The Washington herald., 1921-10-03
New York's Example.

NEW YORK will follow the advice of The
N Herald. 1t is to merge all its street rail-
= ways. After debating their capitalization
Seooooo,ooo, they are to be combined one great
system. This is the result of the investigation of
its transit commission whose report has just been
issued. The commission has full power to do. what
it proposes and has but announced its plan, or dec
sion. 1t will at undertake to put it into effect.
All franchises are to be surrendered, including
those which are perpetual in their terms. The uni
hed system will be under board of control, three
members named by the mayor three by the in
vcstors and they to the seventh. There will
be three operating agencies for underground, sur
face and elevated lines. The properties will be
taken over by the city at honest valuation
regardless of capitalization stock issues, book
values The system is to be municipality owned
and is be paid for by retirement of bonds out of
earnings. In taking the lines, the city will
issue new securities the of actual value.
The New York newspapers seem to favor the
plan. The World says Of it:
In so far as the crimes and blunders of the
past be wiped out the commission purposes
to do so and start with clean slate. All iran
chises to be surrendered. All the agencies
of stock-waterng and stock-jobbng are elimi-
mated An end is made to all holding COM
panies to all guarantees to all preferential pay
ments. The properties are to be taken over by
the city on the basis of actual value and opeI-
ated public utilities not as means OF stock
manipulation.
The Herald New York;
1t will squeeze every drop of water out OF
every bit of transit property the ground,
over the ground or under the ground that is
thus taken over. The scent fare, with
the free transfers. which will result from the
adoption OF the commissions program, there
fore will more than meet the demands OF the
public to the price they should pay for
transit trip. And in addition there can be re-
sumed the construction OF new lines and the
population OF this great city, the best the safest
and the fastest local transportation facilities that
brains devise and money buy.
The Times:
There need be no hesitation in recognizing
the scope of the work, and the SKILL courage
and conscientiousness with which it has been
done. The eye of the commission has been
single to the welfare of the city, today and in
the future. > 1t is praise enough to say
of it that it shows comprehensive grasp of the
problems to be solved, and attacks them with
knowledge based on experience and with
public spirit that is unquestionable and fearless.
The New York situation is vastly more COM
plicated than that of the District of Columbia But
it has like variance of profitable and improbable
lines 1t has maintained, however, the scent fare
though it has put several lines in the hands of the
.Ieceiver. 1t now proposes the only way out-mer-
ger on a basis of actual earning value. The in
solvent properties will be foreclosed All fran
chises will be revoked. There will be no tenn
porizing, but the commission will take the short
cut to merger
This is but proof of the correctness of The
Herald's contention to the District street rail-
ways. There is no other solution than consolida-
ton at earning value. Paper value, book values,
stocks which the railways do not a divi-
dend must be written off. The nonearning road
in Washington is, however, more fortunately stu-
ated than those of New York. This one, the w. R.
q T.. Il.
as separate and independent utility, distributed to
the w. R. & E. stockholders would save them
from financial loss.