Metropolitan Transportation Authority

Founding

In February 1965, New York governor Nelson Rockefeller suggested that the New York State Legislature create an authority to purchase, operate, and modernize the Long Island Rail Road (LIRR). The LIRR, then a subsidiary of the Pennsylvania Railroad (PRR), had been operating under bankruptcy protection since 1949. The proposed authority would also have the power to make contracts or arrangements with other commuter rail operators in the New York City area. On June 1, 1965, the legislature chartered the Metropolitan Commuter Transportation Authority (MCTA) to take over the operations of the LIRR. Governor Rockefeller appointed his top aide, William J. Ronan, as chairman and chief executive officer of the MCTA. In June 1965, the state finalized an agreement to buy the LIRR from the PRR for $65 million. The MCTA made a down payment of $10 million for the LIRR in December 1965, and it completed the rest of the payment the next month.

In February 1965, Rockefeller and Connecticut governor John N. Dempsey jointly suggested that operations of the New Haven Line, the New Haven Railroad's struggling commuter rail operation, be transferred to the New York Central Railroad as part of a plan to prevent the New Haven Railroad from going bankrupt. If the operational merger occurred, the proposed MCTA and the existing Connecticut Transportation Authority would contract with New York Central to operate the New Haven Line to Grand Central Terminal. A September 1965 joint report from both agencies, recommended that the line be leased to New York Central for 99 years, with the MCTA and CTA acting as agents for both states.

In October 1965, the MCTA found that the condition of the New Haven Line's stations and infrastructure were even more decrepit than those of the LIRR. The New Haven Railroad's trustees initially opposed New York Central's takeover of the New Haven Line, as they felt that the $140 million offer for the New Haven Line was too low. After some discussion, the trustees decided to continue operating the New Haven Line until June 1967.

In January 1966, New York City Mayor John Lindsay proposed merging the New York City Transit Authority (NYCTA), which operated buses and subways in New York City, and the Triborough Bridge and Tunnel Authority (TBTA), which operated toll bridges and tunnels within the city. Rockefeller offered his "complete support" for Lindsay's proposed unified transit agency, while longtime city planner and TBTA chair Robert Moses called the proposed merger "absurd" and "grotesque" for its unwieldiness. In June 1966, Rockefeller announced his plans to expand the MCTA's scope to create a new regional transit authority. The new authority would encompass the existing MCTA, as well as the NYCTA and TBTA. Lindsay disagreed, saying that the state and city should have operationally separate transit authorities that worked in tandem.

In May 1967, Rockefeller signed a bill that allowed the MCTA to oversee the mass transit policies of New York City-area transit systems. The unification agreement took place the following March, with the MCTA taking over the operations of the LIRR, NYCTA, TBTA, New Haven commuter services, New York Central commuter services, and the Staten Island Rapid Transit Railway. Initially, the TBTA was resistant to the MCTA's efforts to acquire it. Moses was afraid that the enlarged MCTA would "undermine, destroy or tarnish" the integrity of the TBTA, One source of contention was Rockefeller's proposal to use TBTA tolls in order to subsidize the cheap fares of the NYCTA, since Moses strongly opposed any use of TBTA tolls by outside agencies. In February 1968, Moses acquiesced to the MCTA's merger proposal. New York Central and the PRR merged in February 1968, forming the Penn Central Transportation Company.