The New York herald., 1922-04-20

have lost the cent fare. The people
are now paying S, Z. 10, IL, 10 and even
90 cents for what formerly cost 5. Treat
IL as a question of service. organize on
proper lines and in my judgment you can
restore the cent fare. Fail to do that
and you will soon be unable to ride at
all.
the Transit Commission has been
doing other things besides preparing the
plan. The commission has been proceed
Ing through its experts to prepare
table OF valuations, and these have been
laid also face upon the table with all
Of their supporting facts. But what do
we find? The city on the one hand says
that 1t IS proposed to buy junk. Tho
companies on the other hand say that
tho valuations are too low even to fur
nish a basis for discussion. say thai
II the valuations are too low let the
companies produce their experts for cx
animation in the public hearing and let
the city, on the other hand IL 1t claims
that the valuations are too high. do like
wise.
Against Valuation for Companies.
"I am led 70 mako another observa-
ton here because there are some things
that it Is important for the people inter-
ested in these companies to get into their
heads. / said that they were not en-
titled to an increased fare. They are
not entitled to a valuation, except as 1t
is based upon the earnings which they
can make under the fare stipulated in
their franchise and contracts, and that
too by giving the service that they are
Obligated to give and not through i'm
paired service, because let me say that
there is no such thing as vested right
in a public utility to give impaired SER
vice
There is no vested right in public
utility to ask for valuation on any
other basis than upon earnings derived
from adequate service under the condi-
tions imposed. This question OF vaiua-
ton Is to be decided as business prob
lem upon the basis of what these prop
critics in their present condition and un-
der their franchise and contract stipula-
tions are worth not as going concerns.
because they are not going concerns to-
day. but for being rehabilitated to fur
nish the service which the public de-
mands. bM ~
'"rhe companies say that they cannot
render improved service without an In
creased fare. and they have suddenly
discovered that the Mayor was right In
asserting that the act was unconstitu-
which they are under contract and fran
chise obligations to render there Is an
alternative, and that alternative Is the
acceptance OF a plan Of reorganization
under which maximum service at mini
mum cost can be rendered.
by confessing that they cannot now
perform their contract and franchise OBJ
legations the companies put themselves
into the position In which their rights
are subordinated TO the public need, to
the public interest. The commission has
taken its stand on the side of the pub
lie interest. and It now finds itself op-
posed both by the companies and the
city administration. They have been
proceeding not hastily but carefully to
develop the facts, so that IL 1t becomes
necessary TO make any orders those or
ders may be supported by the facts.
They are proceeding by inquiry and not
by proclamation.
II want to say this, that II the issue
ever comes when the question of en-
forcing these orders IL involved that
Issue. In my Judgment. Will be so framed
that the companies will not be able to
plead financial inability In defense. They
will not then be pleading to the innocu-
GUS fulminations from the City Hall.
"No Dictation From Albany"
This work Is being done by com
mission OF your own citizens, without
the slightest dictation or interference
from Albany: but want to say that if
this issue ever arises. as I hope IL will
not, because what we are trying to do
at the moment is to get service and not
law suits. but II law suits have to come
then at that stage there will be behind
the orders OF the commission all OF the
authority. all of the influences and all OF
The power OF the State OF New York.
I'VE are now approaching the time