The New York herald., 1921-09-30

better facilities, or into the maintenance
Of reserves that conservative business
practice required, have been paid into
private pockets through swollen or
forced dividends. Beyond question,
many millions OF dollars realized from
nickel fares have thus been diverted
| from the purposes to which morally they
belonged. This was true ten years or
more ago in the case OF most of the
surface lines. almost none OF which has
paid any dividends since. 1t has been
exemplified strikingly in the recent poll
| Icy OF the Interborough Company. But
no amount OF evaporation about the
past will help solution Of the present
problem The years OF the war, and its
aftermath. with the consequent drastic
initiation OF every element of cost enter
ing into railroad operation, brought to
light the inherent financial weaknesses,
and put an end to what remained OF
profit taking. None OF the companies
has paid a dividend for three years.
with the exception of the Manhattan
Elevated Railway Company. the stock
holders of which are paid a fixed an
nual dividend In the form OF rentals
secured by the Interborough Company
lease OF the elevated properties. and two
or three others Of minor consequence.
Closely following the disappearance
OF profit payments upon stock. came
lapses In the payment Of interest on
funded debt, failure to pay taxes and
other public charges, and rapid growth
In the arrears OF ordinary current ac-
counts payable. The associated Brook
lyn companies, subway. elevated and
surface. upon an appeal of creditors to
the courts In December. 1918, and
shortly afterward the surface lines Of
the New York Railways in Manhattan.
passed into the hands OF receivers. The
Interborough system has been perilously
near receivership on more than one oc-
casion. and the time finally has been
reached when none OF the companies
with the single exception Of the Inter-
borough in its subway divisions
earning enough, even with restricted
service. to pay costs Of operation and
the interest on its debt.
In their effort to secure the means Of
continued operation, the companies were
turned toward indirect methods either
Of increasing revenue or OF reducing
expense.
Free Transfers Lost.
The findings OF the Commission with
relation to the results of this policy,
and the general conditions now prevail
ing, may be summarized as follows:
G) The surface systems. previously
unifed upon the basis of single fares
and the giving OF practically universal
free transfers, have been broken up.
Many OF the lines or parts OF lines,
deemed the least profitable. have been
discontinued wholly, while others previ-
ously run under unified operation have,
for lack Of ability to pay rentals. been
returned for separate operation to the
companies from which they were
leased.
(2) Except where required by law,
or by special franchise terms. the free
transfers between lines have either been
cut out altogether, or are now given only
upon an additional charge of two cents:
with the result that former five cent
fares in these instances have been turned
into either ten or seven cent fares.
OF the 1855 free transfer points main
tanned three years ago on the surface
Lines, 1.7S3 have been discontinued. and
that 227 Of those continued the two cent
rate Is charged.
In 1918, 1878. 0O2 free transfers were
collected on the surface lines within
total traffic carried OF 8s6.36, 667-tha.
is, a transfer was issued to one pas
senger out of each three. For the cor
responding year ended June 80, 1J2l.
s2 26SS 14S free transfers were collected
out OF traffic of g77.6O0 2oS. or one TO
each passenger out OF ten.
1t is difficult to reach definite esti-
mates of the added net revenue secured
by tho surface lines either through the
dropping Of routes or the elimination
Of transfers. but the accountants of
the commission figuring as closely as
possible from the data at their COM
mand. approximate the total at 100000
annually.
Train Service Reduced.
60 Both train and car service. upon
rapid transit routes as well as upon
the surface lines, has, in proportion to
the traffic carried, been materially re-
duced.
In 1918 there were 32s O0O, 900 car miles
operated for the accommodation of less
than 2.000ooO000 passengers. During the
year just past. with 2,5o0,000.OO0 passen-
gers carried. the car mileage had risen
only to 3A,O00.000. In other words. the
facilities within period Of three years
have been increased only s per cent,
while the traffic increased 2o per cent.
The cuts in service vary with differ
ent hours OF the day. and approximately
full service Is still furnished by the SUBJ
ways at least at the peak of the rush
hour. Upon many individual lines there
has been an actual reduction In the
old basis OF service. The average OF
the service, however. is most unsatis-
factory.
1t would be difficult even to estimate.
separately. the amount Of expense saved
by the companies through service re-
ductions. They admit that 1t has been
large, and continue to protest It's neces-
sity. But whatever the saving may be
It remains q poor offset to the cost Of
the time lost to individual passengers
in the tedious business of waiting for
trains and cars, and OF both time and
temper lost through the inhuman pack
ing OF cars, the congestion of station
platforms and the physical wear and
tear of daily travelling experience.
1. The physical properties of many OF
the companies, structures. tracks and
cars alike, In the absence OF adequate
funds for current repair work have
become badly run down, and in some
instances are unit for use.
The amount that It will take to bring
the postponed repair work to date. with
certain rehabilitations chiefly upon the
surface lines. was estimated at the
end of the year 1920 by the Public
Service Commission for the First Dis
trict in it's report to the Legislature
at si0.s45. 900. Revised figures showing
the growth of this item to date are in
course Of preparation.
). In addition to tho postponcment
Of current repairs to the properties In
use there has been a general lack of
provision for tho new structure, equip
ment and facilities required to keep I'D