The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-10-31

1 no OmaOm r0kTy uAVhVROAys
The lease OF the ferries held by the
Union Company expires next year, and the
most desperate efforts will be made by the
directors TO engineer through the Common
Council Of New York the renewal Of this
odious monopoly. There Is no doubt that
large sums Of money are being expended
to effect this object, the immense profits made
by the company leaving a margin large enough
to cover almost any amount OF bribery. Unless,
therefore, the residents Of Brooklyn take somo
prompt and effective steps In the matter, they
will again find themselves saddled with an OK
tortionate impost which keeps down the value
Of property in their city and adds materially
to their personal expenditure. In order that
tho vague gcnSralities which the Union Com.
pany put forward as plea for their maintain
ing the present extravagant fares, and which
| will no doubt be again brought up in the dis
cussion Of this question, may be estimated at
their just value we think it necessary to
briefly recapitulate the facts Of their position
in regard to the public.
The old South Ferry Company was es
tablished by a grant from the Le-
gislature on the express condition that
the fares should be kept down as low as was
consistent with fair return on the capital in
vested. That understanding was fairly and
honorably observed, cent only being charged
to foot passengers, and low rate Of commuta-
ton fixed, not only for individuals, but for vehi-
Giles. On capital Of about $4,000 the com
IN sta a. HI
nual interest Of seven per cent, and to lay by
handsome reserve to meet all losses arising
from damage to the boats and other contingent
cies. Finding their affairs in this prosperous
condition, they took the leases OF the Fulton
street and Hamilton ferries, and although the
latter did not pay its expenses under their man
agement, they not only continued to fulfil all
their pledges to the public, but they paid to
their stockholders something like Az per cent
over and above their regular dividends This
state Of things be it borne in mind co existed
with the one cent fares and the communication
arrangement.
Finding these ferries thus handsomely re-
munerative Mr.. Cyrus p Smith, one of the
most active members of the company, withdrew
himself from it, and purchased, first the Cattle
rine street and then the Rutgers and Roose.
welt, ferries as private speculation. Finding
that they did not answer as we'll as he expected,
owing to the establishment of other ferries, he
manGuvred to burthen the old company with
them, and with this view began by procuring
the reorganization of the original association,
under the title Of the Union Company. The
men who had managed the old concern, in the
interest of the public, were showed out of the
direction, and persons of more pliable character
put in their places. From $4,000, the capital
stock was raised to $500 900, a sum much larger
than was needed to work the ferries that were
really likely to pay. After brief interval the
direction, under its new organization, began to
exhibit the true nature Of the elements of
which it was composed. Under the pretexts of
an increase in the price Of Goals and of the
Rutgers, Roosevelt and Wall street ferries
| running away with the profits of those
which the public knew were making profitable
returns, they raised the passenger fares to two
ceI sand abolished entirely the Communication
system. OF course great cutlery was raised
against this proceeding, and the most persist
ent efforts were made to draw from the compa-
ny such statement of their receipts and ex,
penditures as would satisfy the public as to its
necessity. The men who had the management
of its affairs were too wise to be provoked into
such condolences, and in spite of the bitterest
denunciations on the part Of individuals, the
most unequivocal condemnation on that of
the press, and imputations on all sides, which
no men of any spirit would have submitted to,
they continued to maintain discreet silence
As soon as the public indignation was Gained
down, and people became resigned to mea-
sure to which they could apply no remedy, the
company again showed its hand. They gave
up two of the non-paying ferries brought in
by Mr.. Cyrus P. Smith, keeping that of Wall
street, which they asserted did not pay, but
which every one knew must do SO in little time
and they have continued to levy the increased
impost Of two cents on passengers, notwith-
standing that the remaining pretext to which
they have resorted in defence Of 1.-THE high
price Of coals-has failed them every succeed
ing season to that in which it was first ad-
| vanced-
The actual position of the company is there
fore this, and we challenge contradiction OF the
facts: The three ferries--the Fulton, South
and Hamilton-two Of which only paid expen-
ses in the time Of the old association, are now
all making large profits, while the Wall street
and Catherine nearly balance the expenditure.
The deduction from these facts Is a simple one.
If the old South Ferry Company, with only two
| paying ferries out Of three, and less than half
the amount Of traffic, managed at one cent and
with low combinations, to pay seven per cent
interest on the capital stock, and bonuses of
| 42s per cent, the Union Company, with double
fares, double the amount Of traffic, no commu-
tation, and the worst of their ferries nearly