New-York tribune., 1921-12-08
b. II. T. Heads
Testify; Ask
No Immunity
Continued frcm psss ens)


such payments and to pay off the
mortgage liens.
Plan for Releasing
Until the completion of the pay
ments by the city, and as additional
security therefor, Mr.. Williams sug-
gested that the properties ba leased
back by the city to a corporation named
by the sellers, upon the following
terms:
"The lessee to operate the proper
ties, subject to the supervision Of a
board Of control, and after paying
operating expenses (including taxes
and rents, if any), interest and amor
tizntion on existing mortgage liens,
and providing suitable reserves, to pay
over the balance Of income to the city.
"All funds required for additions,
Improvement snd extensions Capital
expenditures to be furnished by the
city.
'Rates of fare to be fixed by the
board of control, but not to be less
than sufficient to permit the lessees to
make the deductions from revenue
auth orized in paragraph above and
so fer as practicable and reasonable
to be uniform throughout the city.
"The board Of control to consist Of
three persons, one appointed by the
Mayor, one by the lessee companies
and one by the Governor, and to have
general supervisory and regulative
powefs, including that of audit and ac-
counts"
In support Of his idea, Mr.. Williams
said:
"The plan which have suggested
would, more than the, commission S
plan, eliminate politics from the trans
portation problem. 1ne city and the
operators would have common aim.
hostility, lack of cooperation, public
prejudice and suspicion would have no
justiication. The receivership, or near
receivership, Of the companies would
facilitate such an arrangement.
End Transit Speculation +
"I can see no insuperable obstacle
to carving it out, providing the valua-
tion Of the properties is fair and ample
safeguards surround It's payment All
speculation in traction securities would
cease. The various companies would
take from the lessee company repre-
senting them the interest and amorti-
zation paid on any existing bonds and
pay it over to the bondholders or their
representatives. They would likewise
receive from the city the payments to
De maze lI ana Apply tNdm III llquloa-
tion Of the remaining equity. When
all should be done they would quietly
pass out of existence"
George McAneny, chairman of the
commission, said the criticism Of Mr..
Williams was the most constructive
that had been made thus far, but he
and Mr.. Shearn contended his plan did
not possess the merit Of that of the
commission. Both sides went into an
exhaustive Interchange Of views re-
garding the commissions plan and that
suggested by Mr.. Williams.
Mr. Shearn declared no reliance could
be placed upon the co-ope eration Of the
city government, which he said already
had requested 100000 to fight "any
plan" the commission proposed.
"It won't lift hand" continued Mr.,
Shearn, with show of heat. at won't
do anything but throw wrenches into
the machinery. So what's the use OF
talking about being able to pool it
through cooperation OF the city,
"If you take that attitude publicly -
smiled MI. Williams, III am not sur
prised the city opposes the plan"
"I think" Chairman McAneny inter
posed, "that Judge Shearn referred to