New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1894-01-19
FRIDAY,
JAN. fe, 1894.

OF construction. such loan to be made rs follows
Whenever a competed mile of road QUIT at sucn
portion or the ronte as may NEE. WIN ~ as
been thus completed. the city shalt advance uwH
thirds of the actual cost and this 10 continue WIN
the entire road on whcift city is to make a loan
is completed.
Unde. no circumstances shall the loan 10 be made
by the city exceed the sum of tnirty million dol
lars If the cost of the road shall above iorty-
by the constractng company. The city snail, under
no circumstances be asked 70 max" any loan upon
the extensions above Fort George ana Harlem.
In order to avoid the possibility % 'arse part OK
the citys money being expended II me cons,rdct non
ther provide that matter what the cost no more
1@aH Of ts Todd ' bao% Gt nor more
than $20oo.G0) per mile on tnat part OF the roao
loan he inade BY the city by the delivery
of New-York city per cent goa p tn aor6d %;
fifty years These bonds to be secured 10y hrs'
mortgage on the road
PAYMENT OF THE BONDS.
The company to agree pay the interest on the
bonds and also pay OF the same at maturity, be-
ing granted meanwhile the option OF paying OF all
OF such bonds In accordance with proper drawings,
before maturity not exceeding - bonds in any
one year. at lo5 and accrued interest, and sink
ing fund to be created sufficient 10 pay OF tne
bonds at maturity which shall begin ten years
after the commencement of the operation Of the
In order to avoid the city suffering under the
amount Of its Indebtedness it will be proper 70
provide that this loan should be treated as outsioe
IMMUNITY FROM TAXATION.
We assume that the road and it's stock and bonds
should be free from taxation until entirely CONF
pleted and by reason of the somewhat doubtful
securities and stock, junior TO the ctys
mortgage it would seem fair that any junior mort
gage bonds should be free from taxation, leaving
the municipality TO assess the stock for the pur.
poses OF taxation at its value.
One other material point is to be mentioned. and
that is that we should desire the proposed corpo-
ration TO be incorporated for ne purpose OF nuid.
provisions OF the Railroad law and not under the
provisions OF the present Rapid Transit act.
We quite well aware that the Rapid Transit
act OF 1891 does not authorize the making OF any
but we are advised that a contract erbodyIng the
points have above suggested could he authorized
S become an u AWFUL l pr5viad the constittcna Con.
venon should approve the submission to the people
authorizing the city Of New-Yorb to make this
special loan and such amendment should De- o.. AFTER TER
you upon the subject is because we feel that our
So well planned BY your board Of an Underground
road and II our plan should meet with your APP
prevail venture to request that you will be will.
ing to communicate 20 the Mayor of the city q
New.York and possibly also to the Leglsiaiure oe
legislation permitting the making OF such con-
tract should be had
NO INTERFERENCE INTENDED.
In making this proposition have desire to
interfere with or retard the work in which your
waited railway franchise We recognize that unless
the underground plan that have suggested Is
carried out there IS other alienation that can
be had of the present lack Of rapid transit faclli-
ties than the proposed elevated system.
We understand that 1t is doubtful II 1t will be
possible for you to offer such elevated railway
should approve proposition. and the people in
could STILL II you saw it, offer the elevated railway
franchise for sale. and II the people should vote
us you viii not have lost day in the work in
which your board IS nov ENGAGED and the puSlic
tunty OF securing any relief whatever would be
in sustaining your hands in the building OF an
In other words any LEGISLATION nat %oId 90
provide that the constitutional inhibition should
only be removed in the event tina; the citizens at
the polls should declare themselves In favor there
IL you look favorably upon our proposition. very
prompt action will be necessary on your part IN
order tina, the terms of the contract and an act OF
the Legislature NAV be agreed upon and submitted
for prompt action by the Legislature
ALL DEPENDS on THE WILL OF THE PEOPLE.
In conclusion. we may be permitted TO state that
we think a careful examination OF the plan for
solving the rapid transit problem, as above out
lined involves little, II any. risk whatever OF imam
cia loss to the city, for the reason that the city
would have a first mortgage lien on rapid transit
system on both the and west sides ana II
would only require net earnings OF 10000 per an
mum 10 pay the interest the citys advances, be-
ing less than one-Gfth Of the amount OF the net
earnings of elevated road. and IL Is unreason-
able 10 suppose that the proposed system would
! not have net earnings largely In excess OF the
| amount necessary indemnify the city against
! loss And II is further TO be borne in nina tnat
every dollar OF the private capital 90 the extent
! of one-thrd Of the cost Of the road would nave
! IN be lost before the city would lose anything.
| We beg further to state that In submitting me
above proposition II is not our intention 20 enter
into any contest for the purpose OF carrying tne
same into effect. and unless II Is the desire of me
neople OF New-York to have our proposition adopt-
81 we propose 10 lot the entire matter drop as we
do not intend to enter into any strife over ms SID
ject. H. l. "il'7O'' p" w.