New-York tribune., 1922-02-21
Companies $7oI.OOO.- :
900 Estimate on 40 Sys.
lens in Reorganization
slashedioS465. .680. IS4
S55,oOl.I37 Needed
For Rehabilitation,
Almost 800 Millions Are
Squeezed Out OF Billion
capitalization; Securi-
lies 10 Pay for Lines

The Bureau of Valuation Of the
Transit Commission recommended YES
'rday that q total of $465 ,6S0.15d hc
; aced IS tho net valuation on the
r~onerties of the forty transit com
nsuies proposed for inclusion in the
commissions plan Of reorganization o.
the traction systems OF New York CITY.
Tie companies own valuation of the
properties, as carried on their book
sid irrespective Of security issues, ar
gregatc S791 100000.
The report Of tho bureau thus recon.
mouaed reduction Of $500 .0oO. 600 or
a5ouf 40 per cent Of tho present net
csnltali4atior, and or about S326 600.
ooV below company book values
Sweeping Reductions Made
e"eeplng reductions were made by
t0o bureau. In arriving at its conclu-
SION. submitted at the first Dublic
hearlns Of the commission since the
session cf two months ago. the buroau
soaee1ed the water out of intercom-
tarv holdings and virtually cut in
twain Tire book values of the comma
rio
fiem the present capitalization of
ths companies approximately $1,000. -
en0.0Qo- includirg stocks and bonds Of
every description now OUTSTANDING
.oe bureau excluded various holdings
tf.H- tn' par value of the sch,al
s9cl tics held by the public do,,n +,
f7f5Qe0 600. = 20
Brooklyn Rapid Transit comnanv
,iues received tho most drastic cutN
s'2,Ss2.6oi. The Interboroueh RAND
transit CompanN's figures we're r.
saced only S31-S24,322. Other differ
shees between The bureaus valuations
~ oose maintained on the COM
gN'eS books were: New York Rail
System. the old surface lines
SSe.211.s .s2l; Manhattan RAILWAY CON- Com,
p ny. the - lines. $55,627 .2O9; Third
4 enuc Railway System, $40, ,734.8o1:
queen Sborough companies, $9,73l ,994;
Second Avenue Railroad Companv
s. o'o2o Staten Island companies.
, %l'4So.s7t miscellaneous companies.
$-eO,S5l
City subway Investment
nc amount that the City OF New
i"fa bas invested in the subways un-
o'r contracts Nos. =. .. g and I, is
'2s'. i9@. .239. Adding this to the
recommended valuation of coDpanV
properties $3.50 56SoI54- gives total
f,'lstion Of city and company property
OF S159. 1888.
JonN II. Madden. valuation engineer,
ard Fred w. Lindars, chief accountant
o' the commission. prepared the re
per which is based upon exhaustive
IT hteA-orcs as Of June so. 1921. of each
~ the properties covered. giving in de
'ail the cata upon which the several
sis OF valuations were made, together
Nltn elaborate financial and statistical
data nertinent to the affairs of the
companios
Copies Of the four volumes covering
nc report were transmitted to the
companies concerned and the commits
sion adjourned until March 6, when it
vii noic hearings to receive the CON
'cntions OF the city and Of the com
'sNles- Il was indicated. however that
recommendations Of the bureau
would not differ radically from the
Taiuatons to be fixed by the commits
Sion III It's statutory report.
Transit Act Amendments
George McAneny, president of the
commission. made known at the hear
ng yesterday that the commission
pians TO ask the Legislature to make
certain amendments to .he transit law
20 carfy It's details, but which will
n no way change the intent of the act.
de gave this information in reply to
william A. De Ford, special assistant
corporation counsel. who attended the
hearing representing the city. Mr. De
Ford, Offering the city's usual objection
TO the constItutionality of the com
mission, called attention to the fact
7hat he had recommended an amend
ment 10 the act. Mr.. McAneny made
clear that the commission previously
had planned to ask for necessary
al endments and that his idea would
Nc doubt be covered.
The recommendation of the bureau
Of valuation is that the valuations be
based upon original cost. from which
is 10 be deducted the amount of ex-
ponditUre necessary to put each prop
erty in iirst-class condition. The valu-
ations also take in the lines which
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