The New York herald., 1921-09-30


OF them OF pressing nature. was $11l,-
044,653. They include the following:
Arrears of taxes due, State
and city. .$lS,37O,SI2
Unpaid interest on underly-
ing bonds. &c. c............. 36.0S3.595
Rentals overdue. e............ 14,557,973
Accounts and bills payable. ;. 14.449.291
II is. OF course, true that some OF the
companies are in a better condition than
others and that the figures applying to
Individual cases vary. The Interborough
Company in its Subway Division. for in
stance. makes better showing than any
OF the others.
The lnterborough Company, never
tieless, upon its subway operation.
showed an operating profit applicable
20 the carrying Of its elevated deficit OF
S2.630.953 for the year ended June 80,
cal year just ended, decrease Of ST.
S01.405. On the other hand, during
the same period the Manhattan surface
lines Of the New York Railways Com
pany. as constituted before their receiv-
ership, while still showing q deficit of
$3,151.654. showed a gain of $937,149
over their record Of the year before.
City Ought to Have Best.
The public unfortunately has not been
fully aware of the serious nature Of
these conditions. In this recital the
Commission has only sketched them. In
subsequent statements it will endeavor
to give completely informing portrayals
or them all. But even sketch of the
situationfi coupled with the knowledge
that absolutely no provision has bean
made for taking care of the conditions
of the future is alarming.
The City Of New York upon every
consideration. whether OF its physical
greatness, its wealth. the complexities
or its daily commercial and industr nj
life or its dignity. ought to have the
best planned and best equipped and
operated street railway system in the
world.
The spectacle of the City, on the othc"
hand, dependent on the present e;nbar-
rassed and generally i'll equipped
agencies for service essential 20 its
daily existence, is sorry one. That tn,
companies are not wholly responsible
for their condition does not mend the
fact. That there is merit-in some in
stances the highest degree Of eff
ciency-in their mechanical operation,
even within their present means. does
not affect the major question. II 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 in the organ
ization and in the methods Of financing
the system, as well as its relation to the
public, must be effected. To bring
about such a change was frankly the
purpose of the legislation under which
the Commission 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 system
has been subjected-to recreate it. In
short, on lines sound both economically
and morally.
Plan of Reorganization.
1t is the conclusion of the Commission
that the plan of reorganization should
be based upon the following principles:
j. That all existing lines-subway.
elevated and surface-should be unified
for purposes Of future operation and
placed under the control of a single su-
pervisory authority in which the operat-
ing companies and the city shall particle
pate upon equal terms.
2. That the railway properties still
held In private ownership. whether under
direct title. franchises. contracts or
leases, should. so far as required for the
purposes of the unified system, be trans
ferred to the city; their owners receiving
In return new securities, based upon the
actual value of the lines for operating
purposes.
3. That the continued possession Of
any OF the roads for purposes of opera
hn nov trvr~ ~A
from tho city of new leases, granted for
restricted periods, and that the revenue
derived from such operation be used only
for the payment of actual operating cost
and the interest and sinking fund
charges upon the new securities--plus
certain limited percentages OF profit al
lowed when earned as an incentive to
good management.
4. That the new securities be amor
tized in favor of the city, subject TO tho
right OF the city to retake any specified
one of the lines upon the payment OF any
then unamortized proportion OF the Sc
curities.
8. That provision be also made from
the revenue Of the roads for payment In
each year Of the interest and sinking
fund charges upon the city's investment
in the dual subways; as well as upon all
Saoootucht i"piu u oHSil INVESTMENTS OA
the city.
Preferentials to he Given Up.
o. That as condition precedent to
participation In the proposed reorgan-
ization the preferential allowance OF
Profits granted to any one OF the
companies as consideration for rights
yielded under previous contracts or
leases. as we'll as any claims based upon
the unpaid accumulation OF such pref
erential profits, be given up; and that
all inter-compcDy leases or other un-
dertakinss covering the use either OF
lines or equipment be cancelled
Z. That the lines retained in the re-
organized system be arranged SO as
10 eliminate gradually all duplication
OF service SO that the rapid transit
roads will serve the long hauls and the
surface cars---or buscs--the local and
connecting hauls.
8. That only such lines as In the
judgment OF the commission are adapt
able to such system be acquired, or
accorded any value for purposes of
such acquisition.
.. That as rapidly as may be Dos
sible financially full and continuous SER
vice be restored upon all OF the lines,
free transfers reesta blished and post
poned repairs given proper attention.
10. That all train and car schedules
be SO arranged as 10 provide adequately
Tor the comfort and convenient service
OF the travelling public at all hourse OF
the day.
II. That in order further TO relieve