New-York tribune., 1906-04-13
SECTION 1924.

Mr. Belmont has announced that if the Els
berg bill becomes law it will be the death
warrant of subway extension. Though the orig
inal measure bearing that name. which made
separate contracts compulsory, has been greatly
and properly modified to allow a single contract
for construction and operation if the Board OF
Estimate and Apportionment approves, and
though it has been sadded with Mr.. Grady's
amendment for the laying out of additional lines
as extensions of the present subway, Mr.. Bel
mont, apparently, is not satisfied, The twenty
year term for operating contracts is altogether
too short, in his opinion, to justify the neces-
Sary expenditure even for equipment where the
city furnishes the money for construction. That
the measure does not satisfy Mr.. Belmont we
can we'll believe. 1t was not intended that it
should. He naturally would prefer to have the
city forced to give him seventy -fve-year fran
Chses to run roads built on its credit Yet he
should not despair for the Elsberg bill leaves
him more than the public has supposed, per-
haps more than he has supposed. In fact, it
leaves him to do for the term of fOrty-ive years
just what he has hitherto formally offered to
do for a more extended period.
Section 32A of the Elsberg bill authorizes the
Rapid Transit Commission and the Board of
Estimate and Apportionment upon the appli-
"cation of any person. firm or corporation own
ling. leasing. constructing actually operating
"a railroad wholly or in part within the limits
'of the city" TO fix routes by which the appli-
cant may connect with other railways, the
stations thereof or with ferries. "or may extend
his or its lines within said city" The applicant
must contract to pay annually to the city
rental TO he fixed by an agreement for not more
than twenty five years. with the privilege of re
adjustments for two periods of ten years each.
The section also provides that the recipient of
such a grant may construct the additions with
'all the rights. and with like effect. though
'the same had been part OF the original route
"Of his its railway then in actual operation
"Or in process of construction" except that no
grant shall be for a longer period than 1.-The
original grant. franchise or cOntrGct' of the
railway to which extension is made. The pro-
visions of this section shall apply to any rails
road or railroads constructed constructing or
contract for under the provisions of Section
"34" of the act, which is the section under which
the present subway was built. So under it Mr.
Belmont, by paying interest and sinking fund
charges on his own instead of the city's bonds
can secure such extensions as he chooses for
term of forty-fve years
Inasmuch Mr.. Belmont several years ago
formally offered to build such extensions as he
and the Rapid Transit Commission thought de-
Sira bic to complete his system without the loan
of the city's credit it would seem as if he might
fairly 60 on under this section. His offer could
not Immediately be taken advantage of. owing
to legal restrictions but this amendment an
pears precisely calculated to meet Mr.. Bel
mOnts original desires and make possible with.
out any bids from rivals or any danger from
municipal operation movements on the compile.
tion of extensions the perfection of his system
throughout the city. The term of the grant Is
indeed, shorter than that now enjoyed by him.
But it is ROW evident, as it was not ten years
ago. that the subway traffic will easily paw for
a subway in the shorter term besides earning
n
holder of the concession. So It may be that Mr.
Belmont sorrows not as those without hope