New-York tribune., 1921-01-27
Hylan Declares
Miller's Transit
Plan Is Illegal
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of Appeals in the Quimby or Rochester
case.
, at would invade the constitutional
rights of the city.
"The people of this city look to their
duly elected officials for the protec-
tion of their interests. The right and
duty to protect these public interests
now lodged in the Board of Estimate
and Apportionment should not be
wrenched from that board and trans
ferr>d to an appointive body, neither
responsible nor responsive to the
people.
"The creation and the power Of the
proposed new transit board is opposed
to the best interests of the city and
to sound public policy, in that it would
mean the revising of franchises without
giving the city any voice in the matter.
The granting of such absolute power of
rate regulation to an appointive body
would not only be a grave mistake, but
would be resented by the people
Would Deprive City of Rights
"It would deprive the city of all the
rights it has gained over it's own
property and make the rights and
privileges of the six million residents
of the City of New York subject to the
dictation of state commission with
| fare the people shall pay on the sub
ways, which were built, paid for and
are owned by the people themselves.
There can be no settlement, of the
traction problems of this city by an
outside agency without consulting the
city's responsible officials The Board
of Estimate and Apportionment will
not abdicate it's powers and duties to
those not responsible to the people,
The people, who have invested more
than quarter of billion dollars in
q voice in the determination Of the
rates they shall pay on their own sub
ways.
THE public, analyzing the Govern
or's message, should read his proposals
/ in the light Of the disclosures made in
the recent Investigations conducted by
the Board of Estimate and Apportion-
nent, which clearly showed that the
present financial difficulties Of the sew
eral companies were due to lack of
foresight in the past, financial mis-
management and downright extrava-
gance.
Should Modify Manhattan Contract
"The Interborough has admittedly
been making money on its contract
with the city. 1t has been losing money
on its contracts with the Manhattan
Railway Company, whose lines it leased
at guaranteed dividend of Z per cent
upon $60,000,000 capital stock a great
portion Of which is water. The reason
the Interborough is asking for relief
from its obligations under the contract
with the city is in order to be able to
continue its arrangements with the
Manhattan Railway Company. If any
contract were to be modified it should
be the Manhattan elevated lease and
not the five-cent fare fixed by the dual
subway contracts.
"The collapse of the New York Rail
ways Company was due to it's over
capitalization, excessive rentals and
cation was placed upon the company in
the early history of the street railways
in Manhattan. The original horse cal
lines were over-capitaliZed.
"These then were consolidated and
with every step in the consolidation
additional watered securities were
issued. The horse car lines became
obsolete and were replaced by cable
lines, which in turn were replaced by
the present underground electric con.
struction. In connection with the sue
cessive reconstruction new securities
were issued not only for the actual
cost of construction but large amounts
of water were pumped into the financ-
; ing. The company has paid out every
cent that it could in dividends and at
every step added the maximum posi-.
BILE amount Of securities that the sys.
tenn could stand. 1t is this fact that
has been the fundamental cause of the
insolvency of the surface lines in Man.
haitian.
Surface Lines Must Go
"The surface lines are obsolete ant
antiquated and must give way to more
modern methods of transportation
such as the subways and comm modiou.
will eventually be ripped up from ths
streets, and there can be no justifica
tion in adding further burden to thu
! taxpayers by unloading upon them tn,
dilapidated equipment of the surfac,
lines in which the city has no inancia
= interest.
at was stated in the Senate a
), Albany during the present session tina
since the Brooklyn traction companie
, went into the hands of the receiver,
, little over a year ago $125,000 wa
: paid to the receiver on account o
t services, and that a concern whicl
=
!, !, ceived s131 900 for showing how mucl
! the Brooklyn traction companies ar
r losing. For these two services NOR
than five million fares were taken fror
{ the people of Brooklyn, who receive
in return the privilege of being jamme
in the cars of the traction companie.
"The fact that Federal receivership
. are expensive is evident. 1t is equa1l
;. evident that the service rendered t
> the people has been steadily CROWN
worse.
, Sand the same receiver Of the Brool
lyn traction companies is now threa,
ening to close down other lines. on tn
ground that it is impossible to make
profit on five-cent fare.
"The city borrowed the money t
build it's subway lines. The peopl
patronized these lines in preference
the privately owned lines. The oper,
tion of these subway lines by the cit
at a fvc-cent fare and bus syste,
! at five-cent fare will forever free tt
city Of the traction manipulators. "
could then proceed with the further e:
tension Of the subways and the deve