New-York tribune., 1921-01-28
City to Share
Transit Rule.
Miller Saws
Expects Representation
ON Boards to Assure an
Actual Partnership in
Earnings of the Roads
From q STAFF Co,resDoudcnt

From Staff Correspondent
ALBANY, Jan. Ex-Governor Miller
to-day, celebrating on his traction pro-
gram for New York City, said he ex-
pected the city would be represented
on the directorates of the roads.
This, he declared. was real home rule,
as opposed to the false theory of home
rule held by those who have criticized
his program as an attack upon home
rule, and whom he has characterized
as loose thinkers and loose takers.
Again he declared he was not con-
cerned with the effect on the political
situation in New York City his pro-
gram might have, and said his chief
concern was to lift the traction prob
lem out of politics so that the people
of. the city would get relief from the
conditions obtaining on the several
lines.
In answer TO question as to
whether he believed the people would
eventually support his program, the
Governor said:
ut takes some time for the people
to understand. l am relying upon the
way in which the proposed program
will work out to justify it,
Some of the criticisms, the Governor
who wanted to misunderstood him.
This was in reply to a question as to
whether he wants to comment on the
statements of some of the New York
City officials and some of the editorials
disputing his assertion that the water
had been squeezed out of the traction
stock.
Message Plain, He Says
II think what said was reasonably
plain, unless somebody wanted to mis-
understand me-" replied the Governor.
"Of course, the water has not been
squeezed out of the securities in the
sense the securities have been retired.
The securities are outstanding. | was
talking about market values. If any,
body will take the trouble to get list
of securities of various traction COM
panies and compute their market value
it won't require any great expert to de-
termine at once that those values are
necessarily away below actual intrinsic
values.
"For example, the underlying bonds
issued upon public authority on the
money which concededly went into the
roads are selling for less than fifty
cents on the dollar. That was what
was talking about. And the fact that
the securities are so low and then the
underlying bond selling at fifty cents
on the dollar presents a situation that
should be taken advantage Of.
Nothing can happen that WORT be
:. relief to these security holders. 1t
is, therefore, situation for the
be sure, but favorable terms. Now,
of course, what is bound to happen if
the thing drifts is one of two things.
Either properties will continue to de-
terioriate until they are virtually
scrapped, or the underlying bondhold-
crs will insist upon having the thing
go to foreclosure sale. And if it ever
goes to a foreclosure sale and the own
ers Of the underlying bonds become
the owners, as they would. the op-
portunity Of the city to deal with them
would probably be passed.
Wants Real Home Rule
"Now, of course. this talk of ex-
Guiding the city, like this talk of the
watered securities is more of what I
have characterized as loose thinking
and loose talking. What l am thinking
of Ultimately say ultimately--I
would not think it would be very far
distant-the thing must be put on a
basis an VIII .ch the city is an actual
partner. 1t is a partner now in the
sense that it has its money in there,
but it must have an actual partnership
in the earnings of the road, and very
likely some place in the directorate Of
these operating companies by repre-
sentation by the city on their board
actual home rule in other words, in
stead of theoretical kind that does not
exist. That is what l am thinking Of"
The Governors views were expressed
at the Executive Mansion, where he
Continual on page three)