The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-10-01
TRANSIT COMMISSION
SEES REHABILITATION
Within SIX MONTHS
Period for Reorganization
Depends on Negotiations
With City and Compo-
nent Companies.
BAR AGAINST POLITICS
Title May Be Vested inHold-
ing Company 80 Days
After Submission Of :
Plan to City.
NEW STOCK PERPLEXING
Regulatory Powers Preclude
Delays-FOrmal Proposals
Await Completion of
Valuation.
NEW STOCK PERPLEXING

The reorganization of New York's
transit facilities will be in effect
within six months.
That is the hope of the Transit
Commission, 1t was learned yester-
day, unless some unanticipated con.
tingency arises. The distance of the
date when the reorganization will
become operative, it was conceded,
depends in large degree upon the
ease or difficulty Of the NEGOTIATIONS
with the city and the trsrsag r5cs-
panies for agreement to the commits.
sion's proposal.
In any event, It was urGarstaod,
the commission feels thorol ghly cor.
fident of its ability to put its plans
into operation, and that before the
term of the present State admins
tration, which created the commits
sion, expires. BY that time, 1t was
expected, the proposals of the Transit
Commission will have been crystal
lized into contracts or agreements
which would be binding and could
not be upset by change of the poll
tical complexion of the State gov
ernment
In that connection 1t was learned
that the commission regards its
scheme almost as nearly politics
proof as it thinks it to be specula-
81
ever. that while the present commits
sion probably would be able to COM
plete its work in such fashion that
it cannot be wrecked by change in
State administration, there is no
safeguard against a change in the
city's representation on the proposed
Board of Control, three of whose
members would be appointed by the
Mayor.
| Check on City Delays.
Thus it is likely that the three city
members of that boar dwould change
with each administration. Political
activity within the board, however,
would be checked through the prob
able permaneney of tenure of the
three representatives of tn proposed
NV transit companies, it was stated.
Statements from members of the
Hylan administration already indi-
cate the determination Of the present
city administration to fight the tran
sit plan, in any event. But it was
pointed out that, under the law, the
city would be unable to delay the
commissions plans for more than
ninety days after the commission
/ formally submitted its plans to the
city. At the expiration of that
period. If the city and the commits
sion cannot agree, the commission is
authorized to vest title of the ac-
quired transit properties in the pro-
posed consolidated company, until
such time as the formal muuicipaliz-
alton OF the ownership OF the prop
critics can be achieved.
twas conceded that the matter OF
reaching an agreement with the tram
sit companies, whereby their present
securities are to be replaced by NV
paper representing tn commissions
idea of fair valuation of the prop
critics, present more complex prob
lem. The commission refused to
state yesterday wha tpowers II might
use. If necessary, to compel agree
ment to its plan. but none of the
commissions members appeared at
all worried about that feature.
There wa sa dispositio min some
quarters to believe that the holders
OF many of the present transit securi-
ties would be very glad of an oppor.
tunity fond way out OF their
predicament via the Transit Com
missions suggestion. On the other
hand, II was admitted that th ehold-
er sof other securities might not be
so pleased at the prospect Of a
change. Among that class were men.
toned the stockholders OF the Man
haitian elevated lines and tn eThird
Avenue Railway Company, both Of
which are regarded as solvent and
paying concerns.
Lower Valuation Considered.
In connection with the Manhattan
elevated situation IL was pointed out
that while the present owners are
guaranteed a per cent. return by the
4
Interboroughs lease It is possible
that condition could not last more