New-York tribune., 1921-09-30
Traction Plan
Regarded as Big g
Step in Crisis
Governor Miller Cratified
at Work of Commission
and Praises Its Courage
in Handling the Problem
In Doubt as to Stock
Business Leaders Uncertain
How Shareholders Will
Fare in Reorganization

eAA X LA ANCOl lSU1lXAAtkOlx
Governor Miller and State Senator
Lusk expressed satisfaction yesterday
with the report of the Transit Com
mission. Most of the others whose
opinion was sought by The Tribune
wanted time to examine the document
before commenting on it, Virtually
all of them regarded it as a distinct
ly valuable contribution to the solu-
ton of the transit problem. One or
two yentured the opinion that if the
commissions plan WIS followed stock
holders in some of the transit com
panies would faro bauly.
II feel highly gratified at the work
of the commission" said Governor Mil
Ter. ut was the commissions work,
too, and they are entitled to the credit.
SO far as I am concerned I merely
started the ball rolling.
Throughout, the commission has
handled its task with courage and
ability The result fully justifies its
labors and will, hope, furnish solu-
ton of the transit problem. can
say no more now than that I am
pleased at the work that has been
done and with the manner in which it
was done"
Believes 1t Good for City
Senator Lusk said: 81 will stand
with the Transit Commission in this
report. had not been previously in
formed as to the nature of the report
to be made, but from my reading of
1T find it is along the lines | antici-
pated. | think its realization will be a
fine thing for the city of New York
and for the travelling public in partic-
ular'
George W. Dawson, president of the
Central Union Trust Company and a
director of the Brooklyn Rapid Transit
Company, declared last night that the
Transit Commissions plan was an i'm
portant contribution to the city's
transit literature and contained many
new ideas worth thinking about
However," he said from his home in
Greenwich, Conn, 81 am not sure that
it would be fair to give investors in
the city's transit Inns the equivalent
OF the present value OF the properties
1t will also be difficult to assure a
fair return on the securities of the
proposed new company, because so
much depends on the location of the
different lines.
Municipal ownership -does not
sound so bad, but municipal operation
would be disastrous because it would
mean a large increase in the number
of municipal employees. Nevertheless
the plan seems like a real contribution
to the transit literature of the City Of
New York"
Harry Bronner, of Hallgarten & Co.,
who is a member of the stockholders
protective committee of the INTERIOR
ough, said that he was satisfied that
the honest valuation referred to ia the
plan would cover the bonds, but that
he doubted that there would be any
thing for the stock. When told of the
provision for paying off bond and stock
holders in order of preference, provided
the valuation covered them, by apply
ing the earnings of the properties
under the new plan Mr.. Bronner said
that his first impression was that such
excess earnings would be applied in
gradual amortization of the bondhold-
ers' claims. H said that he assumed
that the commission had reserved for
itself the right to increase fares TO ac-
conplish this mortization in case the
present fare under new conditions was
not found sufficient to accomplish 1T.
Thinks 1t May Be Practicable
Henry R. Hayes, head of the bank
ing departm of Stone & Webster,
120 Broadway, said Of the Transit Com
missions recommendations: "1t depends
plans are worked out. The question is
too important to discuss without max
ing a study of the findings"
Regarding municipal ownership of
railroads, he said: II don't believe in
it as a principle, but as far as it
being practical for New York City it
may work out alright. In any of the
findings stated dc they give any idea
Of where the money is coming from ?"
Comptroller Charles L. Craig, COM
menting on the report of the Transit
Commission, declared that it would
take an eight-cent fare to carry the
proposed plan into effect
"An examination of the outline of
Comptroller said shows beyond
question that nothing less than an
e ght-ccnt fare will carry the plan into
effect. There is one provision that
seems to oe excellent except for the
time it takes effect; that is the pro-
vision for the abolition of the Transit
Commi misson. Instead of defcrring this
until the plan is put into effect, it
should be abolished immediately"
Mayor Hylan said last night that he
would make no comment until he had
had time to study the proposed plan.
Commissioner Grover A. Whalen, of
the Department of Plant and Struc
tures. said the same thing. Charles F.