New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-01-18
LET MANHATTAN GO AHEAD
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Confined from First rage
period Of time. and 1t made no oHer Oh al,
rental The answer of the Board pointed out
that the application was not In FORM w"'0''
permitted definite acceptance; that the boaru
had no power under the law to assure 10 d
private corporation building an elevated ran
road immunity from damages; that under the
statutes rental must be paid on extensions ana
that the Board was expressly forbidden by the
statute to grant any right to construct rail-
road on the surface OF a street. 1t was further
pointed out that the granting OF any application
| not limited in time would be. In substance 10
give an option to the elevated railroad company
/ to extend or improve It's system whenever II
should become ready 10 do so, without imposing
upon 1t any corresponding Obligation thus sus-
pending meantime the practical possibility OF re-
! lief from any other quarter The Board con-
! cuded It's communication by expressing the
! hope that the elevated railroad company IN
view Of the exceptional privileges which IL mad
| received from the city and the exceptional al
vantages which It then enjoyed for the extern
sion OF rapid transit facilities. would promptly
amend its application so that the Board couio
lawfully deal with 1t: and the Board promised
that. upon receiving such an application IL
would reach a determination upon It without
eighteen months ago. no answer has been re-
ceived."
THE SAME OLD GAME.
| Proceeding TO describe the introduction Of the
! underground plan the committee dwells upon
its presentation to the Appellate Division. and
the courts qualified approval OF the scheme.
| After this decision had been handed down 1t Is
shown that the Manhattan directors expressed
their readiness to make further application
TO the Board. Your committee" the report
then continues, rs OF the opinion that In view
Of the inevitable practical result OF the pending
probability OF such an application. the Board
ought TO request the elevated railroad company
to make such application promptly. The Board
will doubtless be ready now-as 1t has always
been ready-to. go as far upon reasonable assur-
ance OF prompt action on the part OF the company.
as the interests OF the city will permit toward
enabling the company TO add such facilities and
extensions as will relieve the needs Of the city.
Meantime your committee recommends that the
Board ask the Appellate Division to enter its
order of approval without requiring a stipula-
ton as to security. or. II not then to postpone
the entry OF order until the determination
OF the elevated railroad company shall be known
and the situation to security shall be bet
ter apprehended. II, however. the court shall
require the stipulation and require 1t now, then
the Boafd should ask that thu amount Of Sc
curly be reduced to such an amount as. while
preventing irresponsible bids shall not be pro-
hibitve or prevent competition. Your COM
mltee recommends that the Board by petition
respectfully and frankly submit to the court
the consdera tons bearing upon this subject
which are hereinafter set forth. In the Judg
ment OF the committee they may properly be
addressed to the court even after the delivery
OF its opinion. for the reason that the question
OF the proposed stipulation the amount Of
security which the Board should require was
never submitted to the court or dealt with or
discussed by counsel on either side. Your COM
mittee believes therefore. that the court will not
fail to entertain with open mind tho consdera-
tons which the Board may present"
THE BOND QUESTION
The first of the considerations referred to in
the foregoing paragraph is the provision In the
statute which gives the Commission the sole
power TO determine the amount OF the bond
How much this bond should be It is impossible
for the Board to decide upon yet for the reason
as is pointed out the terms Of the contract are
not yet fixed. Coming now to the practicability
OF the So, 900 600 bond the committee gives this
opinion:
II a bOnd tor sl3ooo 900 be required IN the tech
ment will operatrc, as substantial prohibition Of
the enterprise. Inc ACT requires the DOnd 10 De
joint and several: that Is TO say. every surety upon
II is liable for the entire amount. The suretes
are I'm the aggregate, 10 justify In double the
amount OF the bond. In the opinion OF your
mittee-and in its Investigation IL has found dis
sent whatever from this view-it would be impos-
slble to find individuals who could properly justify
In so large a $50 900 900. and who would
S15OnOO 900 TO continue for period probably long
beyond his own lifetime. If Ii would be difficult
for individuals to give a S1J.00O.00O bond TO run
Tor nifty years. IL Is at present impossible for any
existing corporation or corporations 10 give such
"A bond The total capital Of all the companies do
authorized by law TO become suretes such
contract, does not exceed Sl0,0OO,0O0 The largest
amount OF assets owned by any OF them Is
about SiG0OOOO
40 one OF them can Justify upon bond involv-
ing liability for a greater sum than the amount
OF it's capital and surplus.
bond for 100000 10 run nifty years, and to be
given by individuals or by companies now author
lied TO give such bonds. seems. therefore, from a
legal standpoint 10 be an mpossbIlity. Nor Is It
Within tho limits OF reasonable business possibility
that one or corporations would be formed
purpose OF becoming surety upon this bond. The
segregation OF 50 large a capital for the purposes
Of a special suretyship is, In the present financial
condition OF this country. and, so far your
mittee Is able to see, viii be for many years
come. practically impossible.
There remains the possibility that existing com
panies with capital OF the value OF much
SEQ 900 600 might take tho contract IN the Of
another company to he formed under their auspices
and themselves give the bond. For this stat
utory authority would have TO be obtained. but. II
IL were obtained, II might be doubtful whether II