New-York tribune., 1873-05-10
STREET RAILROADS.


SIR. II ia gratifying to find that the pres
emf State Legislature ha, decided to adhere to the prn
cpe that for the past three years. has GoVerneo
legislation in the granting Of franchises Ior street la
roads-that such franchise shall be authoil%ou ooP'
on the condition that the municipality SUM oo iou
nerated for the use of s And s fprther SauS
factory TO notice that the Constitutional CommsSion
s proposed amendments 20 the State Constitution mas
determined that future legislation for the CONSTRUCTION
OF street railroads should be expcitV Sui9'o' "
the approval OF the municipal Governmehe huu Vi 'o
people whose property is affected thereby IL 10 A'
ter OF common complaint that valuable irancni'oS nav
been awarded private companies in some nstance'h Ia
opposition the protests Of tho City GoYerhment'
run their railroads through leading thoroughafeS
without being required to pay ono cent ior lher u'o,
Notwithstanding that they have Deeh oponou an"
graded by the city at great expense heioim''
therefore, that will only render the assent oi tho
local authorities and the property-owners necessary W
the obtainment any franchise, but VIII lead 10
the citys treasury being enriched by compensation or
the privileges granted by such franchises cannot po
unwecome to citizens. The franchises OF our nrSt
and OF principal street railroads were Rrah'ou
1851 and 1882 by the corporation, which adpreVouSy
granted rights of way to the NewYOrk and Harlem ana
Hudson Railroads, under the impression that
it possessed full powers the regulation OF is thor
oughfares After many valuable franchises had thuS
been granted those and later years. contentious arose
between corporations anxious to share In the vast rOns
| which found 20 accrue from street rallroaus'
These resulted in appeals to the courts, whore 1t was
held that the municipal corporation did not posses the
legal right give away the public streets to private
| companies The grants which had been made by the
corporation, however, subsequently confirmed anu
made valid by the State Legislature, which now became
annually besieged by applicants for the
| reouisite authority TO construct and Oper-
ate new city railroads; and the corrupting
influences which sprang therefrOm had potent effect In
demorazing our legislators, while city became grid
ironed with rails with the prospect OF there being hardy
street in that would be free from them Thus far the
rings that had been formed both in the City Hall ana al
Albany had been made partakers Of the vast punder
which these franchises produced and Of course nothing
| was said about any compensation being required to
be paid by the companies to the city for the use OF its
Streets for citizens displayed an unfortunate ind
ference tO local affairs and raised scarcely word In
protest II not until Mr.. A. T. Stewart settled the
wrange the broadway Railroad, by offering to pay
the city s2OOOOO for the grant, if the Legislature de-
termued TO pass the BILL that the OF the public
were opened to the value Of the franchises that had been
given away. As Mr. Stewart's offer had no money IN
il" for either "cOrporatOrs" legislators, 1t had
salutary effect IN showing the evil under which the city
had been made TO suffer- and is indeed still suffering;
aud was the Of reforming legislation on tue
| subject
CONFIRMATION JUSTLY DUE FOR THE FRANCHISES.
The value OF the franchises obtained may be judged
from an OF those Of the leading street railroads.
which has recently ,been made by committee OF the
Union League Club in which the capitalized value OF
the franchises eight roads, the FOurthave. not being
included down at s030 All. This amount IL inde-
pendent Of the estate, track, equipments,
and property amounting TO s67OO5s, held by the
companies, and is calculated upon the net earnings In
1872 at the rate OF per cent after deductng interest at
the same rate upon the actual cost The franchises OF
these pay income and above the inter
est on actual outlay, Of $720 the greater part OF
regulations, fall the
city treasury With such figures before 1t, well may the
committee assert that the obtaining OF city railroad
grants without due compensation TO the city for the
OF the streets has been the richest and safest mine
worked it, 1t considers that these roads ought to pay
for of the thorOughfares quarter of cent per
Passenger which would be about per the
earnings This rate the eight lines would under such
a contribution have yielded to the city, in 1872 return
! OF S2ss7s9 or S5737 per mile. This, 1t will be seen,
| is considerably less than half the earnings
of the franchises alone during that year.
| The Commissioners appointed to award the
compensation to be paid by the Second-ave. Railroad
Company its branches just opened to Broadway
and the Astoria Ferry at NinetysecOndst, conclude
however that H per cent of the gross receipts OF the
city railroads would be just annual compensation TO
the city the privileges they enjoy yet strange to
relate these commissioners fixed the amount TO be pro-
portonatey paid by the secondave. Company for its
new branches at only half that rate The State Legsa
ture in the bill just passed authorizing tho crossown
line from the East River at Twentythrdst to the Chris
tophers Ferry. has decided that rate Of cOmpensa
between these namely three per cent gross re-
cepts be paid the city by that road; and the
| Chairman OF the Assembly Committee Cities stated,
when the bill under consideration, though we know
not whose authority, that leading citizens OF New
York had advised him that the payment into the city
treasury at compensation would be satsfac
tory the people proposition in the Assembly to make
the rate five per cent in this lost; yet this
/ NQnuld cartainy he little
compensation to the city when consider, presumng
| the figures OF the Union League Clubs committee to
Approximate to the truth, the railroad companies would
be enabled, after the payment Of such rate TO
divide annually somewhere about II per cent their
| actual outlay. OF course do not introduce any
watered stock into calculations. Since the time
| when Mr.. Stewart offered two millions for the Broad
way franchise the State Legislature has only granted
new railroad charters the condition that the
city duly compensated for tho OF It's thorough
fares. Under this regulation, the franchise OF the
Twenty-thrd-st road sold at public auction. It's
sale therefore offers fair example OF what capitalists
consider such property be worth. The line is two
miles in length, and the amount realized s15OOOO
which ia equivalent annual payment at per
cent, OF sO,5OO, $3.50 per mile, which closely
approxmates that estimated by the committee Of the
Union League Club, the result OF tax OF five per
cent gross receipts and goes far to prove that this Is
| q fair rate OF compensation.
| LEGALITY OF TIE GRANTS.
II being now admitted that the payment OF compensa-
ton by railroad companies for the use Of public
thoroughfares Just and proper claim them, the
subject worthy OF serious consideration and effort
should be made to enforce the claim II possible Taking
all the roads within the limits OF the city that have
ceved grants OF franchises without being called upon
for the payment OF due consideration therefor they will
be found 10 extend TO about so miles In length and the
value Of their privileges alone, without cost Of track and
4 ha ovar nara nj on