The New York herald., 1921-10-05
HYLAN'S ARGUMENTS
TWIST TRANSIT PLAN,
NSADVOCATESREPLY
Costs Will Be Eliminated or
Reduced to Produce Econ
omies, They Say.
FLAT VALUES TO RULE
Watered Stock Forgotten
in Estimating Worth Of
Lines as They Stand.
NO BENEFIT FOR POLITICS
Only Thunder Is That Which
Can Be Evoked by Tammany,
Is Expert Opinion.
FLAT VALUES TO RULE
NO BENEFIT FOR POLITICS


from $6o,0o0.oOo to s10o, 900, 900 to the
revenues Of the transit companies
through an increased fare, as was
charged by the Hylan administration
in It's effort to make spolitical capital
of the Transit Commissions report on
transit reorganization. the commission
purposes to cause economies through
elimination and reductions Of costs to
the extent of approximately s36, ,0o0, 900.
thereby enabling the transit lines to
sustain themselves on a FIVE cent fare.
Persons who have studied the COM
missions report were astonisbed at
the complete variance of the Mayors
Interpretation of that document from
the statements made therein. The only
explanation was the early statement
of John P. O'Bren, Corporation Coun-
sci. that the city intends to fight any
plan which the commission proposes.
In addition to the economy pro-
gramme, the Transit Commission has
stated positively-contrary to the
Mayors charge-that it does not pro-
pose to unload "watered" stock on the
city or compel it to assume owner
ship Of worn out and useless transit
lines.
On the contrary. 1t was shown. the
commissions report says, IL will abolish
useless transit lines and will base Its
valuations on the properties themselves
and not on inflated paper. 1t was con-
ceded that the Mayor was correct in his
statement that the public had not seen
the commissions valuation figures. The
reason is that the commission had not
completed It's examination on which the
valuation would be based. The commits
sion purposes, however. TO give these
figures to the public as soon as they are
ready. This probably will be before the
end Of the year.
No Political Move.
Emphatic denial was made that the
commission had framed or timed its re-
port In amy manner for political effect
The commission was created with in
structions to so ahead with its work
rapidly, and II was contended that the
commission had done that regardless of
the political situation. II was suggested
also that, had the commission delayed It's
report until after election. 1t probably
would have been criticised then for
procrastination. The consensus was that
the HyIan- an-Hearst-Tammany combination
Is determined to twist the transit situa-
tion for political thunder In any event
The commission estimates that to re-
establish and maintain five cent fare
II must find approximately $36.0oQ.00
That figure Is based on the company
operation. tax. rental and interest de-
ficits of $4,000. 900 for the last fiscal
year: the deficits in the interest and
ginking fund account Of the city. which
Is expected to amount to $4,000. 900 In
1922 the cost of eliminating double fares
and restoring free transfers on surface
lines, which Is expected to reach $1,000
900 a year, and an expenditure of $5.-
10000 year for three years to cover
the cost of neglected repair work and
incidental rehabilitation, making a total
Of s41 200. 900.
From that amount the commission de-
ducts 100000 representing the COM
panies' savings by the 10 per cent. cut
in wages which went into effect after
the estimate was prepared by the COM
mission. That leaves the commissions
present figure Of $36.000.000.
No Money From Higher Fare.
The commission expects to obtain
the money not from an increased fare.
but from elimination and reduction of
costs only. That is to be done through
five general measures:
Rearrangement and more effective
routing of transit systems, includ-
ing the elimination of useless lines.
joining of present lines Into more
serviceable and better paying routes,
establishment OF new feeder lines
and similar rearrangement of lines.
for which the commission is con-
ducting a special investigation.
Reduction of rentals and interest
charges through revaluation and the
wiping out of intercompary leases.
Elimination of taxes and other
public charges which naturally would
result from city ownership.
Reductions from consolidation OF
power plants and OF other facilities
used In common and combined pur-
chase Of supplies.
Material savings in reduction OF
overhead and operating charges.
The definite results Of these measures
In dollars cannot be predicted, because
the commissions Investigations on those
subjects still are In progress For In |
stance. II has not finished Its examina-
ton of traffic conditions on Brooklyn |