New-York tribune., 1921-12-16
Ni11c-C.ellt Fare
Discovered i'm
Hyla1l Bus Plan
fcoatinusd from pass one,

tcoatnusd from pass ousl
would be willing to take second Glass;
Mr.. Richie said he did not believe
the character of service afforded by
his company would at into the COM
missions plan on a nickel fare. He
said there was place in New York
Tor this kind of service and that it
might he extended to advantage.
Profits of Bus Company
Samuel &, Morrow. formerly auditor
of the company, testified to figures set
sing forth the career Of the dime fare
charged by the lifth Avenue busses.
The cost per passenger for carrying
ended June so, 1921, was $50 cents,
leaving net profit of l.1a cents.
Comparative figures were presented
by Mr. Shearn to show that under a
Scent fare the company would have
had deficit of S1,309.11A in 1921. in
stead of net profit of S1,117,T25. The
total revenue for the thirteen-year
period was s20,130.64o and the total
operating expenses Sl5.S57,000. Five
per cent taxes paid on the gross earn
ings during this period amounted to
s1.oo&,eso. The average cost Of main
tenance of the 269 busses which the
st $4,000 year per bus.
Seven more representatives of trac-
tion securities yesterday approved in
general terms the commissions plan
for q reorganization Of the traction
lines. 1t was apparent, however that
the investors were withholding COM
plete Endorsement pending the fixing
Of valuations by the commission. and
that this question and the character Of
the proposed new securities would be
the primary consideration in the final
bargaining.
The principal observations on the
plan yesterday were made by Alvin w.
Krech president of the Equitable Trust
Company and chairman of the stock
holders protective committee OF the
Manhattan e."
Transit Plan Endorsed
''In my opinion" said Mr.. Krech, "the
organization proposed under the plan
is not only sound, but essential for
the proper protection of al interests.
] think. however, the succe sful opera
sion of the plan will depend upon the
valuations and upon what the commits
sion determines to be a fair return on
these valuations. 1t is clear that In
order 81 balance the budget of the
transportation system two things must
or decrease the facilities"
The attitude of the Manhattan stock
holders toward exchanging their inter
ests was brought out when Mr.. Shearn
asked:
"Wouldn't it seem preferable TO them
10 be assured of 5 per cent return upon
8 fair valuation Of their property than
TO take the chance of getting z per
cent for few months more and then
possibly getting nothing for long
time?".
part of the Manhattan Stockholders" )"
replied Mr.. Krech, 81 should say that
they would give that matter very Sc
Tious consideration before they ap-
proved any plan of reducing their re-
turn"
He pointed out that the Manhattan
had received from the Interborough, as
lessee, $4,000 900. and that the AZ" had
earned S90,00o,o00 over operating ex-
penses. taxes and fixed charges.
TO be sure, we are temporarily in q
JAM" Mr.. Krech went on. where our
earnings are not sufficient to pay, but
what the future earning power Of that
property would be on q permanent
basis under our charter before we make
any concessions"
Control Idea Approved
Like most of the other represents
tives, Mr.. Krech approved of the idea
Of mixed management on the board Of
control, placing the city's money on a
parity with that of the private in
vestors and the physical features Of
the plan.
The attitude of the holders Of New
york Railways resi- estate and refund
ing bonds was expressed by Joseph P.
Cotton.
eve can tell nothing about your
pian," he said, "until we see Il in
dollars and cents"
he preferred that the Manhattan
surface lines be treated separately so
as not to be overshadowed by the more
serious troubles Of the InterborougF.
and wound up by saying that Che
properties might get along independ-
emily without any plan.
Edwin P. Maynard, president of the
Brooklyn Trust Company. chairman of
a. committee Of holders Of per cent
Nassau Railroad bonds, approved the
plan generally, but said he thought
tne existing liens should not be dis
turbed and doubted if security hold
ers would be enthusiastic about fur
nashlng working capital for the enter
prise.
Politlca! Fear Revived
he was the first banker to shy at the
board Of control: Il don't wholly con-
denim it, Mr.. Maynard said, .but no
siticai influence is often apparent. II
anybody wants q job at the Brooklyn
Navy Yard he hustles right around TO
the local leader and then to the Con
gressman or Senator"
Other representatives Of security
hoiders who approved the plan gener-
any, with some reservations as to the
financial structure, we're William W.
Green. William Greenough, John l.,
wells and Grayson M. ?. Murphy.
In questioning several of the wit
uesses Mr.. Sheatn referred to the high
cost OF receiverships. He introduced q
report from Lindley NJ. Garrison. re-
cceiver of the Brooklyn Rapid Transit
.s;sfl oa;mpany, which showed that the re-
SSelvership expenditures for the period
rom rom January |. 1919, to October 81.
lsxi, amounted to s634,655.
Inc examination will be resumed this