The New York herald., 1921-09-30

ownership by tho City. Such q course
win permit the general features OF the
plan 10 be carried out, but will add 10
the dificulties and tend to Impose a
higher fare.
Under the plan. ownership viii be ac-
auired by the City without financial
outlay on its part. Existing companies
viii turn in 20 the Consolidated Com
pany, and through it TO the City, all
properties and rights In return for new
leases which will provide for amortIza-
ton out of the earnings OF tho Con-
soiidatcd System OF the valuation fixed
by the Commission.
Consolidation.
Tho existing, separate systens to ps
consolidated at the start into thrce new
operating groups to be made up as fol-
lows
Group No. /. The subway anG elevated
railroads now operated By tho Inter
borough Rapid Traa=i. Company anc
leased by Il from the city and tho Man
haitian Railway Company.
Group No. :. The subway. elevated
and surface railroads now or formerly
IN tho Brooklyn Rapid Transit system.
Group No. 3. The surface railroads OF
tho Boroughs OF Manhattan and The
Bronx.
Tho surface railroads IN Queens and
Richmond. in whole or In part. to bo
al,ocated to Group No. or Group No. ).
as may be determined.
Bus lines necessary for tho logical Co.
ve.opment Of the unified system 70 -
created and allocated as feeders 10 tine
foregoing group. Where necessary or de-
sirablc. some OF the existing surface
lines may be TRANSFORMED into bus Ilaea.
All existing power facilities to &c con-
soiidated and operated for .he conii..on
benefit OF tho entire system.
Organization of " UniRcd system.
To pave the way FOR ;.,c evontual.
complete consolidation into ono system,
and to secure tho benefits o. private
operation under public control. the Tran.
sit Commission will cause TO be organ
lied four cvrpurottons-"a." B. C
and 3D. companics--each with a nom
inal number of capital shares.
"A" company VIII be the controDiuE
and financial company, aa6 general su-
porvisor of tho affairs Of b. C. and
ID" companies, which will! be eiclu,
siveiy operating companies. The shaIes
Of stock OF the operating companies will
be owned by ~ Company, whox
shares III turn will he Ecld l.: trust b.
the Transit Ccm:nissio:;, or by whal~Scr
body may succeed II.
b Company Viii operate lisGe; leasa
the properties emf: aced in t;.oap No. /.
"C' Company tie properties embraced
IN Group No. g. ard d. Company the
properties embraced in Group No. g.
Gsners! financial control and super
vision OF TIE c-.iro sy0lci1 will be lodged
in board OF co.tro which will also
constitute the directorate OF "a Com
papy. IL Will consist o. seven members.
:hc boards of directors OF the three op-
Grating companies. b." "C" and ~"
three by the Mayor OF the city, and the
seventh mGnoer by vote OF the other
six, or, in the event OK their inability TO
gree. then by the Transit Commission
or by whatever body may succeed IT,
Tho powers os the board OF control are
to be those os n financial nature, az
above Indicated. together with such other
powers % saps:visioa and direction as
may properly re conferred upon it by
ike contracts to be- entered into. 1t win
oc responsible TOR the distribution and
mar agement Of nj rne surplus revenues
q. the operating companies after pay
mont OF ;hei- nwn operating expenses,
viii. have solo c.:a-ge Of the issuing ct
all securities. will make all payments
for interest. ard have the custody ard
Of the amortization. con-
tinGent reserve. and other funds.
Tha functions OF the Transit Com
mission in respect to construction should
Continued on Follotoing Pace.