The New York herald., 1921-10-13
CRAIG ELAbORATES
TRANSIT CHARGES
Places Deficit at S75.000,-
900 With Eight Cent
Fare as Assured.
FEARS PRIVATE GRAFT
Says Purpose Is to Release
Companies From Contracts
and Mortgage Lien.
SASSAILS VALUATION PLAN
Declare Commission Would
Let in the Water on Com
pany Securities.
FEARS PRIVATE GRAFT
zASSAILS VALUATION PLAN

In statement of 5000 words Comp
troller Charles L. Craig elaborated
yesterday the charges he made last
week that the readjustnnent plan Of
the Transit Commission is a scheme
70 give the transit companies an eight
cent fare. rehabilitate the properties
and securities at the expense of the
public and foist worthless property
upon the city. The properties rehabili-
tated, Mr.. Craig says. then would be
returned to the original owners by
mortgage foreclosure. He discounts
the utterances of the Transit Com
mission as irresponsible"
THE primary and i'll concealed pur-
plan" he said. "is to release the In
terborough and the 3. r. T. from their
contract obligations to operate the
dual subway system for forty-nine
years at a five cent fare. This is the
first and essential step in order to
open the way for the service at cost.
or cost plus fare; for the companies
must be released from their present
contracts before they can charge more
than a five cent fare"
Estimates Higher Defcit.
The Comptroller substantiates his alle-
cation of an eight cent plot after can
collation. of the dual contracts. by re-
fusing to accept the commissions an
nual deficit figures of s41.000,000. less
$4,000. 900 through recent wage reduc-
tions, and the commissions statement
that it will effect economies to cover
the S36 900 deficit and make q
five cent fare sufficient.
The Comptroller adds to the commits
sion's deficit estimate. $14.000,000 to
provide adequate service, S10.0O0,000 in
terest and amortization charges on pro-
posed new securities. makes no allow
ance for the $4,000 wage reduction,
and adds S10,000.000 more for errors
and omissions" in the commissions
calculations.
Thus. the Comptroller arrives at a
total estimated annual deficit of $751;
100000 Estimating that one cent
increase in fare will produce SIS, 900. .0OC
a year, he figures that the commission's
plan will compel an eight cent fare tC
make up the $75,000.000.
The Comptroller declares that the de-
termination of the commission that the
fare shall remain, arbitrarily, at five
cents for the first year of operation
OF It's plan "is intended to chloroform
the public" while the contract obliga-
tions of the Interborough and B. r. T.
with the city are being cancelled, and
adds: 'The hope held out that the
lines can be operated at five cent
fare under the Transit Commission's
scheme will not be realized for halt
century. IL ever"
He also quotes J. L. Quackenbush,
general counsel of the Interborough, as
saying a ten cent fare is necessary. and
George McAneny. chairman of the
Transit Commission, as saying that he
hopes not more than seven cents will
be needed. and insinuates that they are
insiders" on an eight cent fare scheme.
Sees No New Contracts.
The Comptroller states that new con-
tracts after the cancellation of the dual
contracts would be imp ossible. at which
conclusion he arrives by the following z
line of reasoning:
The proposed new operating CON-
panies would be none other than the
1nterborough and b. r. T. under new
names. but these companies being IN
default in rendering the character OF
service TO which the city Is entitled ur-
der the dual subway contracts" no new
contract could be entered into because
'the Greater New York charter pro-
hibits the city of New York from en-
tering into a contract with defaul.er.' >
Mr.. Craig then points out that uadci
the dual contracts the in .erborough ano
the b. X. T. are under obligation to the
city to the extent of bonds for plr.
formance amounting to $2.500.000 and a