New-York tribune., 1908-02-21
STEINWAY TUBE PUZZLE
Officials in Conference OUer Dis
posaI of Tunnel.

Every effort is being put forth by August BsI-
and his associates. who own the sreinVay
tunnel under the East River. 70 convince t7e a'-
thorftias of its immediate value as an addition 70
the TRANSFORMATION facilities OF the city. NJ BEL
mont George ". Wickersham, counsel for tbs
company that the tunnel and Theodor@ :.
Shonts president Of the Tnterborough- Metropolitan
comDanv spent two hours with Chairman WIZ
cox of the Public Service Commission yes-
terdav afternoon. most OF the time in discussing
the Stenway tunnel 1t is thought that as
result the Interborough Rapid Transit company
which controls the New York & Long Island Rail
road Company. owning the tunnel may make SONS
sort of a proposition for it's operation conditional
on the purchase of the property by the CITY
The Public Service Commission holds that mas
much as the courts have decided that the trarnS7
of the company has expired. it has no rlgnI 20 oal
with the company regarding the operation % l-7
tunnel In this connection the commission yesler-
day adopted reply to the concurrent resollli' OF
the Senate and Assembly asking the commission %
say what steps had been taken I'l '7
oDeratton Of the tunnel The reply which Is ae-
comnanfed BY an extended history Of the tunnel
ends follows
If the New York & Long Island Railroad a [oTl {g1
pany has forfeited its corporate rights ana ,og-s-
chises the commission Is without PII79sn5S 49,
~ co1,pe the operation of the tunnel and' pe.H
ing the nal d{termipsti0n ct TFsBz {ne to a. 80
Would be premature and improper
Mr. Belmont told Chairman Wilcox YESTERDAY
that negotiations were pending for the purchas9
bL-r
na1v was willing and anxious 70 sell ana dlIeleo
=, the advantages to the CITY OF such tunnSi-
Chairman Wilcox said that the commission vs.
in no position TO act in the premises = on n'aA
a proposition." said the chairman IN erect 80
then We can talk with you on some denn''s
basis" -.
y has been understood that the company would
be willing TO sell tunnel TO the city Tor aooue
& 600 600 Chairman WILCOX told MS NSltol7
that If II were true. as declared by ConlroLisF
-nr
oao nno +o snerd for the extension or rapid tran-
cit aside from the Fourth avenue SUBWAY propo-
sf+ion he thought that S1-oooooo couid De Pu' -
r,,,cb better advantage just now than to ouy .
tunnel which would beneht only Pel9ON
and from Queens Borough
Tho subject of extensions 70 the eIeVaIeo roa1s
and the third tracking of the Ih'ro anu anu 01-oli
avenue lines also came up Tor geheidl u.s.
chairman Wilcox said the company shoulu NO.
nut the Public Service Commission IN ' -,
tIds of preventing these improvements as theY
bad never been formally presented 20 'n7 0'lH'
mission 49,. o,-,,,,s. -
This kind said the chairman place a loFf[ls ~
o.t+io, bafore rs and viii pass upon II
Mr. Shonts said that the company was gellinS =
such shape now that II might nave soH'9 -
proposition along this lihe 10 P'-
mission before long -. - -..,
o,,tborfties before whom the proposItion OF VI
company to sell the tunnel has oeen pIalsI. e :.
Public Service NOliiiili9o-'-- -
g believed that the attitude Of the latter Is -
u-ro,arar right the company had to operate 10
+,,rne1 having Iapsed. the city should mss 'I
ravinr no more for the tunnel than II actIa-'E S
o construct.
In tts repIv to the legislative resolutions 'l7
r,ission cites the contention Of the CITY III l'7 "
=, establish that the tunnel company 5 corpora.
sxstance and franchises mad expired on Jan-4lS =
1o,7 and quotes the decision of supreme tc'''-
tice Davis to the effect that "the failure O. II.
dsrandant TO comply with the railroad Ia" as 70
co,,n1a1fon and operation OF the railroad was i'S
facto an extinction Of the corporation ana Il az
not REQUIRE the bringing OF action 10 disS''''
the corporation and the so-caled franchises H's"
rfonad in the complaint Immediately sA--~-
guished - -.
An appeaI from this decision is now before ~
Court ~ AppeaIs and Will probably bs afs"7i
within the TWO months
Several bills have been introduced from tiils u
. time I'm the Legislature extending the corP''i''
existence Of The tunnel company. but tNs las- eN
tension under these bills expired on January "
last year.
The actual cost OF construction Or the tunnel oa'
beeu about s6OoOOa0. In the InterbOrOuEh-NstTo-
noIiran investigation 4, testified that the New
York < Long Island Railroad Company had pa1d
10 the original company Sf@o.p for its stocN-
hack of which was only the franchise. Interest anu
purchase of real have brought the sntEs ooh
of the enterprise up about sSoo"""-