New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1895-10-10
A MUNICIPAL MOCK AUCTION
ABSURD BIDS FOR STREET RAILROAD
FRANCHISE
OFFERS TO PAY THE CITY NEARLY 1000 PER
CENT OF THE GROSS REcEIPTs-THE SALE

ADJOURNED TILL TO-DAY
After bidding against each other for four straight
hours, the competitors for the franchise granted
the application OF the Peoples Traction Com
pany were ordered TO desist at p. m. yesterday.
and what Assistant Corporation Counsel Dean called
recess was taken until IL O'Clock to-day The
last bid made up 10 the recess was the Peoples
Traction Company's and was for 69I5 Lie per cent
of the gross receipts. There were three bidders at
the sale, which Controller Fitch and his auctoneer
Philip F. Smyth, conducted In the Finance Depart
ment yesterday-the Peoples Traction Company,
the North New-York Traction Company and the
Southern Boulevard Company. The franchise fought
for carries the for railway purposes Of more
than twenty miles OF streets in the city OF New
York above the Harlem. The law requires that
not less than per OF the gross receipts for the
first five years and per cent thereafter must go
to the city.
There was a crowd in the Controllers ONCE when
Franklin A. Wilcox. president OF the Peoples
Traction Company. and representing that company,
entered his protest against receiving bids from
either the North New-York Traction Company or
the Southern Boulevard Company Bids from the
North New-York he asserted. would not be In good
faith. because 1t was organized solely to maintain
the monopoly OF the Union "Huckieberry" Railway
Company.
The Controller advised by Assistant Corporation
Counsel Dean. decided TO disregard the protest ana
the bidding began. Daniel F. Cohlan for the Peo-
nles company bid one-eighth Of 1 per cent over
the legal requirements. The Southern Boulevard
Company's representative said three-siXteenths ana
the North New-York followed with five-sixteenths.
The bids went I'D by fractions of sixteenths eighths
and quarters and halves until per cent was
reached Then the Southern Boulevard quit and
left the contest to the feopie S ana ->oi'" 'e"
York
When the bids reached 100 per cent. which was the
Peope's bid 1t WAS contended on the part OF that
company that the franchise should be Knocked down
to it, This clause Of the law was quoted in PROOF tnat
s so at ana puBe auction the bidder who shall
20 20 Ss gross receipts Of that corporation. etc
Controller Fitch and Mr. Dean again cons Hi,;r
she civ treasury by of imaginary PERCENTAGES
20 on Bids jumped by the 100 Per cent fof NM er
and afterward settled down to lractons OF iS pS.
Work the representative Of that company would
hid This would be repeated by the auctioneer, ana
the CONTROLLERS clerks would ensF 'ne he e1 peonIe
was the reply of the last-named representative
be repeated by the ~ iSns saa repeaed
again and again. with rise Of Lis at each bid
The Controller got tired of the game and s s0 S'g
warrants Mr. Dean sat at the Controller table
and watched through Al present admitted nIn that
the sale had been turned mo q, the Pe6pes
hid Of sT5 lis until to-day. the bidders representing
the two competitors, the auctioneer ana the Con-
troller's clerks. who had been keeping tab, were
Eaeh Company Bidding the franchise
Conditioned for the construction Of the proposed
road in accordance with the terms OF sale. ~ was
admitted that no wou ros ever ac pay fr thy
privilege of bidding and maintaining tne roaus; t
Mr. Dean said that both sides were struggling tor
called upon to decide the questions likely to grow
out Of the bidding