The New York herald., 1921-12-14
MORROW APPROVES
TRANSIT PROPOSALS
Morgan Partner Sees No
Objection to Scheme for
Bond Issues.
FAVORS CONTROL PLAN
Sees Personnel as Factor of
Confidence in Sale Of
Securities.
OLD FINANCING OPPOSED
Morgan Firm Advised Against
Interborough Dividend
System.
FAVORS CONTROL PLAN
OLD FINANCING OPPOSED

system.
Substantial approval of all the es-
sential features of the Transit Com
missions tentative plan for reorgan-
ization OF the city's railways vas ex-
pressed yesterday by Dwight ". Nor
row, partner in the banking house
of j. p. Morgan & Co. Assuming that
the valuations Of the corporate prop
critics. which are to be determined
later. be reasonable he saw no obstacle
he further testified. to the flotation OF
the bond issues necessary to place the
scheme Of rehabilitation on sound
basis.
That attitude on the part of ar ac-
knowledged bond expert of one Of the
greatest banking houses in the world
was particularly gratifying to mem
bers of the commission. Mr.. Morrow
is member of the protective commit
tee of holders of the Interborough
per cent. bonds, of which the Morgan
firm Is the practical head and of which
Mr.. Morgan is the chairman. Though
he foresaw many difficulties, Mr.. Nor
row found nothing impracticable and
much that is desirable in the plan as
outlined.
Approves Board Control.
Clarence J. Shearn, special counsel to
the commission, reminded the banker
Of the vital interest the S per cent. bond
holders have in the rehabilitation of
the traction system here. MIR. Morrow
said he had studied the commissions
tentative plan. though there had not yet
been formal meeting of the protective
committee with reference TO it. In what
ever views he might express. he said.
he should be understood as speaking
for himself alone. With that under
standing, Mr.. Shearn said:
zone of the outstanding features is
that which contemplates the eventual
vesting of the title OF all the transpor-
tation facilities In the city of New York.
L. has been recognized that as the city
has an investment of more than $780,
100000 in transit properties at present
and Is committed on referendum vote to
a continued policy of municipal opera
common form OF ownership or titie to
all the properties. Does that seem
reasonable, to your
''I think II would be desirable" re-
piled Mr.. Morrow, ito etxend the prin-
ciple which was adopted when the city
started in on the subway proposition to
all the transit lines. if that can be ac-
complished. The whole question of de-
veloping areas, the interchange Of power
and so oil would make many advantages
accrue in, the city owning all the prop
erty. ] think there are great many
difficulties I'm the way of reaching that
goal. 1t is hard to go into that question
until your valuations come out, but /
think it very good goal to aim fol-"
Unfffcation Indorsed.
"One of the other features OF the
plan," said the examiner. "is the pro-
posed consolidation and unification of
the several properties. Does it seem
to you there is merit in the proposal
to do away with these eighty odd cor
porations and to simplify the financial
structure by consolidating them into
one corporate control subject to the
city's supervising?'
'I think it would be highly desirable
in the interest OF building new lines,
In the future. IL the whole security posi-
tion could be simplified in the way
you say
The banker approved the proposed
system of grouping of the lines 1T
has" said he, ''the advantage OF follow
ing very largely the existing groupings.
/ think your great difficulty will be in
massing together the surface lines in
New York where you do have widely
different ownerships."
Concerning participation in manage
ment of the properties by the city
through accredited representatives, Mr..
Morrow said 81 think ii desirable. There
is a great disadvantage in having a city
owned property with private manage
ment Of It under lease"
"I think those who fear ruin of the
system by political control" said the
witness. "are perhaps justified In certain
aspects. But you cannot make any pro-
vision for the future which will not have
in II perils OF all kinds. whether you
have private or public management.
This system, whatever it's machinery be,
is going to depend upon the character
CT the men you can get to run It, their
disposition to cooperate, their ability and
skill. it is going to be personnel rather
than formulas that will make the thing
succeed"
Mr.. Morrow approved unqualhedly
the commissions project in the Issuing
of the new securities. to retain a degree
CT elasticity which will permit the com
mission to continue the existing lines
which fall within Its valuation and to
leave to some subsequent time the trans
forming Of their securities into the new
municipal securities.