New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1890-02-27
THE CITY IND THE ELETATED RAILROADS

The investigation of Controller Myers into
tbo question of the returns made to the city
Of the net revenue arising from the operation
of the elevated railroads is timely. The officers
OF the roads will doubtless discuss the wisdom
of putting no obstacle in tho Controllers way
in seeking proper determination OF this qucs-
ton. II they can justify their position the!
should with great aacrity seize the opportunity
to do so. because they must be aware that IL
appears to the public to be utterly untcnablc
and unjustiiiablc.
II will be conceded that when the municipal
authorities. acting for the general public. grant
cd TO tho Ncw-lOr Elevated Railroad Com
pany the extraordinary powers and privileges
which i, has exercised with SO high n hand IN
tho public streets. il was the clear intention
that it should be required to pay to the CITY, as
a partial consideration therefor. . per cent Oh
its net income as long as those privileges were
used. That is to say, according to the original
agreement tho city was clearly entitled TO one
twentieth of tho net profits OF tho railroad
whether il was operated by one or dozen
corporations. Ii cannot be pretended that 10y
the returns as made by the Manhattan Conn
pany the city will realize anything lik" that
proportion. The company bass It's methods ~
it's officers state upon the advice OF "th" ahlcH
counsel" Conccdinc so much the lcgrrdcmain
by which the result is accomplished il too trans
uarcnt to stand the test Of equitable con>idrra-
ton. even though tho ability OF counsel has
been sufficient to avoid strict legal difficulties.
The position OF the company is briefly stated.
When tho Ncw-York and the Metropolitan
line, we're consolidated under the Manhattan
thOrsand-year, lease it was upon the basis OF
about 81. 900 600 valuation OF the Ncw-loik
lines. upon which amount the Jesse" f'iarin-
tccd the paymcn, of 6 per cent annually There
fore. because the parties To that agreement
chose 10 consider the earning capacity OF tn"
Ncw-York road AT that time as Si:OO"O. i Is
contcndd that the lessee can satisfy the rhiih'
of the city by paving per cent OF that amount
tO the Controller no matter how much greater
the net income appropriated by the Manhattan
Company may be. To persons OF common
sense and common honesty the statement OF
this proposition carries its own rcfu,a,i"n. IL
tho CITY can lie deprived of its dues in that
manner, then it can in tho same manner lee
mulctcd substantially Of all the revenues I"
which it is entitled from such sources Any
street railway corporation that has agreed to
ndN 10 tnP Guy "a pIoIDIiiOii w w. "'' '"'"'
may lease its property at n nominal valuation
to another corporation controlled by III" same
individuals, and the latter corporation can make
its returns to the Controller according 10 that
nominal valuation. Compared with what every
body knows to be the actual net earnings OF ia"
New York lines in this city AZ the present tim"
the sum Of $4,000 might almost bc said To
be nominal And if the theory OF the company
is to be sustained it will not be bound To pay
any larger amount, no matter how enormously
their revenues may increase.
Despite the advice of the able counsel and
the frequent disappointment OF the public from
the triumph Of legal tcchncali,c' over equity
and fairness, We feel confident Of the inability
Of the elevated railroad companies to sustain
their position in the courts. At all events wc
| trust that the Controller will not allow such
extraordinary propositions to prevail without
! the most thorough contest.