New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-04-26

section of the city's subway loop between the
GREAT INCREASE IN COST.
Not only would the construction of the proposed ed
track double that involved in the original SUBWAY
the existing law the expenses which must be pro
yided out Of income are very mucn o1trsct In
the rst place. II may be assumed that the interest,"
sPSR CITY 6Gn6s ro TOT to me T cent higher than
IN the of the original rapid transit bonds ano
the city sell it's bonds per cent basis oasis
In the SECOND place up ' ,e ene 1 ncIudne
the lessee's property in the streets and equipment
various advantages conferred by the original CON
tract now eliminated: and. finally the fact that
the lease IS limited to twenty years subject TO
renewal upon revaluation the terms OF which
increase the annual charges by amount sufficient
10 provide for the difference between the original
os ihs ,sse and me prShsbie value at which such
Years
Another important consideration is the excep.
tionall:- broad power conferred by your form or
contract upon the public authorities TO require
from time TO time any changes IN the %
Of the subway and in the equipment ana other ap-
silahoes ustu i 1SieI az si ~ Ibe casa ~ a
subway operated under lease for only twenty
pendirures for which adequate allowance would
have 10 be made under any conservative financial
For the reasons briefly summarized above We
have concluded that II we were TO puild the pro- pro
and specifications and the proposed contracts using
5h t credit for the sns 81 and ou5s
investment capital approximately S240o00OO In the
received all the trafic which it would be feasible
Tor t 1hem 10 faTTy nndS[ the VIM od ef by
possible 10 make net earnings above operating and
tsAes SunClent 10 proVlde the lhteIssI up9n Il 9
ctys bonds and per cent upon the additional
Indeed. a study OF the reports Of the INTERIOR
ough Rapid Transit Company on file in your office
II AZ raj a. a
much mile the existing rapid transit lines
iect 70 much higher taxation and onerated Under
distinctly less liberal contract would not earn
bonds.
IMPERATIVE NEED OF TRANSIT RELIEF.
make bid for the construction and operation Of
the subWays required 10 complete our present sys-
under the proposed plans and specifications and
Perative need for greater rapid transit facilities IN
New York-a need which is becoming more urgent
the existing municipal subway system. we should
90 whatever Is in our power to complete that sys-
TEN ana otherwise increase facilities.
1 have, therefore. 10 advise you that wo are pre-
at actual cost of two extensions OF the existi3g
municipal subway. one upon the West Side. extend
upon the East Side. extending north from 42d
operation Of cb Extensions s 0T pr Ts Jpn ns ana
construction can be brought within the citys Dor
contract are such that we may reasonable expect
the earnings from these. additional subways 70 be
suf1cient TO cover the interest and sinking fund
upon the bonds Of the city issued for their cost
proper annual charge for depre ,fatfon in equip
ment and other property which the city may take
over at an appraised value al the end Of the twenty
years lease. ana interest upon our additional IN
Vestment for which city bonds would not be issued
In other words We are willing 10 complete the
existing rapid transit system that there shall
be. as originally planned by your board two com
plete longitudinal lines one upon the East Side
and the other Upon the West Side OF the city with
out any prospect OF profit beyond a fair rate Of
interest upon the additional investment involved
and obviously without an expectation OF such a
return no capital could be secured for additional
subway construction
We shall be very glad TO cooperate IN carrying
out some such plan as IS above outlined If OPP
portunity is offered.
The Interborough engineers furnished Chair
man Shonts with the following scientific and
engineering data on which he based part Of
his letter:
In accordance with your Instructions we bsvA
examined thesccntracts, plans and specifications Of
the new subways. offered by the Rapid Transit
Commission, and beg leave to report orr estimate
OF the cost Of construction
We have estimated the cost Of the subWavs ~
the smallest sum II IL safe, in Judgment TO
signs. and without any allowance for profit on con
struction' to your company, as directed by you
The contract provides that much land for sta
tons ana other purposes will be required the cost
OF which IL TO be charged TO the railway hut is
not 10 be included IN the bid. Similarly terminal
lands are 10 be acquired and improved the cost
and charged 10 the railway. In order TO give YOU
an approximate Idea OF what these additional ex-
penses may amount TO- that you may compute
the hxed charges We have made Approximate est.
mates. The equipment has been estimated on Ag-
ures OF actual cost prices and the basis OF ave