The New York herald. [volume] (New York, N.Y.) 1920-1924, 1921-09-30
Commission Report Calls for
Home Rule and End of
Watered Stock.
HYLAN'S CRY REFUTED
z Mon IN Mana ro Syctarn for
Z Men to Manage System for
Taxpayers, Riders and
Stockholders.
COMPANIES NOW IN CHAOS
Sclfishness and Profit Taking
Blamed for Weak Service
and Lack Of Foresight.

The Transit Commission, composed
Of George McAneny, chairman; LIE
Roy T. Hardness and Mator-Gen.
John F. Organ, made public yester-
day its plan for the reorganization
Of New York's transit systems.
The plan provides for the unifica.
ton OF tho present lines into a single
system Of three operating groups.
The lines are to be acquired by the
city at an actual valuation to be fixed
by the commission, eliminating all
"watered" securities and other forms
of excessive valuation and means of
profit taking" The document, con.
sisting of 10000 words, was released
without comment, but statements are
expected from the commission to-day.
The commissions report says it
has Informed the transit companies
that 1t will not authorize an increase
in fares for temporary relief, and
that the present rate of 5 cents shall
remain until the commissions reor-
ganization plan has been in effect for
ore year. After that the commits
sion's plan is such that the fare will
fix itself automatically, and the com.
mission expresses confidence that no
increase will be necessary.
Thus the plan not only refutes the
charges by the Hylan administration
that the commission and the law
creating 1t was a scheme to raise
fares. but the commission goes fur
ther and provides complete homo
rule for the city In transit matters.
1t creates board of control in which
the city and the investors would
have equal representation to have
charge of the reorganized system.
The commission says its plan was
arrived at through its independent
Investigations and after conferences
with representatives OF the transit
companies and representatives OF
security holders. While the outline
presented in this report Is not re-
garded by the commission as its com.
plete Statutory" plan. 1t was made
clear that the Conclusions as to the
general form the plan will take are
definite"
Plan to BE Completed Later.
The commission proposes, how.
ever. to institute a series OF public
hearings, at which the compani ca
will be subjected to further exami.
nation about their affairs land par.
ticularly as to their attitude toward
the plan" At these hearings, the
first Of which will be held soon, the
commission will be clothed with the
power Of a legislative committee
The plan of the commission is briefly
as follows:
The existing separate systems are
to be unified into three operating
groups.
Group No. will consist of the
subway and elevated lines now
operated by the marlborough Rapid
Transit Company.
Group No. 2 will consist of SUBJ
way, elevated and surface lines for
merly operated by the Brooklyn
Rapid Transit Company.
Group No. will consist of the
surface railroads of Manhattan and
The Bronx.
Lines In Richmond and Queens
will be allocated to Groups or 3.
as later determined.
Surface lines will be scrapped
where useless, or. where desirable.
supplanted by bus lines to feed the
rapid transit lines. which In turn
are to be extended at a rate Of
s50.000.000 of new subway con-
tracts year for the next five years.
One Company I'm Control.
The commission proposes to
achieve the DUPLICATION and to OBJ
tain the benefits OF private opera
ton and public control through the
organization of four companies to
supersede the present companies.
These are designated as Companies
A, d, G and ID. each with nominal
number Of capital shares. "A" COM
pany will be the controlling and
financial company and the general
supervisor OF the other three COM
panies, which will be the operat-
Ing companies. each operating a
group under lease.
The general financial control and
supervision OF tho entire system
will be lodged In board of con-
troll, composed OF one representative
of each operating company, three
representatives of the city appointed
by the Mayor. and seventh mem
Continued on Eighth Pc0s.