This past Oct. 27 marked the 108th anniversary of the first New York City subway line. The Interborough Rapid Transit company route ran from City Hall north to 42nd Street across 42nd Street to Times Square then proceeding north along Broadway; to 145th Street.
The original BMT (Brooklyn Manhattan Rapid Transit – today’s B,D,J,M, N,Q, R & Z lines) and IRT (Interboro Rapid Transit – 1,2,3,4,5,6,7, Franklin Ave and Times Square shuttles) subway systems were granted franchise agreements by the City of New York. They constructed and managed these lines by the private sector with no government operating subsidies. Financial viability was 100 percent dependent upon farebox revenues. They supported both development and economic growth of numerous neighborhoods in the boroughs of Manhattan, Brooklyn, Bronx and Queens. As part of the franchise agreement which owners had to sign, City Hall had direct control over the fare structure. For a period of time, owners actually make a profit with a five-cent fare. After two decades passed, the costs of salaries, maintenance, power, supplies and equipment would pressure owners to ask City Hall for permission to raise the fares.
This additional revenue was needed to keep up with maintaining a good state of repair, increase the frequency of service, purchase new subway cars, pay employee salary increases and support planned system expansion. Politicians more interested in the next reelection (and subscribing to the old Roman philosophy of free bread and circuses) refused this request each year for well over a decade. As a result, in order to survive, owners of both systems began looking elsewhere to reduce costs and stay in business. They started curtailing basic maintenance, delayed purchases of new subway cars, postponed salary increases for employees, canceled any plans for system expansion and cut corners to survive. (Does any of this sound familiar from the present?)
In the 1930s, NYC began building and financing construction of the new IND (Independent Subway – today’s A,C,E,F & G lines). This new municipal system directly subsidized by taxpayers dollars would provide direct competition to both the IRT and BMT. Municipal government forced them into economic ruin by denying them fare increases that would have provided access to additional badly needed revenues. Big Brother, just like the Godfather, eventually made them an offer they couldn’t refuse. The owners folded and sold out to City Hall.
In 1953, the old NYC Board of Transportation passed on control of the municipal subway system, including all its assets to the newly created New York City Transit Authority. Under late Gov. Nelson Rockefeller in the 60’s, the Metropolitan Transportation Authority was created. The governor appointed four board members. Likewise, the mayor four more and the rest by suburban county executives. No one elected official controlled a majority of the votes. As a result, elected officials have historically taken credit when the MTA or any operating subsidiary such as New York City Transit would do a good job.
When operational problems occurred or fare increases were needed — everyone could put up their hands. Don’t blame me, I’m only a minority within the board. Decade after decade, NYC mayors, comptrollers, public advocates, City Council presidents, Borough presidents and City Council members would all play the same sad song — if only we had majority control of the board – things would be different. All have long forgotten that buried within the 1953 master agreement between the City of New York and New York City Transit is an escape clause. NYC has the legal right at any time to take back control of its assets which includes the subway and most of the bus system as well. Actions speak louder than words. If municipal elected officials feel they could do a better job running the nations largest subway and bus system and avoid any future fare inceases, why not step up to the plate now and regain control of your destiny?
MTA services are still one of the best bargains in town. Since the 1950s, the average cost of riding either the bus, subway or commuter rail has gone up at a lower rate than either the consumer price index or inflation. The Metro Card introduced in 1996 affords a free transfer between bus and subway. Prior to this, riders had to pay two full fares. Purchasing either a weekly or monthly pass further reduces the cost per ride. Many employers offer transit checks, which pay even more of your costs.
Like it or not, previously scheduled fare hikes in 2013, 2015 and 2017 are probably justified if the MTA is to provide the services millions of New Yorkers on a daily basis count on. Fare hikes are inevitable due to inflation along with increasing costs of labor, power, fuel, supplies, materials, routine safety, state of good repair, replacement of worn out rolling stock, upgrades to stations, yards and shops along with system expansion projects necessary to run any transit system.
In the end, quality and frequency of service is dependent upon secure revenue streams. We all will have to contribute—be it at the fare box or tax revenues generated by different levels of government redistributed back to the MTA.
Larry Penner
Great Neck
