New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1886-03-13
THE CABLE SCHEME VETOED.
MAYOR GRACE's REASONS SET FORTH.
HE PROPOSES PLAN For LETTING FRANCHISES
THE PROFITS OF STREET RAILWAYS.

HE PROPOSES PLAN FoH LETTING FRANCHISES
THE PROFITS OF STREET. RAILWAYS.
Mayor Grace. after ten days consideration OF
the matter, and after granting, two hearings nrs
Twomey. of the Common Council. his veto OF
The resolution passed by the Aldermen on March
granting the Cable Railway permission TO iay
tracks in over seventy miles of the city Streets Al
dermen Mooney, Morgan, ONell and van hens-
selaer voted against granting the franchise, Whno
Aldermen Jaehne and DeLsey ~i1 The t"1 remsin,na
nineteen Aldermen voted Tor the IesoIulions' iH0
message begins
TetSGn 10 SacS al the stated meeting on March
fss6 adopting the report OF your Sonmtee on C I'll
,.IIway Company for your consent tho exercise Of
franchises to operate cable roads through over ana upon
twenty ne distinct surface routes delegated IN tne
articles OF association embodied in the petition Inc
proceedings heretofore had IN This matter nave d oeeh
under the General Railway Act OF lSe4 w. tnere,ore.
Your body mas suf'"GS for T"n grant
the franchise prayed Tor with9 WHOM , re-
ieSes thus ceded On tue other hand it is entirely with
fl your power, under the act TO annex condiohs 10
your assent which will secure far return 10 tne CITY,
and at the same time be just to " company in the ex
per cent of the net profits which may here
after be earned by The petoning company is az once
.der that the amount xed is proper considers-
ton for sweeping privileges for which your petition
therefore. tie principal reason for withholding ny aP
pTOva; and shall merely alnoe IN paSsluy oo',,s 70
legal objections which properly belong 10 the courts ~
decide.
After briefly stating these objections the Mayor
continues " -
Iuow return to the principal objection which from
me standpoint OF the city. has to my mind conr9!lns
force and which conldentlH pase my uSap
your body under the provisions ether OF me Aet q,
man for the sale OF railroad franchises
rrly similar the under which ferry FRANCHISES
arc now granted The leading features OF sueh pan
and Inc advantages which would secure may be briefly
outlined follows Let the city instead OF being grant
Commissioners OF the sinking Fund lease all franchises
al public auction for term Of not less than ten nor
with the officers OF the road shall certify under ostn the
actual money value Of tue road and equipment at tne
roer prescribe form in which the books Of the com
snpers have an accountant continually in the office OF
the company. but shifting the accountants from
day to day IN the Money Order Bureau Of the Post
Office. TO provide check against wrong-doing or Col,
fusion their part let the person taking the ranense
receive all profits the operation OF the road up 10 ~
per cent the actual Investment Tor constructor ana
equipment all sums earned III excess OF 10 per
paid quarterly into the city treasury Al the expiration
with ferry franchises and in he let parties,
let city pay the old essces the estimated COS, OF re-
placing the plant charging like amount TO the new les
sees who shall be represented In the apprasement
After enumerating some of the advantages which
this scheme would assure TO the city the message
says:
shows thai the capital stock OF all Of the surface horse
railroads then in operation IN the city agsreSaoed
edness of Sll 200 Cos that the aggregate dividends
anon the stock OF such roads for that year were
that the aggregate interest paid upon the
bonded Indebtedness OF all such roads was
S767.7O6, and that such corporations had an az.
cregate surplus of $l,157345. These figures show
that the average dividend on capital stock Tor all
Of these corporstions vas fourteen nd-Onehaf per
cent that the interest on the bonds was six
andelghttenths per cent? that the surplus was seven
ondfnur.tenhs per cent OF the entire capital 1t Is an
a,unptO than fair to these railroad corporations
10 place actual o their construction and equip
eu at aggregate OF their bonded Indebtedness, say
81 266 COS, which would leave the entire amount OF
their aggregate stock. $l5,7O7133 as repre-
sentative property for which they have practically paid
nothing The aggregate OF their dividends and interest
for 1854 being $3.O47 60i would, assuming the actual
cost property TO be represented by the bonds,
show return OF tweDty-seyeu per cent on the actua
investment.