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Council Urges Meyner To Prod Port Authority

The Courier-News April 7, 1959 Page 13

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Council Urges Meyner To Prod Port Authority — Source page 1
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Despite protestations by the Port of New York Authority that any involvement of the Authority in the New Jersey rail transit crisis “could well lead to the destruction of the Port Authority as a useful agent,” the Plainfield Common Council last night passed unanimously a resolution that urged Governor Meyner to veto all new Port Authority projects until the railroad commuting problem was solved.

Council Alfred G. Genung, sponsor of the resolution, differed sharply with a letter the council received from Austin J. Tobin, executive director of the Authority.

Genung last week, in urging the Meyner weapon, said that continued downgrading of passenger service by all railroads, but “particularly the Central Railroad of New Jersey,” was detrimental to the best interests of Plainfield.

Tobin Letter

Tobin’s letter asserted that the Port Authority, on authorization by the legislatures of New Jersey and New York, had undertaken on many projects – airports, marine terminals, bridges and tunnels.

These projects, Tobin maintained, were of direct benefit to the residents of Plainfield, Union County and the entire state.

He said the intent of the Genung resolution would be to have the Governor and Legislature “stop progress on this vital public work.”

Tobin enclosed a copy of a statement by the Port Authority to the New Jersey Assembly last November, which said in part:

Deficits Noted

“It has been suggested that: (1) The heavy deficits of the New Jersey commuter railroads and the cost of developing a new and comprehensive rapid transit system should be assumed by the Port Authority which could absorb these deficits by use of revenues from its present operations; and (2) that if these rail transit deficits – present and future – proved to be more than the Port Authority’s overall revenues could absorb, they could be ‘made up’ by increasing … existing Hudson River tolls … or that such deficits could be made up by increasing the charges at Port Authority terminal facilities.”

By way of summarizing its arguments, the Authority said it was:

1. Legally, financially and contractually impossible for the Authority to assume railroad deficits.

2. Even if contractually possible, the transit deficits would destroy the Authority’s credit.

3. Deficit financing of rail transit deficits would destroy the Authority’s credit.

4. Deficit financing of rail transit would result in an unfair tax on motorists, because of increased tolls.

Argument Refuted

Last night Genung said “others in high places think differently and the difference of opinion is substantial.”

Genung continued: “When the Port Authority says ‘at this time’ it cannot get involved it forgets that the rising costs of operation have the railroads taking their last gasps … so the situation is bound to worsen and the burden of the future will be greater.

“And when it talks of deficit financing,” Genung asserted, “this is something that has not been proved. What about the great tax losses New Jersey will suffer if the railroads stop functioning?”

The councilman concluded his appeal for the support of his resolution by saying “the Port Authority was created to do this job.”

Mayor Applauds Idea

Mayor Richard P. Dyckman, although not privileged to vote on resolutions, commented that he was “wholeheartedly” in favor of the Genung proposal.

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