The sun. [volume] (New York [N.Y.]) 1833-1916, 1894-10-23

susnce OF them, with sureties for the per-
formsnce Of the work. which will receive legal
approval. The owners of existing lines Of
public transit interfered with, and Of build
ings along the proposed route Of the tun-
mel, will take proceedings to resist the exc
cution Of the scheme without the payment
Of heavy damages to them and undoubt-
eddy taxpayers willcombine to fight the ex-
penditure Of $50, 600, 900 Of the public
money on II, with the chances in favor OF
their defeating IL as unconstitutional. The
result of vote for the project would be-
therefore, not rapid transit, or even the be-
ginning Of the digging Of the tunnel, but a
series of tedious legal complications.
A vote for this scheme also will be vote
TO give some private corporation s50. 200, 900
Of the city's money and as much more as it
can get by legislation supplementary to the
Rapid Transit act; in other words to lend
to it, without any sort OF adequate or obtain
able security, an enormous and indefinite
sum Of public money The favored cor
poration could not borrow the money
itself at any rate OF Interest,"; but
the city is required by the act to
borrow the money on its own credit and
lend it TO the corporation at AZ per cent.
II the road were built and proved profitable,
the contracting company would get all the
profits, without having taken any of the
risk, except that the city would receive from
it, for from thirty-fve to fifty years, one per
cent. more than the interest at which the
bonds were sold. II the road earned moth
Ing above its running expenses, the city
would get nothing In return for it's enor
nous subsidy of the private corporation,
except one million dollars put up as security
for the performance Of the contract and
such amounts as it could squeeze out of the
so-called sureties.
IL the road were built IL would have been
paid for by the city, but virtually it would
be the property Of the private corporation
for the title would he only nominally in the
city. The private contractors would have
the right, privilege, and franchise of oper
ating it, that is they would have the use
and benefit of it for themselves only, so that
the ownership of the road, so far as the
city is concerned, would be the merest
shadow They are to get for building
it municipal bonds, made untaxable for
city or county purposes; they are them
selves exempted from taxation on " their in
terest " under the grant, and in respect to
the rolling stock and other equipment Of
said road" All real property owned or EN-
ployed for its construction is exempted like
wise, and, moreover, the city is required to
buy such property for them. The Commits
sioners are also to acquire for their benefit
all franchises " which, "in their opinion, it
shall be necessary to acquire and extin-
guish," these obviously being railway fran
chises whose cost would be great.
Having received all these unprecedented
favors, the private company would make no
return for them, except to pay the city an
extraordinarily low rate of interest on the
public money loaned to it, and even that
much it would not give back unless the
road earned the money.
Is it possible that sane men with any bust
ness understanding at all, will vote for q
scheme like that 1t is bunco game. 1t
would not receive single moments con-
sideration IL some impudent promoter ven
tured to make it as serious proposition to
private capitalists. 1t is subsidy in its
baldest and worst form. 1t is cheating the
people, to urge upon them its acceptance.