New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-04-27
CHAIN OF -"GRAB" BILLS
WILL BENEFIT BELMONT.
InterbOrough Extensions on Stein
zCay Franchise.
IBY TELEGRAPH TO THE rRIBrSE.1

IBY TELEGRAPH TO THE TRIBTSE.1
Albany. April 26.-Investigation into the char-
acter of a number Of pending railroad bills has
developed that the most sweeping and audaeious.
as we'll as most carefully designed scheme. has
been adopted to put through the legislature an
extensive series Of bills. all designed to benefit
a single corporation. the InterborOUgh- Five
separate bills. one TO revive a dead franchise.
two to extend the time when it shall begin Op-
erations and two to permit change of grade and
abandonment OF route are pending. and the pur-
pose of these bills. plainly stated is to enable
the Interborough by taking advantage OF the old
Steinway tunnel franchise, to build tunnel to
the Borough of Queens from it's present subway
line without being subject to the Rapid Transit
Commission, without paying an additional dollar
for franchise and without any reference to the
local authorities.
The purchase by the Belmont interests OF the
trolley lines in Queens County was naturally
followed by the desire to connect these lines "
with the NewYork subway by tunnel under the
East River. This could be done only by one OF
two ways-appIication to the Rapid Transit
Commission. with a submission to the laws
that have been enacted covering public fran
chises or by the purchase of an existing charter
or franchise granted prior to the days OF rapid
transit commission. and therefore perpetual and
unremunerative TO the city The latter course
was adopted and the franchise for the stein
way tunnel was purchased This charter had
been previously hawked about by the executors
of the estate of William Steinway. one of whom
testified in court that it had been rejected by
the Pennsylvania Railroad by a number OF
British capitalists and by other interests
dead franchise. After thus being neglected for
number of years II was finally sold to a New
York lawyer for $4,000 and through him passed
to the control of the Belmont interests
Obviously this charter was of questionable
had
counsel of the Pennsylvania Railroad. and the
first step necessary was to secure the valida-
ton of the charter in the points in which il was
defective. To do this bill sent to the
legislature which was general in character and
covered a wide range of defects in railroad
charters. and this BILL the keystone Of the arch.
is the Elsberg bill, which was hitherto believed
to apply 70 the New-York, Westchester and Bos-
ton charter. but which Senator Elsberg has de-
clared applied to a Queens County case To
trace the connection between this bill and the
Steinway charter was at first difficult but the
charge that it applied only to the Westchester
was met by Senator Elsberg by amendment
which made it applicable only to charters issued
after 1885: that is. excluding from its curing
provisions all charters of earlier date than 1887.
This disclosed the joker. for the Steinway tunnel
charter bears the date of July 30. 1881 OBJ
viously the bill would cover this case Now. the
bill came from Edward Lauterbach and there
is at present before the legislature. in the hands
of members a brief drawn by Mr.. Lauterbach
in defense of the EIsberg bill The description
therein contained of the bin says. among other
things:
1t provides that in case the original certificate
of incorporation of any railroad company shall
have failed 10 state anything required by sec
tiOn . or in any particular shall have failed 70
comply with its requirements or IL IN any OF
the original amended supplemental certif-
fe any iUfOrmalitV
matter not authorized by law. the corporation
may by amended certificate correct the defect
The line cor it contain any matter not au-
thorized by law Affords second clew assOcl-
ating the EIsbers bill with the Steinway tunnel
for the franchise was issued for tunnel under
42d-st but the charter issued for tunnel
under 3Oth-st hence the infOrmality that might
he corrected by an amended certificate. Atten-
ton 10 this same point will be directed IN an
other bill in the series presently. This then, IS
the Elsberg bill. sent to Albany by Edward
Iauterbach. which has passed the Senate and q
now in the Rules Committee OF the Assembly.
The second step IN the scheme must he an
extension of the life OF the grant. for the charter
was granted in 1887: no work had been done
and the charter must have expired This
done by bill introduced by Senator SAKE.
which provides an extension Of time for rail-
roads until 1911 in one special case. The bill
provides thus:
or such roads or railroad company az shall
have expended and paid at least the
equal to 500 a mile for surveys. cost OF location
or right and privilege to bridge streams OF the
line of the said road intended TO be adopted by
said company
In 1890 the Steinway tunnel people, whose
franchise bore the name Of the New-YOrk and
Long Island Railroad paid exactly $500 to the
commissioners Of land owners for their right OF
way under the East River. subsequently paying
SO for referees fees. Clearly the Sake bill would
prolong until 1911 the hitherto uneventfuI life OF
the Sgeinway tunnel franchise. Not wishing to
take any chance on this proposition. another bill
was drawn by those engineering this scheme
amending the same section Of the railroad law
by providing that this extension OF time should
be granted to any company that had acquired
one-third OF its right OF way Obviously this
would help the Steinway franchise. particularly
In case part Of their route were abandoned as
the next bill in the series provided. This bnI
was put in by Senator Raines. and IN the AS
sembly By Louis Bedell. chairman Of the Ras~