New-York tribune., 1901-04-16
ORR REPLIES TO JOHNSON.
PRESIDENT OF THE RAPID TRANSIT
COMMISSION ANSWERS HIS CRITIC ON
PREPARED BY THE BOARD

Alexander z. Orr, president of the Rapid Transit
Commission, replied yesterday 10 the attacks made
m Sunday by Albert L. Johnson on the amend
ments TO the Rapid Transit bill prepared by the
commission. The reply issued from Mr. Orr's office
in Produce Exchange Building reads as follows:
The statement that the sureties on the Mcdonald
contract Would De eNonerated under the amend
founded The bill explicitly provides that any as
signment Of the contract is dependent upon the
condtion that the security or securities which
the city shall have received for the performance by
the original contractor of such leasing provisions
Tided in such CONTRACT 1t is quite needless to
say tnat te and i9e rst eid r9r SO provide neither
board disposed to do its duty would permit any
assignment or alteration of the contract without
The statement is equally unfounded that under
will not be permitted TO contract for operation
alone whereas new corporations approved by the
erson is competent TO he an original contractn,r
except for both construction and operation. Such
contractor must assume and give security for the
rental burden OF the lease if he takes the contract
for construction The bill explicitly permits an ex
stng railroad company. after the contract is made
upon proper terms to take over the leasing pro-
spects existing company is treated precisely
the same new corporati tion.
OF course. there ought to he discrimination
against existing corporations. 1t is equally clear
that there ought not TO be any discrimination in
favor of them. It is doubtful whether, under the
Hight TO enter into a contract with the original
contractor for the operation of the railroad. There
ing railroad corporation has that right. If there is
any discrimination at present ii Is in favor Of ex
ought be terminated quickly the egis-
lature act.
The Rapid Transit law permits either corpora-
-ou or q natural person to be original bidder
but obvious that ordinarily the original bidder
would be a natural person
Until the bidder actually secures the contract he
should not be put TO the serious expense and
trouble Of forming the proper permanent corpora
cor1reteut responsible contractor is obstacle to
rapid transit 1t is TO the interest of the city that on
so long q lease as fifty or seventy-five years the
nerpaanent lessee shall be corporation. If offer
ing the contract for competition, it Is greatly to
the advantage of the city that # should be able to
ass1Ire the contractor that after the contract is
made he may organize corporation. and If it
meet the approval Of the board. and II all of the
Securities he preserved then that such corporation
NAV succeed his rights.
The proposed bill enables present and future con-
tractors lawfully acquire title in fee by con
demnation proceedings to power houses and what
eva- else may constitute the equipment of the
road but subject to the right of the city to pur-
cha Sc II at the end OF the lease. Everything be-
longing to the road itself like terminals. for eX-
ample is belong TO the city and be acquired by
,ha ef4r