New-York tribune., 1921-10-09
Craig Unearths
Deep-Iaid Plots
I'm Transit Plan
Comptroller Issues a Sum-
mary of His Own Analysis
of Board Suggestions, At
tackled ON Twenty Counts
CompanySchemeCharged
Asserts That Corporations
VIII Get Lines From CITY
Free of All Obligations

| Following up his attack on the rec
concentrations handed down by th'
Transit Commission last week, Comp
troller Charles L. Craig yesterday is
! sued a summary of an analysis made
| by himself of the commissions report
. in which the recomm endations are at
tackled in twenty different counts. Thu
complete analysis will be made public
next week.
In his summary Comptroller Craig
charges that upon requirement ant
purchase by the city of all existing
traction lines, under the commission's
plan, these lines would be turned back
to the present companies, under new
names, for private operation, guaran-
teed against loss for two generations to
come, and that these companies, re-
leased from their contract and fran
chise obligations for a fve-cent fare,
from continuing bonds for the perform
ance of contract obligations and from
all taxes, would charge an increased
fare.
The operation of the lines will be
placed under board of control, COM
posed of seven men, of whom four
would represent the traction interests :;
and the revenues from the citys own
properties, amounting to upward of
$3.50, 100000 year, would be collected
and handled by this board, it is further
charged. Neither the city nor any of
the people would have any redress
against this. board, the Comptroller
says.
The water that has been squeezed
out Of traction securities sold to the
public is to be put in again, and specu-
lation in bonds instead of stocks
with an insiders devices for manipu-
lation unsurpassed by any ever used
for plundering confding public,
, would be provided, according to the
summary.
The Comptroller deduces that the
lines that have failed in private opera
tion would be unloaded on the city al
valuation acceptable to their security
holders, and bonds guaranteed by the
city's investment in its subways to
earn per cent, and which may run as
high as 61a per cent, would be deliv-
cred in exchange for securities now
outstanding, many of which are unsal-
able and some of which are quoted at
less than five cents on the dollar.
The price to be paid by the city for
! outstanding traction stocks and bonds
would be determined, Mr.. Craig an
nounces, not by what they would bring
in the open market but by a valuatioA
which would represent the real values
in the transportation properties.
when the Transit Commission saws
that the Manhattan Elevated, the New
York Railways and other lines now
privately owned are to be acquired
without cost to the city by amortizing
out of earnings the valuations fixed
by the Transit Commission, it means
that fares are to be increased and out
of the increase the present security
holders are to receive price accept
able to them and guaranteed by pur-
chase money mortgage, under which
they can take back their lines when
ever, through mismanagement or de-
fault, the private operators of the
city's lines fail to meet their obliga-
tlons," the summary says at is an
ticipated that they will fail to meet
their obligations; otherwise purchase
money mortgage would be unneces-
sary."