The evening world. Newspaper, September 30, 1921, Page 33

NSIT REPORT THE EVENING WORLD, FREDAY, SEPTEMBER 30, 1921, TEXT OF N. Y. TRA ee \ i two.) tes will turn in to the consolidated) be fixed in the final statutory plan! Upon the new eynpany, and through it to the city.) and contract, reached If possible by| be assured that all properties and rights in return for | agreement between protective commit-| {ts properly ublic can! expended ! necessary the money for basis all | Low Prices Are | expended my feactie tan Arift—to re-eatah- |new leases which will provide for|tecs of security holders, but others | cost, and the rate of fare, theretore, Tt Will appear sige Gent fare. | |amortization out of the earnings of | wise to be determined b will reflect the actual and necessary that if the as upon the ation and fin: Structure the prospect for only bas! nel: maintain- the consolidated system of the valu- ation fixed by the commission. | Make-Up of Groups. method of relief mmission. of present organiz: Pursuant to the terms of the final tutory plan and conteact, "A"| | the Transit; | cost of the transportation that the) publig gets, uninfluenced by any op- portunity of pr gain based upon ie Daw tee babwedaeel |st rred, (a) the rearrangement effective co-ordination of the transit System, (b) the reduction of rentals and interest charges that it has in view, (c) the elimination of taxes and other public charges, from which the munictpalized lines naturally wouid | be free, (d) the reductions of cost effected through consolidation of Dower plants and of other facilities veed in common, and (e) the material Savings that will occur in the reduc- tion of overhead and operating shargos, the indicated deficiencies May be substantially overcome and the 6-cent fare continued beyond the Year of trial. While naturally every endeavor will be made to attain this end, stil) the Question finally can be determined only by a demonstration of the re- sults of operation of the consolidate system such as the plan proposes. Benefit of Plan. The enforcement of upon the principles cited, beyond se- curing the economivs and benefits of Sonsolidation and ending a condition of financial chaos and paralysis, will} clean out the separate, specific, pri- vate inter With their persistent friction and conflicting policies and ibstitute a new basic organization in which the interests of the city and Group No. 1: The subway and ele- | vated railroads now operated by the Interborough Rapld comprising No. permit. j 3” Gempany for operation, underi” ga, rat! company will pay the general terms hereinafter stated. | ,,20¢P aerating GShenes and teialn jPany and jeased by it from the clty| The bonds of “A” Company, Issued | 1) Gyn maintenance and depreciation and the Manhattan Railway Com- | in exchange for the properties trans. |! thorized by the terms of pany. \fetred and a general lien upon alll of | FESCrVe 88 BUT ROT eee ny ee arplus Group No. 2: The subway, ele-|city, shall be secured by a purchase | !ta lease, and turn ove ee Goth vated and surface railroads now or|money mortgage which shall be a] funds to “A” Company, “AY Com: formerly in the Brooklyn Rapid |specitic len upon the properties trans- | pany will pool the moneys so r Transit System. [ferred and a geenral len upon ail of | ceived and distribute same as follows Group No. 3: The surface ratl-|the property of “A” Company, Includ-| (a) It shall pay to the holders of Its js of the Boroughs of Manhat-|ing its interest in the leases to the|aecuritios the fixed return prescribed, tan and the Bronx. operating companies. These bonds|and to the city the interest upon Its The surface railroads in Queens|shall bear interest at the rate of rapid transit investment, and Richmond, in whole or in part,|per cent. per annum, with an ad- (h) qt shall pay into an amortiza- to be allocated to Group No. 2 or|ditional 1 per cent. set asile to amor- tion fund the specified rate for the Group No. 3, tize the valuation aa fixed by the ieoctisation of its bonds, and to the $ may be determined, ‘ Bus lines necessary for the logical ier Mahar seeutek bee rovision iw | Comptroller of the City of New York development of the unified system to | si fle. or 0. te created and allocated as feeders to |the final statutory plan and contract | & ae Lt rae pe et the eley the foregoing group. Where necessary |for the maintenance of a rate of fare | of the corporate stuck of the <lty cr desirable, some of the existing |atitomatically determined to meet at|{ssued for rapid transit construc bi surface lines may be transformed into |all times cost of operation, bond In-| (c) It shall make gaod any deficit bus lines. |terest and 1 per cent. for amortiga-/in the cost of operation in any pre- All existing power facilities to be | tion. |ceding year sustained by any one of consolidated and operated for the| Under conditions hereinafter stated,| the three operating companies, common benefit of the entire system. |in order to provide an incentive to) (q) It shall out of the remaining To pave the way for the eventual. /efficient and economical management, | surplus maintain the above mentioned complete consolidation into one sys-|!t will be possible for the bonds to contingent reserve or barometer fund tem, and to secure the benefits of pri-|earn an additional 1% per cent. of| i d vate operation under public control, |interest. | ei | For Profit Sharing. the Transit Commission will cause| In similar manner the line now or arpa eer to be organized four corporations—| formerly comprising the Brook!yn| (inorder to provide an Incentive for “AS BY eC" and “D" Companies—| Rapid Transit System, surface, sub- | (/Uclent be wet Raids) @RAHT SOLE bi each with @ nominal number of capi-| way and elevated (and if tt is finally | (he toaed i enter. ait at the Pind tal shares. d e card ¢ hy ‘Of Ol mi Group 1, to i Ws bc06: “A | Company wil! forthwith, by appropri- | stock ownership | 4 i eet Scent fare would not be} ‘The existing separate systems to be|ate instrument, vest In the city at Transfers on all of the tines of each 4 Bat tt consolidated at the start into three|of its right, title and Interest in and jof the three oporating tems wil ——- 3 ngion het Man ada reld ihe com= |new operating groups to be made up|to the properties aasuired in return be established at proper points as e it prosenta be adopted, aan as follows; |for a lease of the peoperties trans-|papidly as financlal conditions will and more Transit Com- ERE’S the proof of the puddin’. Moe Levy’s New Fall Suits and Topcoats— individually styled—priced fully one-third less than any others in town. We make our own clothes—we sell through our own stores in low rent locations—we do the biggest cloth- ing business in New York, which permits smaller margin of profit. a a plan based me best, the surfac lines in Hest . of private investors would be com-| "A" Company will be the controll- | Queens and Richmond), will be trans. | PIUS earnings of the unified system, f mon. ; ing and financial company and gen-|ferred to “A” Company in exchange | After the payment of all obligations I¢ these principles be recognized | oral supervisor of the affairs of “B,"| for its bonds, equal in amount to the | $n Ma mein’ DE Oalate buted OF / and given etfect it will follow that/c" and “D" Companies, which will] valuation of said properties, as de-| ter fund, a sum to be distributed o while opportunities for the making of |e exclusively operating companies. |¢ |used for the joint benefit of the oper- mined by the Transit Commiasion, | which properties shall be by “A Company vested in the city in return for a lease to “C" operating company |the limits of the available. surplus upon terms similar to those provided shal, for the purpose of computing in the case of “B" Company | , |allotments prescribed, equal 3 per In a similar manner the lines now| cent, interest on the purchase money money ipmulation sease b hand, through the specu of ative man- transit securities will 1a fide investors, on the other sured uf adequate protection, The shares of stock of the operating | companies will be owned by “A” Company, whose shares in turn_will |be held in trust by the Transit Com- should not hesitate to lend as further | mission, or by whatever body may funds are required. The advantages, | succeed it, that will flow to the travelling public |" 3" Company will operate under ating personel of the unified system and the holders of the Consolidated Company's bonds, This fund, within § . tne | : 4 comprising the various surface lines | jy walle y the Consolidate from the plan are obvious. Nor does|jease the properties embraced in| fy AARNE? Rahal theeouxTa: jh | bonds issued by the Consolidated the commission see in it any unfatr- | No 1) ¢a Compe i |in Manhatta ronx, or § Company. When the amount so § Y Group No. 1, “C" Company the Prop: | or them as shall be deemed by ble bee etermined by fl ; ners either to the operating com-|erties embraced in Group No, 2 and| 9% i available has been determined by panies or to the present owners of | Transit Commission to be useful the Board of Control it shall be allo- “D" Company the prope braced in Group No. & General financial control and-super- em- thelr securities. In readjusting ssential, sbell be transferred to ' i Company th exchange for its bonds | : ated, one-half for the benefit of the securities on the operating personnel as hereinafter ine basis of has in view elimination ption and will | ation that long ounted. that « preferen retu would give commission cut out whateve 8 dle or artificial in t Preferential allowance as fc he plan ment the “water” ind the frank recognition of honest value the commission nsist upon, the of every de investors have In requiring tals" be given or the stability to real invest- again seeks to become _unst ransit finance. h be to jual fn antount to the valuation of | said properties as determined by the Transit Commission, which properties | vision of the entire system will be lodged In a Board of Control, which will also constitute the directorate of 1 ; ull be by “A” Company vested in Company. It. will consist of | Shall on members, to be chosen ag fol-| the city in return for a lease thereof | lows: One each by the Boards of Di-|t0 “D" operating company upon} terms similar to those provided in thé |ease of "B’ and "C” Companies | Upon the completion of the amorti- | zation period of the purchase money | bonds issued by “A” Company, the city's title to all the transit lines will | be free and clear of such lines, but t rectors of the three operating com- | panies, “B," and "D," three by the Mayor of the city and the sev- enth ember by vote of the other six, or in the event of their inability to agree, then by the Transit Commis- sion or by whatever body may suc- dicated and one-half the payment of additional interest upon the out- standing purchase money bonds, but abject to the condition that wit increase or decrease of f below the rate of 5 cents, such shall be decreased or increased, as th "may be, on the pesisat per cent. interest on the bonds with each cent of fare variation, In similar manner, out of the re- maining one-half of the fund referred to there shall be allocated under th fund oung Men’s First ong Trouser Suits i; ir and necessary when the Dual ceed tt. city shall have the right to extinga entingencies| mentioned a itico Contracts were negotiated ten years) ‘The powers of the Board of Con-|the bonds underlying any line or lines (mount for the benefit of the operat ago are t fair under conditions tro} are to be those of a financial | at any time after ten yea upon pay- nich libented nah hall be system, M. ° PBC HUB WAH COD : Gat eesthaltlen UnNIOntES é ch allocated s E expend: of torday, Jf. the subway operators nature, aa above tndloated, togethar|ment of the then unamortlsed portion | SING, algent Gt ot cen te eae, any have two pairs of pants : BUS DRY Ener ABE: with such other pow! supervision | 0° oy |Control fer the collective benefit of be continued and that a fare should | jiny : ‘operly be con-| “A” Company shall raise by the Is- i 4 ’ : aon Assdicauttlclent toe cavers: thei) hice tore cn mee oro Priy joel Coe llc (inmieman acien fornTatl wmnre iO cneTiuce necnonnol) NAPPY models in single and double breasted be fixed AraIMTTAY etree REE Gh Y ferred upon it by the contracts to be | * slice, Comoleee nana we | , Jf however, the Board of Control #9 hey would claim in effect tt OY anierean into vill be responsible | term securi sufficient funds ‘for | 4%, howes : c : ie ‘ f a slove are entitied:ito) 100 par cent, |/ereees) ante tt wll Be) cesnonelhle | sranoinig the unified systemiand pro:| atari nei the mala lesion rniny soa styles—belted and plain. A wealth of fab- protection against the losses and/o¢ all the surplus revenues of the|Viding necessary working capita! | Woard of Control to provide benefit en es fheludi Nee ee Sala ; ; Recity: 3 i : r e $ ‘ontro pe e benefits, cs and patterns, including every wanted color. shrinkages of the war, while the <lty.| operating companies after payment | during the early period of its de- | wich. ay insuranco "and pensions a s p i 8 ’ 1 col aR Ye Matta dae A of their own operating expenses, wil Ue) a age be util- for the operating personnel and to Sizes 15 to years. party to the old agreements have) nave sole charge of the issuing of all| ized, among other things, for the es-| reward employees who in various Ls y heen required to carry very substan-| securities, will make all payments for|t#tblishment of the contingent re-| groups ave, during the preceding tial losses, direct and indirect interest and have the custody and| serve or barometer fund hereinafter | year, rendered conspicuously efficient ; nter-compan rovided for. Such additional capital The elimination of inter-company| yanagement of the amortization, con- | Provided for. Such additional capital | service, Jeases will put an end to another iy cent reserve and other funds. as may be needed for transit con-| ‘There will be included in the con- form of abuse in transit finance and/""Theinction of the ‘Transit Com-| struction or equipment, other than| tracts for the transfer of the several avoid the continuance of undue favor’ iision in respect to construction | !hat furnished by the city, shail be | jines to the Consolidated Company r@) to any particular class of security) (ane vested in the Board of Con-| ised by the sale of new bonds to) provision for obligations to contract } Under the plan all such) tio) and trom time to time, as expe- | be Issued by “A Company, as m nd tort creditors and to holders of 4 leases would be discontinged and the er og Wwarrants,, all the. remaining | Be determined upon by the Board of | recrivera certifeates of Indentesine, F lines of lessor companies merged| Tienes warrants, all the remaining | contro employing for this purpore, so far as RRE'S AA NG drive with the unified system upon the) (crore of involving exercise of tie |, There shall be no increase in the |can be agreed upon, the bonds and HER San example of Moe Levy value giv & same terms as to tie recognition of ONTRt Mune Muelle tue Public Ser. | S-CeNt rate of fare, unless, after one short term. securitics of the Consoll- ing Come in-see-—then compare them ia * actual value and the allotment of | Pye eee ion will succeed, should | ears demonstration of the results of | dated Company, due allowance th . i I l ¥ be interest-bearing securities that apply) vice Commission will succeed, should) operation of the consolidated sys-| for being made in the price at which with what other stores are offering. All the ‘ Pr Rarinite abolition of the Tran. | tem. with its new and many oppor-|the respective properties are to be _—3—| 2 ' ay with the foregoing| Permitting the abolition of the Tran: | tunities for substantial economics, an| taken over. popular clothes uy ig popular colors—all the i commission st its the} * i ano. pad arated 2 ~ | increas onstrated to be neces- +, 5 | Ld) roe. Y u 7 * i seietiine of its plan{ end will be recommended by the com- | "crease is demonstrated to be neces: | 7 eases and Amortization. popular models. he biggest topcoat value in he ‘ hrough ch | mission. eat bine flee ane ’ i! banism through which | eee vide for the eventual consoli- | C4¢h succeeding fiscal year the rate | The term of the leases shall be for town. ' ut into effect: Jaation into one operating company, (Of fare will be determined automat. | ao long agi necessary to amortin y the Board of Control will have the | ally by the status of the contingent |the valuation as fixed by the Tranalt ty The Plan power, after a specified. number of | Teserve or “barometer” fund, and | Commission, a a - eee aie snsclidate. further the | Shall be put into effect by the Board| Aji toute lmublecthtolertine 4 The plan provides for the valua-|oroups and operating companies pro- | Of Control. During ch ye: of| guishment or recapture by the city at r nsolidation and municipal] ¥ided for under this plan into one or | OPcration under the plan the rate of | the end of ten years upon payment of @ tion, consolidation , ii-|two operating companies, as it may | f¥@ Shall be adequate to provide for/the then unamortized part of the v ownership of all transportation facill- | two P ts COM y as “Yl cost of operation and interest and| valuation of the leased properties. i. s deemed by the Transit Commis-| erm sae vith nis|° nking fund upon the bonds und} As the amortization funds will be x ' ion to be useful and essential. Such| Jt may be noted not only that this) other current obligations of the con-| managed by the Board of Control, on Ae eee red without | (cnt! differs from past methods, in| solidated system, including provision | which the city will be adequately 1 facilities are to be acquired without! that tt 1a placed where tt can be ex-| forthe maintenance of the contingent | represented, thalr weopee nad ately , -_ cost to the city by amortizing out of | erc nea ne ae and eco neln= reserve or barometer fund. ative management In the city's in- sical Be he valua s fixed by the] ‘cally, bu a Laas 7 terest will be assured. In order, how- earnings the valuations fixed by the} ion "is" nlaced on an, equality. with| Flexible Fare Plan. (Viste laren isd aypnt ay aie 10.8 Ww ; i ransit Commission, Al’ exisine that of the private investors, giving} liter ein focoe: st’ management of sinking funds, ° oo ults e corporations and their franchises.|the city for the first time real and| This perate ag H TEACH AT AU RETRTAILGy Meena aaiad f | securities are grad-| substantially complete home rule with| After payment of. operating ex- HO bU via EROUELGA ORL A interleases and securities are gra lnerpece ON ey lts | penses and fixed char (the fair. | thr A Le Wes par i Foeindiie vercoats f | ually to be eliminated or extinguished) “ye “og “expected under the plan,| ness of the amounts of which te iIn-| Cand, And through the compounding eeters 4 axcentta underlying liens carry-|selfish and antagonistic sdterests are| sured by the valuation of the prop-| St the ond bf a given period will be a ng a low {interest as the com: [eliminated and the interests of the| erties by the Transit Comm sion and} equal he thacney valielot ina: eure K 5 Secs it advisable not to dia [City and the company Investors made| the control of expenditures by the| tite outatundine, which mettiod Koopa mission ¢ t y mmon, it should be possible to have| Board of Control) the surplus moneys] #68 Outstanding, which method keeps bo turb. “Existing securities, with sucl'lq jarge part of the detail work now| are to be paid into a contingent re-| conatant inducement to manipulate bs exceptions, aré replaced by an}done by the staff of the Transit|/ serve or barometer fund. If the! the sinking fund so a8 to secure Im. om, issue of a consolidate? |Commission performed by the staffs} available surplus keeps this fund] mediate financial ald for operation or ey ss oye a fair and{of the operating companies and thus| above a specified maximum the fare| stherwiae, the final statutory. plan eonest. valuation e sperties |cut down the large force of public| is to be automatically lowered: if the| and contract will require the adoption Dayment of t nds with inter-|employees necessary under. present| {und falls below a specified minimum| or the more clean-cut method of buys (@) est and a sit ‘ sut-|conditions. In view of the base of|the fare is to be automatically in-| ing or calling in each year a part of j : nt to retire them Ww 1-|the Interests of the city and the com-| creased until the reserve is restored. | the outstanding securities and con- Bee ee ariad oawtitel Will S| pany investors being common the ex-| For example: Assume that the! ceiling them. ‘This will wipe out a fhan the term of the present subway’ |penses of the Board of Control should| normal amount of ihe barometer fund) definite part of the debt each year ry a be secured by a purehase|be treated as an operating expense| is fixed at $: 10,00 f it rises to} and, although its cost, as indicated . . a leases, WO tteage and assured bs’ aland paid out of railroad carnings | $85,000,000 the fare is to be decreased: | by. accounting studies, Is somewhat Many of these suits have two pairs of pants at $7.75 up nee of fare based on cost, automat The operating management of “B,"| if it falls to $15,000,000 the fare is to| greater than on the compound in- a ‘ a i ate Ofetermined by the condition of "Cc" and mp" “Companies shall he | be Increased. : f enin tn,| teat, Daas, the commission believes ID KLOTHES have made thousands of friends for sca tineent. reserve or barometer! vested in their respective Boards o! n short, the purpose o} a Is,|that it possesses many advantages. gH pi z aeons \Direetors under the terms of their! after fixing the base of proper valua-| After nome years the debt should auf: & us through the service and good wear they ren- tee uations according to existing se- The Board of Directors of|tion and determining the operating! ficiently be reduced to case greatly 7 " # ily ee C re) > est 4 ; Valuat Sane capital ens DADA RAI DR rleeked’ hi Lite ll@XDEneea Ad DEAN Scher ees, tor Tne eee GOIRERTInG fined GREER aaa der. The whole family agree on Kid Klothes— ‘Me Pint will be distesurded and the en-/holders of the bonds issued in ex-| the decision ag to the rate of fare aa| thereby pave the way tor bettered for Kid Klothes!’ says Jack They're! neat ‘and . hid | structure of the con-|ehange for the securities and prop-| automatic as humanly possible.| service or possibly decrease Ares. * * : . ‘<a . tire financial structure the fty—look just like my big brother Bob's! ed compa wit based | erties constituting Group No. 1. Sim-| nifty y st i ae "valuat m whieh, under jtarly Mipestory AE SO! and Ae) Kid Klothes sell for one-third less because we make * fe rapid transit legislation of this! cc of the bo issued in ex- | ; , ‘ Vean'tg rapidly. veing completed, BY holders of the bonds issued in ex-| them ourselves, sell through our own three stores in ir ‘a means the in present / change for the securities and prop i ; {hip means tne apitalization will bel erties constituting Group No. 2 an¢ low rent locations x narrated and. the new valuation|Group No. 3 respectively. Manage * el represent the real values in the ment will thus represent investment 4 transportation properties. | Gg|instead of speculation | VERAGING the cost otf dressing rae Atk ‘and its ownership of the| Transfer to City. | boys is more protitably accomplished existing subway ee ata of The present subway leases to be re- | through the selection ot dependable ® unifled aystem can best Be SeCUr™Y | formed or superseded by agreement, tabrics and thorough tailoring. prough the , municipal | ¢\"as to abolish all preferential pa ation i a © company a ;, Fy ay ne taeful and essential in a monts, and plac ; oMpany aia ie We are keen on the question ot quality comprehensive syst re tne rol of all subway equipment not already everything we employ in the making ation under effective public Cole yr owned by the city to be vested in the | ot boys’ garments must prove its worthi- by company agencies to be crettot IO’ city without outlay by the clty In re- | neae the purpose. If the city ar inicipal | turn for a new lease. : | a \ wnall eppose immediate mince The reformed subway lea com- | Am F e ¢ wanership of the tranait system, with) / 10 Tiare ough Syatem, to-| The rising generation, our nucleus tor } Ly y ity to reform com- | P ; ; F ta present opportunity to Titi S"ine | gether with the lines constituting. tho tuture patronage, is entitled to and receives one letely the existing 4 to consider | Manhattan Elevated Railroad Sya- r cent service Qommupiasion is prepared to consider Aoi agsigned and transterred, | hundred pe MeV Entrance on the alter e course or owned by| with the consent of stockhoxlers, or, | Moderate prices prevail. to all properties not now owns” OY) caning that, by means of foreclosure | D Cortland: t. econ the city, including the subway leaset) 21°C, “A" company in exchange for | lowntown landt_St. cogwntiantes company, 42 2A Company penta, equal in amount ROKAW BROTHERS ei nd f | to tho valuation of the properties ween Thir for fekermures will persut| p BIGpartiag in the e Th Buc wt so be| the Interborough and Manhattan = | ioe Ol ad tenturen of tho plen abe fhe, Aariornugh and Manna 1457-1463 BROADWAY but will aa carried out, a to ficulties and tend to imp mo ynership will be a the plan, ownarship : aotiies Dy the city without financial outlay on {ts part. Existing comp! higher |Commisston pursuant to chapters 134|_ and 835 of the Laws of 1921, These bonds to be exchanged for | | outstanding securities issued against | the properties transferred on terms to Bronx & Bergen Aves, 409 Eastl49t*St.