The New York herald., 1921-10-14

company besides city representation In
each of the opera ting companies, but
above and beyond all the holding COM
pany should have reserved to 1t right
OF veto upon the continuance of the then
constituted managem ent OF any of the
operating companies, and to require the
holding of a new eleGtion for directors.
40 the city will probably have larger
investment than the private investors.
there is no reason why n should be con-
tent with the mere perfunctory and in
adequate participation In the operating
companies that Is given to the holding
company under the plan. The details
Of the regulatory powers as between
the companies by which the city will
reserve the unquestioned right to get rid
of dishonest, inefficient or extravagant
management cannot be settled In any
plan. 1t must be provided for by the
terms OF the various charters and leases
Must Have Veto ON Valuation.
Il object that the city is not to be di-
rectly represented and Is to have no
voice or right of veto except through a
State commission in the fixing of the
values of these properties. This the
commission can correct by providing for
such representation, and the transit act
should be so amended as to secure to the
city the right Of judicial review.
IF It should unfortunately transpire
that physical value Is to be the primary
basis for these purchases great injustice
Is likely to be done the city. however
conservative may be the valuations.
"A business property or enterprise Is
never worth moro than the capitalized
value of what it can earn. no matter at
what sum- its physical property is APP
praised. An Industrial plant that has no
earning capacity is worth it's junk value
and no more. If the commission should
lay down a basis or principle OF valua-
ton that the city believes to be inde-
fensible there should be a right Of re-
view somehow. somewhere.
"That question is bound to arise al
most Immediately in valuing such Cf
any) of the antiquated, wornout surface
lines as the commission may decide are
needed for comprehensive unified sys-
tenn. AS matters now stand the situation
is very one sided and unjust to the city.
IL the commissions price does not suit
Cor they so pretend long enough to tire
out the patience Of the comnission), the
companies need not take 1t. II. In the
very natural desire to see its stupendous
task crowned with accomplishment, the
commission Is outtraded or surrenders to
these, the most clever and experienced
traders anywhere to be found. the city
is helpless to protect itself against the
commissions errors OF Judgment. That
should not be. The city should also have
the right to be heard on the valuations
of the properties that are to be taken
over and those that should be rejected.
Most of the surface roads should be re-
jected. Their removal from our streets
viii be a blessing. They ar" p OBJ
struction to our already confessed traf-
fic. and are liability rather than an
asset. Buses should be the form OF
transportation for short hauls and the
subway and elevated systems should
handle the bulk Of the remainder Of the
trafic. It will. however. doubtless be
advisable to retain some of the surface
roads-but not many OF them-at
price. but not at physical values
Mr.. Untermyer conceded that num-
her of the objections to the Transit Com
missions plan in the list OF objections
issued last Sunday by Comptroller Craig
were we'll founded. but he said that the
Conptroller's charge that the proposed
11A per cent annual bonus to the secur-