New-York tribune., 1922-08-28


60 another. This viii constitute ths
longest ride ontainable anywhere OF
earth for nickel.
No Return on Caty's Investment
Although the city has more thar
sSe0 ,oG0, 600 already invested in rapie
transit linen. the city has not received
single dollar cut Of it's investment
except interest and amortization or
about one-sifth of this amount. This
return to the city is made by the oper,
ating companies under the terms oil
contracts / and 2. The bulk of the
cityss expenditures for rapid transit
was made under contracts 8 and <~-the
so-eailed dual subway contracts
Theae iRnpeovident contracts were
signed in March. 1918. and we're faith.
cred by George McAneny, who at that
time was chairman of the transit com.
mittee of the Board OF Estimate and
who is now chairman Of the State
Transit Commission by appointment o,
Governor Miller.
Under the terms OF these contracts
fnambers 8 and 81 the city has not
received one dollars return on total
outlay of about $3.50, 1000, 900, and the
city lis obligated to pay interest each
year on this vast SUM out of taxation
Five-Cent Fare Profitable
"The marlborough Rapid Transit
Company has taken exorbitant profits
out OF the people in subway operation
on = fve-eent fare. Though the COM
pany is capitalized at $35 1000 900, not
more than one-half this sum was ac-
tually contributed, the bulk of the bal
ance being obtained from profits on
construction work under contract num-
Der /. The same men who controlled
the Interborough Rapid Transit Com
pany when it was formed, also con-
trofled the Rapid Transit Subway Con
structfon Company, to which the Nc
Donald contracts were assigned. This
company, on an investment of about
sfo,000,00o made about that much
profit out of the city on construction,
and these sums were invested in the
equipment of the original subway
lines.
'sSince 1904 when the subways were
first put into operation, the INTERIOR
ough Rapid Transit Company has paid
to its stockholders total OF 1871 pea
cent dividends S55,625, ,0o0), or an
average of about 1914 per cent year
for fifteen years, until 1919. During
all that time the city has received
only per cent interest on the bonds
issued for the construction of the first
subways CONTRACTS / and "a, plus ]
per cent amortization to redeem at the
end Of fifty years the ffty-odd mil
lions bonds which the city issued foI
this purpose.
Reasons for City Operation
1.-THE city intends to launch into sub
gay operations for many reasons.
"The people are entitled to all the
security that the city operation, as
we'll as city ownership, can give them
Under city operation, there will be no
strikes or other labor disturbances be-
cause the city will always maintain an
equitable wage scale ard subway earn
tngs and profits will be used Tor the
benefit of the people themselves and
not for the benefit OF few insiders
in the operating companies The en-
ployees themselves will be part own
ers in the property and there will be
no extravagant salaries, fancy bonuses
or inside gratis for those higher up
me people of this city are entitled
forever to protection against graspina
transportation monopolies and against
the malign efforts of these corpora.
tions and their owners to corrupt lepis.
lation, bribe public officials, influences
newspapers against the public interest
and continually misrepresent motives
and purposes of those who resist their
unwarranted and underhanded at.
tempts to obtain higher fares.
No More Private Operation
"The city does not intend to invest
another dollar of public funds in
rapid-transit lines for the benefit OF
private operators, nor does it intend to
invest single dollar in the acquisition
of antiquated elevated and surface
lines controlled by these private oper.
ators. which Mr.. McAneny. chairman
of Governor Miller's State Transit
Commission, insists willy-nilly, thai
the city must do.
"Recapture" of Subways
"The city intends to invest the publ,
funds solely for the benefit of the peo
pie themselves--in new rapid-transi, i
lines. 1t intends to end it's one-sidet
partnership with the Interborough ans
Brooklyn Rapid Transit companies, t.
which Mr. McAneny tied the city in
1913, as soon as such severance i:
legally possible, and it intends to re
capture the lines operated by these
companies under the .reeapture, provi
sion in the contracts, The Mayor saw,
the 'recapture' can be effected in 1872,
and 1926.l
Authority for "Recapturev
"Fhe authority for such srecanture
is contained in Chapter of Part 8 o
Contracts Nos. and 4. 1t provide
Tor 'recapture' of any part of the sub
way lines after ten years of operatio OF
or or the taking over of the entire sys
tenn, though it also provides that lib
eral profit should be paid to the com
panies for their equipment.
Under Contracts 3 and the Roar
OF Estimate is vested with power o
behalf Of the city as principal to ter
inmate the contracts as to all or Ger
tain specified portions of the lines GOV
cred by the contracts at any tim
after ten years from the date whe
operation of any part of the lines be
gan one years notice in writing t
the lessee is required. The Transi
commission has no discretion in th
matter, but must act as agent for tn
c51y, upon direction of the Board O
Estimate.
Though the law provides that th
Transit Commission must act as th
agent OF the city, this provision of tn
rapid transit act should be amende
so as to end divided responsibility AN
make the responsibility and control q
the Board of Estimate and of the city
elected officials complete. Sound ad
mlnlistratIve policy demands this. Petit
pohtics alone can prevent it.
Linked With Other improvements
The eity's new subways will b
mixed with existing rapid transit lire
and their construction will be time
70 nt IN with the 'recantl1re, of .,a ,i4..,