New-York tribune., 1921-02-12

come before them
Would you give the city equal rep
resentation on the proposed board Of
control? ?" was asked of the Governor,
Every likely the city would hsve
moro than equal representation, and
the city. of course, would appoint Us
own representatives on the board" said
the Governor. "But that is detail
which would have to be worked out"
The letter to General Bridgman was
in reply to one written eight days ago,
in which it was suggested that the
Governor outline what he expected the
commission would be asked to under
take when appointed as quite few
persons were doubtful about the Gov
ernor's program because they had no
information on this score.
The Governors i.epIy
The Governor in reply said:
II acknowledge yours of the Sd in
slant.
"Doubtless a preliminary inquiry
such as you suggest would have pre-
pared the public mind for my message
on the transit problem. Probably it
would also have resulted in throwing
the subject over to the next session of
the Legislature.
mo inquiry was needed to demon
strate the necessity of creating tri-
bunal competent to deal with the prob
lem. The present condition is proof
enough of that AS that is all we are
to me to be wise to waste valuable
time in preliminary inquiry to ascer-
tain what we already know.
"The city administration has pro-
posed remedy for the present intol-
erable ondition-namely, the estab-
lishment and operation by the city of
bus lines--and has invoked the power
Of the state to enable that to be done.
Deemed Tribunal Wiser
at appeared to me to be wiser to
delegate the power of the state to a
competent tribunal to study the whole
transit problem and to assign each
method of transportation to its proper
field, and it did not seem to me to be
necessary to have preliminary in
auiry to ascertain whether the Board
of Estimate was such a tribunal
"It is obviously necessary, first, TO
DETERMINE THE FACTS; second, TO
FORMULATE A PLAN, and, third, TO
PUT 1T INTO EFFECT; and no one
proposes to exclude the city from par
ticipation in any of these three steps.
On the contrary, the bill now in course
of preparation will expressly provide
Tor the participation of the city both
in the formulation Of the plan and in
3 the negotiations to put it into effect.
. Undoubtedly there must be nego-
tiations, but there should be no such
= interminable delay as attended the
the dual subway contracts. There
need be no haggling with the COM
panies over terms. 1t will be for the
commission, when appointed, to decide
upon just terms, which the companies
should not be permitted to dictate.
''To give the commission the whip
hand, which it undoubtedly must have,
it will be necessary to clothe it with
all the power which the state can give
it. 1t is doubtful if single company
in New York could operate twenty
. II the regulatory powers of the state
were egerted as they might be exerted,
even now, in behalf of better service
Wants Just Terms Enforced
81 am not suggesting the use of
strong-arm methods, but only that just
terms be formulated and enforced by
no thought of confscating capital
actually in the public service. Secur-
ity and stability of capital investment
are essential to efficient and cheap
Z service. On the other hand, the time
is ripe to correct the errors of the
: past, and the companies must under
stand at the outset that just terms
i will necessarily exclude the perpetua.
s tioi of such errors.
3 II am merely proposing the efficient
exercise. Of state power now being in
" caI
Z luton of the problem requires energy
: decision, and courage, and l know of
: but one way to bring those qualities
TO bear on its solution. The problem
ID no doubt complicated, but ! have
{ noticed that difficulties usually grow
: less as one approaches them.
: The commission when appointed
( must be free to formulate a plan ac.
! cordlng to the facts as they shall as.
Z certain them to be, and do not wish
any views of mine to interfere with
: she exercise of independent judsmen,
oy che commission.
: Names Possible Plans
: However, have no objection tc
I giving you, as you request, an outline
: of possible plan: ''-'>
: u, The value of the physical prop
erty used in the public service with
: out reference to present canita,isa-
= slon, should be determined The
data for such valuation of MANY of
{ the lines must already be in the pos
{ session of the present commission.
: It should not take long to make a
> valuation of the others.
+ "2. Eliminate all outstanding inter
{ company leases.
: S. Retire outstanding securities,
s except such underlying liens as cam
not readily be retired, for which pro
I vision looking to eventual payment
Z must be made
Z "a. Vest in the city title to all
: lines not already owned by the city,
< free and clear of all incum brances,
: except such underlying liens.
: 80. Make a lease to new COM
4 pany, which shall provide for amor
: tization of the determined valuation
& and for adequate reserves for de-
: probation, contingencies and the
: like.
"6. Mortgage such lease to an
I amount approved by the commission,
: and issue stock and bonds not in ex-
Z cess of the valuations determined
& by the commission in exchange for
the securities retired.
Sufficient Fare Urged
"To promote prompt reorganiza-
tion and revamping OF lines without
assessing security holders, defer in
terest and dividends for one or two
years, as might be determined by the
comm ssion and at the end of such