The New York herald., 1921-09-30
Continued from Preceding Page.

pe VeStcu IN tne Dcard OF control. and
from time tc time, as experience war
razts. all the remaining functions Of
the Transit Commission, except those
involving exercise Of the police power.
20 which the Public Service Commission
will succeed. should be vested in the
board Of control. permitting the aboli-
tfon or the Transit Commission. Legis-
iation to this end will be recommended
by the commission.
To provide for the eventual consolida-
tfon into ONE operating company. the
beard OF control will have the power
after specified number OF years to
consolidate further the groups and
operating companies provided for under
this plan into one or two operating
companies. ms 1t may deem best.
1t may be noted not only that this
control differs from past methods In
that H. is placed where 1t can be exer-
cised most efficiently md economically.
but that the city's participation Is
placed on an equality with that Of the
private investors. giving the city for
the frst time resl and substantially
complete home rule with respect to
transit.
Earnings to Pay Comptrollers.
IT. as expected under the plan, selfish
and antagonistic interests are elm
mated and the interests OF the city and
the company investors made common It
should be possible to have a largo par.
OF the detail work now done by the staff
OF the Transit Commission performed
by the stats OF the operating companies.
and thus cut down the large force OF
public employees necessary under pres
ent conditions. In view of the base OF
IA fs4tA ia a.
pnny investors being common. the ex-
penses OF the board Of control should
be treated as an operating expense and
paid out Of railroad earnings.
The operating management OF "B."
C." and o. companies shall be vested
In their respective boards OF directors
under the terms OF their leases. The
board Of directors OF "B" company shall
be elected by the holders or tho bonds
issued in exchange for the securities
and properties constituting group No. l.
Similarly. the directors Of &C. ana I'd"
companies VIII be elected by the holders
Of the bonds issued in exchange for the
securities and properties constituting
group No. and group No. 8 respec-
lively. Management win thus repre-
sent investment instead OF speculation.
For Transfer OF Properties.
The present subway leases to be re-
formed or superseded BY agreement. SO
as TO abolish all preferential payments
and place company and city investments
on parity. Ownership OF all subway
equipment not already owned by the
city to be vested In the city without
outlay by the city in return tor new
lease.
The reformed subway leases. COM
pr,sing the Interborough system, to-
gether with the lines constituting the
Manhattan Elevated Railroad system,
to be assigned and transferred, with the
consent of stockholders, or. failing that.
by means Of foreclosure sale. to "A"
company In exchange for "A" COM
pany bonds, equal In amount to the
valuation Of the properties of the Inter-
borough and Manhattan companies,
made by the Transit Commission pur-
stlant to Chapters 134 and 335 Of the
Laws of 1891.
These bonds will be exchanged for
outstanding securities Issued against the
properties transferred on terms to be
fixed In the final statutory plan and
contract reached IL possible by agree
ment between protective committees of
security holders. but otherwise to be
determined by the Transit Commission.
Pursuant to the terms Of the final
statutory plan and contract. a. Com.
pany will forthwith. by appropriate in.
strument, vest in the City all OF its
right, title and interest in and to the
properties acquired, in return for
lease of the properties transferred. COM
prising Group No. /, to "B'' Company
for operation, Under the general terms
hereinafter stated.
The bonds OF "a" Company, issued in
exchange for the properties transferred
to II and by it vested in the City. shall
be secured by purchase money mort
gage which shall be a specific lien upon
the properties transferred and a general
lien upon all OF the property OF "A"
Company, including its interest in the
leases to the operating companies.
These bonds shall bear interest at tho
rate OF five per cent per annum. with
an additional one per cent. set aside TO
amortize the valuation as fixed by the
Transit Commission. The bonds viii be
further secured by provision In the final
statutory plan and contract for the
maintenance of a rate OF fare automati-
cally determined TO meet at all times
cost OF operation, bond interest and one
per cent. for amortization.
Under conditions hereinafter statef.
In order TO provide an incentive 10 efft-
Client and economical management. 1t
will be possible .vs the bonSs 20 earn
an additional ono sssd one-hyD- per cent.
OF interest.
other Lines to he Acquired.
In similar manner the lines now or
formerly comprising the Brooklyn Rapid
Transit System. surface. subway and
elevated (and II It Is finally deemed
best, the surface limos in Queens and
Richmond). will be transferred to "A"
Company In exchange for its bonds,
equal In amount to the valuation Of
said properties. az determined by the
Transit Commission, which properties
shall be by "a Company vested In the
city In return for a lease 70 &C" oper-
ating company upon terms similar to
those provided In the case OF "B" Com
pnny.
In a similar manner the lines now
comprising the various surface lines In
Manhattan and The Bronx, or such OF
them as shall be deemed by the Transit
Commission to be useful and essential
shall be transferred to "a" Company In
exchange for It's bonds equal in amount
to the valuation Of said properties as
determined by the Transit Commission.
which properties shall be by "A" Com
pnny vested in the city In return for
n lease thereof to ID" operating COM
pany, upon terms similar to those pro-
vided In the case OF "B" and &C. COM
punies.
Upon the completion OF the amortiza-
tior r,eriod OF the pt:rchnep money bonds