The New York herald., 1921-09-30


suggested. for the satisfactory settle
ment by them Of their current liabilities
before transfer OF their lines to the City
and for the termination of all receiver
ships.
13. That in order to preserve uni
fed rate of fare on all the lines, all
surplus earnings be pooled and that a
proper fund be established, to consist of
such surplus earnings and such tempo
rary borrowings as may be necessary,
TO cover current contingent needs.
IA. That the rate OF fare shall not be
fixed, In any discretionary sense. either
by the Commission or by any other au-
thority but that 1t shall be determined
from year to year automatically ac-
cording to the actual costs of operation.
Five Cent Fare to Stay.
1t is the further conclusion of the
Commission that until there has been
ample demonstration of the general re-
suits of operation OF the new plan and
until the changes and economies the
plan has in view are tested fully, there
should be no change i'm the present rate
OF fare. The Commission will require,
therefore, that the rate for the first year
following the initiation of the plan shall
remain at five cents.
In any consideration OF the rate of
fare to be charged there should be taken
into account the fact that one result of
the past three years policy Of inaction
has been to hide a substantial increased
fare In the present disntegrated and
deprecated service. Through the doub-
ling of fares and the elimination of free
transfers the net return per ride for
each passenger carried on the surface
lines in Manhattan and The Bronx has
been increased from 3.674 cents In 1918
to 4.342 cents in 1921; in Brooklyn the
average OF 3.341 cents in 1918 has been
increased to 4.415 cents In 1921. In
other words, the surface lines in Man.
haitian. Brooklyn and The Bronx are
already receiving a net increase OF
about one cent per passenger over the
net return of 1918.
There has been no such direct increase
upon the subway and elevated lines
where continuous rides are the rule.
There the added cost to the passenger
has been in discomfort and loss of time.
But even there the payment Of the city's
deficits through taxation is adding al
most exactly one cent to the subway
fare.
In short. increased fares have not
been avoided. They have been secured
through indirection.
The Commission appreciates that if
proper and necessary service Is to be
restored and the revenues gained
through charging OF double fares and
the cutting out Of transfers given up.
this hidden increase must be first ab-
sorbed. In other words, savings must
be effected that will offset the hidden
W. A,sr knc
well that various fixed charges must be
offset further burdens placed upon the
present system.
List OF Deficiencies.
Ii the present situation were accepted
as the basis Of fare fixing-a solution
the Commission declines to consider
without allowance for profits Of any
nature. preferential or otherwise, the
following deficiencies would have to be
overcome
ta) The gross revenues OF the opcr-
ating companies for the year ended June
so, 1921, was in round numbers $780,
100000. and the costs of operation.
taxes, rentals and interest $3.50, 100000.
The deficits. heretofore cited, are there
fore Observation-Disclosures. 81, 100000
(b) The deficits In the interest
and sinking fund account of
the city which in 1921 amounted
to $9.500.000 will advance in
1922 to approximately $l000o.-
oCo-the total to be provided
from revenue for the city's ac-
count, therefore, will be........ 10000, 900
tc) The cost of eliminating
double fares and of restoring
free transfers upon the surface
lines will be for each year not
less than ........................ 100000
(d) And one-third of the cost
Of. neglected repair work and
incidental rehabilitation, il this
expense can be spread over
three years, would add not less
than ....................... 5,VOOOO
The total thus required with
out allowance for the cost OF
restoring full train and car SER
vice. which cannot be estimated
with any exactness, and with
out provision for the full re-
placement of worn out and OBJ
solete equipmenO would be-. .s41 600 900
Against this sum there may be
counted a reduction Of $5,00o.0o0 to be
secured through the wage adjustments
of a month ago. This will bring the
net additional indicated need on the
present basis approximately to $685.
100000.
1t is true that the foregoing figures
are based upon the present accounts and
financing of the companies. In O rate
case the intensive scrutiny of accounts
undoubtedly would result in heavy cuts
But the net figure of $3S.0C0.000 indi-
Gates the size OF the obstacle to be
overcome-after three years policy Of
drift-to reestablish and maintain the
five cent fare.
1t will appear that IL the only methoo
or relief was upon the basis of present
organization and financial structure the
prospect for maintaining the five cent
fare would not be hopeful.
But it is the opinion of the commits
sion that IL the reorganization plan it
presents be adopted. with (d) the re-
arrangement and more effective coordina-
ton of the transit system, co. the re-
duction of rentals and interest charges
that it has In view, (c) the elimination
of taxes and other public charges. from
which the municipalized lines naturally
would be free. CD the reductions of cost
effected through consolidation of power
plants and of other facilities used in
common, and (e) the material savings
that will occur In the reduction Of over
head and operating charges. the indi-
Gated deficiencies may be substantially
overcome and the five cent fare con-
tinued beyond the year of trial.
While naturally every endeavor will
be made to attain this end, but the ques-
ton finally can be determined only by a
demonstration of the results of opera
ton of the consolidated system such as
the plan proposes.