The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1873-01-18
TIE CITY COMPENSATED.
Tho Proposed Extensions Of the Road-compsn-
saticn Awarded by Commissioners Appointed
by the Supreme Court-An Exhaustive
Report-The Compensation Abated to
0ne-Third Of One Per Cent OF
the Gross Receipts in OonEid-
GRAFTON Of Circumstances.

the Gross Receipts in Consid-
GRAFTON Of Circumstances.
The three Commissioners. Messrs william Il.
Martini Rufus NJ Stivers and J. Nelson Tappan,
appointed by Judge George @. Barrett, In the Su-
preme Court, on the 5th OF June last to apprStse
and determine the compensation, II any, to be paid
the city corporation by the Second Avenue Rail-
road Company for the privilege oflayng four branc
tracks, presented most exhaustive report ct
meeting OF counsel for the city and the railroad
company, at halfpast three O'Clock yesterday after
noon at 40 Wall street. After most careful analy.
sis Of the value Of the road the value Of the IRAN
chise, the fact OF Its being border line
yet and after comparison with the statistics
OF other roads, the commissioners conclude
that az per cent of the gross receipts OF the city
railroad companies for passengers would be q just
annual compensation to the city for the privileges
enjoyed by them; that an investigation OF other
roads would lead to a higher percentage; that in
asmuch as the proposed extension OF the Second
Avenue line is 20 per cent Of the main the compen-
sation for these extensions at the above rate,
would be 65-l0Oths Of per cent OF the gross re-
ceipts This, in view Of the circumstances OF the
roaL thee commissioners have abated to e-third
OF per cent d sr5 e-ffra qrT
In the matter Of the application Of the Second
three commissioners to ax the compensation to
be paid to the Mayor, Aldermen and C0mm0nalty
OF the city OF New York for certain rights and
privileges granted sad company by the legislature
- BY an order in this matter made at special
the s aay o. Sessra Wa%
Martin, Rufus M. Stiyers and J. Nelson Tappan
were appointed commissioners to appratse and de-
The matter was heard on the 2lst day Of June,
1s12, and on several adjourned days until the 2lst
OF Decemoer' 1872 ,,,
, L An agreement made the 18th December, 1852,
between the M Mayor Aldermen and Commonaty o.
others gave permission for the construction Of the
road now known - the Second Avenue Railroad.
street and reserved power to the Common Council
to regulate the fare for the entire length Of the
road, when 1t should be completed to Harlem
Others Of the city railroads were in Ike manner
authorized about the same time.
terminated by the Court Of Appeals that the city
corporation had No power to make the grants con-
o Davis VI. Mayor, 10. december, 1866, IA N. Y,
500 Al .s 49,. r- n
Mnhau vs. sharp september, 1859, q N. Y, 2l1.
secsion authorized the parties or companies by
whom any railroad in any of the cities of the State
e the snd
{ under which they had been In part constructed
Under the authority of this agreement and this
aet the Second Avenue Railroad has been con.
structed and operated.
seS, SO N. Y, 2Ol ana others Of the city railroads
rest upon the like authority
IL BY chapter 240 Of the laws of 1877, p Gal. the
TO make certain extensions OF their road which are
specified in the first section Of the act. By the third
section they are required to make Compensation to
the Mayor, Aldermen, and Commonalty Of the City
OF New York for the value OF the rights and priv
tleges granted by the act and to apply to the su-
sioners who are to appraise and determine the
amount or such compensation and whether the
This is the duty imposed upon US. since we ap-
praise and determine that the company shall pay
ton, there is propriety In stating the grounds
upon which our conclusions are reached.
q The Second Avenue Railroad, before the act Of
1872 had tracks running lr0n the nortnerly end OF
Second avenue. at the Harlem River, down the
avenue to Twenty-thrd street, thence separating,
and one track running down by Second avenue, BY
Forsyth and Grand streets, by the Bowery, Chat
ham square, Pearl street and Peck slip to the East
River; returning by South and Oliver streets, the
BOwery, Grand and Allen streets and the First
avenue to Twenty-third street. and by Twenty
third street to the point Of separation at the Sec
The extensions given to them bv the nrst section
OF the act OF 1872 are as folows:-
]. An extension from Chatham street through
Worth street to Broadway, by double track.
An extension rom Second avenue, through
Aston place, to Broadway, by double track.
Eishsy.sxtS street, to avenue A. and thence 's 81
avenue to the Astoria ferry at the foot Of Ninety
second street, by double track.
from the Second avenue, at twenty. third street
through the Second avenue Houston, Forsyth and
track rom the corner Of Grand and Forsyth
through Grand, Chrystie and Division streets te
s. Some side and single tracks around their sta
III. The various city railroads have laid theil
81 this they have gained the blowing rights privt
leges and advantages:-
4 This Right Of way over q street or aveuu.
These have been gained by the Second avenu,
ROAD, ana by many others, without any cost or ex
This right OF way over graded street has beer
supplied to the companies by the city Corporation
That Corporation holds estate In the streets ant
avenues IN trust for the public The land in thu
street has been acquired by the Cooperation fol
as the expenses OF grading and paving have beer
assessed upon the property In the vicinity, or 4
may, in some instances have been borne In part b.
". This right Of way over graded street ha.
value.
privileges and franchises for building railroad In
Twenty-thlrd street, from river to rver fol
ter sS These two miles Of road were worth as wha
IL would cost to build and equip It, and that sun
beside. 1t was the calculation OF the purchaser
that the profits Of the road would pay interest OF
It is shown also by the recent sale of like nan
chse in l2Sth street for $4,000. Laws 1870, chap
5O4)
In many OF the city railroads the value Of the fran
chse at the time the company was organized, Of
the sum paid for 1t to the original grantees was In
cluded IN making up the amount OF capital stool
and bonded debt The cost OF laying double
track on graded bed, and OF the real estate and
equipment, can be readily compared with the OH
cial statements OF the bonded debt and capita
stock Of such company. It VIII be seen that II
many II not all OF them, this franchise has bee
counted at considerable sum; that is, that tn
DEBT and capital stock largely exceed the actua
excess represents something; 1t represents tn
value OF the property over Its cost and that Is tn
franchise.
This VIII continue to be the case after adding {
the cost OF laying the tracks at the outset the ez
pense OF the partial reconstruction which has bee
made necessary In many cases by the changes
grades and the building OF sewers
V. This fact seems to be fundamental. The raj
road company receive a Tight OF WAY over a grade