New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1893-04-09
NOW FOR RAPID TRANSIT.
r. T. WILSON & co. MAKE AN IMPORTANT
PROPOSITION.
THEY OFFER TO BUILD AN UNDERGROUND ROAD
on THE ROUTE LAID OUT BY THE CON. !
MIssIONERS-DETAILs OF THE
PROPOSED PLAN.

| on THE ROUTE LAID OUT BY THE CON. Y
MIssIoNERs-DETAILs OF THE
PROPOSED PLAN.
Light has at last shone through the dense fog
that has for many months envcloped the rapid
transit problem. It came yesterday, not as dim
glimmer, but in welcome burst that clearly
showed the way to rapid transit. II came In the
form of bona ide offer from bankers Of great
wealth, firm that is closely connected with We
greatest real estate holdings in this city. Tho
offer was made by the well-known banking house
of X. T. Wilson 4 Co., of No 33 Wdli-st. 10
first came to the Rapid Transit Commission in the
form of a letter bearing the signature OF that
! house, and reinforced orally by Il. l. Wilson,
! the senior member of the firm.
Since last saturday. when John II. Starin IN.
nounced TO his associates on the Rapid Transit
Commission that six responsible capitalists had
! told him that they stood ready to bud for tho
underground rapid transit franchise. the livellesc
kind Of interest has been shown by every one IN
the possible fate OF the scheme for underground
rapid transit Mr.. Wilson was not one OF the
CAPITALISTS of whom Mr. Stsrin spoke. The fact
that Mr.. Wilson was about ready To make
proposition to the Rapid Transit Commission was
! indicated in The Tribune last Sunday.
The. letters from r. +. Wilson & Co.. and Mp.
! Wilson's presence at the meeting of the Rapd
Transit Commissioners at Mr. Stelnways nous"
Yesterday were most welcome 10 the comnls'iohers
who have been reluctant 10 abandon the scheme
for underground rapid transit upon which they
had worked 80 long, only to meet WIN failure
when the franchise was offered Tor sale al puoAo
auction. And the oncr coming as IL did from .
man of the best financial standing, and made IN
all SERIOUSNESS by him, showed that at last thcre
was good reason for believing that Substantial
| had ao,J
giant the Manhattan Railway
Briefly, the proposition of X. I. Wilson a Co.
was that they and their associates should ror'n
a corporation and furnish Sl5,0OO,OOO for buildlnS
the underground railroad planned by the Raplo
Transit Commission, the city 10 pay 40 per ceh1
Of the actual cost of construction and Sell the
road TO the corporation at price equal 20 the
bonded Indebtedness incurred ~ the city In Its
construction. An alternate plan was
suggested whereby the corporation formed
by r. y. Wilson Co. would purchase
Il franchise under which it would pulio'
own and operate that part of the proposed under-
ground road from the Battery up Broadway 70
Fourte+ nj hist, including the loop 10 tie Brooklyn
Bridge. upon the condition that the city should
build the road from Fourcenth-st TO One-hnn iied-
and-ninetieth-st, or t. the city limits, and also
| the branch up Fourth-avc. 10 Forty scconi-st.
Under this alternate plan the city would be re-
| quired TO sell the portion Of the road oilsructed
by it 10 Mr. Wilson's corporation for sum equal
| to the total amount of bonds issued by the city
for Its construction and to accept payment by
| the corporation assuming the payment of the
principal and interest Of the bonds The maximum
| amount to be advanced by the city is limited in
any circumstances to S35,00o,00o.
The meeting OF the Rapid Transit Commission
was called to order by Mr. Steinway at his house,
4. p,r 'nnl/ law
II afternoon All the commissioners except Mr..
Spencer were present John ". Bowers, counsel
TO the commission, also present After Mr..
| Steinway had called the meeting 10 order he said
| Gentlemen, | have received two important
communications from the banking house Of X. 1.
Wilson * Go. They came just few minutes
ago The first one is dated April ], and was in
| tended 10 he sent 10 us last Saturday, but tho
second letter explains why 1t was not sent them
The letters We're addressed 10 Mr.. Stcinway, as
president of the Rapid Transit Commission, and
we're signed by X. I. Wilson 4 Co. They were
read aloud by Mr. Bushe The first letter, dated
April /, as follows
We have been una, oidaby prevented from giving tho
attention to the subject OF rapid transit which We had
desired give We now write To say that we believe
vseu O, uadc glolnd ranoads would met the requilc
mens Of the city Of New-Yo:k much better than any
other that BE- devised and while we are aware that
|
as To whether system of this kind would give
proper return upon Il capital required owins TO ITS
probable very heavy cost ana "hl!e we ADMIT uat Ihis
doubt l., .p- not without Foundation, believe that
estgaon Of the subject would remove tcss
doubts least great extent. provided some method
for raising the Necessary capital at low rate Of interest
cou,t be devised.
To meet ana overcome all the difficulties surrounding
the suggest follows:
FiTst-Organi1e company with a cash capital ot
II ) 600 OCO the purpose which shall be 10 build own
aud operate Underground railroads in the city Of New
York constructing road under Broadway, and IN the
main following the route ana upon the pa iaid OUT oy
your holoIc bic body.
second-The city to loan its credit to said company
to a. equal 20 per cent Of the actual cash
cost Of the property provided however that the amount
f the citys shall at time exceed $50 cOOWO
and poNided luther. that the shall have first
mortgage lien upon the property and franchises OF the
company indem1ify the city against loss said lien 70
contain appropriate provisions Tor the city taking charge
Of the oad Of the company providing the neces
sary int, sinking fund with which 10 ultims ely
retire any obligations which the city may incur on
account Of the company
t our belief the money necessary for the orms
ton OF a company upon the plan outlined above be
within reasonably short time and, that you may
understand strength OF belief In the formation OF
such company, have advise you that are ready
to the responsibility of guaranteeing subscrip
,on to the stock To the amount OF sl5OcoOOo provided.
Of course, that appropriate legislation Is obtained by
which 20 per cent o the cost shall be loaned by the
city.
therefore request that your honorable body give
due consideration 10 these suggestions.
The second letter, dated April :, was as follows:
SATURDAY lst instant, ha prepared letter,
copy OF which herewith inco-e to containing
proposition the building underground system Of
apd transit raroais which had intended 10 submit
70 your honorable body meeting that day bus
IN consultation with counsel, Mesers Eyarts Choate
Baman, It determined not to submit that letter
YOU until they had hid opportunity TO examine the
right OF the city it, credit In the manner therein
conten plated
since that time counsel have examined the question
submitted to them aud advise that. by reason Of
provision OF Constitution OF the state OF NewYofk
which went into January l. 1879, II Is not
ct mt the city OF New-York its credit in the
| manner popoel In our letter
The mat d cost OF the work i great that IL would
be practicable In opinion, 70 obtain from the
Il eraI pubic sale OF bonds otherwise, large
! sum money a. would b, required except at such
high rate would be pLrdsnsome the