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| Re: Should the city take back its buses and subways? (1507112) | |||
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Re: Should the city take back its buses and subways? |
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Posted by Stephen Bauman on Fri Mar 15 20:16:23 2019, in response to Re: Should the city take back its buses and subways?, posted by MainR3664 on Fri Mar 15 16:10:42 2019. Well, wasn't the system perpetually bankrupt back then- just like now?The IRT and BRT covered their operating costs with the 5 cent fare. The revenue excess allowed them to pay interest on the bonds the issued. It was the WWI inflation that wrecked this. Everyone knew that the fare couldn't stay at $0.05- yet for political reasons it did... Neither the IRT nor BRT foresaw the WW I inflation. The 5 cent fare was part of the 1904 and 1910 contracts, that the IRT and BRT willingly signed. The big problem wasn't covering operating costs; it was paying off the bondholders. Unification was the only way the IRT bondholders could recover their investment. It was their salvation. The BRT bondholders took a bath, when the BRT was re-organized as the BMT. The BMT fought unification, whereas the IRT receivers saw it as their salvation. Not that the MTA has done a stellar job either. The MTA fares do not cover its operating costs. |
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