New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-09


par upon the condition that the city will contract 10
sell 10 said corporation to another corporation TO be
formed the railroad after II shall have been built 1t
price equal bonded Indebtedness incurred by the
city the the and accept payment
therefor by the purch corporation assuming the pay
ment OF the Principal and interest OF said bonds OF the
city which bonds shall. the time and the same
issued by the city constitute first mortgage Hen on
oil the property OF the cooperation and the purcha'ng
corporation shall establish sinking fund adequate for
ultimate retirement OF the bonds. II the above plan
does not offer satisfactory Of the difficulties we
suggest the following alternative plan say
Second-Wc and associates will form corpora
ton purchase a franchise. under which sud corpora
ton will bud, and operate that Part OF the pro-
posed from the Battery Broadway TO Fourteenth
ST.. including the loop the Brooklyn Bridge upon ts
city shall build from Fourtcon'h'st 70
ODchundrc red and necthst or to tho city n' ~ '
discretion and also branch from Iourtetnfh'st UP
tourth-aye the Grand Central Depot, as outnhcu "
your plan and. when completed shall sell such portion
built by IL TO tho corporation for sum equal 70 'he
OF bonds issued by the city Tor 'he con-
struct,on Of the same and accept payment therefor by
corporation assuming the payment OF thc pfcipa'
and interest OF bonds OF tho city in the manner
sts,si in the previous proposition
IL either Of these alternative propositions can be carried
out wa stand ready fr ourselves and associates 10 make
q deposit o, 81 cO) ocO such other sum a. NAV be
thought reasonable guarantee the engagements "hch
II Is proposed TO enter into
Under the above propositions II will be seen that the
city Is amply secured as will hold first mortgage
lien on property costing 100 per cent for every ~
per cent which 1t shall advance.
The maximum amount to be advanced by tho city Is
limited under any circumstances N 100000; and H.
"a We reeye 10 be the case cy's per cent bonds
could he sold par the annual interest charge could
not exceed 81 go O00 While at very low estimate the
earnings OF the property would be far In excess Oh
that amount.
As part the propositions II is intended TO
establish sinking fund adequate for the retirement OF
ell the obligations which IT IS proposed the city snail
incur will be that before the city could DC
upon payment of cent OF either principal
or interest OF the Indebtedness incurred the Sl5OOOO0O
contributed by ourselves and associates would have TO DC
N utter loss.
1t Is further proposed THE city shall have full
all OF the Of the company In order 10
that money Is properly expended, and that the
property constructed cash basis at the lowest
possible cost.
Believing rapid transit necessity for the developneh
our CITY, and that 1t Is the desire OF the pubc we
present the plan for the consideration OF your
honorable body the most feasible means Of obtain
ing the same but IL neither wish int n,on to
endeavor carry the above proposition into ehect unless
II with the approval Of the people OF Newfofk
Mr. Wilson entered the room before the letters
were read lie was accompanied by his son, r. l.
Wilson, ir. After the letters had been read MT
Steinway asked Mr. Wilson if he wantol to make
any remarks t. the commission. Mr. wilson
replied that the letters sent to Mr. Stcinway by
and he added Il may say, Mr.. Chairman, that
This is q very important question. The construc-
tion of the underground railroad planned by your
commission means much moro than the raising OF
Sic 0OO 600. If the City of New-York ia to re-
main what it is today tho great metropolitan
city of this country, it must have better iacili-
tics for the transportation of its citizens u inc
suburbs II was with a view TO meet this growth
that the plan presented to You to-day was s"s-
gcsted | believe that | am within the marx III
saving that the growth of tn" city mas pe'h
accelerated by the present rapid transit ficli'i~
by several hundred thousand people, and believe
il this suggestion is adopted ana carriea out ''''
within ten or fifteen years the population OF 'h'
city will increase 100000 As a financial PROPOSE
ton, do not believe, as business man, tiat II
carries one dollar Of risk. L do not 'hihk Una.
+he amount named can fail to be sufficient. Had
I not believed that it would be sufficient GER
tainly would not have come before YOU to-day
and AGREED 10 nut SlJ,O00,O 900 into the scheme.
This conviction represents a careful consultation
of DIR firm. | stand ready az any time to raise
81 900 900 or any other deposit to guarantee the
work.
Mr.. Inman said that one of the first things TO
no considered was the question of legislation that
would be necessary to carry out the scheme sug'
cested by Mr.. Wilson. Mr.. Stcinway asked MI
Rowcrs what the law on the subject was. MI,
Bowers replied as follows:
I can hardly be expected to give you an answer on
hand when 1t has taken Evarts, Choate and Bea"ah
week or more TO examine It, can say, however tat uie
Constitution Of the fobds absolutely the city ehdhg
its credit To any corporation under gse More than
that the Constitution forbds the city investing In te
stock Il corporations The Brooklyn Bridge was ohsi'
nally recall it. TO have been built oy corpoao'
and the cities OF NewYork and Brooklyn became sub
scribers TO the stock Pending the construction Of the
Bridge tho amendment came into euect anu
that REQUIRED the legislation which wiped OUT the
private corporation and made the work public enter
nr,e OF the two cities Even that the legality OIL the
legislation and the legality Of tho issuance OF W.
bonds were questioned The Court OF Appeals held that
the ouestt N Of cities being subscribers TO private
corporation was wiped by the work being thrown
upon the by this legislation ana also he'd 'a'
IL was perfectly proper expenditure of city FUNDS ana
proper exercise Of the taxing power.
Mr.. Bowers also instanced the case Of the Gin
cnnati Southern Railroad, which was constructed
with money raised by the city OF Clnclnnau 10
develop trade He added that the second OF
the two plans presented seemed to DE the "lSer
Mr.. Wilson said that he did not believe that
the money could he raised from individuals. eX-
cept at rates Of interest too high to make the
undertaking feasible. The capital must, he salh
be obtained at a low rate OF interest. Inc plan
was not feasible without the support Of the city's
credit.
Nr. Bowers made few additional explanations
and was emphatic in SAYING that new legsla
ton would be required. lie said that he would
deliver an opinion on the subject at the next
meeting of the commission.
Il Would like to inquire" said Mr.; Bushe, ad-
dressing Mr. Wilson, If you would undertake
TO build the underg ground road without the as
I don't think so," answered Mr.. Wilson "
Fee no way by which the scheme. coud De wor"c1
ont without securing money at low rate OF
interest have talked with , sfverd, sen nec
essarv 10 sacure money from the city"
Mr. Bowers raised the question of the eons'l,nI
tional limitation Of the city's Indebtedness ana
added that the fact that Evarts, Choate a. lH;-
man had passed on that point when Sl5,ooo,ooo
of their clients money was involved seemed 70
warrant one in assuming at the outset that the
objection on that ground would not prevent the
CARRYING out Of the scheme.
Mr. Wilson said that he did not expect the com
missoners to do all that was suggested by him;
but that they should take up the question anh
work out some suggestion that would accomplish
ranid transit lie said that he believed whatever