The sun. [volume] (New York [N.Y.]) 1833-1916, 1899-10-07

equal To the interest on tno DOnuS tnht viii %
issued, one per cent Of the cost and small portion
OF the profits This excess over the profits Is a
very elusive quantity. II was once tried az the
condition Of n ferry franchise and although
the ferry was multitudinously patronzed. and
all the directors became rich, the. profits never
materalizcd to the advantage Of the city, so
much was required for current Expenditure, better
ment, salaries, and the like. A percentage OF the
matter of inspection and counting-not like
profits, that can be 80 easily iuggled with But
laton To the value Of the enriching privilege
not in any degree. like the pitiful pittanccs al.
and and extensions 'S The gentlemen Of the Rapid
Transit Commission have adhered To the plan
Of entangling the franchise and construction
with unchanging tcnacty. | believe they are
wrong in this line Of policy. and II ! should prove
correct in my contention will indicate an easy,
remedy. Shortly after the passage Of the Act Of
1894 | was requested to review the rapid transit
project thus presented Ny paper was conspcu,
| referred to the plan OF uniting the contract for
construction with the practical ownership OF
the franchise for ffiy years to the contractor In
the following terms:
Briefly stated, the Bosrd of Rapid Transit Com.
Ini,soners have authority to lay lines of railroads
time as they shall deem e1psdisn. as to character
and location; Then they are clothed with Unlimited
Corporations they select the exclusive right to Gnid
these railroads At the expense Of the city for such
work: and when the railroad is Completed, the
pre nd % SS esHH T.1
FOR their own exclusive benent the city receiving
amount Of tho in,srs. I.d to be paid on the bonds
to be issued in the name OF the city to raise the re-
ons Ths pros1. Of opsr. ii g the p road there
be profits are TO @ to tho grantees for the term Of
nants OF renewal without Limit. II 10 per cent.
for example ia realized the citys money thus in
per cent after paying interest But more than this.
% fUf be OF ]
for city and county purposes. And this Is not all:
from or on
the grant and in respect to the rolling stock and
that .ht. sIemp3on shall no. extend to any real
property owned or employed in connection with the
Ssption When con.dered that IN another section
the the I S rel The m
OF constructing and operating such road"
This was four years ago.
AT the sans time pointed out other objections
TO the scheme, particularly as To the proposed
financial arrangement The difficulties desig
mated in financing the scheme were subsequently
cured by leg islaton, but no Correction was made
in the franchise element The Commissioners
could have long since remedied that objection.
for they appear TO have been masters in the con
troll OF legislative action whenever they sought
its exercise
The union Of the contract Of construction with
the right Ia the contractor to Possess the fran
chse Is attended with other serious evils than
that specified one consequence ls that the con
tract OF construction must be let in it's entirety,
and cannot BIZ let in sections to different con
tractors by which vigorous promptitude of execu-
AT the September Term, 1897 Of the Appellate
Division OF the Supreme Court Of this district,
on the report Of the Commissioners, in favor OF
the Court commenting on the law. said:
sidering these questions that independent and
separate contracts Of construction could from
time TO time be entered into, for the reason that
every contract Of construction must necessarily
embrace a contract for the operation of the line
by the constructing contract.
But the difficulties OF the strange and
precedented ENHANCEMENT do not end here. The
Court on that occasion. imbued with the idea that
would not i. od desi3pbIe anauisition reouired
curity in the sum q sii 900, 900, with twenty;
from the contractor under Section "a of the act In
question. This was, novel judicial action but it
stands as a part OF the CONTAMINATION.
Ia addition 10 all this, the contractor will be
required. under the plan of the Commissoners
about 70 bs put forth, to deposit sl000,ooO in
bond IN an sditona 81 o65 SoS Thus the
contract is handicapped with immense pecuniary
petition in construction 1t is said that the Met
fopolitan Fraction Company, or some other rich
corporation, viii alone be able to meet the gigantic
capiastic requirements
=, This condition viii necessarily operate TO
the disatyaptege Of The city, Goppeti.ion for
such as the Metropolitan Traction Company,
not in the line Of contracting for public work,
tractors under easy conditions, who will do the
work for a considerably lesser sum, and the
corporation will pocket the profit at the expense
OF the taxpayers The successful corporation
Is to be authorized to assign the franchise with
the consent OF the Commission. or certain num-
A corporation OF this character could construct
the road and put II in operation without the ex-
OF a Of bv rs y, v ne he
progresses would be sufficient guarantee Tor
any trust company TO advance the money re
quired at light interest for preliminary expenditure,
and when it comes to equipping the load, that
will be accomplished by the issue Of bonds. &C
cording to the practice in such cases made and
provided
onerous eHacuons as conditions OF the contract
are contrary 10 the course adopted in cases OF
extensive public works in ali other parts OF the
country. Let me illustrate, near home, The
isting law, according TO their last trial balance
have expended within a fraction Of forty millions
the performance Of their grand. massive and i'm
portant work in sections ! to 10 reservoirs NJ,
and others The result has thus, far exhibited
tn hghes degree Of Capabili,y in the engineering
and construction departments. Especially has
first class work been done by the contracting firm
now engaged in constructing the Jerome Park
| reservoir.
These contracts have all been let after the gen
| eral competition of practical contractors capable
| Of executing large undertakings
The security required has not been excessive
while the protection 10 the city has been ample
but Of totally different character from tho pro
| nlDlufe ana eNCulllR SCneHe Ol lne fhplu ran
| st Commissioners the city being allowed 10
retain a percentage Of 10 or Is per cent from
| each payment under the contract az a guarantee
| for the final completion Of the undertaking. This
system applied to the rapid transit construction
would result in several millions Of dollars being
thus retained by the city security, while profit
able competition TO secure the lowest cost OF con
struction would be obtained II that plan were
| adopted. and the scheme removed from the en-
! tanglcment and burden Of security. how much
| less the work would cost than by the handicap
ping project proposed
| Now what il the remedy?
| We are within three months Of the meeting Of
| the Legislature and the most sanguIne do not eS-
peCt 10 have the contract let before that body will
| be at Albany in law making order, | propose
that a short amendatory act be passed similar
u that relating 10 the CrUton Aqucduct providing
that the construction Of the proposed rapid tran
| sit system be separate and independent work.
and allowing the Rapid Transit Commission 10
| proceed at once under the usual conditions -
| allowing full competition that the road shall
| he built for the city with the Cty's money s,
and when completed shall be the citys property,
| either To be equipped and operated by the Rapid
Transit Commissioners for the benefit OF the city
| or let for term Of years 10 the highest bidder.
We have heard much Of late about the municipal
| ownership Of city railroad franchises.
II m ratiy ply mr. to adj