The New York herald., 1921-01-28
Governor Insists That City
Should Be Actual Partner
and Be Represented. on
DirectOrates.
HE DISCUSSES VALUES
Securities Now So Low Com
panies Are Headed Either
for Scrap Heap or
Bankruptcy.
CALM OVER THE UPROAR
But Republican Leaders See
Far Reaching and Bitter
Controversy Before Is
sue Is Settled.
CALM OVER THE UPROAR
Special Despatch 10 THE NEW YORK HERALD.
New York Herald Bureau.
Albany, Jan, 2..

Special Despatch to THE New YORK HERALD.
New York Herald Bureau.
! Albany, Jan. 2..
Real home rule for New York city,
rather than the theoretical home rule
which has brought about existing
transit chaos, is what Gov. Miller
hopes and expects to give the city
under the constructive plan of re-
organization which he has presented
| to the Legislature.
The Governor is not disturbed or
alarmed by the uproar in New York
/ city led by Mayor Hylan and the poll
ticians who are organizing to fight his
changed and his position is in no way
shaken by the outcry coming from
! the loose thinkers" who have seized
upon his scheme for polit'cSi advan-
tage.
scrap Heap or Bankruptcy.
at takes some time for people 10
really understand such great problem
/ as this" the Governor said. II am re-
| lying on the way the plan VIII work out
to Justify it,
New York must have representation
| IN the directorates OF the traction COM
panes If the city is to have genuine home
rule. the Governor said The outcry re-
gardlng the subject of home rule Is an
example-.of the loose thinking TO which
he has referred. the Governor said. be-
en- Ire there is ucr home rule at all.
/ r-l.~ - -
equitable but just and advantageous to
/ the city the Governor said. Answering
the criticism of Mayor Hylan and other
I officials In New York, who disputed the
| Governors statement that the water has
| been squeezed out of the transit stock.
| the Governor said that he had referred
! in his statements TO the market values
OF the securities and underlying bonds.
which now stand IN the market AT half
| their face value or less. The tract on
companies arc now heading toward either
the scrap heap or bankruptcy, Mr.. Mill
| lcr said and either would mean disas-
( Icr The opportunity offered 10 the city
at this time, when the securities are so
low. is the best that has ever been Of
fercd both for the protection OF the city
and the general public and of the hold
ers OF the securities.
"If the roads go into bankruptcy the
| city can do nothing and the opportunity
is gone" said the Governor.
The Governor intimated that he be-
lieved way could be found 10 squeeze the
water out of the original capitalization
of all the transit lines. as. for example.
the Manhattan elevated.
Republican Leaders Alarmed.
Although he was worn out and COM
/ PEELED by his physicians TO leave his
office for n rest. the Governor remained
calm In the face of the terrific contro-
versy which has broken over his traction
policy. The Republican leaders in the Leg
isature were rot nearly so calm They
frankly are alarmed over the political
results involved. There is every indica-
tion that the fight over the transit que~
tion will be even more bitter and far
reaching In it's results than was that be-
tween GOV. Hughes and the party lead
ers
Mayor Wallin Of Yonkers appealed 20
the Governor to-day TO extend the scope
of his recommendation TO take In the
Wostchester cities. The transit situation
in Yonkers, Mount Vernon and New Ro-
chelle Is connected closely with tho New
York situation. and the Mayor pleaded
that tho only hope Of Westchester lay
in the Governor dealing with tho problem
In connection with tho New York city
situation.
The Governor was impressed with the
plea and said he would give It serious
consid Grafton.
Not discouraged by the rebuff met at
the conference with the Governor on
II I'D, Iass lac II.Hfu dass
along his bills. providing for the muni-
cipal ownership and operation OF bus
lines I'm New York city The Governor
gave notice when he met tho city Of
ficials that he would not recommend pas
sage Of the bus bills. but the Mayor
evidently intends 10 make a fght for
them The measures are practically the
same rs last year They arc being han
died this year BY Senator Twomcy and
Assemblyman Mclaughlin.
Have you socn the statement or
Grover Whaien and others disputing
your assertion that tho water has been
squeezed out OF the stocks In New
York % the Govarnor was asked.
Market value of Securities.
YES. have seeu q, think what I
said was reasonably plain unless sou,e-
body wanted TO misunderstood me. or
course. tho water has not been squeezed
out of The securities IN tho sense the
securities have been retired Tho &C.
curties arc outstanding ] was ttuHing
about market values.
"If anybody wil take the trouble to
get list of securities of various traction
companies aud compute their market
value, IL won't require any great expert
10 determine at once that those values
are necessarily away below actual in
trinsic values.
"For example. the underlying bonds
Issued upon public authority. the money
fov ,.ybf~f, ,nrrc,lodiv vapt into the