New-York tribune., 1873-01-18
THE TRANSIT QEUSTION.

VALUE OF A STREET RAILWAY FRANCHISE.
AN IMPORTANT DECISION AFFECTING FUTURE
LINES OF RoAD-rLE COMPENSATION FOR
THE sECoND-AvE. EXTENSION FIXED.
Messrs. William r, Martin, Rufus NJ. St-
ves and j. ~ Tappan, appointed by the Supreme Court
10 apprase the value of the franchise granted the Sec
Ond Avenue Railroad Company 10 extend their line, yes
terday fixed the annual rental TO be paid by the city at
OOO declared that per cent Of the receipts OF all
city roads minimum compensation for their franchises
This decision is important establishing new
practice in the disposition OF the valuable iran
ehises OF the city. Tho grounds for their decision
clearly set forth the report they have re-
turned the court the chief points OF which are gwen
below The extension of the Second Avenue Road about
TO be made was authorized last year. and the act par
tcuarv required road to compensate the city, either
by an annual rental or by a fixed sum. The Commits
soners decide that the Company shall pay nominal
yet substantial sum as compensation and proceed to
give their reasons for the decision They say that IN
various cty railroads have gained the following rights.
| privileges, and advantages -
a. This right of way over street or avenue already
| granted. -, A. oooora o,.o -ood ann
nv many others without any cost expense to the com
panes. .7od s,reo, bos haen srn-
piled 10 the companies by the City Corporation That
corporation holds estate in the streets ana ~
acquired by the corporation for such use ana has peen
paid or and the cost as well as the expense R OIL b
vicinity, it may in some instances % nave Deen Dorno
part by the city ITSELF a s compaSy SaS we're w Obliged
to purchase a right OF way through private properly III
this city the cost Soua cauid ID not be run proiaby
| Outside OF cities railroad companies purehatse
when they pas and which gives them exclusive en-
jOyment. But in the city they receive ~ on suTee r
RAILROADS In this city TO some extent and IN some
aspects public use so far as they are not pubic USE
| become a burden on the land there is ground anu
principle for the payment OF compensation by them But
they construct and operate their road, besides TINS quar-
fed public use also for their own gain aud profit lney
take possession OF the street for in accordance
with and serving and enlargDg the public use and also
by the Just and practical operation OF the thing Deg III
some respects an eSeSsS their rSs and privileges
over way already graded for theln and TINS nght on
er mas NHs "G For rs TS they thus receive It is just
| that they should make compensation
| THE CITY ENTITLED TO COMPENSATION.
For what they give the City Corporation should re-
eeive compensation The power of regulating the use Of
the streets including railroad grants Is vested in the
LEGISLATURE and the City Corporation holds its estate
subject to this power; and because their estate 50
subjected they entitled 20 the compensation pro
vided for all other owners me LegsatuIe thesiole III
making new grants city railroads may, as In this case
impose as condition that compensation shall be made
10 the City Corporation. The Clty corporation lhus ms
clear aud distinct legal night 10 cOmpensa0n-IOr the
burden imposed on the Zee ana Ior tue eAeIusNo &
use taken the construction aud operation OF morse
railroad, and also on the ground thaJ they nave az e
| oNUnp % "A
bo, erlng on street graded aud paved IT, ana thas
supplied the railroad company with graded rOad-Deu
and that this has pecunary value, and is material pJ
ton of the value OF the company a.cIse Ihis 40
OF City Corporation IN the street III rust IoI uo
public is property, valuable property In ITS GRADED
state IL has cost something aud has been paid for not
by general taxation but by municipal assessment Upon
this graded street the railroad company acquire Vl-
able easement "a right OF way from the people through
the Legislature 1t is not gift Of the people for II was
not made al the expense OF ne people. they ehige e
railroad company to make compensation 10 the CITY Cor
The following points have been considered in their
earng on the principle and measure Of cOmpensation
That the rate of fare is limited by the people at an
amount favorable 10 themselves. The parallel roads
through the city not left 10 free competition Tor
| travel, but low rates OF fare are fixed
Obviously scale of fares low that IL s cheaper for
abe neoS ~ If is one mode of Compensation by which
the people derive great benefit II there were reserved
power make further reduction OF are for the good
Of the people so that reduction and the cOmpensa
tion we are considering two ways OF reaching the
same result serious question would be presented Be
tween the two the former mode OF compensation might
prevail does not appear that this power has not
fully exercised There Is no reserved right further
10 reduce the rates of passenger fare Taking 1t there
FORE at.ts present scale, the railroad companies are
making money their net profits are rleent to pay an
enough include something Tor the value Of the iran
2 That the construction OF lines Of steam transit
this island will nurOusly aect tho surface roads, and
those particularly or near the lines OF steam transit
IN must be regarded as indsputabe that the immediate
result of steam transit would be TO I'LL up the island
with population. dense population Will IN due pro
portion increase the way ayei on the surface roads IL
would interfere with ana take away the through travel
|
business, would increase with the density OF the popu
| latiOn
| Even in the case of horse railroad on On avenue
along which there elevated under ground line
! of Steam transit that line would draw 10 IL so much
travel that character and business of the
would improve and this would increase the way travel
elevated steamroad were 20 be built along the
Second or Thrdave., which principally valuable
for business purposes the way surface travel would
i'm time tend toward the avenue which the line OF
steam transit for the that IT, between the two
would become main thorough are, and that the main
| thoroughfare would supply the best way business.
That the OF the same tracks by other roads de-
creases the business OF the first road by competition,
diminishes its yalne.
| The exclusive right of road use its tracks is
limited by right given other roads the
same tracks parallel tack ia the street on
a part OF the route. When tnis competition IL ter
minal point OF road and the parallel
lines, Il may seriously diminish The travel the first
| road.
WHAT FRANCHISES ARE WORTH.
II a general rule now TO be applied TO all the
railroads city, their statistics for many years past
serve to show what would be just between them and the
city and not burdensome 10 them.
We have at hand the statistics for three years past,
and they show these facts
--1S69.-