New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-05-18
PRICE THREE CENTS.
A CHECK FOR MANHATTAN
RAPID TRANSIT COMMISSIONERS Reject
IT'S PROPOSITION.

IT MUST ACCEPT THE FIVE PER CENT CON.
DlTIoN OR 1T WILL GET NO PIIvI.
LEGEs-A LIVELY MEETING
The Manhattan Railway Company's proposition
as to compensation for the privileges offered TO
it by the Rapid Transit Commission was rejected
by the commission yesterday afternoon. This
action was Il surprise. coming soon after tho
meeting on Monday wien it appeared that the
commissioners were near an understanding on
the question Of compensation. II was due n tho
stand taken by Commissioners Starin and Bushe,
who insisted that the Manhattan Company should
make the compensation originally fixed in the
resolutions adopted by the commission on April
12. The compensation fixed in the rcsolu-
tons adopted at the meeting that day at per
cent Of the net receipts Of the entire Manhattan
system. The net receipts defined In the
resolution the gross receipts less taxes and
operating expenses. The Manhattan Company.
through George j. Gould. its president, offered
to pay into the city treasury per cent Of the
net receipts. There was, however, vast dif.
ference between the commissions definition Of MT
receipts and the definition offered by Mr.. Gould.
Mr.. Gould defined net receipts IA the gross re-
ccpts, less operating expenses, which shall IN.
clude expenditures actually made during the year
workable condition. taxes and interest on funded
debt.
At the meeting Of the commission held in Mr..
etcnways house on Monday Mr.. Gould made
what was believed to be an important concession
which would hasten the conclusion of the CON-
mission. II was hastencd, hut it was unfavorable
to the Manhattan Company. On Monday MIR.
Gould said, after a long discussion:
Il am willing to recommend to my board TO ac.
ccpt offer from you that they pay into the city
treasury per of the net receipts Of the entire
system, provided vou will allow us to deduct the
interest our funded debt, not TO exceed $4,000
OO0n year. I cannot say that the board will ac-
cept this proposition / must see my people again
before can say anything further"
The Commissioners met yesterday afternoon at
3 80 o'clock in Mr.. SAeinways house, at No 21
Gramercy Fdrk Mr.. Etenway presided. Mr..
Inman took the floor after the meeting had been
called TO order and said
AT our last meeting we were discussing the
question of compensation. ! suggest that we como
to that subject directly. I want to Offer some
resolutions On the subject Mr.. Inman then
offered the following:
Whereas It appears that the Manhattan Elevated
tenn now being operated under charters. and that
under the existing law the net receipts under one OF
these charters non-taXahle while under the other
per that appears that under the exist
ing law only about onehaf OF the net earnings Of the
Manhattan system TAXABLE and
Whereas, Under the proposition made by this com.
mission the Manhnttan Elevated Railway, tax OF
per imposed upon the net earnings Of the entire
system it exists, any improvements or ex.
tensions thereon; now be- IL
Resolved, That in consideration OF the imposition BY
this commission of a OF per cent upon the net
portion about oneha OF the Manhattan
Elevated system which. under existing law is now non.
taxable this Commission agree that in making up tho
stateint OF the entire system the Man.
haitian Elevated Railway be permitted to deduct from
said net earnings Of interest accruing upon
their present funded debt. any extension thereon.
said deduction interest charges at no time to exceed
the Of 2OO0O0C.
The following amendment was offered by Mr..
Spencer and accepted by Mr.. Inman and made ,
part of the resolution:
That this tax on net income shall begin when
extensions heretofore provided for shall be pus
In operation but in event later than July l, 1885,
Mr. Spencer seconded Mr.. Inmans resolution.
DO any of the Commissioners want TO say any
thing on this subject ?" Mr.. Seinway asked.
81 don't think it is necessary said Mr. Starin.
Il guess it is pretty well understood how We
stand on this subject
Mr.. President. have something to say before
vote is taken.' sald Mr.. Spencer. We have
narrowed this question which we have been
working so long down 10 the question Of COIN
pensaton. The Manhattan Company did take
the ground that it did not want to go beyond
Manhattan Island. The Commissioners have
however, shown that they could agree on that
point We have agreed that there should be
extensions OF the Manhattan road, and We have
agreed on what they should be. We are now to
decide compensation. II is not question
of what is best for the city, but what is the
oitr A. flof In sta pda
today this one fact governs us. Suppose we
spt on this question and we put up new lines
at auction. Does any one suppose that they will sell
50 AS 10 give 10 the city anything commensurate
with the return we should get under this reso-
luton? It goes without saying that they would
not What is our position? We are halting to-
day when nine-tenths of our work is done. l
have no feeling i'm this matter. l don't care
two cents eycept for the interest of the city.
want TO go on record here supporting Mr..
Inman's resolution. l want every word utter
here on this subject TO 90 into the minutes, fof
lust as surely as the resolution Is defeated the
interests of the city will suffer The result of the
work of the commission depends upon the action
taken here to-day on this resolution
You seem 10 know about what the Manhattan
Company wants." said Mr.. Bushe.
q" | don't know anything about it," Mr. Spencer
replied hot!y. Il woniu oc uuncc IL n"""
an opinion the subject
This aroused some bad feeling, which lasted
throughout the meeting. Mr.. Bushe replied to
Nr Spencer's last remark with considerable
energy.
Il don't PROPOSE" said he. to warm up on
,hi, question | want to say right here that the
Manhattan Company has not refused to accept
,ur original proposition as TO compensation.
for one don't propose to be dictated to BY the
Manhattan Company
They have not dictated TO any one," said
Mr.. Spencer.
They wrote I,etty strong letter to this Com
nisson,' said Mr.. Bushe. In that letter they
arefully avoided saying anything about not
lccepting the terms offered by us on April IL.
When Nh Goud was asked last week if he would