The New York herald., 1921-10-04
HYLAN ATTACK ON TRANSIT
PLAN OFFERS NO RELIEF

transferred to the treasury OF the hold
ing company.
"At the present time the balance that
Is left from the operation of the elevated
lines in the city is also deficit ana
this deficit would be transferred to tho
treasury of the holding company.
'The only transportation system whose
operation yields a good profit is the
city owned subway system operated by
the Interborough Rapid Transit Com
pany. This system yields profit to
the operators Of about $2.600,000 a year
in spite of all extravagances. bonuses
and 'rakeoffs.'
Under the plan proposed by the
Transit Commission this profit would
be transferred to the holding company
and would be used to offset some OF
the vast deficits from the operation of
surface and L lines.
The treasury Of the holding COM
pany would show net deficit in operat-
ing income of many millions of dollars
each year and this deficit would be
the gauge in the barometer provided
in the preliminary plan to Indicate
how much additional fare over five
cents must be charged by the operat-
Ing companies in order 10 pay interest
on ali the bonds issued by the holding
company.
THE city has no control whatever
over the valuations to be fixed by the
Transit Commission under the plan
which it proposes. These valuations
must be acceptable to the transportation
companies. The Transit Commission
itself is the sole Judge for the city as
to valuations and the city must accept
It's figures.
THE Transit Commission says it is
having the transportation lines ap-
praised. 1t does not disclose who the
appraisers are or ! lat the appraisals
already show. 1t withholds this infor-
nation and leaves the city entirely in
the dark as to the most vital element
this so-called consolidation. The
holding company which Is to issue its
bonds with the city's backing on a
basis of these valuations becomes there
fore similar in purpose and effect to
the Consolidated Corpora
ton, which is in the hands of receiver.
THE most interesting feature of the
whole plan to me is the fact that the
/ Transit Commission is willing to accept
the operation of buses as a permanent
part of the transportation system of the
city. The plan provides that the bus
lines, which this administration estab-
lished for the convenience of the pub
,ic and to prevent the traction COM
panies from gouging the people on higher
fares. be accepted and extended, but
II also provides that their operation be
turned over to the very traction inter-
ests whose failure to provide proper
transports tion compelled their installa-
tion.
BUS Privileges Very Valuable.
These bus privileges arc OF great
value and we would have several thou
sand buses in operation on the city
streets II the Republican Legislature in
Albany had not prevented us from do
ing so. They refused In two succeeding
sessions to enact legislation which we
requested FOR this purpose. The buses
put in operation by me are merely make
shifts, which we must continue to use
until the Republican Legislature does
It's duty by the city. 1t is gratifying,
however, TO see that the Governor S
Transit Commission indorses our bus op-
Grafton. though it Is not gratifying that
they seek to obtain and extend 1t for the
benefit of private traction interests.
'It Is this municipality operated bus
system that has stood between the tran
sit companies demand for increased
fares and private control of the transit
system on the one hand and a. cent
fare in the public interests on the other.
"On the whole II Is bold scheme.
II Is what might be expected from those
. ! VINO Qr1Tte0 IL 1t IL tIt itdIhuVSo-
Merchants Association gold brick plan,
regilt by Travis Fl. Whitney OF the old
Public Service Commission and George
McAneny of dual-subway contracts fame,
which contracts are responsible for the
city's failure to receive a single dollar
out Of its s250,00o,oo0 subway invest
ment.
'srhis plan resembles these contracts
in this particular: That IL Is the same
I.t . 4faa IN S.it1y rtrl
not to a new subway line built with city
money, but to old, decrepit and defunct
surface railways.
"The publication of this preliminary
plan at this time makes plain the fact
that the public must decide whether y
will trust it's future interests In traction
matters and In the five ceent fare to Its
friends who have safeguarded them In
the past, or to It's enemies, or TO those
who have stood complacenty and in.
actively by while the traction interests
were trying to extract higher fares.
1T also makes pertinent the query
who are the truer and safer guides
those who have opposed increased fares
and braved the traction wrath, or those
who have advocated Increased fares and
now sponsor this new preliminary
PLAN"
The city will be in position after mex,
January, Comptroller Craig said, to
carry on it's programme OF subway build
ing for eight years to come. The city
now has debt margin OF $4,000. 00e
and s5O000.000 will be added by the
lump in assessments under the new tax
levy. The city's investment In Staten
Island piers. amounting TO saoooo.ooo
will be released soon from the debt limit
giving a total of s217,o0o,000 debt
margin.
while the dual subway construction
was proceeding at its height II never
was possible TO spend more than s2o.-
900, 600 a year." tho Comptroller said.
by January I, 1922. the city will have
funds within the debt limit for eight
| wears OF subway construction"