New-York tribune., 1921-09-30
Municipal Ownership

In view of the large investment of
/ the city in and its ownership of the
existing subway lines. the benefits of
unified system can best be secured
through the immediate municipal
ownership OF all transportation facili-
ties deemed useful and essential in a
comprehensive system, and their op-
Grafton. under effective public control
by company agencies to be created for
the purpose. If the city authorities
shall oppose immediate municipal
ownership of the transit system, with
its present opportunity to reform COM
pletely the existing situation, the com
mission is prepared to consider the
alternative course of vesting title to
all properties not now owned by the
city, including the subway leases, in
the consolidated company, with pro-
vision for deferred ownership by the
city. Such course will permit the
general features Of the plan to be
carried out. but will add to the diff
/ culties and tend to impose a higher
: fare.
/ Under the plan, ownership will be
. acquired by the city without financial
!. outlay on its part. Existing companies
/ will turn in to the consolidated COM
|, pany and through it to the city, all
leases, which will provide for amortiza-
. ton out of the earnings of the con-
|; solidated system Of the valuation fixed
|. By the commission
/ The existing. separate systems to be,
|. consolidated at the start into three
+ new operating groups to be made up as
+ follows:
I 1roup Nc. 1.-The subway and ele-
+ yated railroads now operated by the
4 marlborough Rapid Transit Company
i and leased by it from the city and the
+ Manhattan Railway Company.
/, Group No. 2--The subway, elevated
! and surface railroads now or formerly
N the Brooklyn Rapid Transit system.
|; Group No. 3-The surface railroads
|. q the Boroughs of Manhattan and the
/, Bsonx.
/; The surface railroads in Queens and
!, Richmond. in whole or in part, to be
|. sllocated to Group No. or Group No
! o. as may be determined.
Il BUS lines necessary for the logical
I acvelopment of the unified system to
/ os created and allocated as feeders to
| the foregoing groups. Where necessary
/ OF desirable, some of the existing sur
!ace lines may be transformed into bus
{ lines
|. Ali existing power facilities to be
/ consolidated and operated for the COM
Aion benefit of tie entire system.
Organization of Unified System
/ 10 pave the way for the eventual,
F .cmpletc consolidation into one sys-
TEN, and to secure the benefits of pri-
e sste operation under public control,
/ ssac Transit Commission will cause to
oe organized four corporations-"A, A,"
/ b, &C" ard I'D" companies-each
|. with nominal number of capital
|. shares
"A" Company will be the controlling
saa lnancia! company and general su-
pervisor of the affairs of "B.' &C" and
/ " companies. which will be exclu-
s.seiy operating companies. The shares
/ III, "a stock of the operating companies
VIII be owned by IA" Company, whose
ssnares, IN turn, will be held in trust by
Tue Transit Commission, or by what
s'er ep ooay may succeed it.
Company will operate under
M,ssse the properties embraced in group
". l, "C' Company the properties en-
Traced in group No. 2 and "D" Com
gahy the properties embraced in group
oeneral financial control and super
/ ,assaon ,as of the entire system will be
..S,aged in a board of control, which will
Siso nso constitute the directorate of "a"
sompany 1t will consist of seven
aemc cers, TO be chosen as follows: One
tscn tsn by the boards of directors of the
mlec operating companies, "B," &c"
~. saa D., three by the Mayor of the
s.asy, and the seventh member by vote
- - tne other six, or, in the event of
h Ts T1ssir inability to agree, then by the
s.ansit Commission or by whatever
'ony may succeed it.
ne powers of the board of control
sse 20 be those or a financial nature,
~ -, sooye indicated. together with such
s;ar s;snsr powers of supervision and direc-
!. ,on ss may properly be conferred upon
\ i the contracts to be entered into
WI be responsible for the distribu-
-'sa and management of all the surplus