The sun., 1893-06-08
SPENCER AND STARIN SPAR.
NOT WORDS ESLITEN THE FoUR-BT-
ONE COMMISSIONS MEETING.

ONE COMMISSION'S MEETING.
Insinuntions OF Interested Motive. Resented
by the Lie UypotheticaI-MutunlA A"oiogy
Not Permitted by Mr.. Stnrin-His Recent
Es,imntc OF the Finances OF Surface Lines
Hefuted by MIR. .spencer-'rhA Great Biock-
nder Again Prevents the Adoption of
Terms with tbs Manhattan Company.
After three hours session. held Mt the res
idence OF Chairman Steinway yesterday after
noon. tho Enrid Transit Commission od-
journed. having madc no progress whatever
In the effort four OF it's members arc making
TO secure rapid transit. Only ono vote wao
tnkcr. That was on tho resolutions offered
by Commissioner Spencer. which had for their
object the adjustment OF the vexed question
OF compensation to be paid by the Manhattan
Railway Company for extension privileges.
The vote was four Affirmative and ono Mega
tive. the negative vote. cast 10y Commissioner
Star,n. defeating the resolution.
In n discussion Of the proposition submitted
by the Manhattan Company. Mr.. Spencer.
without mentioning MIR. Starin by name. said
that in his opinion the man who lad rejected
the compromise proposition made by tho Man
haitian Company by his vote against 1t had
made business mistake.
Mr.. Starn interrupted Mr.. Spencer by re-
marking: Tho man who voted against the
Manhattan Company's proposition did not
have the same interest in it that you have. Mr..
Spencer"
Mr.. Spencer. who was on his feet whom this
Interruption occurred, turned to the stenog-
rlphcr and. controlling his indignation by
an evidently great effort, asked the stenoG-
rapher to read what Mr.. Starn had just
said. After the stenog ra phcr had complied
H.. H. f~a
the Chairman and facing Mr.. Starin, said
slowly and deliberately:
" II any man says have acted from any In
tercsted motives whatever in my abors as q
member OF this Commission he is either so
ignorant that lie is not entitled to an opinion,
or else he has n lie in his throat"
Continuing. Mr.. Spencer said:
Certain figures and statements were pre-
sented to the Commission on May 20 which.
for purposes Of accuracy in the records. it is
necessary to review and correct,
"A comparison was drawn between the
original proposition of the Commission MS to
payment to the city by the Manhattan Railway
Company of five Per cent. OF its net earnings
for the privileges granted. and the counter
cen! Net S esrninss mi is h"d boen defined ms gross
Net income is here used as meaning gross
earnings, less Grsratita,g expenses expenses M taxes and
Of 1892 as the basis Of comparison used in the
yisldsi to the he city s2a5.oGo: the othsr. s%i.-
TO he relevant to the subject then, before
the Com mission. this comparison should prop
proposition OF the onmission OF 5 per cent.
uron net earnings: yielding. as stated. S.4H,-
900 per annum. and the5 PEI, cent. upon net
The three per cent. proposition Of the Man.
c y
entertained by any MON Der OF the Commits
sion. and. several days prior to tho presonta-
President % dent II the Manhattan COM reny. IN PUB |
lie consultation with the Com ssion. had
agreed to recommend to HE Board the five per
cent. upon net income advocated by four out
Of five m emhers Of the Commission.
throw light upon the question at issue and to
make progress in the COMMISSIONS work it
would haye hten zen more NOR to the point il inst.
1T Is difficult 70 discover the utility Of arGu.
ready proven TO be utterly unattainahlo. other
from the Manhattan Company or from any
blenrss OF one which no one was considerir.
and which had practically been abandoned by
Another attempt at comrarison was made
between the proposed tax upon receipts OF the
Man nhattan Company and the raxes upon re-
ceipts paid by surface street car lines Of the
THE statement was made that the. surface
TOauS are required 10 pay 10 tn6 CITY IOT tItlr
franchises Annually three per cent. Of their
gross receipts for the first five years. and there
after Ave per cent OF 'heir gross rscspts
face lines applies, hrst to new lines constructed
and operatcd under and subsequent TO the law
OF 1874. and. secondly. to such extensions OF
old lines as may have been or may be CON
any lines constructed and operated under
laws or charters prior to 1884. except as to
la ~ n fInt nd
is specifically provided that. in cases Of ex-
tensions, this tax shall apply only to that pro-
tie length Of the e1trs
AS compared with the length Of the entire line.
an e S a mile % the 'f tax sha a apps
only TO one. nth Of the entire receipts.
erogs Us aas n ns :Hss pSd wh
tho city for the year, 1852. total percentage
tax on gross and net receipts of only sl5aOOO:
stated. There is but one iins IN tho eity tho
en- earninss, namely, the Broadway line. '' s''''
"Ths constrnctloR, OF line hr'no on B.ondTay
the provisi"ns Of the law: and the Immensely "
valuable trafIls there-the most valuable in
-was suiiloiept inducemont 70 INVESTORS 10
the S 9tse seen by
compnny under that law.
:" substantially all other payments Of this
percentage tax ; by surinGGe lines ,h are pnh on
pre relatively small in comparison with the
proportion OF gross receipts which are thus
taxlllo l. correspond ingly small.
Tho tax proposed uron me income OF tho
Manhattan Company applied not only TO ex-
tensions. out to MI its existing lines. moro
than half of which are now exempt by law
from such tax lust as the creator portions OF
empti,n the Com ission had 1t within its
power to annul for all future time as regards
the Manhattan Company.
Yet the statement was made that II the |
Manhattan Company h I'd been taxed last year
at the same rate as street surface roads. 1t !
would have paid the city. in addition to regu-
ler taxes upon real estate &c. the sum OF
S54l.EtS
The fact is that 4 the Manhattan Company
had been taxed for the proposed extensions to |
Fort George and to Fordham. and in West and |
South streets teight miles OF extensions in !
comparison with about thirty miles Of existing |
lines. at the same rate as street surface rail- |
roads. still using the traffic Of 1892 aS the ba-
sis for comparison the tax would have Teen. !
for the first three years. $GS.UUO rer annum. |
and thereafter sll3OOO per annum. and not |
$o4l, I')S as stated.s