New-York tribune., 1921-10-03
Expert Shows How 1OPct.
a Year Can Be Topped
From Operating Cost by
Group Consolidation
Utilization of All
Realty Suggested
Waste Building Space Is
Cited; Power Supply
Would Be Centralized

1t was estimated yesterday by an eX-
merit who has a detailed knowledge Of
the rapid transit facilities of New York
that the regrouping and consolidation
Of lines and the concentration of man
agement. as proposed in the outline
plan Of readjustment prepared by the
Transit Commission, will lop not less
than 10 per cent year from the op-
Grating systems of the greater city.
These economies would be effected
chiefly by the centraiization of pur-
chases of supplies, consolidation and
more efficient utilization of real estate
holdings, redistribution Of power
houses and reorganization of executive
staffs, with the elimination of high
salaried officials whose services will not
be required in the management of the
three new operating groups that would
run all the lines in the five boroughs.
Nine Million Saving a Year
Taking s90,00o,0o0 as q rough esti-
mate OF the annual operating expenses
OF all OF the subway, surface and ele-
waited lines of the city. this EXPERT gave
S9,oOV,o00 as the minimum saving to be
realized by the readjustment plan
under the head of operation.
This expert took as an example of
the opportunities offered for cutting
out waste in the properties used by sew
IF bo
age Three of these represented a total
annual expenditure of about $1,000
900 fer taxes and interest on mort
ages.
The property on Fourth Avenue
south OF the fist Regiment Armory
occupied by one-story structure, used
,or q car barn' costs in taxes and
mortgages $4,000 600 year. Much-.of
the space is wasted. There could be
constructed loft building on this
site, with provision for the storage of
cars on the street level that would
answer all the purposes Of car barn
ana at the same time bring some money
lnto the treasury
Cites Waste Space
The Second Avenue line had for
years an immense property, this ex-
pert said, in which there were seldom
stored more than hundred cars II
represented about slO,00O,O0O. After
ine road had passed through the hands
OF several receiverships, one receiver
nhally leased part of this property
iOr 100000. y
third site, now devoted solely to
car barn purposes, is at Seventh Ave
Aue and Flfty-second Street. The taxes
ana interest charges on this property
are between $4,000 900 and $4,000. 900.
PROBABLY the greatest savings in
yperating expenses will be made in
brooklyn, where the commission has
Lound great duplication in service and
~nere lines have been built from time
" 9ime as need arose and without any
undetermined plan
Soine information as 70 the basis for
,he valuation OF the lines that is now
oeing made and which is to be com
pieted By the end Of the year was OBJ
eIiheo Yesterday. This basis has bean
estaoilSned, 1t was said, at point half
way. between prices and valuations pre- I
Fsinng before the war and the peak"
VI hlsn prlces reached shortly after
me war. Although the roads claimed
ne lar valuation to be that of pre-
'aiilng prices, the commission. il was
said, arrived at the above mea, 90
Fataoiishing the "fair and reasonable"
'Hces called for by the transit law.
argument for |. r. T. Approval
One more argument was added veg
1yicay 70 those already advanced to
anow that the Interborough Rapid /
transit Company win be forced to ac-
lsP, 'he new plan that is TO make New
iotA the greatest rapid transit COR
2oratlon in the world. This is that
sae ae mrs nrst half-yearly payment of the
S"o,Voo'oVo note issue falls due early
IeAt year, some time before the period
.eh.suvely named by the commission
as mat on which the new plan will he
"a operation.
~ IS quite certain that the INTERIOR
ign VIII not be able TO make payment. !
~poh rs iaAure 10 do so. the appoint
Tsnt Of a receiver would be unavoid-
cSo;e, and before this occurred II is
sosneTed that the company would re-
I'm an Affirmative answer to the com
"ssicn's proposal.
II cFeer 10 quiet rumors that the
.phAlvsso1 had borrowed this part of
~ ~. pan from Rochester, Cleveland or
80 go cues. II was said upon good au-
- yesterday tnat the provision
~ ~ es payment Of a percentage
- v'oats to the employees was entire
. aware ga
Ine nearest 70 the commissions
gsns'nF Is that used in Cleveland. but
lss lseA 'oM mission found that the Clevc-
- IN practice rad the gerioug defect
~ providing any incentive to keen
.nx me rate III fare down 20 the low
-, tp'at possible The commission
,ns.s'pfe worked out the automatic
ssslen proyicing either reward or
yy,n~tf' the reward following low
ar s fare and the penalty b,vh
2"s 80 long az the lincs can rcfurn
W cent on fye-ccnt fare above the
% ~ esot guaranty, IN per cent viii
bs Dr. s,f employees ~ some form u
ss ~ 49, t upon. Ih's bonus gocs up
- she IRE goes down and goes dawn
- the fare goez up. '~U' 1'"'
Ifuu,, ~