New-York tribune., 1896-11-28
AWARDED TO THE PEOPLES.
r.1r RAILWAY FRANCHISE ABOVE THE
HARLEM.
roxrror1ER FITCH THINKS THAT THE BEST WAY
~ FORCE SETTLEMENT OF THE DIr-
r1cr1r QUESTIONS OF LAW INVOLVED
.>-, r,pr-yr->yT A nr rAy)1nCK

AND PREVENT A DEADLOCK.
c.,,roler Fitch yesterday awarded TO the Peo-
.,s's traction Company the franchise for twenty
,s miles OF street railway In streets and avenues
:. ,ba Twenty-third and Twenty-fourth wards.
,,s- official information that Justice Smyth had
as.o,ved the last injunction which stood in the
- a, the Controllers action. The bid Of the Sue
'".stnl company amounted 20 100 per cent of the
oss receipts. The Union Railway Company, usu-
uv called the Huckleberry road which claims the
,,onoy OF the citys thoroughfares above the
tJs-en has systematically and persistently fought
,ha Granting Of this franchise 10 the Peoples Com
rv eyer since II obtained the assent Of the Board
=, Aldermen two years ago Among the principal
,o-ahoders Of the Huckleberry are Senator Ed
ra,d murphy. Of Troy Anthony N. Brady, Of Al
hsnv: Richard Croker. Of this city, and Ex-Governor
r1over Ex-Iieutenant-GovcrnorW William F. Shee-
han as counsel for that corporation protested
.rsiust the Controllers decision, but without avail.
:, was IN October. 1885. that Controller Fitch
orered the franchise az public auction to the high
at BIDDER. The company that appeared TO bid
ssainst the Peoples was the North New-York Trac-
ron COMPANY which was under the control. II was
ALLEGED, Of the Huckleberry people. The privilege
was bid up 70 the grotesque sum Of 6.f5t per cent
Of the gross receipts When il reached this point the
Controller suspended further bidding and asked for
The advice OF the Corporation Counsel The Peoples
Company had bid 81 per cent OF the gross receipts
for the frs, FIVE years. and s5 per cent thereafter
which with the per cent for the first five years
arG per cent thereafter fixed by law as the upset
price made It's offer 100 per cent or the total gross
receipts Of the company. The Peoples lawyers In
sisted that all bids in excess OF these amounts were
Illegal.
The Corporation Counsel practically took this
ground and in one Of the numerous suits at law
which grew out of these bids Justice Beekman ex-
pressed the opinion that 100 per cent was the high
es. legal bid Justice Smyth. in dissolving the in
Junction yesterday. said that the Controller pos
sessed the power 70 award the franchise as he
deemed for the interests OF the City and II any
Of the parties interested considered that they were
injured the courts were open for redress MI
Sheehan, counsel for the Union Railway Company.
minated yesterday that his clients would probably
bring an action TO set aside the award
The Peoples company proposes to use its fran
chise 1t is said 10 build road that will connect
With the Connecticut and Westchester Street Rail-
way and give the latter company entrance 10 TINS
city This plan. IL expiained. would Justify the
payment Of 100 per cent he Peoples part OF the
road
General Benjamin F. Tracy. the principal counsel
OF the Peoples Traction Company. was quoted yes
,erday as saying that he had no doubt that his
clients would finally triumph
Controller Fitch said yesterday, In explanation
Of his award that IL was case surrouho.d
By difficulty and embarrassment MY action.
consider ne said, should be largely governed oy
considerations. FIRST, 10 s@ctiV IDi ti' N'N' VI
N4w-York the largest compensation possible under
the terms Of the Railroad law for the franchise OF
fered for sale and. second, 20 MAKE ctrthlu -
lar as lies within my power that the inhabltahts OF
the Twenty-third and Twenty-fourth waras snali
obtain that measure Of rap.d-transii relrl prom
ised by the construction Of these surface railway
lines" -. i,. .-.o
Corporation Counsel Scott's opinion left only tWo
courses omen TO Mr. Fitch. one was 10 90 nothihe
further In the matter refraining from ether con-
rinuing the sale or from accepting any pa "hlch
mad been made and awarding the franchise ueie-
on. or second 10 award the franchise 70 tne re-
pies Traction Company at their bid OF q ana 20 pr
cent respectively. OF the gross receipts oVTr aiu
above the statutory percentage. equal 10 J." PEI
cent Of the gross receipts -, -.oooa
The several opinions OF the courts IN ne procesen s
ings over the franchise none Of when fnaIiy aoJu-
dica.ed the question. threw little lisnt on me coh
troers duty so the Controller has decided thai ne
can hes. force a settlement OF the dlfncult QuesoiS
OF law involved by awarding the francnis. 70 tis
people's Traction Company at their BID OF " ana
q per cent respectively. in addition 20 the statu,
tory percentages fxed by the Railroad law. II
were o adopt the other altefnative-tnat OF ooiIs
nothing in the matter" he says-'1t would pe I'M
possjble 10 foresee the outcome and the posslony
would certainly exist that all Of the competing bd-
ders might for long time remain satished VIII
the present status. and a deadlock woud therepSS
ensue whereby the people OF the Twenty-third ana
Twentv-fourtE wards would be deprived Oh t'e
rapid-transit relief which they so much heeo'