The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1877-02-01
HOCUS-POCUS WITH A FRANCHISE.
A Construction Contract for Twenty Millions
on an Estimate Of Five Millions.
A NEW COMPANY ORGANIZING
Sixth Avenue Men Protesting to
Mayor Ely.

attention for the past ten years and although several
different schemes have been proposed the people OF
city of New York have s TO pass ten per cent or
their time In horse Building in the upper por-
ton OF the city around the Central Park, remains at
standstill In iact thousands are seeking homes in
New Jersey and Long Island where they find rapid
from ferry slips, and the city of New York
loses the taxes 1t would receive IRON what now re-
mains unimproved property
Looking into the organization OF some OF these rapid
transit companies rather peculiar story has lately
been passed around that to certain extent explains
why public transit is still limited 10 the horse
In 1865 charter obtained for the New York City
Central Underground Railway Company, but in
some particulars it was imperfect, nothing
done with 1t that year In 1869
another effort made with tho Legislature
the result proved highly satisfactory, the
pany granted very extensive privileges and well
guarded from forfeiture. Great taken the
selection of the Board of Directors and such
William i. Ogden, James Brown, Of Brown Bros !;
William Z. Dodge, seIgman, the banker; William
Butler Duncan and Andrew H. Green soon figured on
the prospectus
THE ENGINEERS REPORT
The direction satisfied the public, and shortly AFTER
ward board OF three prominent American engineers
reported that the double track underground road IRON
the City Hall to Forty street. including engine
houses shops and sheds, could be constructed
%, 2Os, 23a Mr. John Fowler, chief engineer of tho
TWO great underground railways in London his assist
ant, Mr.. William Wilson. who examined the ground
thoroughly. and his experimenting engineer, Mr.. T.
Mari Johnson who had been here BEFORE all approved
OF tho plans and estimates Mr.. Fowler thought very
highly Of the enterprise, and said II brought to London
under board of directors of known probity and com
mercia standing there doubt about obtaining
the money Notwithstanding the above lattering pros
poets ground has never been broken the franchises
OF the road were recently sold at public auction
iorecosed morgage sale TO debt OF
Sl20. 900. As no active measures taken by the
Board of Directors toward commencing the work 1t
gradually passed away from the minds of the public
and placing their trust in some of tho elevated
schemes, they forgot all about the underground
vANDERBrLT's SCHEME
In 1871 Commodore Vanderbilt made a move with a
view to building underground railroad from the
City Hall direct the Forty second depot, and
Hnaly received a charter from the Legislature. He
was said n. the time to be read, to commence work
without delay, but Tor some reason he let the matter
dQp, and II Is understood that lie afraid of get
ting INTO difficulties with the New York CITY Under
ground Railway, as Their charter dated ahead OF his
and gave them right of way underneath Fourth ave-
hue IRON Astor place to Fourteenth street.
THE Niger IN THE FENCE.
Some rumors nave recently appeared in print that
Throw liite liaht upon me acton oil the Board OF
Directors OF the New York CITY Underground Railway
aud explain 10 a certain extent why the work not
Carried out IL IS said that when the real mapn itude
OF the franchise they held became known some Of
the directors they formed ring, and without tho
know ledge of the respectable members of the Board
they raiiroaded through mass OF papers that gave
contract to person OF the name OF Byrnc TO complete
tue work OF the road for the modest sum OF
500 900 000 wnen the estimates of the engineers
IN the world only called Tor about IS, $50 600.
DIRECTORS STORY.
such an interesting piece oil gossip was too good to
let pass, and HERALD reporter started yesterday III
search OF some Information on the subject II was not
HI task, as although several people acknowledged
having read or heard something ABOUT it, nobody had
my definite Information Finally an cx-director oil
The road was discovered, who consented say some
Ihng on The subject, and the following conversation
msued;-
K1roRrEE--Is thers any truth in that story about
the $50, 600 600 contracty
DIREcToE believe there Is. The contract you refer
to granted to Francis p. Byruc, and | fancy he
was 10 subet the work TO some English engineers.
RErogrER-Why was II not carried outy
DiREcToR-l understand the English engineers re-
fused have anything to do with such robbery, and
The parties that arranged the job became scared and
let the matter drop
KgroRrEn--How did they expect to cover up such
gigantic stcal2
DnscroR-I fancy they got the idea from something
hey learned about the Metropolitan Underground Rail-
road London. That road had to pay $50 900 900 for
hcIr right OF way aud still returned handsome profit
the capital so these people thought that they
aad secured their right OF for nothing they could
cover up their surplus by charge to real estate pur
chased
REroRrER-what directors were directly Interested
Ia this scuemeY
| know that a number of the prominent gentle
men connected with the Board resigned shortly alter
ward
ReroRrER-were any offers made by capitalists to
lake a hold OF the roadr
DREcToR-Scveral, believe. Mr. Ernest Frignct.
French gentleman, offered TO furnish $4,000 COO
S6,000U00 provided 81 100000 was raised in the
Unltcd States. | fancy there another offer OF
English capital of Sl,OOO,OO0 with the privilege Of
taking So, OOO, 900
REpoRrERWhy were they not accoptedf
DREcroR-l really cannot say, but The directors did
company for $55, 0O0 0O0 One mortgage made
for s35 600 600 ana anot her dated July Il 1873 to
John G. Brown and Jesse Selignan Tor $50, 900 600
REPoRrEa-Can you give me any further norma-
ton on the subjectY
MISUNDERSTANDING that / fancy Will interest the
public.
THE PRESENT PROSPECTS,.
A HERALD reporter went down town yesterday after.
noon in order to obtain some idea OF the present status
oil the road and learned that movement is on loot to
the work again under the title OF the Great Me-
tropohtan Railroad Company. This company obtained
n charter IN the Erie bill passed last year. which
fers IL the right to TO work with all the
chises and rights OF the New York City Underground
Railway Company. The latter II appears, was sold
foreclosure last year, and Is the hands of its
creditors. confidential pamphlet has lately been
circulated among capitalists with this view and the
following copy was obtained by the reporter
lconhden,ial
PROPOSALS FOR ONE MILLION DOLLARS FOR THE GREAT
METROPOLITAN RMaEoAp COMPANY
u has been suses ed that u the owners Of the property
ground Railroad Company would share them pro rata, Tor
ade ~ some 20 raise c on Tie per G
cent preference capital stock Of the company.
these suggestions the following proposals
admitted
That tho new company pay the 100000 In its
CONNIE the franchises ana property that
L. ct cent preference capital stock
10 be applied to the construction OF the railway;
that further resources be obtained bonds
Now the owners the common stock propose add
FIRST one million OF per cent preference
ktt,scr he'd for par. million OF
stock That is for 500 paid tor of preference
stock they will add share of stock making
YJJ Of stock Tor 800 paid This goes beyond distributing
the property pro rata the capital required
for II $500 sO raised the
irreI for SI.UOOOCO, the property and the common
s,ork IL would be all distributed. This
amman stock must receive dividends equal TO, IL
NOT wreaer than the prectcnce capal within one
~, galway IA In from the City u all
seeoud street This statement Is made because is
unless re us London are not attnnable here
Iii swn.rinr rendition. with more travel the
to-day without than there IS there with steam,
we do not have passengers per mile 81 line ~ IN
iuudon IL viii be because the American - incapable OF
using the highest facties ana aalnmens
vi civilization.
The passenger conveyance ON the New 'olk ana scw