New-York tribune., 1922-06-24
B.R.T.Property
Now Appraised
AtS47,687,ll7
Company's Experts Base Re-
suits ON Cost to Reproduce
New; Estimates Ques-
toned by Transit Board
Commission Figures Used
Surface Lines Own 5000
Cars. but Only 1000
Are in Daily Operation

~. Brooklyn Rapid Transit Com
..,v Informed the Transit Commission
.,.t,rday at a hearing on its valuation
"a, rs power plants. realty and rolling
.,otk are worth about s47.es7.ll7. and
N, ;hs company, with rolling stock
lused. is worth S35..7o,56i.
"A ~ Williams, special counsel for
n. company. said his client arrived 't
a.. valuation by using the figures en-
.syed BY tse Transit Commission.
The hearing was not under way long
A,rors IL became plain that VARYING
-rhods in appraisal Of the property
brought widely varying results. The
esr paay based its claim upon cost TO
.,,roduee new" while the commission
,sbered TO the factor Of original cost
les expenditures necessary TO put IN
trst class condition"
NJ. Williams said his engineers hsd
svsss governing rule reproduction
,s.t a. prices Of the first half OF 1921.
less depreciation"
Yrom 1896 until 1918 the company had
beer the holding concern Of the system
,sd then absorbed the Transit Devel-
,,rent Conpsrr. catil then the power
,yosusing corporation. This concern
,,.ea considerable real estate not de
vo.ed 20 power producing purposes and
q .l,o held a maiaunancc and repair
urtrnc, for tho operating companies
IN connection with when il leased
,hops. stations and facilities.
Values Generously Estimated
The Transit Development Company
also owned surface cars which It leased
"a the operating company al rental Of
"a ner cent Of the cost. Prior 10 the
r,-rer it sold this rolling stock 10 the
various surface companies IN accordance
with ,raHic requirements, reserving
ti.le vntil payments were made. As
na,rsrts have not been made. Mr. Will
isrs said title TO the cars is still in
te holding company as successor OF the
power corporation.
Conspicuous among the items con-
tribut.ng TO the valuation total sub
m.t;ed ~ Mr. Williams are: Track and
pcsritics. s7,s9s,s97; electrical and
s..hanical equipment. S15,l34lls; to-
a! contract cost. So ,SS3,0l5; rolling
stock. $40 600.
Taxes we're estimated at more than
E50000. engineering, administration
md legal expenses. $500 900; broker
age fots (at per cent and the cost
| q financing the imaginary company
| rproduced in the estimate reached
E,AO0 900. Land was put in at its pres
rt assessed value, plus so per cent,
,rd went into the expense account at
rore than 81 100000 Mr.. Williams
,aid this theoretical work could not be
tsrried forward unless there was cash
rserv. Of s8,60o.00 20 fall back upon.
John ". Madden. n commission en-
rireer. said that the physical condi-
| ton Of the y. r. T. was excellent. and
animated that little more than
q OOo. 600 was all that would be neces-
ury for new rolling stock and repair
Buildings. OF the money necessary "a
restore the rolling stock Mr.. Madden
otimated sSS.s25 would apply TO de
i,rred maintenance" and Sl,el7,64s 70
deferred replacement
Mr Madden said that OF the 5000
| surface cars owned by the B. r. I
| 1000 arc kept in daily operation. The
Williamsburg power plant, according
70 Mr. Madden. had been found Zone OF
| the most modern and up 10 date in the
.ountry," and It's operating cost com
ared favorably with national stand
fds.
Incorporation Counsel O'Brien thinks
could run II a great deal better.
ca, Judge Clarence J. Shearn, special
4 SLesel for the Transit Commission,
Il 1iling that w. O'Brien said the b
\ D. 7. was wasting sl,0O0,000 a year in
operating the Williamsburg plant
And Mr.. McAdoo thinks that the
steam railroads could save millions Of
dollars year" suggested Mr.. Will
hans, "but II is much easier TO tell
" how 70 DO those things than IL Is 70
10 them"
| Allen I. Snyder. engineer. was ehal-
hrged b. Judge Shearn for putting in
a. item Of 100000 for administrative
and l,grl expense in connection with
The acquisition Of the $l0.000,0O0 OF
rolling stock. Judge Shearn said IL was
| pFepostsrous 20 provide for new ad-
illustrative department when one was
srsady provided.