New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1905-01-20
BELMONT ON SUBW4YS.
Municipal Ounership Al Right, but
Not Municipal Operation.

r~f---n Ian 1e-August Belmont hnancier and
-.5tar Of the New-York subway was the prlh-
~. speaker tonight at the annual banquet OF
The Chicago Real Estate Board at the Auditorium
Hotel
Nj Belmont was met by q reception committee
II Chicago real estate and business men upon MS
arrival to-day and was entertained at the Chicago
Club at luncheon. His address at the banquet was
On ~subNays: What 10 DO and How to Get Them
More than four hundred persons attended the
banquet
Mr.. Belmont spoke municipal transportation
facilities more particularly in their relations 70
subway system.
AFTER calling attention 10 the New-York subway.
which was constructed by the city OF NewYork and
leased TO operating company for fifty years with
. renewal period OF twenty-five years. he said;
In my opinion. under right conditions. not only
ere there fundamental objections. but, on the
contrary. there distinct advantages to CITY IN
going beyond what considered 10 be stFictiy
It's governmental functions and acquiring and con-
whether by land or water; perhaps even to other
quasi public enterprises 1et II SssoGlaoeo VIII
municipal ownership there is rnunicipaI opeIstol
Of these properties. then think the Jnstl9aole
that Of operation and maintenance. -, -. .
TIE administration on me oSner , lIiiT' % o5,Is
oi gencjs and sstTites that are bound
10 be unsatisfactory n their character so far as
We can judge from the standpoint Of theory and
me great danger IA the present situation in Chi
is that in seeking relief nom present con9I
riuls some thing permanent ana eI1u!IIIs 80
yet absolutely undesirable may be determined upon
On such occasions II IS ven lot US al 70 DC on Oui
guard against the ADOPTION, or even tie Serious
consideration % many nchOaJe ia dlgested schemes
which bring about merely change, but not improve
mem The change should be IS desirable as II Is
Today there IS going on in the city Of New
York an agitation looking 10 the construction and
% ~ 14s tTust Satisfactory solution Of
The questions involved viii De reached without our
going 10 any such lengths.
Municipalities, rule. unwilling to submit
the expense necessary 10 secure the employment
Of the highest kind Of ability, essential for the
operation ana development OF such properties
Yet, without this ability the property cannot De
brought kept UP 10 the highest state OF efficiency
The whole country is secured Tor such epllly py
private capital: compensation IS q secondary con-
10 subject a dominant political party the
temptations Wllick the employment Of vast num-
Der OF employees affords IS 10 be avoided almost
a al hazards.
functions of city should be adhered TO by IL, and
only departed from in practice when, after an eK-
1c-uStlNe Ulal, IL is ueIlOiSIaleo DtyOlu
that ClherWlSe SATISFACTORY IeSlIls are A9t 70 Oe
secured. The trial, however. must be made under
right conditions and under right auspices.
The results which foreign cities have accomplished
~ the matter Of operation Of so-called public
utility corporations are not Of such character as
20 stimulate their duplication in this country.
~ unsuccessful municipal speculation, whether the
experiment has taken place IN England or Australia,
or even in the United States.
AIr. Belmont suggested that all litigation and
controversy over the street railway franchises in
Chicago be suspended and the companies be per-
mitted 10 develop and rehabtate their properties
20 meet the public need; that II the operation
not up TO the prescribed standard, the city
have the right 10 take the properties at figure
fixed by arbitration. and after the payment of the
3tself or 10 select a private occupant. II this
comproulise' did not work out favorable results
take the venture Of municipal ownership with its
financial and civic responsibilities.