The New York herald., 1921-12-31
UNTERMYER URGES
OWNERSHIP BY CITY
At Aldine Club He Attacks
Hylan's New Scheme and
Transit Board Plans.
PUBLIC NOW is INVESTOR
Mayor Abuses Newspapers in
Letter to La Guardia on
His Own Project.


In a speech that carried criticisms
of the city administration transit pol
icies and that also attacked the fun
oamentals of the Transit Commissions
plan. althoughh praising the personnel
OF the commission. Samuel Untermyer
told 500 members of the Aldine Club at
luncheon yesterday why he favored
municipal rather than private opera
tion of New York's traction systems.
Mr.. Untermyer doubted that the
Mayor has read the Transit act or the
act creating the Port authority. TIe
characterized the Mayors policy of
wholesale scrapping of surface lines
as nothing less than senseless," and
the suggestion that bus service may
be substituted for the elevated lines as
simply preposterous.'
Mr.. Untermyer's chief argument for
municipal operation was that the city
already had embarked on a policy OF
municipal ownership--that 100000 900
of the public's money was invested in
the transportation system, and more
must go in. For the reorganiZat ton
Of the holding and operating companies
of the different systems, as grouped by
the Transit Commission, Mr.. Untermyer
made these proposals.
l. That the city be given clear
majority af the directors of the holding
company. to be appointed for four years
by the present Transit Commission with
the approval of the Mayor
@ That the holding company shall
be supreme over the operating company
and shall purchase all supplies.
8. That the city shall be permitted
TO vote upon its debt in the same way
as the security holders are to vote upon
theirs, in the proportion of their hold
ings: provided that in no event snail
the city have less than a majority OF
the directors in each of the operating
companies, so that when the bonds to
be given to the private owners have
| been made the city shall have sole rep
! resentation in the various boards OF
! directors.
Before celebrating on his proposals
| Mr.. JTntermyer dealt with the various
and familiar arguments against mu-
nicipal operation of public utilities
heard whenever the subject is discussed.
No Right to shirlx Issue.
1.-THE city's money is in this project
and more of it must go there" said Mr..
| Untermyer. 1--WE have no right to shirk
/ the issue, for we are already embarked
upon municipal ownership and we can
| not escape the accompanying respon-
sbility of municipal operation unless we
are prepared to deny the capacity for
self lf-government-which ! am far from
| ccnceding.
| MY proposal is that the voting power
in these operating companies be exer-
cised in the proportion of the relative
interests of the city and the private
| investors. In any company In which
the city's interest is larger than that OF
private investors the city should have
/ Al % lAa arI It,f In anVr
panies in which the private interests
predominant they will control the board.
But over and beyond all of the oper
ating companies should be the holding
| company with the power TO dictate
not only the financial policies of the
system, ir ,uding the determination of
extensions. character of the service and
the like. but also the policies of opera
| ton. That means municipal operation
with temporary participation by the pr-
vate investors. but only until their
securities have been amortized.
There Is but one great peril in this
new departure that is now thrust upon
us. 1t is that public sentiment may
be too shortsighted to support the en-
ploy ment of high priced operating Of
ficials. The city has no more right to
expect to secure the services of $780,
900 man for $4,000 salary than pri-
vate corporation would have. The oper-
ating heads must be high priced men.
1t must be prepared to compete with
| the railroads of the country for the best
men obtainable.
| II accordingly hope that the pressure
of public opinion upon the commission
will be sufficiently strong to compel
reversal of the proposed policy of con-
fidiHg to the interests at whose hands
the public has receive such abominable
treatment the future operation Of our
publicly owned traction system
HyInn Answers La Guardia.
| Mayor Hylan made public yesterday
his reply to letter written on Thurs
day by +. III. La Guardia, retiring
| President of the Board OF Aldermen,
calling attention to what Major La
| Guardia said were exaggerated figures
published in certain newspapers con-
cerning the cost of the city administra-
| tion's Staten Island project.
The Mayor made his reply the vehicle
for the reiteration of many of his cam
paign phrases, including "self-seeking
| interests" and Subsidized press" These
he says. are in perpetual conspiracy
TO mislead the people by the publication
! OF propaganda"
"The people are now in control of the
city government" the Mayor says. ut
is not surprising. therefore" he writes.
that a campaign of misrepresentation
should be inaugurated by disappointed
interests whose opportunities for public
| exploitatio on have been brought to an