New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-11-09

public convenience, the proposed road as piece
Of private property will pay q sufficient return
to make the investment. a mere investment
profitable. There is some doubt whether that
question can be properly raised by property
owners along the route, and whether ii Is not ex-
clusively for the Legislature and municipal au-
thorities We have however, concluded, upon
the insstence Of the opposing property owners
to consider It.; and we have reached the concur
sion that there is great probability that the road
as a mere investment, will, from the outset pay
a return at least sufficient to meet the annual
interest on the bonds to be issued for construe-
ton and to meet the contribution when Inc stat
ute requires to the Sinking Fund; and that the
inevitable growth Of trailc VIII Dlng III time
large further profit
I'm a careful estimate Of the carrying capacity
of the proposed rairoad-based upon the Third
and Sixth Avenue Elevated Railroad lnes-it Is
calculated that. with proper rolling sto s, II
sengers per diem. If ii carries so many us pay
ing would be beyond doubt. 1t may not do so at
first but. during ten years past, the average IN
crease of travel on surface and elevated railways
In New-York City has been about 2oopUOo pas
sengers per annum At this rate; In the nve
years allowed for completion of the proposed
road the natural increase Of travel will be about
100000 900 or nearly 100000 per diem
"In view of the general facts Of the case how
ever and especially Of the fact that the Third
ave and Sxth-ave lines Of the elevated road
now carry 100000 passengers per day We do not
doubt that the proposed road when finished VIII
carry at least as many as 3OOONo passengers
per day. and that within very few years the
number Of passengers carried by II VIII be
greatly increased
FAVORABLE BALANCE EXPECTED.
Again. considering the statistics furnished by
the Elevated Railroad Company and having due
regard to the expense incident 10 motive power
involving. in the case Of electricity, no com
bustion in the tunnel. the operating expenses OF
,,,,,f, "a
cent Of the gross receipts on the basis OF 800
900 passengers per day the gross annual receipts
from passengers would be Soi'oNr A1ulns
estimated receipts from advertising, etc, Slo"-
COO the gross receipts would be SJ,5I1,ODo De-
Quoting operating expenses. GO per cent1that r.
So 2S5 Opp-the net earnings would be Z-''oo
amount not exceeding S35OO0O0o would not ex-
coed 81 1871 800 Estimating cost OF equipment AT
81 S45O00 and allowing 10 per cent-tnat is
S7S4 3OO-for interest and depreciation, which we
consider a liberal allowance. TINS VIII mean a
total Of 81. 800. 900. leaving balance 81 S3bsop
"This balance is more than sufficient to meet
.,o sinriny fund provisions Of the statute AL
though by the statute such payments may be
dispensed with for the first five years OF opera.
ton entirely. and may be reduced by one-haf
for the further period of five years II these
figures hold good. and in our opro they are
sustained by the evidence, the net earnings OF
the proposed road from the beglnning OF us
operation would relieve the city OF the interest
on the bonds issued. and make the statutory
contribution 10 the sinking fund by way or
return on the investment
''In the near future there must, IN our opinion.
be large and steady increase In the business
Of the railroad. and as such increase VIII IN
volye no increase In the charges for interest or
sinking fund the contracting company may rea-
sonahlv expect TO secure proht from the opera
ton Of the road. SO far as the pecuniary interest
Of the city is concerned. and ignoring lot me
moment such justification for municpai con
struction as rests upon consideration or PUBIC
convenience and the like. there is, in our opih-
ion. no reasonable doubt that the annual re-
,..ilI tS
of interest by at least the amount OF the statu-
tory sinking fund payments from the beginning
Of the operation Of the road
THE CITY'S INTERESTS SAFE.
The report calls attention to the fact that the
Rapid Transit Board has the power 10 protect
the city by bond against any possible loss by
reason of any deficiency in the earnings OF
the operating company, and points out now thls
security IS given "If the contract is let" II
saws "the purchaser must ob.igate himself not
only TO complete the construction and supply the
necessary equipment. but to operat" the ROAD
and to make the payments to the city required
by the act. The purchaser must deposit
81 600 900, and give such bond as the Board may
require TO protect the city against any breach
of the contract. with securities to be approved
by the Board who shall Justify in double the
amount Of the bond. Again, the city mas by
the terms Of the Rapid Transit act. hrst ilen
upon the equipment which must be furhisheu
by the purchaser, ana the COST VI "HiVH 10 cS''
mated at SI,Sio.OOO'
The opposition has made strenuous 'eHorts 10
persuade the Commissioners that the cohsutu-
t,onal margin Of Indebtedness of the city Is now
go meagrc as 70 disable the city from construct
ing the proposed road. but the Commissioners
find that such claim is wholly untounded ID
fact Making all due allowance for payments
to be made in the future for lana, the ute 10
which Is vested in the city. FOR the citys iioat-
ing Indebtedness. etc. the commissioners deeIh
that there Is no reasonable doubt that the city
viii be completely able from time TO time. law
fully and constitutiOnally. to incur the inhebt-
,La .,fa rrD CT T.
edness contemplated by the Kapio Iransi s SUI
utc without transcending the constitutional
limitation
ISSUING THE BONDS.
"Tbe important question for to consider"
tho Commissioners say is whether, as the pay
nents become due during the four or five years
y, the construction Of the road. the city VIII be
IN constitutional situation to issue its bonds to
meet the payments. This Is not open TO doubt
The future must be judged by the past On uilS
point we have uniform ana uninterrupted I'M
nrovemcnt I'm the financial condition OF the CITY.
which beyond any reasonable possibility must
continue for many years to come. II is not heceS-
sary to suggest that 1t is within the power OF the
civ If authorized by the Legislature. In order To
reduce Indebtedness, to part with any OF It's
property held In fee, the extent and value OF the
recent acquisitions Of which have become so
enormous. - -, ,,.,
''The undisputed testimony of Controller Fitch
shows that within the next ten years the city
can incur indebtedness or upward OF 3ioJ,-
900 600 without any reduction or the margin
which exists between It's net debt and the con-
sttutional limit thereof. and that WITHIN the
next five years which may reasonably De con-
sidered as the period required for the construc-
ton Of the rapid transit road. the city can incur
new Indebtedness Of upward Of S6o,OOO'OoO with
ont any reduction Of such margin. No existing
fact Is better established than the practical GER
tainty that the city of New-York Will In the
Immediate future largely increase in population.
Dou't Re