The New York herald., 1922-03-25
What Are Properties Worth ?

In another column on this page
we print a letter from the Hon.
GEORGE w. WIcKERsHAM discussing
an editorial article of THE NEW
York HERALD, published the other
day, bearing on the traction prob
lem OF this city. Mr.. WIcKERsHAI
refers specifically to this expression.
Properties are worth, the price on
which they will return fair yield,
or on which they have prospect of
returning a fair YIELD" and asks, rs
not this begging the whole ques-
tion?"
No, it is not begging the question,
but it is recognizing the huge, well
nigh impossible rock in the channel.
When huge. well nigh impossible
rock looms in the channel it is not
the business of the wise navigator
to argue with the rock but to steer
his vessel around the rock as best he
can. This is the situation with the
transit business of New York.
THE New YORK HERALD makes no
defense of the attitude Of the city
with respect to the five cent fare.
It\ has consistently argued for the
justice OF an increased fare with
operating costs up in the sky. But
there is no such thing in sight. The
attitude of the New York public Is
the huge rock in the channel. Argu-
ments as to why 1t should not be
there do not count.
The thing that does count, In the
Judgment of THE New YORK HERALD,
is the fact that the transit business
of New York is just about as badly
off as gristmill operated by water
power is when the stream, for reasons
of its own, changes its course. Argu-
ments as to the injustice OF the ac-
tion of the stream cut no figure, and
without power the only thing left to
the owner OF the gristmill is to get
out the best he can, to salvage as
much from the dead mill as he can.
The transit business of New York
city, with a five cent fare a fixed
factor and considered in relation to
the present cost of operation, is in a
position somewhat analogous to- the
dead gristmill. Any calculations with
respect to the earnings of the transit
business of New York based on a
higher fare than five cents, or on
poorer service than that which will
be acceptable to the Transit Commits
sion, is wanting in vision and lack.
ing in hard sense.
In this situation the obvious thing
for the management of the traction
business to decide on is whether it
is better to go on operating their
roads at a loss or with little or no
profit in sight, or to get out of a
business that Is held down by the
sheer will force of the public to the
five cent fare, which, in the opinion
of the management, doesn't give the
business a chance for it's life.
THE New York HERALD editorial
article In question, while expressing
the opinion that Governor MILLER $
plan for reorganizing the transit busi-
ness of New York gives the present
transit security holders an oppor-
tunity for fairly satisfactory escape
from financial wreckage, further ex-
pressed the belief that the Transit
Commission, composed of fair
minded men, would deal fairly with
the transit systems of New York.
The margin OF difference between
the tentative valuation figures of
these transit properties found by the
Transit Commission and the claimed
valuations by the managers os these
transit properties is so wide as to be
grotesque. 1t would seem to be per-
fectly simple matter for two bodies
Of competent engineers, inspired by
right purposes, the one representing
the Transit Commission, the other the
present transit interests, to arrive at
approximately the same valuation.
Mr.. WIcKERsHAM's contention is all
right except that in the present tran
sit situation it gets nowhere. The
traction systems are not compelled to
sell to the reorganization committee.
The traction systems can keep right
on operating their roads IL they wish
to do so, providing they give the citi-
zens OF New York good service.
1t Is not a theory that the transit
systems have to deal with. 1t Is the
fixed five cent fare-positive, immov-
able, certain. Mr.. WIcKERsHAM's con-
tention is directed, in the flnality, to
the people Of New York city and New
York State. III confiscation enters
into the problem, as he argues, the
responsibility rests with the people,
nowhere else. The five cent fare is
their ultimatum.
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