The New York herald., 1921-01-25

ton intimately affecting the general well
fare. and the regulation OF II is within
the police power of the Stale. The colos-
sa nature OF the problem and the gen.
eral interest affected by II are indicated
by the fact that there are upward OF
$3.50. 100000 OF New York city traction
bonds held by the public including the
$3.50. 100000 OF city bonds.
While the present drifting policy In
crisis dsily becoming more distress
lnsly acute is palnly due TO the unwise
division of authority and responsibility
already referred to, the cause OF the
difficulty lies deeper. The present proc
len, haa a. background of crooked
financing. which now subjects II to pom
rlar strus't and prejudice easily
aroused by the wiles OF the denagogue
the sinister designs of selfish financiers
and politicians. II will not be difficult
TO eliminate the baneful influence OF
the former. The market value OF out
standing securities is undoubtedly much
below the intrinsic value OF the proper
ties represented. The water has already
been squeezed outof the securities and the
companies are not earning fixed charges,
The time Is therefore propltious to deal
with the subject in the public interest
and with exact justice TO all. IL would
the opportunity thus presented were all
lowed to pass or course, any consid-
Grafton OF the subject must start from
the premise that the public shall not be
called upon TO pay earnings upon or to
arnortize watered securities The ulti-
nlatc solution of the problem must be
max mum service with minimum cost
for the benefit OF the users OF the public
transportation facilities. the majority of
whom have no other means of trans
portatior.
Fnvors q Constructvef Policy.
The public are now In a position to
escape from the consequences OF past
niisoeeds or mistakes II. instead OF util-
iElng them for sinister purposes to breed
disorder In the public mind, advantage
Is taken OF the present opportunity to
lay the solid foundations for forward
looking constructive policy. In the past
capital has been attracted TOO much by
the chance OF speculative profits. Nee
essarlly those profits are made at the
expense OF the investor and the travel
ling public. Poor and costly service and
loss to the innocent holder of securities
are the inevitable result. Certainty of
fair return must be the attraction TO
capital In the future. and that, l am
sure, the public will readily accord for
adequate service. The public are now
in a state OF mind to take nothing for
granted. Their past experience has been
such that they now will rightly insist
upon being satisfied that the actual facts
justify any measures adopted. Some
agency. having public confidence, i'm
partially TO ascertain the facts and
courageously 70 apply the remedy, ap-
pears to be inperatively demanded to
~ 80 .s. "a
difficulties. ~
Viewing the matter solely IN the pub
lie interest. I think 1t plain that the
found ations should now be laid for a
completely unified system OF transporta-
ton In the city Of New York, and be
lieve any open mind ed person who stud
les the subject at all will be forced to
that conclusion, The single fare plan ap-
pears to me TO be important TO the fu-
ture development OF the city and the
relief OF congestion. with It's manifold
problems housing and the like. Eek.
tensions should precede rather than lag
behind demand. That means that prof
liable parts OF the system must main
tain the Improbable. In ord er 10 give
the public efficient and cheap service
every possible economy In operation ana
management must be effected and every
unnecessary duplication OF service elirn-
mated Necessarily. the subways will
form the backbone OF the system The
elevated. surface lines and buses will
eventually be merely auxiliary. IT, how
ever the most efIicient service 10 10 be
rendered at the lowest cost competition
must be eliminated and the particular
service best suited 20 each particular
situation must be adopted.
City Owaership Ultimate Aim.
The foregoing and other considera-
lions MI point TO one completely unified
system, and II that premise be granted
II necessarily leads to the conclusion
that ultimately such system must be
municipality owned. That was settled
when the city decided upon municipality
owned suoways unified system OF
operation will be difficult with both
public and private ownership Of ways
and structures. or course. the ultimate
result cannot be accomplished In a day.
The time. however. Is ripe to lay the
foundations. and TO lay them properly
wo must commander the services OF
men Of proved ability. breadth Of view,
vision and public spirit. In whom must
be vested all the authority that can
constitutionally be given, and such men
must be selected utterly regardless OF
politics
The subway contracts and lay at
the threshold OF any solution OF the
problem. They need revision In the pub
lie interest They must be revised II the
problem is to be solved. have not
studied them sufficiently to assert with
doematic assurance precisely how they
should be revised, and am only referring
TO the matter sufficiently to indicate the
problem with which we have to deal A
very brief examination will suggest GER
tain major points for revision. Experl-
ence has demonstrated that the pro-
visions for preferential payments are
unfair to the city. The city is now pro-
viding the interest and sinking fund for
roughly 100000, 900 Of subway bonds
out of the tax levy. YET its budget re-
quirements are so great that Il has TO
curtaIl the police force, and this year
the Board OF Estimate and Apportion-
ment even cut out OF the budget
s27 100000 conceded to be necessary for
the schools The city Is so near the debt
limit that II cannot undertake needed
public improvements even the erection
OF necessary school buildings. yet IL the
subway bonds were maintained out OF
operation. as they should be. the city's
borrowing power would at once be in
creased $500. 900. 900. The people VINO
ride In the subways do not realize that
In addition 20 their fares they are pay
ing to maintain s200. 600. 900 OF subway
bonds and II does not matter whether
they are taxpayers or rentpayers. OF
course. that observation does not apply
the city who daily use It's transit facii-