New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-01-25

hypothetical question OF this eharse'er is no on,n
Ions might fairly differ as to the Gs stnnn neceSSs oV
OF sTe fer kat rns IN. ss Years bonds
issued Tor bridges docks Issasns
for water 1e 'u TGsa an the U Of the
nkns f S po.sss s oroae iSq
70 an amount equal to the estimated cost Oh '"'
The contrciler is Of the opinion that u 1t should
be found both a az the xmRnepa credit
the c6ntrac, or contracts for It's construction should
he so drawn as not TO obligate the city 10 an S
q bonds exceeding S ha hs Voondon can
be provided for without difficulty 80 hull, IN three
and IN; % "a could The BE s1 az HenF
SOUND to Sad the entire Inc when csst "GOn 10
do 80 and The city having the CP' section 20 Was COM
Slsted then the addition to the eitys dep, ~1 han
only he yesT or ,S annual proceeds Of
the sinking funds available for the redemption OF
such that the Board Of Rapid Transit Railroad
;bs we're e 10 Rely soeS this possible
luton They are clearly of the opinion that I IS
powers oSe a"o 20 as 80 to enable them either take advan
iase o. The OF me 70 cay sS 40 ta look to
other sources for the capital needed to ouhd sat
isfactory and efficient railway
H. CONSTRUCTION BY ISSUE OF COUNTY
BONDS.
A prompt method OF obtaining the use OF the
public credit for the construction OF rapid-ransit
railway would be 10 provide that SUCH railway
when built should be asset exclusively or the
county OF New-York chat Is. OF the boroushs OF
Manhattan and The Bronx. and that the funds
should be raised by issuing the BONDS OF ma, hst
egnaion a agthorfnnF such an issue Of bonds would
be obnoxious 70 any existing proVisons o. fnr e
below 10 per cent OF the assessed valuation OF us
The proposition TO issue county bonds has been
supported upon the ground that It maintains in Us
integrity the essential p0To OF ne aS' and nd p
Vate operation The propagation Il adopted win
f feet s sSo SRfP 6s Of the county
only and that the funds for Sudns hs should ne
As already explained the obligation thus assumed
ny h nvTe the evns Of any the imposing
OF any burden upon the taxpayers OF the county eN
contractor who builds the, railroad because such
contractor would be bound to agree TO Lease the
pay not only the interest on the bonds issued by
payment pay nt' OF the bonds themselves Moreover no
obligation could be incurred by the county unit, a
contract and TO furnish such indemnity would
abundantly insure the county against any possible
The Controller OF the city OF New-York. however.
bonds IS undesirable in any event and his action
in signing this memorial is not to be construed as
nbefore contained which were favorable to the
issue Of such bonds
III. CONSTRUCTION BY PRIVATE CAPT.
tai.
The third solution lies In the possibility OF sell
Ing a franchise 10 construct and operate the
rapid-transit railroad II the statute permitted such
a franchise 10 be offered for sale. The financial
conditions are now much more favorable for the
conduct OF such an enterprise than they have
been at any time heretofore. Moreover. the testi-
mony taken before the two supreme Court com.
made. and the striking success Of the subway in
OF such road and as TO the possibility OF calcu-
The adoption of plan for private ownership OF
new r9ad nndop6iediy Would H.
adopted little more than FIVE years ago by pract
caly unanimous vote Of the Legislature and an
city Of New-York and this ought not TO be per
mitted EXCEPT under the pressure Of the most
Moreover in work OF this magnitude. involving
1nra e o ans S.Ts ~ 'ne pesn T9
might he necessary TO offer perpetual franchise
The present city charter provides (saction 73
after the approval Of this act no franchise or
right 10 use the streets. avenues parkways high
ways Of the city shall be granted by the Munic-
longer period than twenty-five years. but such
evne to The Sp ,e G me on S'!S
tioo or srevaluations. to renewals not exceeding
Her, again, ihe attempt TO secure the constitute
might involve departure from a cherished rrn
ciple adopted upon great consideration The cities
for the use Of the public streets upon terms which
although apparently .adeouate at the time Of the
Fl bs c1 % m to ne 9q sch Ts5
road and surface lines o. third ana sxt i1D sv YES
and Broadway hive proved sources OF enormous
city, 1t was therefore the purpose Of the trainers
81 The new charter to prohibit utterly the granting
quite anart from and in addition to the oonsldera
that the contemplated ra pd-transit road whether
pun WIN IN Guy money or by private capital will
piece ~ property whose value It would be difficult
IT, M It Is perfectly safe say that in
city's POPULATION will Increase the earning ca
rs.y Of f., such road that the ysIge VII be far
tnrs % by priyase capital Togd thert
might ne made valuable addition to the property
~ .he people OF the whole city. The former city Of
eTemp. The S Of TI h SnG pan
municipal ownership In the surrender Of It's streets
rrohtable business on capita zation far greater
than their original cost i exhibits the results Of
The Rapid Transit Board is however Of the opin !
work Of such pecusr character and such excep
tional value TO the city that departure from the
tiled II Is nain that such justification can only |
be found in the event Of The public credit proving
yet entirely certain for the reasons above pointed
THE BOARDS RECOMMENDATIONS.
The Board therefore recommend that II power ,
is granted them 10 sell the Franchise 10 consruc,
the road such power shall he additional n their |
present powers and not a substitute FOR them IN |
this way the Board will he enabled take advan- |
taee o. varying conditions AZ they may arise In |
tho future. II the city authorities shall Gee their
eay keen the debt suHicier'ly within constitu-
tiopal limitation. then the Board will be in TIE /
position authorize municiral construction and /
on the other hand. II municipal construction shall /
prove TO be constitutionallv lmpracticabe within /
any reasonable time the BOARD may he enabled /
10 arrange for construction by private capital
The Board therefore ventures 10 urge that II the /
legislature shall determine that II "a wise nermi'
private CAPITAL. the largest measure ~ |
authority And discretion compatible with the public |
Interest shall be intristed TO the Board in order !
that /, frame such franchise as will certainly /
attract sufficient private capital and compe-
titlon And the Board deems II OF esnecia i'm |
~ nvtar lie n he "a