New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1907-09-06
WHAT TO DO WITH TUBE?
BrookIyn's Fourth AUeuue Sub1Uay
a Poser for Commission.

The Public Service Commission is in quandary
as to what action to take about Brooklyns Fourth
avenue subway. It developed yesterday that this
subway had become a veritable white elephant
its hands. For weeks Commissioners Bassett and
Maltbe have been vainly trying to find some sat
isfactory solution to the situation They have held
frequent consultations with the other commits
s.oners, but far have been unable 70 evolve
plan that would solve the problem.
Assuming that the subway should be built the
Investigation Of the commissioners has shown that
81 will be in all probability practically impossible
90 get company TO operate it. The reason for this
IS said be that no one could operate It and pay
the rental which the city must ask and not lose
money on it. and the city would be unwilling
reduce the rental.
u can however be authoritatively said that so
far the commission has made no decision 1t has
rot vet decided abandon the undertaking neither
has II decided to go ahead with the construction
@. the tunnel.
The question is purely g. financial II has
been estimated that the subway will cost about
s23 oooooO The company that operates II must pay
ss rental 20 the city interest the bonds from
which the COST Of construction is paid It must
also pay annually per cent Of the cost Of con-
straction into the Sinking Fund.
Tho rental assuming that the Interest the
bends would be per cent would be as follows:
payment annually sinking 10000
7o,, YEARLY iI5o 900
The operatfng company gets from the city a
funnel and a tuenty.year lease to operate trains
through the tunnel It must bear the cost of equip
uaent iesef. which engineers place at 100000 to
81 600 90 as conservative estimate. The interest
ot THIS amount would be $4,000 assuming the
cost Of equipment 70 be $4,000 90 and the rate per
cent Thus the annual expenses OF the operating
company excluding the cost OF operation. would be
s1.7yO,ooo.
The commission hardly thinks that a company
could he found that would be willing TO operate the
e,hvvay, under either OF the two conditions that
have been given The cost Of operation Of the Man
haitian subway has amounted 10 10 per cent OF its
gross receipts.
Investigation has shown that the gross receipts
~ the BROOKLYN Rapid Transit Companys lines In
south Brool,lyn which parallel the proposed route
of the Fourth avenue tunnel which drain that
territo-, amount TO only $2.35o.00 a year These
lines nre also operated the basis of 20 per cent
OF gross earnings for operating expenses
Deductfng then the operating expenses from the
gross receipts remainder of $4,000 is left.
Thus II these assumptions be relied on, and
engineers and transit officials have expressed the
opinion that they tell the brightest side of the
story the company that attempts 20 operate the
Fourth avenue subway would find Itself facing an
annual deficit of $4,000. 1t is therefore not
thought likely that any company could be found
TO undertake so hazardous a financial enterprise
Only one thing seems certain about the situation.
ard that is that the commission viii not have the
subway constructed until IL finds company TO
operate IT, and a company that show that IL is
financially capable of operating it Such are the
real reasons for the delay in stsrtng construction