New-York tribune., 1921-10-05
40 Million
9,
Transit Plan
Experts Figure Operation
Under COMMISSIONS
Proposals Will Wipe
Out Present Deficit

Savings Of S40,0OO,O0O or more q
year in the operation of the city's
transportation systems, or enough to
overcome the present combined deficits
OF all the surface, elevated and subway
lines without changing the five-cent
fare rate, are to be instituted by the
Transit Commission under its reorgan.
1zatlon plan, it was learned yesterday.
The savings which are to be effected
through the elimination of useless
lines, the consolidation of power
plants, the squeezing out of unprofit-
able leases and other economies, will
also permit restoration of free uni
versal transfers.
Traction experts in the employ of
the commission asserted that the plans
for the economies already have pro-
gressed sufficiently to assure their
practicability. In addition, it was
made known at the commissions of
flee, 49 Lafayette Street, yesterday,
that the commissions plan to reorgan-
lze, unity and extend the lines
throughout the city contemplates a
continuance of the five-cent fare indef-
nitely and not merely for one year.
Five-Cent Fare May Continue
The commissions outline of its
scheme to rescue the subways, elevated
and such of the surface lines as are
deemed worthy of rehabilitation and to
give the city rapid transit commen-
! surate with its needs, it was pointed
out, definitely asserts that the fve-cent
fare rate shall continue for at least a
year while the reorganization is going
on. But 1T was also emphasized that
this does not indicate the commission
will favor change Of fare after the
with the proposed economies the out
line states that 1.-The ive-cent fare may
be continued beyond the year of trial !"
Neither George McAneny, Leroy r.
Hardness nor General John Z. Okyan,
the members OF the commission, would
! offer any comment yesterday on Mayor
Eylan's attack on the reorganization
plan But, it was asserted, the an
nounccment of the economy scheme
row being formulated and the aim of
the commission of permanent five
cent fare rate were sufficient refuta-
tlon Of the Mayors charges that the
commission intends to hand the city a
gold brick" and raise the fare to 3 or
10 cents.
Another answer to the Mayors at
tack was made in reference to the
method which the commission intends
to pursue in arriving at the valuation
OF the traction properties. The Mayor
asserted that the commission intends
to dump, lot of worthless traction
junk on the city" and make the public
pay high price for it. The commits
sion made it known that its method of
arriving at valuations had not yet been
determined beyond the principle laid
down in its preliminary outline, which
provides that the physical value of a
property is to be determined by its
actual worth and not by the amount of
stock issued against it or the amount
Of money originally invested in it.
Saving Plans Devised
Basing its attitude on the conviction
that the deficits of the transit lines,
which aggregate S36,ooo,oo0 yearly,
must be overcome by rigid economies
before the lines can be made prosperous
and receiverships eliminated, the COM
, mission has had experts at work for
the last five months devising ways of
! saving 1t was found, for instance, that
last year the power plants of the va
rous systems. operating independent
ly, cost $4,000 600. The experts re-
ported that by combining these plants
more than S2,O00,OOO year Will be
saved from this item alone.
Specifically the economies are to be
effected along four general lines. These
are:
BY rearrangement and more effec-
tive coordination of the various
lines.
By the reduction of rentals and in
terest charges.
By the reductions of cost effected
through consolidation of power plants
(confinned on next naneN