New-York tribune., 1921-09-30

completed and additional bonds are is
sued to pay for them, will also con-
tinue to mount.
3. In order to carry their deficits
and at the same time continue to exist
and to operate their lines, the com
panies have been living upon "hand-
o-mouth" basis, subsisting in the main
upon defaults in the payment of in
terest and taxes through the putting
of as far as they can the payment of
their current bills.
On June 80, 1921. the aggregate Of
current assets of all the companies was
s55,90S,s93, of which $9,24S,552 was in
current cash funds. Upon the same
date the aggregate of current liabili-
ties, many of them of a pressing ma
ture. was s1l1,044,653. They include
the following:
Arrears of taxes due, state and
Enpaid interest on underlying
rpiis, etc .......-..,....... 5000. EOS
lSentals overdue ............. 1865 7e75
Accounts and bills payable 80. l4,449,291
1t is, Of course, true that some of
the companies are in better condition
than others and that the figures apply
ing to individual cases vary. The In
terborough company in its subway di-
vision. for instance, makes q better
showing than any of tho others.
The lnterborough company, never
theless, upon its subway operation,
showed an operating profit applicable
TO- the carrying of its elevated deficit
Of $2,630,953 fer the year ended June
80, 1920, and of only $l,129,543 for the
fiscal year just ended, decrease of
Sl,o01,4o5. On the other hand, during
the same period the Manhattan sur
face lines of the New York RAILWAYS
Company, as constituted before their
receivership, while still showing a def
lcit of $3,151 ,654, showed a gain of
S937,149 over their record of the year
before.
The public unfortunately has not
been fully aware of the serious nature
of these conditions. In this recital the
subsequent statements it will endcavor
to give completely informing portrayals
OF them all. But even sketch of the
situation, coupled with the knowledge
that absolutely no provision has been
made for taking care of the conditions
of the future, is alarming.
The City of New York upon every
considerations whether of its physical
greatness, its wealth, the complexities
of its daily commercial and industrial
life or its dignity, ought to have the
hSSt PtaHicu anu peSC cQulppeu ana
operated street railway system in the
world.
The spectacle of the city, on the
other hand, depending On the present
embarrassed and generally i'll equipped
agencies for a service essential to its
daily existence is a sorry one. That
the companies are not wholly rcspon-
sible for their condition does not Yoend
the fact. That there is merit-n some
instances the highest degree of effici-
ency-in their mechanical operation,
even within their present means, does
not affect the major question. If they
were fully restored tomorrow there
would be no promise or protection
against a recurrence of the conditions
Of to-day.
In the judgment of the commission
complete change both i'll the organiza-
ton and in the methods of financing
the system, as we'll as its relation to the
public, must be effected. To bring about
such change was frankly the purpose
of the legislation under which the com
mission is acting. That purpose was
not only to end the present state of
chaos, but to end SO far as possible
the financial and political manipulation
to which traditionally the transit sys-
TEN has been ubjectcd-to recreate it.
in short, on lines sound both econom-
cally and morally.
Conclusions
1t is the conclusion OF the commits
sion that the plan of reorganization