New-York tribune., 1921-12-20
Hylan Transit
Failure Barred
I'm Richmond
tcsa.isusd frsm page one,

Interborough Rapid Transit bonds and
later sold them.
The lawyer paid his respects to
| Mayor Hylan, who in statement a
few days ago accused Mr.. Uutcrmycr
| of being allied with the traction inter
ests in scheme to grab the bus fran
chisce.
Nobody knows my position In trac-
tion better than Mayor Hylan," said
| Mr.. Untermyer. HE knows that
have always been a consistent cham
pion of the iive-cent fare aud that |
have at all times openly and bitterly
opposed the traction interests. If he
had taken my advice the city would not
now be in its present prcdicament, due
to his do-nothing policy, if the dog-in-
the-manger attitude he is maintaining
Is entitled to be called policy"
Basis for Fare Asked
liking up his attack on the barome-
ter fund, Mr.. Cntermyer said:
at matters nothing to security
holders how the companies may be
looted or mismanaged, for they will get
their interest, and their bonds must be
amortized or paid in any event. Why
should there not be fixed, inescapable
tive-cent fare? Why not have the
courage of your convictions and base
your plan on five-cent fare ?"
The lawyer suggested an amendment
TO the law in order that the commits
sion could envoke the right Of eminent
domain in case the owners would not
sell at fair price. Another amend
ment he proposed was to permit the
city to be Independently represented
or to have it's day in court on all ques-
tions of valuations.
Mr.. Untermyer said the revelations
before the commission had much to do
with changing his opinion about mu-
nicipal operation.
~ protest." Mr.. Untermyer con-
tinued, against the proposal that the
S250,000.0 600 Of new money which the
city will be expected and required to
invest in extensions and improvements
shall have less security and representa-
ton than is to be given to the securi
ties to be issued for the purchase price
of the properties.
81 insist that these bonds shall have
the same vote as the bonds issued to
the owners OF the property and shall
remain as security prior to the pur-
chase money security. In all reor-
| CARNATIONS new money is accorded
priority except where it is contributed
| for the purpose of saving the old in
vestment, and even then it is generally
accorded priority"
Bonus Feature Dsapproved
Mr.. Untermyer disapproved of the
bonus limited to "a per cent to the
security holders and an equal bonus to
the managing officials of the road
Assuming the retention of the ba-
rometer fund, Mr.. Untermyer thought
it would be better to substitute for the
- per cent extra interest. IL provision
that any surplus accumulated through
the operation of the five-cent fare
should be used to amortize the securi-
ties earlier. If the barometer fund
were eliminated Mr.. Untermyer said
he thought it would be well to devote
the excess to higher interest, pro-
vided operation were kept on five
cent-fare basis.
Commissioner John F. O'Ryan asked
if Mr.. Untermyer would recommend
that any deficiency be provided for by
an increase of fare or that the city
provide it out of taxation.
"I don't tf/slk either is necessary"
replied Mr. Untermyer. an the first
place. these people are getting all the
| security there is in the property. and
think they ought to take whatever fare
is earned. If they: don't get five cent
fare they will get all the property is
giving them, any way. I don't see why
the city should make good any differ
ence,'
Chairman McAneny interposed: "Ex-
cept for the little matter of the con-
stitution, which will not permit the
use uof the city's credit pom a perma-
nent or temporary basis to take care Of
the deficit Of private operation"
CoutroI pr0hIon AraIyrad
~ don't consider it private opera
ton said Mr.. Untermyer,~"if the
whole operation is controlled by the
city, as it should be-
Control as owners, but not as les
Sees" explained Chairman McAneny.
"The lessees have their property
rights, and they will operate in the first
instance for their own financial re-
turns"
"If the board Of control or holding
corporation" Mr.. Untermyer went on,
ais to have the final say rs to the
methods of operation, ! don't think
going to apply at all"
THAT is a debatable question:" spoke
up Mr.. Shearn.
"Most questions are" said Mr.. I'm
termyer, dryly.
Summing up the aims Of the commits
sion, Mr.. Shearn said:
The fare payer, rs q result OF this
plan, is going to be in position where
in the immediate future an existing
six-cent fare is done away with and is
put on e. basis of fve-cent fare; we
are going to have universal transfers
we hope, and clean instead of dirty
cars"
II am very enthusiastic about the
plan, except for certain features" said
Mr.. Untermyer, in conclusion, "and ]
think it is going to be a tremendous
thing for the city"
Commissioner Whalen appeared at
the afternoon session in response to &
subpoena with which he had been served
after he had refused TO come by invita-
tion. He was accompanied by almost
q dozen city employees, including rep
i reSentatiYeS of the Cnrnnra4inn CONN