New-York tribune., 1908-04-20
TO AID NEW SUBWAYS
T1eO Rapid Transit Bills Likely 10
BE Passed.
Lpy TeIegrarh . The TrIbune. ]

Albany April 19.-Out of the mass of rapid
transit bills presented this session for consideration
the Legislature in all probability viii pass this
week two measures OF great Importance in their
bearing the building of much needed new sub
ways in New York City. One is an amendment TO
the present rapid transit law, the result of much
work and divers compromises which is designed to
make Investments in subways more attractive to
private capital than the terms prescribed by the
present law. The other is constitutional amend
ment TO provide for tine exclusion Of self-sustainbG
bonds from the citys debt limit.
The first proposition would relieve the citys
treasury from the strain of expenditures for all
subways. The second would render available
additional borrowing capacity OF s125,0oO,0 900
through the exclusion OF bonds already issued, If
the amendment the constitution is passed by the
Legislature next year and approved by the people
al the election in 1909.
These important amendments have been ad-
vanced TO the point of final passage with COM
parativcly little public discussion because atten-
uon has been directed almost exclusively TO the
anti-racetrack gambling fight.
The present rapid transit law as amended by
the Elsberg law, permits the city to make sepa-
rate contracts for the construction and the opera
ton of subWays If a subway has been built by
the city contract for its equipment and opera
non can he made for not more than twenty years.
with a renewal for the period The proposed
anendmen, provides tnat contract may be made
Tor not more than thirty-fve years. with renewal
OF twenty years and also authorizes the city its
opEon 10 make a contract, the terms of which will
S4NS II lt TlSIl, after stated period not more
than thirty -iive years, giving proper notice TO
terminate the contract for operation by purchas-
ing from the company the equipment at its value,
Which shall IN no event be than its actual
cost.
The present law permits the construction Of sub
ways with private capital when they extern
slons Of existing lines The amendment proposes
10 extend this idea of private construction OF sub
ways so that the right OF the city TO make con
tract for this purpose shall not be restricted TO
contracts with the companies which now have
rapid transit lines in the city. The rapid transit
amendment. which is we'll advanced toward pass
age in both houses provides that the city may
authorize the construction of a subway with pri-
vate capital by company formed for the
purpose. the company which builds the subway
having the right to operate it for not more than
fifty years. After that the city is authorized to
buy the subway by paying its value, which in no
event is 10 exceed its actual cost In this pur-
chase Of the subway by the city payment
whatever is to be made for the franchise. So
long the city does elect TO buy the sub
way after the minimum period Of not more than
fifty years The company will continue TO operate
BY amendment. which was urged by the Citi-
zens Union and supported generally by civic
ganizations in New York, the city is enabled TO
utilize directly in the purchase of A subway the
money received by il upon the resale of the sub
way and the franchise for its operation 10 another
company. The city may advertise the subway for
resale before giving notice of its intention TO buy
It from the company which built il. and II may
make single transaction of the purchase of the
subway by the city and its resale TO another cor
poration. In this transaction it may not be neces-
sary for the city 10 pay any money, all the pay
ments being made directly by the repurchasing
company TO the company from which the city is
buying the subway in order 10 resell it,
The Public Service Commission for the 1st Dis
trict is not in favor of the fftyyear term for this
sort Of franchise, and in the bill drafted by the
commission which made the basis for the
rapid transit amendment reported out in both
houses the maximum period during which the
city would have right to purchase the subway
twenty-five years. The commission intends 10
advertise for a twenty-iye-year contract. This
twenty-dve-year period was approved by many
civic organizations in New York City. The fifty
year period idea of the Senate Cities Com
mttee, whose attitude was largely defined in ac
cOrdance with suggestions of Senators White ana
McCarren. The attitude of the civic organizations
which have taken interest in this legislation, how
ever. is pretty generally in favor of the passage
Of the bill In its present form, rather than risk
the defeat of the entire legislation, which would
be the result if amendment made at the
present time.