The sun. [volume] (New York [N.Y.]) 1833-1916, 1903-07-17
MUST NOT SELL OUT TUNNEL.
MAYOR IMPOSES NEW CONDITION
Nv CITY FRANCHISES.
Jerse. at, Concern Must Not Transfer
LIS Rights To Another Corporation With
out the G1tY's Assent Metropolitan
and Brooklyn City 10. N. as Examples.

Al last week . meeting Of the Rapid Tran
sit Commission Mayor Low refused to vote
for the franchise asked for by the Hudson
and Manhattan Railroad Company, to build
a tunnel from Jersey City to Church street
in this borough, because the terms OF the
proposed contract had not been submitted
TO him beforehand.
A day or two later the printed contract
was sent to him and it was expected that at
yesterdays meeting Of the commission
he would be prepared to vote for the fran
chise. But he picked many holes in clauses
OF the contract and again refused to vote
for il until notifications he suggested had
been made.
One Of the alterations insisted on by
the Mayor affected the right of the COM
pany TO sell it's property without the con-
sent OF the city. As in every other contract
hitherto made by the commission. the
right was given to the Hudson and Man
haitian company to mortgage or transfer
its franchise. so that due provision was
made for the carrying out of all the obliga-
tions entered into by the original grantee.
But Mr.. Low urged that the company should
be deprived of the power to sell or transfer
its rights and property without the specific
consent Of the city
The Mayor said that he wished TO pre-
vent the new company from following the
example of the Metropolitan Street Rail
way Company and the Brooklyn City
Railroad Company by handing over its
interests to a stockholding company
The Brooklyn City Railroad Company.
a perfectly solvent and responsible COM
pany.' the Mayor said, was leased to the
concern operating less than half a mile
OF railroad, and those interests In turn
were leased to the Brooklyn Rapid Transit
Company, company consisting of-well
perhaps more capital stock than real
capital
The Mayor also referred to the lease OF the
Metropolitan company to the lnterurban
company, a holding corporation, he ex--
planned, whose substance in the matter Of
actual capital had been questioned The
interests Of the city were not well pro-
tected the Mayor urged, il the city had to
get at the company to which the franchise
had been originally granted through two
or three other companies which had SUBJ
sequently taken over tho rights OF the first
concern
Edward M. Shepard, counsel to the COM
mission, intimated that IL the Mayor 6
suggestion were carried out, it might inter-
fere with the right of the company to issue
mort gage bonds for the raising OF the
necessary capital to complete It's work;
but the commission decided that the recon-
mendation made by the Mayor should be
inserted in the contract.
Mayor Low also proposed that the city
should have power to order from time to
time such increase OF service and such
improvement or accommodations as 1t, in
its Judgment, may deem proper" subject
to review by the Appellate Division.
The only recourse we have now the
Mayor explained, -in the effort to get i'm
provements, is to 60 before the State Rail
road Commission and to prove that the
companies ought to do better. The bur-
den of proof is, consequently. on the public,
and think that the time has come to put
the burden OF proof on the companies
The grant was put over again for amend
ment.
The board gave permission to the Rapid
Transit Construction Company to con-
meet the East Side Subway with the ele-
waited railroad at Third avenue and Vest
chester avenue and 10 build a spur from
the West Side route from the Boulevard,
down Manhattan street, TO connect the
rapid transit line with the Fort Lee ferry.