The sun. [volume] (New York [N.Y.]) 1833-1916, 1906-04-27
MAYOR SIGNS ELSBERG BILL.
FINDS MORE GOOD IN TT THAN
BAD AND WANTS THE GOOD.
Does Not Believe Limitation Of Subway
Leases to 40 Years With q 10 Year
Renewal VIII Keep Out Capital. but II
1t Does Legislature VIII Sit Next Year.

pOOS " yellow '" oo"eS
Leases to 40 Years With q 70 Year
Renewal VIII Keep Out Capital, but II
1t Does Legislature VIII Sit Next Year,
Mayor Mcclellan signed the Elsberg
Rapid Transit bill yesterday. It's principal
features are that operating contracts for
future subways shall be limited to twenty
years with one twenty year renewal; that
the Rapid Transit Commission may separate
building and operating contracts; that a
contract for both the building and opera
ton shall not be let to one bidder without
the assent Of the Board Of Estimate, and
further that vacancies in the commission
shall be filled by the Mayor, which destroys
the self perpetuating power hitherto held
by the board.
The principal objection to the bill has
beer that the short term lease would pre-
vent the investment Of private capital in
the new subways. In a memorandum
accompanying his approval Of the bill the
Mayor says upon this point:
I fail to see any substantial reason for be-
lieving that this limitation will have such an
effect. Nine years ago there was incorpo-
rated In the new Greater New York charter,
a provision to the effect that in the future
no franchises upon the surface or over the
public streets should be granted for a longer
period than twenty-five years with the privi-
lege OF one renewal Of twenty-five years in
addition. There were some at that time
who believed that such a restriction would
prohibit the building Of future surface or ele-
waited roads within the city limits, but their
feare proved 10 be unfounded. Within the
past nine years many applications have been
made by various corporations for franchise
rights under this law.
The concession for the newly built under
ground road in Paris, known as the Metro
politan Railway" was offered for A term Of
thirty-hve years with no privile ge Of renewal.
The city agreed to excavate and build the
roadbed itself. but the lessee was obliged
to lay the rails, construct the stations and
equip the road. There we're six bidders for
the privilege, and according to the latest
reports the investment has been found to
be a most profitable one.
II enterprises such as these have attracted
responsible investors IL cannot be said that
a forty year lease Of an underground road in
the city OF New York would prove wholly
uninviting to private capital. | say a forty
years lease advisedly, for I do not regard a
twenty year lease with the privilege OF a re.
newal for twenty years thereafter as amount
ing to nothing more than a naked lease for
twenty years.
Inc mayor points ouI UndI Tue coltIdcts
for the new subways will not be ready
to be advertised until the end Of the year
and that il it shall be found that the bill
tends to drive way private capital and
the city is not able to build and operate
the roads itself than an application can
be made to the next Legislature for an
amendment Of the law. The Mayor con-
cludes:
II the bill becomes a law the city may gain
much, and at the worst can suffer little harm.
On the other hand, il l should refuse to accept
the bill I should be responsible for depriving
the city Of certain conceded advantages
and for denying II any relief from the terms
and conditions of the present law. Under
these circumstances my duty is plain. and I
therefore have no hesitation in accepting
the bill on behalf OF the city Of New York.