The sun., 1894-02-16
HEWITT STOPPED THE WAY.
szIsDoH OF THE FATHERS ron TBs
CHAMBER or CoMMRRCE


Buin HI. Rose s-e Hesu- Z, Years AGO.
rThe report Of the special committee on
rapid transit made TO the Chamber Of Conn
snerce yesterday favors the lending Of the city's
kredit for the construction Of rapid transit
. kystem (elevsted roads barredL One reason
given is that the city can borrow at three per
rent. while private borrowers must pay six.
The lending Of the credit Of the United States
20 the Pacific railroads IL quoted with az
proval as precedent The report closed with
. sresolutlon saying:
The Chamber OF commsrcs requests the proper su-
shoes Of the city Jssi,aturs Of the state the Con
s,tutionsl Convention and the Rapid Transit Commits
son take such action may be necessary TO enable
che city lend ts credit corporate enterprise for
ths construction Of rapid transit system, upon such
setms and conditions a. the Legislature may impose
The report is signed By Alexander f. Orr.
J. Edward Simmons. John A. Stewart Corne-
. Illus N. Bliss, and John Harsen Rhoades Mr.
simmons moved it's adoption and Mr Wind
muller supported the motion. Morris H. Jesup
suggested iortniehts delay for considering
the grave question whether the Chamber
should set the pie OF asking for loan OF
public credit to a private enterprise Then
Abram y Hewitt said:
The committee propose new departure
legislation without precedent in the history OF
the United states or the State Of Ne v York or
.redIt OF the city Of New York shall be loaned
60 q private company for the construction
OF a work OF a public nature. but to be owned
and administered by private individuals.
The Constitution OF the State Of New York
absolutely prohibits the loaning Of the public
credit Of the State. or Of anJ city or municipal
prise. II does not prohibit. however. the con-
structlon Of public works by the municipali-
tered by them In such ways as they may see
nt except that they lust not Issue. bonds be-
vond ten per cent. OF the assessed valuation.
ITs greater problem than this, the greatest
construction oi the Erie Canal. upon which has
' sisI. sSriguitaraI. and oshorwiss.tSs State
Unfortunately. i retained the sdministrstion Of
I city cfgssY u New YORK has pursued the same sys
TEN; The Croton Aqueduct was constructed
w. In no instances, has the city of New York
tSs United states ever done such q thing. The
%tise have "a fefsrped The case the ei Gnon fH
Pacific and the Central Pacific railroads. is a |
any connection between the State or national
Government and private enterprises IL 10
the vaas OH o the erepspts q this % country .G and
its revenues. Infinitely more than the entire
nnss es "Gney IN. Adtsfssa Gnss$ State. 81 A' in osS Sd
ss sSpSRss: ssss :sSls9 p 'fs g'Ss: ess
q 'hs ct q
United states Gove5nmentt the whole thirty
81 sSn the
and put into their private pocket; I am no,
ss Shes e. sh.s S Simply hS tfss
gift not to SECURE the construction ofthe road, |
ssnss saS5 .ss .na 81 =. e.. to the
hIstosy there e ,5 not & seHndal nS equal to that
Gsp'ismen. bear with 9. because / am. go
ing :? point out what conceive TO DO the dan
] so FEE ws SaHc
brought in this report are the ablsst and most
spheres q action there are no men whom we
would follow more willingly and even, bllndly
they are doubt IhetSsr they % have given that
attention TO the underlying principles In their
report which 1t would receive from the hands
In the only departure which have ever
the sound principle OF having no connection
whatever with private ,entmerpri,es tie scandal
originally private corporation with private
Ths IN The S S New fSa
penny but what It did was to subscribe for
PORTION OF the stock The city Of Brooslyn did
wrgk was In til hands oi private tockholders.
and II gu minated in scnn nj OF the worst kind
the city OF Bronklyn were compelled to do
what they ought Ia have done In the first place
to Jay out the priv"s s:ockSoldefs & anI bS
come the sole owners OF the work.
hcient to point out to the membsrs Of this
Chamber the danger OF any proposition which
New York and any private company. for any
pnrnose whatever. however emergent.
inclined fOTpRO lessons
lessons OF exrerionce. the Wise teachings OF
wHD M tho o' 81
S"sf a Of the state M q stNssS
Intuition ,nt Which !: now i9 The SoGr,itutiop r;
saie entrrprises. il was not in "a" the % SriSInal i
Constitution Of ls4D, bur was inserted by
stons ms the one this eonmittes have sub
mltted to this chamber.
contest ss. ps aaa o 10
ss nss.Td S. .f % to DO %
ssommHnites Ike New York should bs con:
viii have ss %sy Tss p%his
s;rous that you win have speculators men
Is 'sssRe sss to ssT On
SS5Ei. SSIk and md, ECS WI be sntIsa.sd q lend shs
fIhs pubc became Interested in thsm. would
!he slightest necessity for such . course in
shls case and that 10 a point which beg
Mr. Hewitt then reminded the Chamber
o. s the Plan he lnsd. had proposed when he
slIY, should construct rapid transis
toAd. partly underground. partly sunken. by
sle issue Of per cents, ths New York Central
70 70 lease the property at On annual rental
~ Ter cent. OF its cost, and operate
sinking fund TO be established from the excess
o. rental over interest. Mr.. Hewitt calculated,
S0lld wipe out In thirty three years the bonded
usit Incurred and leave the city owner OF the
Dstem uneneumbered. after which date the
hstsm would return a large direct revenue.
besides its greater Indirect effect OF building
he urper part OF the city and thereby re-
eGeiag taxation ME. Hewitt went on to say:
7 me draft Of q law was n Ade and sent to the ,
s@gs.ature, and ! regret TO say that not one !
nsh 10 the Legislature could be found to ad-
hsoeale " and Il Was finally introduced as a
SstsgnHl iayor by member OF the Legislature
sho was Willing to do me q kindly service. IL {
sas referred to q committee and never re-
Sslted back and the reason was that there
m a -. .L -. III L.