New-York tribune., 1921-10-01
Extended Hearings to Be-
gin in Month toAcquaint
All With Proposal to
solve Traction Tangle
Count ON Opinion
Making Lines Obey
commissioners Confident
of Projects Popularity
as Its Foes Cry Politics

ihe transit Commission expects to
start holding public hearings about the
middle of this month on its plan for
the reorganization of the citys trans
portation system
The hearings will last about month.
They are regarded as of the first i'm
portancc in determining the success
which the plan will meet. 1t is through
these hearings that the force Of public
opinion, almost the sole reliance Q: the
commission in bending the transit com
panies to its will, can be exercis ed.
"Our power is our argument" said
George McAneny, chairman of the COM
mission, yesterday, when asked what
power the commission could exert to
compel the transit companies TO ac-
ouiescs in the plan. 1t is at the public
hearings that the "argument' of the
commission will be driven home, so
that every one who travels by subway
surface car or elevated lines will see
what the plan means TO him.
What the Plan Means
This argument. it is expected, will
be that the plan means;
A five-cent fare.
A unified transit system.
Abolition Of transfer charges.
Ownership by the city.
Control by q committee consisting OF
three representatives of the railroads,
three representatives of the city, ap
pointed by the Mayor and removable
by him, and q chairman, to be chosen
by the other six
Nringing out the water from the
Capitalization OF the companies.
Taking the securities to be issued III
speculative class.
This last is to be accomplished by
the same means which is to regulate
fares automatically after the first year.
The minimum return on these secu-
rites is fixed at 3 per cent, An addi-
tional allowance OF 11a per cent is
made for bondholders, after which. il
the returns warrant it, another~1 Il per
cent is to be put into bonuses for en-
pcyees Any earnings beyond per
cent are to so into the barometer
furd, the condition of which deter
mines whether fares are TO be in
creased or decreased.
The economies resulting from con-
soidation are expected to enable the
transit system to show profits on a
five-cent fare, there being no taxes. to
be paid to the city None of the mem
bers of the commission would discuss
the quest on of who.ncr state taxes
might be remitted.
Extensions Self-Supporting
Extensions Of the system would be
lade self-supporting, the construction
cost beng charged directly against the
extensions themselves.
These proposals, in conjunction with
the present desperate situation Of the
transit companies, constitute the Car
lument" TO which Commissioner Me
Aneny referred when asked what force
could be eXertcd to compel the transit
companies to fall in with his plan.
The commission. of course, has its
eXerted AGAINST a recalcitrant company
H. has been the policy Of the commits
sion to cooperate SO far as its dis
cretionary powers permitted with com
ranies in straitened circumstances
which seemed 10 be struggling to do
the best they could.
II would be possible. however, for
tire commission to make the path OF
almost any company q hard and thorny
one, and this power might be exercised
against a company which stood out
against its fellows and the judgment
Of the public.
The opinion seemed to be spreading
Yesterday that this definite though gen
oral plan submitted by the Transit
Commission would gain the support Of
the public, thus compelling the transit
companies to acouiesce in it,
This sentiment was reflected in the
stock market, where there was a mod
crate advance N the prices of transit
company bonds, some Of the older Of
Nhlch, bearing low rates of interest
probably would be permitted to stand
If the plan went into effect. The stocks
cf these companies. most of which
probably would be eliminated under the
roposcd pian, showed a decline.
Starts Cry of "PoIitics'
Newspaper comment generally was
favorable and that of individuals bore
evidence to the prevailing opinion that
lone stem had been taken towarc
giving New York an adequate. economi-
cal and mcll,nanagcd transit system
This was apparent even in the prompt
(Copf