The New York herald., 1922-05-03

further orders cake effect. the company
largely increased traffic that imme-
diateiy follows the vacation period and
that holds good through the fan and
winter.
10. The September schedules are
based upon the operation OF trains on
three minute interval Curing the mid
day non-rush hours. against the present
average OF something over four minutes.
A considerable measure OF relief is also
given in the rush hours. With the COM
pany's present equipment and the pres
7st-ent working force. including the re
serves who are to be drafted on Nav
81. il viii not be possible to operate
three minute non-rush hour trains The
intermediate schedule provides. there
Tore. for two and a half minute intervals
in the middle of the day. though with
material additions Ia ihe other hours
before and after the morning and eve-
ming rush.
To Rush Work ON Yards.
The work upon the yards. the compile
ton of which will from now on afford
the key for the final and in soihe re-
spects the most important extensions TO
service to be made, il to be pressed by
The commission as rapidly as tho incl
dental contracts are approved by the
Board of Estimate and Apportionment.
Pending the completion OF the building
Of these new yards, however, the COM
pany, under the supervision of the copS
missions engineers. will provide tenn
porary yard facilities and inspection
sheds for that part of the increased
service, possibly the full $50 cars in
Guided in the first orders. that can be
taken care OF without awaiting compile
ton of the permanent yards.
III. The company is required 10 submit
within twenty days the detailed sched-
ules covering all divisions that are TO
become effective on May 81 and TO sub
NIT by August 10 the schedules to be ef-
fective September Is.
s'12. At the time of each submission
schedules covering Saturdays,
And legal holidays are to be
following in principle the
headways."
Am panying the service orders were
aainion written by Commissioner Leroy
H1r ness and Commissioner John F.
&yan in both OF which all three mem
rsrs the State body concurred. Mr..
a SIS in his said:
"tfe hearing was ordered on March
after months devoted to a gem
fgal avestigation OF the affairs of the
rfs companies. and after extensive
ksH vs. OF subway operation had been
-e4s and tabulated by the commissions
trAnsit bureau. Eleven sessions have
hssn held from March 15 to April IL. at
Fhieh sS4 pages Of testimony, accom-
,saied by voluminous exhibits, were
thken.
The Issue in this case Is not whether
The service is inadequate. IT concerns
the extent to which an unquestionably
Inadequate service can and should be
improved at this time. In these hear
ines, and also in the course OF the in
vestigation conducted by the Commits
sion on the general transit situation,
officials Of the Tnterborough Company
have admitted the prevalent extreme
'eongestion. and have pleaded that in
rush hours the track capacity practically
has been reached, and that the company
has been giving all the service its finar-
cial means permit.
New Subways Badly needed.
1T must be recognized that rush hour
congestion can be fully relieved only by
the construction Of new subways. Pend
ing this. however, much can be done
by increasing the service toward the
ends Of the rush hours through the
provision of new equipment (This will
be considered later on in the opinion.)
TO meet the present needs a major con-
struction program should have been
placed under contract five years ag0.
80 that new lines would now be coming
into operation.
Unfortunately, not only has such
project not been undertaken but parts
OF the 1913 dual system lines are still
unfinished. The Commissions plan FOR
transit reorganization involves, through
making the present Investment OF the
city self-supporting, the setting aside
OF revolving construction fund between
$3.50. 100000 and $500, 100000. In this
OF sc5. 200 to s5o,000.0oo annually
can be financed, and new construction
can somewhere near keep pace with
traffic requirements.
AT the best, however. these new lines
cannot come into operation for four or
five years. While awaiting this new
construction existing facilities must be
used to the utmost, and new equipment
supplied TO permit the most intensive
operation.
That the Interborough Company has
fallen from exceptional financial
strength to the verge of bankruptcy IL
unfortunately true. In part this is due
10 the war. and in part to the company's
own action in H'ssipating its reserves
through the declaration or excessive div
idends i'm the years 1914 TO 1919. From
whichever cause the results flowed, the
Initial study OF the situation made by
the Transit Commission when it took
office about year ago indicated that the
1nterboroueh Company was not then in
q financial position to meet orders for
Increased service. II was apparent that
n orders even comparatively minor in
extent had been issued at that time the
company would have been forced into
Ieceivership.
Looking ahead to real solution OF
the transit problem. and not TO mere
Ijalliatives, the Commission was con-
vnced at that time that the greatest
benefit to all concerned lay In keeping
the 1nteroorough Company going until
financial conditions took a turn for the
better and there was an opportunity to
outline and develop the Commissions
plan for a thorough going reorganization
OF the transit companies.
"At the present time financial condi-
fions are materially better. The en-
poycs Of the company have consented
voluntarily to a 10 per cetn. reduction
IA wages. and the prices of materials
have been steadily going down. The ef-
feet OF the press or oxerted by the COM
mission for a recasting OF the present
outworn franchise and financial struc-
ture Ia indicated by the composition ten
tAtively arrived At by representatives Of
the lnterboroush and Manhattan secu-
rity holders looking TO the reforming Of
g.