Evening star., 1932-10-18
.10OR Is CENT FARE
/. ON SUBWAYSSURE,
M'KEE DECLARES
Long-Term Financing Plan
Adopted by Board Means
Disaster, He Says.
CITY BUDGET FOR 1888
SLASHED SIS, 900, 900
Berry Method Voted After Banks
Refuse to Lend More Money
Without Economies.
BY the Associated Press.

BY tne Associated PreSs.
NEW YORK, October 18.-Mayor
Joseh v. Mckee said today that a 10
or even a Is cent fare on the city's
transit lines is inevitable, due to adop-
ton by the Board of Estimate yester-
day of Controller Berry's plan for long
term financing.
"The scent fare has no future, be-
cause 1t can't survive through the long
term financing that has been voted. "
the mayor said. How soon the scent
fare will become matter Of the past
Is a matter of mathematics-income
against expenses.
"A l0-cent or even a l5-cent fare is
inevitable"
Assistant Director of the Budget Paul
Loeser furnished figures at City Hall
indicating the 1888 budget as proposed
will show a total of S556, ,474.000. de-
crease of approximately $74, 900, 900 from
the 1882 budget
Confronted with a refusal by bankers
to lend the city more money unless the
budget was reduced substantially. the
Board of Estimate abandoned the De
laney plan' of subway financing to
make possible two-thirds of the total
saving
The De'aney plan is four-year bond
plan Of financing sponsored by John H.
Delaney, chairman of the Board Of
Transportation. Mckee. who submit
ted a detailed econ my plan Of his own.
fought for a modified Delaney plan"
under which some s3l 900 600 was to
have been cut from the budget by using
eight-year bonds instead Of four.
Proposes Pay Slash.
Mckee also wanted to save about
$4,000, 900 through a g.. per cent vel
untary reduction of the pay of civil
service employees, and he proposed other
economies.
A majority Board Of Estimate bloc.
composed largely Ct Tammany men and
allies. left the pay of the 100000 civil
service employees intact and voted in
favor of Controller Charles w. Berry's
50-yesr bond msthod of financing new
subways This it is e timated, will lop
s49. .750, 900 of the 1888 budget.
Mckee said the long-term plan meant
disaster to the capital debt structure CT
the city and to the subways also. He
said the Berry plan meant interest and
Amortization charges Of S22 .000. 900 a
year by 1945. while the Delaney plan
meant s3,O0o,000 to $4,000,000 in these
charges.
I'm not interested in what happens
in l945." said Berry. The important
thing is what happens to the present
generation"
The controller said succeeding gen.
erations should pay their share Ct sub
way improvements. Mckee said the
vote meant the de atruction OF the
scent fare"
Issue Elects Two Mayors.
The nickel fare has long been an
issue in New York politics. John F.
Hylan and James j. Walker rode into
office ON huge majorities champion
ing it.
The budget slashing by the board
came after Charles E. Mitchell, chair
man Of the National City Bank, warned
that unless the budget were cut sub
stantially the inve: ting public would NOT
absorb any more city securities. He
warned the board members they were
standing ION the edge of a precipice."
Besi6es the subway vote. the beard
members reduced their own salaries and
voted other economies. Several pro-
posals by Mckee to eliminate jobs were
defeated by the Tammany bloc. These
pIopos ais included one to wipe out 10
assistant sergeant at arms CT the Board
of Aldermen. Who draw total OF
$22. 800 a year.