New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1902-07-29
TRANSIT PROBLEMS PHASES.
THE CITY WOULD NOT LOSE.
MISAPPREHENsION ABOUT BROADWAY
SURFACE RENTAL


The statement made by Controller Grout last
week that the city would lose O rental of
$4,000 a year from the Interurban Street Rail-
way Company If subway were constructed IN
der Broadway denied yesterday BY Corpora
ton Counsel Rives. Mr.. Rives was asked by a
Tribune reporter If he had investigated the sub
ject. He Immediately recalled that the ques-
ton had arisen at meeting of the Rapid
Transit Commission in 1896, when he was one
of the commissioners. He hunted up the min
utes of the commission for 1896, and found a
letter by Alexander z. Orr submitted on March
II of that year. Mr.. Orr referred to bond
produced by Controller Fitch and made by the
Broadway and Seventh Avenue Railroad Com
pany on December H. 1889 The Controller had
said that the terms of the bond were such that
the construction of a rapid transit railroad
under Broadway would deprive the city Of a
revenue of $4,000 a year from the cable rail-
road.
Mr. Orr said that the Controllers apprehen-
sions had no substantial foundations and that
there was no reason to fear that the city would
suffer the loss of this revenue. He presented
the following facts: The Broadway Surface
Railway Company Incorporated on May 13
1884, for the purpose Of constructing and oper-
atng horse railway In Broadway from the
Battery to Fifteenth-st and on December 8 Of
the same year received a perpetual franchise
from the Board of Aldermen upon which Ii was
to pay rental OF $4,000 a year to the Sinking
Fund. and. in addition. 3 per cent of its gross
earnings for the first five years. and 3 per cent
thereafter. 1t began to operate it's road on June
%, 1885. Prior to this time the Broadway and
Seventh Avenue Railroad had obtained the right
to operate a railway IN Seventh-ave and Broad
way from Fifty -ninth-st. to Fourteenth-st This
company on September s. 1856. acquired the
Broadway Surface Railway, and became bound
to pay the annual rental of $4,000 a year and
the percentage Of its gross receipts exacted by
the Board of Aldermen. The Broadway Surface
company was dissolved on May by act of the
legislature, and the Court of Appeals decided
that this did not affect the rights of the Broad
way and Seventh Avenue company to occupy
Broadway from the Battery to Fifteenth-st., un-
der the several contracts referred to.
In 1889 the Broadway and Seventh Avenue
company made application to change it's mo-
tive power from horse to cable and a statute
was passed in that year to authorize the State
Railroad Commissioners to assent TO such a
change. Mayor Grant addressed a communca-
tion-to the Board OF Aldermen on November 12
1889. recommending that this privilege be
granted to the railroad company upon condition
that the board exact stipulation that the reve-
nue. should never be permitted to fall below
$4,000 so long no other railroad than
those now existing shall be constructed upon
over or under the said routes in Broadway or
any part thereof" A bond of 100000 was de-
posted with the Controller to guarantee the
payment Of this revenue. and the necessary per-
mission was granted. Mr.. Orr then said
The mere statement of the above facts will
the construction OF the rapid transit railroad
under broadway Will. under the terms of this
bond. release the Broadway and Seventh Ave
nue. Railroad Company and It's successors from
the obligation to pay the minimum sum of
Sl5oOo per annum into the city treasury. 1t is
equally beyond doubt that the relieving of the
company from its guarantee that the minimum
sum shall amount to $4,000 will not In any
wise relieve It from this anteeedent obligation
to pay the annual sum OF $4,000 and the
further sum equal to per. cent OF it's gross
receipts below F1fteenth-st.. into the city treas
ury. required by the terms Of the grant under
which II occupies Broadway
Mr. Orr said further that the building Of a
subway would cause continued loss TO the
city. In the year ending September 80 1895.
the receipts below Fifteenth-st. were 81 692-
$50 3d. per cent of which, $S4 Gil 81. added
to the $4,000 rental, would amount 10
S124.617 81. The loss to the city IN that year
would have amounted to SIS, 3S2 40 II is not to
be assumed that the city would suffer any con-
tnued loss Of revenue because the number OF
passengers carried over the line in 1893 was
% 1O7 O64. while in 1895 1t 33.S47.O07.
1T needs no argument to show" Mr.. Orr con-
tnued. that II this ratio of increase be main
tanned for the next two years. there is every
reason TO believe that 1t will be- the annual
percentage which the company is compelled to
pay the city. added to It's fixed rental OF
$4,000. will considerably exceed the minimum
sum whose payment is guaranteed by the bond
referred to. make 10 mention OF the benefit
which the city may reasonably expect to reap.
both directly and indirectly. from the rapid
transit railroad. for the sole purpose of this let
ter is TO assure your honorable board that there
is no Just cause for apprehension that the con-
struction Of the rapid transit railroad under
Broadway will serve TO diminish the revenue
which is received by the city from the cable
company"
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