New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-01-17
The Five~Cent Fare
Mr.. Hedley Explains marlborough
Demand for Emergency Relief

10 the Editor OF The Tribune.
Sir: In reference to the editorial in
to-day's Tribune January 14) entitled
"Trafic and the sc. Fare" you call
special attention to that feature of the
Transit Construction Commissioners
annual report showing the rapid in
crease of passenger traffic in 1920. You
also call attention to falling prices and
reduction in wages. Upon these, as
major premises, you announce this
conclusions:
"The scent fare is long-term prop
osition. There is no satisfactory evil
dence yet to show that it will not make
good on the lines it covers for the du-
ration of the contract"
Applied to industry as whole, your
statement Of conditions would lend
plausibility to your conclusion. APP
Piled, however, to subways, there are
certain specific conditions which should
be taken into account.
First, Wages-Wages on the subway
have not fallen from their highest peak,
and our wage contracts run to 1922.
The rate of pay of our employees is
now more than double the rate Of pay
at the time we entered into the con-
tract with the city. Our pay roll is
about $26,0O0,000 year, or more than
81 per cent of all of our expenses.
Materials and Supplies-Coal &C
counts for about Is per cent of our
expenses. We used to get coal, up un-
til about the time we entered the war,
at 1926 q ton, delivered at the power
house. Now the freight and lighterage
alone on coal amounts to $3.50 a ton
and we are using well over 1000 tons q
day. While there has been recently
some reduction in the price of coal,
you can see that there is no possibility
whatever Of getting back to the pre-
war basis.
Other Materials and Supplies-Some
are cheaper, but as all materials and
supplies, outside of coal, necessary for
the operation and maintenance of the
road constitute only around 10 per cent
of the cost of running the road, it will
readily be seen that there is no posi-
bility of saving enough in this account
to pull the company out of the hole, no
matter to what degree prices may fall.
Even if these were given to us free
the company would still be losing
money at tremendously heavy rate on
scent fare.
Growth of Traffic-Traffic on the In
terborough has been increasing. In the
last four years it has increased some
thing over 40 per cent, but this has
been a period marked by the greatest
new subway construction the city has
ever known, and the mileage of subway
lines operated by the lnterborough in
this same period has increased con-
s;derably more than 40 per cent.
Not only are there more miles of
road to operate, but it costs much more
to operate them, and in addition there
is an increase in the Investment and
corresponding overhead.
While gross revenue of the subway
increased 43 per cent in the last four
years, operating expenses have in
creased 1876 per cent. Increased costs
have more than eaten up the increased
revenue.
This is an emergency situation calling
for emergency relief. We do not ask a
permanent increase of fare, but only
that such steps be taken as are neces-
sary to preserve the credit of the COM
pany 1t would be mistake to speak
of this as an Interborough crisis. 1t
is also a crisis for the city itself.
The essence of the whole problem is
congestion and discomfort. There can
be no fundamental relief without an
expansion program, and that, under
present conditions, is impossible for
either the city or this company.
The city will soon have $250,000,0 900
Of subway investment. 1t is "frozen
credit" BY making the subway self
supporting it would release, for furthe r
public uses, this amount Of money. 1t
would be the first step toward a pro-
gram which could 60 far toward set
thing the employment question in New
DIX - LOT pIOgTdHl 10 COlllpIlSe
the building of schoolhouses, court
house, hospitals pavemcnts and the
like would become possible if the city
we're to have available s25O,0O0,000 of
additional credit released from the
debt limit.
While it is true that the INTERIOR
ough Rapid Transit Company is seri-
ously affected in this situation, it is
also true that the wisdom of tempo
rariy altering the rapid transit con-
tracts as to fare would be determined
not so much by its effect upon this
company's fortunes as by the fact that
such an alteration could inure to the
public benefit. 1t would make possible
further rapid transit construction
schoolhouse construction, courthouse
and hospital construction and the like
FRANK HEDLEY,
President and General Manager, In
tcrborough Rapid Transit Com
pany
New York, Jan. ID, 1921.
THE main burden of The Trib.
unc's article was to point out that q
contract is a contract. This vita
phase of the subway fare question