such
NEGOTIATIONS but without success"