The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-10-07
R. 7. CONTRACT AMENDED.
BOARD ADOPTS SOME OF CORPORA
TION COUNsEL's SUGGEsTIONs.

mite Addition to Rental OF PEI Cent. OF
Gross Receipts Above SO 5000, 900 go Mr..
Rivss Explains One of the Modihc ations.
The Rapid Transit Railroad Commission
transmitted to Corporation Counsel Whalen
yesterday afternoon a copy Of the proposed
contract for the construction. lease and opera
ton of the underground railroad. as modified
and changed since MIR. Whalen suggested
changes Accompanying the document was an
explanatory letter signed by President Alexan-
der L. Orr. in which he said:
II have the honor to send you here with the
printed form of the proposed Rapid Transit
contract amended as stated in my letter to you.
added; and. 10 behalf Of the Rapid Transit
Board. beg to express my hope and trust that
tract With such approyai By yourself Elf 'n' s'A
The board has taken the occasion to re6N-
anime with some care the form Of the concraet
and IN addition to the amendments OF sub
stance. has made number Of formal amend
ments All OF the amendments, whether sub
etantial or formal are indicated by undencor-
ing upon the pr nted COPY now sent you. The
principal amend ments are these;
the power Of the city to Ifake the contract at
the present time without embarrass ing the
city in respect to other needed improvem ents.
the contract is now made TO provide for the
contraction OF the road in sections. The city
undertakes at the outset an absolute obligation
Ing from the Br9okyn Bridge to Ffty-ninth
street, Section ii includes the Vest Side road
Es os rS@ the 81
street to l35th street, section III includes
the West Side road from l4oth street to Fort
street to Bergen avenue. Section ~. includes
the remainder Of the road on both SIDES. The
sections from the iirst until the Rapid Transit
Board shall require their construction by the
strro6 b se ro cSn,raef the f9n
years. and the board hopes that the entire con-
struction will be completed within three years.
hA RtpiI at lar fh.an ~ rant
will have the right at any time TO require the
contractor to proceed with section III. at any
Of work on section l.. at any time within two
yenrs after such commencement to require
nm nm to proceed with SECTION Tx and at any
ment 10 require him TO proceed with sec
:, The board has struck from the contract
the absolute provision for an addition to rental
OF sum equal to per cent upon the exeess
to the interest upon tho CITY bonds and the con-
tribution to the Sinking Fund. In the opinion
OF The board. the ahtlity OF tho city to procure
q satisfactory contractor should not be limited
receipts above s5.o0o.ooo to be paid by the
SeFan between bidders 0r the s%n SS
Under the contract as now amended. the
Tor which ~" the Contract contrsctor win CONSTRUCT. and ~
gross receipts above s5.oQo.9oo which the con
amount Of interest upon the bonds and the
contribution to the sinking Fund
3. Express provisions under the Labor Law
OF 1897 as amended in 1899 have been in serted.
a. suggested by YOU.
~, !. n" contract has upon the suggestion OF
the Comptroller. been mod fed TO provide. IN
the matter OF the issue 81 the city bonds for
construction and the payment of rental. tor the
operation before it shall be completed
,. The, provison limiting the use of the tun-
contractor has been struck out The CON
tractor. under the amended form, will be able
to u.s. the raiiroed Tor any PurP0se consistent
for the carriage OF passengers. Even II the
statute does not give the right, as the board
thinks it does, the contractor will under the
contract az now amended have the right, sug
gested in your letter. to use the railroad for the
4. Tie . boaTY has deemed It wise. in order
to increase the nducement to competent con-
tractors to bid and in that way to secure better
terms for the city. to provide Tor one renewal
OF the lease; This renewal is to be for tho term
Of twenty-five wears at rental not le's than
contractors demand for Z renewal; and. sub
Ieet to that min mum. the amount OF rental
under the renewal ease is to be determined by
arbitration, or. II the terms OF arbitration can
not ba agreed upon. then It is to he fixed by the
supreme Court.
The amend ents to which we have referred
we believe to he all that are materi al. But all
OF the changes. whether material or imme-
terial. are indicated. or intended to be. upon
the copy OF the contract submitted to you.
The contract itself Is contained In book OF
22O pages
Speaking of the changes in the proposed con-
tract. George L. Rives one OF the Commission
ers said yesterday:
The proposed contract contains ono
Important modification not suggested by
the Corporation Counsel. which might
possibly be misunderstood without expla-
nation. That is. the provision relating
ing to the construction OF the road in sections.
As the contract was originally drawn by the
board nearly two years ago. it provided for the
contractor building the whole road This. un-
dor the view OF the law now taken by tho
city authorities. would at once involve
the city in debt to the total amount
payable by the city for the eonstruc-
ton OF the road. which at present prices
would amount to more than $50. 100000.
or course this amount would not be payable
Immediately. and only az the work progressed
but nevertheless il has boon thought that un-
der some decisions OF the Court thcs might be
regarded as = present debt. impairng to the
extent OF over S3O. 600 900 the citys capacity
to incur debt for other purposes.
I'm order to avoid the embarrassment which
might thus be caused. the Comptroller sug-
gested that the contract might provide for tho
construction OF tho road in sections. involving
only a liability of about SlO.OOO.OOO 4 year.
and in the revision of the contract this idea
has been opted although. Of course. it has
not been practicable to limit the expense
precisely to Slo.oOO,O00 In each year
1t is not thought that this pro-
vision will embarrass either the city or
the contractor in any way. because the con
tractor would naturally begin work the
lower sections. which involve the most diff
Guilty and will take the most time; indeed. the
commission are advised by their engineer that
q contractor probably would not begin work
on the upper portion OF the route until the
work had been in progress for at least a year
on the lower part
IF, as is hoped. the proposed constitutional
amendment. TO be voted on In November. shall
enlarge the dsbt-incurring capacity of the city,
the situation will be changed. and the contract
or may then under tho contract be required
to proceed with the work more promptly.
The public must understand that letting
tho work in sections does not imply any
change OF the position OF the Board or any
abandonment OF its intention to carry the
building OF the road through from the Post
Office to Kingsbrdgs on one side and Bronx
Park on the other. hut that it is their purpose
| att . I'll