The New York herald., 1921-10-04

Continued from, First Page.
| same interests that now control and
operate them and 1t provides for
financing on basis acceptable only
| to the companies and not to the city.
1t compels the city to accept valua-
tons fixed by the companies and the
Transit Commission no matter how
excessive.
"It will enable all the traction
companies that are to operate all the
lines by grace Of the Transit Com
mission to pad their costs. as the
Interborough has been doing. at the
expense Of the travelling public
The Mayors statement follows:
Gov. Miller's Transit Commission
has brought forth a preliminary plan.
The time selected for its announcement
and the reception It has received from
the traction controlled press Of this
city and from advocates of the eight
or ten cent fare give clue to its real
purpose.
.'Up-to-date Candidate Curran has not
evinced approval or disapproval of this
! preliminary plan which Is 50 well re-
| ceived by the traction newspapers that
support him.
| plan is preliminary II is not in
tended by its sponsors to be taken
seriously, except by the gullible. during
the four weeks preceding election and
then cnly by those of the gullible who
are not sufficiently able to see what is
set forth in It, is not what 1t seems
After election. the real plan will be
dIEclosed and the character Of this
real plan will change or develop, ac-
cording to whether or not a Board OF
Estimate is elected that will adhere to
the policies of the present administra-
ton In preserving the public rights with
| respect to traction contracts and the
| inviolability of the flve-cent fare OF
whether a complacent set Of men is
elected with the aid Of tho delusive
bait in this preliminary plan to do as
the traction interests bid
1.-The preliminary plan proposed by
! Gov. Miller's Transit Commission pro-
vides neither for municipal ownership
nor municipal operation Neither does
| 1t provide for five cent fare
"It provides for municipal backing of
the transit ring on an eight or ten cent
or even higher fare, at the same time
that 1t saddles the city with all the
bankrupt surface lines which the trac-
tion ring has been trying to dispose of
at a profit for many years. 1t compels
the joining of transit lines that have no
necessary relation to each other.
/ Sees No Chance for the City.
THE plan does full credit to Gov.
Miller's Transit Commission. composed
in the majority Of George McAneny and
Leroy T. Hardness. who are both fully
identified with and responsible for the
! dual subway contracts which were put
over on the city in 1913. As a result OF
/ these contracts. the city OF New York
! is to-day carrying about sf0,000,000 a
year in the budget to pay interest on
/ about $3.50. 100000 invested in subway
construction. Under these contracts full
credit Is given to fictitious valuations
for tile benefit OF the operating COM
4 panies, which, with the preferentials
given them. postpones probably for all
! time the city's ever receiving dollar
/ from them.
"Mr. McAneny, chairman of Gov.
Millers Transit Commission. was chair
man Of the transit committee in the
! Board of Estimate when these dual con-
tracts were accepted by the city. He
was the chief advocate of these con-
tracts and one of the chief spokesmen
in Albany last spring for the higher fare
Knight-Adier bill passed by Republi-
can Legislature at the last session. II
is under the authority OF this law. be-
gotten by desire for higher fares, that
the Transit Commission is now acting.
"Mr. Hardness, the second controlling
member of Gov. Afiller's Transit Com
mission, was counsel for the old Public
Service Commission when IL drafted
these inequitable dual subway contracts
He and Travis II. Whitney, former Sec
retary and chairman Of the old commits
sion, who is advising the present COM
mission. have been among the chief ad-
vocates OF the plan to unload the sur
face lines on the city of New York as
adjuncts to the subway system.
Mayors View OF Plans Effects.
THE McAneny-H -Harkness- Mlllerized
I traction plan provides:
THE subway, elevated and surface
/ lines are TO be operated by the same
1 interests that now operate them.
Three companies are to be formed
4 for the operation of these lines and
another company. known as the hold
ing company, to be formed TO finance
them. The City of New York is to select
three of the seven directors that will
control the holding company, which is
TO issue its bonds In exchange for the
: securities OF the operating companies, in
amount fixed by the Transit Commission
itself, on a so-called valuation basis.
"The holding company Is to issue
bonds TO the City Of New York In ex-
change for its subway investments.
THE city is to issue new leases to all
the operating companies in return for
leases and franchises which they now
have.
THE financing plan provides first,
that the operating companies should
take out OF income the total cost OF
operation. plus sum for maintenance
and depreciation the balance TO go into
the treasury OF the holding company.
AT the present time the balance that
Is left from income in the operation OF
all the surface lines in the city is a
deficit Of several million dollars a year.
This deficit under the plan would be