The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-10-01

might not be averse TO an exchange
for guaranteed return of per cent.
with possible y.
1t was regarded as certain. however.
that the valuation upon which that
return would be based would be fixed
by the commission at figure much
less than the present valuation. which.
1t has been charged frequently, is
highly "watered"
In the possibility of the elevated
owners losing their present guaran- |
teed per cent. the peril of bank
ruptcy which has Swallowed the In
terborough in recent years was con-
sidered potent factor. Only through |
a receivership could the lease be
terminated. except by agreement.
AS bearing on that situation it is
worthy of note that Judge julius M.
Mayer, in the United States District
Court. postponed yesterday for the
fourth time the pending applications |
for the appointment of receiver for |
the marlborough Rapid Transit Com |
pany.
There was current yesterday the |
opinion that the commission might not
be averse to using It's influence and
power in the direction of receiver
ship should such a move become
necessary to the advancement Of its
plans.
As to Independent Operation.
AS offsetting an argument that. in
event of an abrogation of the elevated
lease. the elevated owners could operate !
at 10 cent fare. It was pointed out |
that the elevated company does not own |
the elevated express tracks nor the ele- |
yated extensions, nor much Of the I'M |
proved electrical equipment. All those
have been added to the properties since |
the marlborough took them over by
lease. It was regarded that successful
operation OF the system without the use
Of those extensions and improvements |
would be almost an fnpossibility.
In event of a recalcitrant attitude by
the Third Avenue, for example, or other |
companies. 1t was thought that q rig
orous application Of the commissions
regulatory powers over an extended |
period might suffice to bring about a
change In such q company's viewpoint.
No member OF the commission would
say WI Their such a course would be pur-
su~S q9 what other recourse the COM
sissior might have as a persuasive
ulcaslp for backward companies. 1t
was Needed, however, that the COM
naissicr feels fairly comfortable in the |
esea al such an eventHality.
&aassnation of the law shows that |
Tho rainission does not have to wait |
unta Oh tho transit companies or any |
specine5 number OF them have agreed |
20 she reorganization plan before the |
plan lsl be made effective On the
cthsx Ind. the commission IL author
SEED "a put the scheme in operation as !
scon a@, IN its Judgment. a sufficient
nun Of companies or extent of the |
fseilisa have been brought into the |
plan thus, companies operating out |
side sise plan, after It has gone into eff |
feet. x iceivably could find themselves
&t as advantage.
4ae Ian just announced by the COM
~sfsu Is admittedly not the final PLAN |
1'he al or statutory pian-that is. |
co7cf-yi1g with the statute under which |
ths cc1 mission was created-cannot be |
co-nplen I'D until the commissions valua- |
tlcn % properties is completed. The |
fo-nai proposals to the companies and |
- the city also must be held up until |
such ..-.uation Is done.
Valuation Under Way.
The work Of valuation is moving |
along as rapidly as possible. 1t was
learned. and will go ahead coincidentally
with the public hearings which the COM
mission expects to begin soon. The date |
for the first hearing is expected to be |
announced within q short time and |
probably will be fixed for some time |
about the middle of October. The hear
fngs and the valuation, it was surmised |
Wy hA IAk- -
year.
The proposed hearings are for the |
double purpose of examining the transit |
companies more closely with regard to !
their attitude toward the commlss ions |
plan and for informing the public more |
fully. 1t was understood that the COM |
mission. though it has conferred with |
representatives of the transit companies |
Is not yet aware of what position those |
companies would take. Further proof |
that such is the case. was found yester-
day when officials of none of the big |
companies were willing to discuss the |
plan until they had had opportunity to |
give it close study.
In addition to the PUBLIC hearings, the |
commission proposes to issue from time |
to time further statements, dealing with |
various phases of its plan. The first of
those is expected soon, and will deal with |
the commissions plans for extension of |
the subways.
1t is known that the commission re- |
CARDS the extension of the present SUBJ |
ways and the providing of more rapid |
transit lines as the crux of the transit |
situation. In that connection. 1t was |
pointed out that In the last year traffic |
has increased rs per cent. while transit |
facilities have increased only per cent |
The increase in traffic was regarded by |
transit commission officials as astound- |
ing, in comparison with the average |
growth in previous years 1t is under |
stood that there is no prospect for a
slackening of the pace of increase for |
some years to come.
Therefore, the commission Is anxious /
that a subway construction programme |
be launched as early as possible, and be
pushed with utmost dispatch. The COM
missions report statese that nothing less
than s50.000,000 Of new construction |
year Cor five years is regarded as ade-
quate.
New construction, II is expected,
would require temporary financing for
year or two, but would take care of |
itself through earnings as soon as new
lines got into operation. The COM
mission is understood not ito anticipate
any difficulty in such financing after