New-York tribune., 1921-09-30

ticu OF tue $oV,VVlsVVV OI SUBWAY WON
still under construction. As the sue
mission for the 1st District, it has SUI
pervisory and regulatory power over all
lines, rapid transit or otherwise, cper-
ated within the city limits Finally,
and in particular, it is required, after
making the necessary studies and in
vestigation, to prepare plan for the
relief of the present intolerable transit
conditions and for the radical and
permanent reorganization of the entire
transit system.
The act under which the commission
is proceeding sets forth Gin Section
1867 that the plan of reorganization is
~u) The combir ATTIC \, rehAbilita-
ton, improvement ~ extension OF
existing railroads 80 that service
thereon may be increased and i'm
proved to the fullest extent pos
sible,
"t2) The receipt, g. soon as prac-
ticxbie, by the city, OF sufficient re-
turns from the operation of the rail
roads so that the corporate stock or
bonds issued by the city for the con-
struction Of rapid transit railroads
may be exempted in computing the
debt-incurring powers of the city un-
der the constitution of the state, and
"(3) The assuring to the people of
the city the continued operation of
the railroads at the present or low
est possible fares consistent with the
just valuations of the railroads and
their safe and economical operation"
The act leaves to the discretion of
the commission the determination as
to which railroad properties shall be
brought within q unified system. 1t
provides. further. that the commission
shall determine whether, in including
roads not already owned by the city.
full title to their properties shall be
transferred to the city. In anticipa-
tion Of such an extension of municipal
ownership the commission is required
to revafue each of the roads likely to
be affected 1t is directed to give con-
sideration in the process of valuation
to certain designated principles; but
it is left free to give final weight only
to such elements either of cost or
valuation as it may deem pertinent,
may deem fairest to the city.
The process of initial valuation OF
80 vast a group of properties has
necessarily proved a lengthy one, espe-
cially as the commission determined to
secure for it's guidance original flgures
prepared by its own forces, without
dependence upon appraisals previously
made, whether for the city, the courts
or the companies. Rapid progress
has nevertheless been made. Wlcnln
4 week of taking Office the commission
ORGANIZED q bureau Of valuations. en-
blowing an engineering and accounting
staff of some two hundred. Complia-
tions Of the cost of the properties COM
prisinr the dual system that have been
Years in arrears have been brougnt 10
date and with the active cooperation.
Of the companies in the preparation OF
reliable inventories final figures coy
ering all roads will be in hand by the
end of the year. . ,+s
bureau Of accounts, made compfe.
hensiye ANALYSIS of the finances and
onerating results Of each of the roads,
Giving particular attention to tneir
present ability to maintain adequate
operating service.
It has had in conference from time
to time the operating officials OF eacn
company likely to be included within
it's plan. including the receivers and
representatives Of receivers OF ROADS IN
the custody of the courts. 1t has con-
ferrcd also with the various commit.
tees and groups representing classes OF
securities the plan would anece ana
committees of tort and contract cred
itors.
II is proposed to institute series OF
public inquiries, the first of which will
Be set for an early date, at which the
several companies will be subjected to
further examination in relation to their
affairs, and in particular as to their
attitude toward the plan, and at which
opportunity will be afforded for criti-
cism and constructive suggestion. IN
conducting these inquiries the commits
sion under the law has all the powers
of committee of the Legislature.
Until these public examinations nave
been held, bearing as they will upon
matters Of important detail, and until
the work of valuation is finished, the
commission will not undertake to pre-
sent in complete form what might be
termed the statutory plan. From the
study and investigation already made,
however. it has reached certain definite
conclusions as to the general form the
plan will take and as to the principles
that will underlie it, In its opinion
the public interest will be served and
its own subsequent labors assisted II
the plan in outline is presented with
out delay for open discussion.
There has been no advance presenta-
tion of the plan to any Of the COM
panies, though their officers were in
formed shortly after the commission
took Office that a reorganization as
broad as the act indicated would un-
doubtedly be undertaken. They were
at the same time informed that the
commission was not disposed to use
the power the act conferred upon 1T to
raise fares as measure OF Tempo
rary relief; or to raise fares, IN any
event. unless, after full investigation
of the situation and the preparation OF
the plan itself. it became clear that
other remedies would not be sufficient.
Existing Conditions
A word with relation to the con-
ditions the commission finds existing
NAV aid better understanding of the
remedies it proposes to apply:
The transit system in all of its parts
still suffers, as it has long suffered.
from the various consequences Of di-
yided organization and divided control.
But the hampering conditions sur
rounding its operation have been aggra-
waited beyond endurance by more re-
cent development. The companies are
not giving the character of service
the:r franchises and contracts with
the city require them to give. 1t Is
clear that if present conditions are
continued they will remain without
ability either to re-establish or to
maintain such service. There is, of
course. no doubt that their plight is
attributable in no small degree to in
eidents of their own selfish and often
uncoynvxy historv Rovapuoc That in