New-York tribune., 1921-03-30
to Sign
Traction Bill
I'm u Hours
Continued from rapc one

in reaching solution OF the transit
problem
We realize he said that the
transit situation in New York City has
been drifting for a number of years,
that thoroughgoing investigation
is necessary. and that there is need
FOR working out a careful, com
prchcnsive and constructive plan. We
are ilrmly convinced, however, that
whatever.m may be the law Of the case
this is local problem-a problem local
to New York City-and that we can
not get safe and permanent solution
without very large measure of local
cooperation, and we think that local
cooperation should be based in the last
analysis upon local consent
Corporation Counsel O'Brien in re-
lteratmg previous assertions that the
measure violates the state and Federal
that the measure will be upset by the
courts.
"Ihe whole thing" he continued, dis
the most audacious plan ever outlined.
! can't imagine in whose brain it found
Its birth. Such a measure can never
succeed. 1t will not only fail by reason
OF Its inherent error, it's violation Of
the principles of law and justice, but it
Will fail because there won't be public
confidence behind it. You cannot have
the public officials of New York City
back of it, either of the present or any
future regime"
Mr.. McAneny, who was member Of
the Board of Estimate when the dual
contracts were signed. then opened on
behalf of the advocates of the measure
McAncny's Plea
Mr.. McAneny said that a false eco
nomic view has been put forward in
the controversy and went into q de-
tailed accounting of the transit stua-
tion in New York City. He said that it
is necessary to keep on building sub
ways, but that it will be difficult to
lind investors, in view Of the fact thnr
transit bonds they paid $97 for five
years ago are worth but IS to-day.
ut is not too much to say" he de-
clared, chat if the policy that deals
with such investment in this manner
is not permanently changed any hope
that may be entertained for enlisting
private funds in subway building in
the future must be abandoned What
IS even worse, the credit of the city of
New York itself is absolutely locked up
in the situation. As VIC all know, the
city cannot borrow in excess Of 10 per
cent OF the assessed valuation of its
real estate. That limit cons.ructively
has already been reached
when it comes to the question or
remedy, as we see it in this bill. no
selhshness shall enter into the deter
mination of what the fare shall be-" he
continued.
"When the time comes that fare shall
care not only for the operation of these
roads and the payment of the city rent
ais and the payment Of the money to
those. who loaned money for these en-
tcrprises, but beyond that there shall
be strict limitation of any further
earning to a figure that we shall cal!
minimum. 1t has been said that this
is scheme to enrich the operating
companies. | have seen the figure set
from S60,000,000 to S1CO,00O,OO year.
The fact is that the railroads can get
nothing more out of this plan than they
get to-day, with the single exception
possibly of the bankrupt surface lines.
which, however, could get nothing more
than the sum that represents the inter
est upon the appraisal of their physi-
cal values. 1t is not only wrong, but
1t is almost criminal that such crv
should be raised against such plan
for the relief of such a condition."