New-York tribune., 1921-04-14

cd so as to make 1t conform to this
plan. If it should become necessary to
foreclose the new mortgage a similar
new m mortgage is to be executed by the
new company and bonds secured there
by are to be issued in exchange for the
present bonds Of the Interborough
company.
The lines of the Manhattan Elevated
Company are to be vested in the city.
subject to the company's Indebtedness.
and are to be leased to the new operat-
ing company under a lease and con-
tract similar to the amended lease and
contract covering the subways.
The new company is to issue its
stock in exchange for the stocks of the
lnterborough company and the Man
haitian Elevated Company on the basis
of the capital value of their respective
properties (fixed as above provided) in
excess of the indebtedness assumed.
The Surface Lines
a. The various surface lines are from
time to time to be valued as above pro-
vlded and to be taken over by the citv
and leased to the operating COMPANY in
the same manner as the Manhattan
elevated lines. In many cases. prob
ably, the debts of the surface lines
would exceed the capital value of their
properties and the whole of these debts
could not be assumed by the new COM
pany. 1t is probable also that some of
the surface lines cannot be operated at
any profit and that they are not really
needed to, serve the public. Such lines
should be abandoned and the rails
taken up. Other surface lines NAV not
be capable Of operation at a profit but
are needed to serve the public. In such
cases the city should have the right to
take over these lines at a price based
on their scrap value, approved by the
Public Service Commission or the
Board of Adjustment, and to lease
them to the new operating company.
the latter being protected against loss
by the provisions of paragraph 6.
b. X. T. Reorganization
5. The Brooklyn Rapid Transit Com
pany is to be reorganized as follows:
ihe lease and contract relating to the
company's subways is to be amended
ana to be vested in the new operating
company on the same basis as the lease
ana contract of the Interborough Rapid
transit Company. The elevated and
surface lines of the BROOKLYN Rand
transit Company are to be dealt with
IN the same manner as the other ele-
waited and surface lines
(6) At the outset the new onara+;ru
company is to charge 5-cent faro an
ar ilnes taken over by it, subject to
such transfers as may be prescribed
by the Public Service Commission.
However, it is to be the duty of the
Public Service Commission to Increase
the o-cent fare whenever this may be
necessary to enable the new comnanv
&c earn and pay its taxes. interest and
sinking fund charges and. saw. 6 ner
cent on the portion of the agreed can
ltal value, (tixed as above provided) of
It's properties represented by its out
standing shares Of stock. If in anv
year the earnings should not be suf-
hcient to pay these sums the def
c'ency should be made up out Of future
earnings and the fare should be ad-
Justed accordingly. If there should be
surplus this surplus should go to
the city to be applied against the in
terest and sinking fund charges OF
the city upon all indebtedness hereto
fore OR hereafter incurred by the city
Tor the construction of traction lines
leased to the operating company.
Upon the application of the city
fares should ba increased by the Pub
lie Service Commission from time to