New York City Transit Authority

Background

The subway system today is composed of what once were three separate systems in competition with one another. Two of them were built and operated by private companies: August Belmont's Interborough Rapid Transit Company (IRT) and the Brooklyn–Manhattan Transit Corporation (BMT). The third, the public Independent Subway System (IND) was owned and operated by the City of New York. The IRT and BMT systems were acquired by the city on June 1, 1940, for $317,000,000 and consolidated with the IND into the New York City Board of Transportation (NYCBOT).

The buses on Staten Island had been operated by a private company operating under a franchise that expired in 1946. When it became known that the company would not renew its franchise, a group of residents in the borough organized the Isle Transportation Company, to continue operation. This group ran into financial difficulties and the city took over the company on February 23, 1947. The city then controlled all of the bus routes on Staten Island. On March 30, 1947, the City took over the bus lines of the North Shore Bus Company, which comprised half of the privately owned lines in Queens, after that company went into financial troubles. On September 24, 1948, the City acquired five bus lines in Manhattan for similar reasons.

The surface operation of the BOT was a costly operation, resulting from the various equipment that was required, including trolley cars, trolley coaches, gasoline and diesel buses, of which many were obsolete and in need of replacement.

During World War II, the New York City Transit System showed an operating surplus on the five-cent fare, because gasoline was rationed and auto riders had to abandon their cars for subway and bus travel. Factories began to work around the clock, and therefore business boomed. Transit repairs were kept at a minimum as basic materials were in short supply for civilian use. Operating revenues were raised and maintenance costs were reduced, but as a result, the future problems of deferred maintenance and falling ridership were to come. In 1946, costs rose and profits turned to losses, and to obtain needed funds, the fare was raised in 1948 to ten cents on the subways and elevated, and to seven cents on the surface lines. This increase only produced a revenue surplus for a single year. In 1951 a uniform ten-cent fare was established on both the rapid transit and surface lines. Operating deficits continued to add up and public dissatisfaction with the transit system grew, as equipment was deteriorating, and train schedules being difficult to abide by.

Formation of the TA

In March 1953, the Board of Transportation was abolished, and was replaced by the New York City Transit Authority (NYCTA). The NYCTA formally succeeded the BOT on June 15, 1953, being composed of five unsalaried members. Hugh Casey was elected as the agency's chairman at the authority's first meeting. The new Transit Authority was modeled after the existing Port of New York Authority which now calls itself the Port Authority of New York and New Jersey and Triborough Bridge and Tunnel Authority, the latter of which is also now part of the MTA. At this time, the city government leased the IRT, BMT, and IND subway lines and the surface system (buses and, until 1956 street cars). A major goal of the formation of the NYCTA was to remove transit policy, and especially the setting of the transit fare, from City politics. The fare was increased to fifteen cents on July 25, 1953, and a token was introduced for paying subway and elevated fares. Bus and trolley fares continued to be paid by cash only.

In July 1953, the NYCTA proposed spending $1,065,000,000 over six years, expanding the city's subway system through new lines and connections between the IND and BMT Divisions. The most important new lines were a Second Avenue subway, including a Chrystie Street connection to the Williamsburg and Manhattan Bridge and a rebuilt DeKalb Avenue junction in Brooklyn, IRT Utica Avenue and Nostrand Avenue extensions into southeast Brooklyn, and the extension of subway service to the Rockaway Peninsula using the Long Island Railroad's Rockaway Beach Branch. Only the Chrystie Street connection, the rebuilt DeKalb Avenue Junction, and the Rockaway Line were built between 1954 and 1967.

One provision in the 1953 law that created NYCTA demanded that by July 1955, the agency create a plan to sell its bus and trolley routes to private operators. In the beginning of 1955, it was reported that the NYCTA's surface operations cost seven million dollars more to operate annually than it collected in revenue from the fare box. By privatizing the surface operations, and as a result focusing on subways, the NYCTA could then meet its operating costs. Two Manhattan private operators, New York City Omnibus and Surface Transportation, in March 1955, expressed interest in taking control of the five-route NYCTA bus operation in that borough. In the other boroughs there was no interest in taking over the routes in Brooklyn and Staten Island, and there was little interest in Queens. In April 1955, laws were passed by the New York State legislature to change the NYCTA into a three-member salaried panel to become in effect on July 1, 1955. This allowed its members to devote their full-time to managing New York's transit system. As part of this law, the provision that required surface operations to be sold was removed. The Chairman of the NYCTA then became Charles Patterson.

One major problem that the NYCTA inherited from the Board of Transportation was the age of the subway cars from the IRT and BMT. The first new cars were the R16s, totaling 200 in quantity, which first appeared in January 1955 when they were put in service on the J train. These cars were introduced with automatic thermostats and dampers to control the heat and ventilation systems based on the air temperature outside. Additional subway cars were also ordered and delivered between 1960 and 1965; the R27s, the R30s and R32s for the IND/BMT lines, and R29s, R33s and R36s for the IRT (2,350 cars). Between 1966 and 1969, an additional 1,000 cars, split between the R38, R40, and R42 orders, were placed into service. The last of the original BMT Standard stock was retired by 1969, along with the last prewar IRT equipment.