Rapid-Transit Query Posed

Trenton – Can the Port of New York Authority, the operator of tunnels, bridges, airports, and other high-priced facilities be made to plan and operate a metropolitan rapid-transit system, too?

In a battle of reports yesterday, a new round in the debate was argued at a hearing before two Assembly committees.

Austin J. Tobin, Port Authority executive director, submitted a 46-page memorandum saying deficits would be too great for the Authority to handle.

Dr. Salomon J. Flink, economic consultant to the State Assembly, had a 57-page report ready. He argued the Authority could afford to pay a portion of its earnings to plan a transit district and pay part of any transit deficit.

Tobin made these points: the Authority cannot issue any of its consolidated bonds unless the Authority can guarantee that future earnings will be at least 1.3 times maximum future annual debt service. The Authority has commitments of $700 million in new projects in the next few years, and the ratio between debt service and earnings will be almost marginal, according to Tobin. He said the Authority couldn't afford to spend a dime for transit, and that it must stick to self-supporting projects.

The Metropolitan Rapid Transit Commission has suggested that the transit deficit might be $12 million a year, but Tobin said Authority estimates put it at $20 million. If, as some persons suggest, one superauthority were created for all transportation facilities of the metropolitan area, the deficit would be $150 million annually. Tobin said this includes the $87 million New York subway deficit.

Even though he painted a black picture of any transit operation, Tobin said the Authority wants both automobile and rapid-transit facilities for, the New York Area.

He said he supports a proposal to establish a new agency called a Metropolitan District.

Taxes High

Flink criticized the district on organizational and financial grounds. He said the district would have to depend on tax resources of the counties involved. Such property taxes, he said, are already unreasonably high. He said several of the Port Authority projects have been deficit operations for at least some period, the Authority could effect administrative economies that a new district could not, that two separate agencies might compete for commuters, and that the Port Authority financial picture is better than it would appear on the surface.

In 5 or 10 years, as new facilities become self-supporting, the Authority will have more than adequate revenues to meet the 1.3 requirement and still have a sizable annual net surplus, said Flink. He suggested that all earnings above the 1.3 requirement be set aside to meet a rapid transit deficit and that the Authority establish a separate rapid-transit division.

Flink denied yesterday he has suggested, in his latest report, raising existing 50 cent toll on Hudson River crossings. Tobin said the fare would be increased to 75 cents just to meet the 1957 New Jersey railroad deficit. He said toll increases would be unfair subsidization of train riders.