New-York tribune., 1921-03-12
High Cost of Low Carfare
The Traction Situation Viewed From
Various Angles

To the Editor of the Tribune.
Sir: One Of the greatest public
enemies Of the present day is tee
politician or public official who en-
deavors to force a business represent
ing an investment of millions of dol
lars to operate at loss. / refer par
ticularly to the traction situation. sc
US look at it from all angles. In The
first place, who owns the traction Sc
curities? You will find them In tho
hands of small private investors, banks,
trust companies, insurance compsuies,
religious, charitable and educatiarsl
organizations.
What is the result Of severe de-
cline in the prices OF these securities
and how does this decline affect tho
public? The private investor, who
probably worked hard to save this
money, is generally in no position to
recuperate his loss. He suffers hard
ship. But not so with the banks and
the insurance companies. They do mako
up their losses. The banks raise their
interest rates on money borrowed for
business purposes, while the Insurance.
companies raise the premiums on all
kinds of risks. This means that it
costs more for every body to do bust
ness. Every article OF wearing ap-
parel and every portion of food costs
more. The public is indeed paying the
bill not by dropping an extra four
cents or so in the subway boxes, but
indirectly on all purchases, with an
additional profit added TO make up for
the extra amount % money involved.
The savings banks pay a lower rate Of
interest for money on deposit The
charitable, religious and educational
organizations simply render less serv-
ice than they otherwise would. Herr
the public suffers.
From the other point of view, sup
posing the fare was seven cents. the
average working man would spend an
additional four cents a day, or se-
proximately S1.2O a month Under the
present five-cent fare he does not turn
this $l.20 over to the traction COM
panles, but does he save it7 No, in
deed lie not only spends that amount,
but whole lot more, In the indirect
way. The city has invested some $780,
100000 in the subways, on which It
receives nothing. In order 20 raise
this sum the city sold its own bonds,
on which it has to pay interest and this
interest must be raised by taxation.
This necessitates an increase in tht
tax rate, which, under our i!lustrious
Mayor, is now at the highest point
known. To meet the excessive saxes
up go the rents. The man who thinks
ne saves $l.20 a month pays an 3D.
ditional S. or $40 to the Landlord.
All articles of merchandise also go up,
adding few more dollars to his bill.
The price of amusemcnts, as theater
admissions, also goes up. Recreation
costs more. In addition, what does b
get in the way of service? He Is
packed in like sardine at all hours.
Furthermore, on an average, he hos
to wait probably at least two minutes
longer than usual for a train. II his
time is worth only a cent minute the
four cents a day is already gone.
There is still another angle Of il
terest. There are several hundrec
thousand visitors to the City Of Nov
York every day. They use the SUB
ways, but get their transportation fos
less than it costs. For some philsn-
| thropic reason the taxpayers are foreeo
to render this service by their pucl~
fficials. F. NJ. HARTLEY JR.
New York, March 10, 1921.