New-York tribune., 1908-02-18
TRANSIT LAW CHANGES.
REALTY MEMS PROPOSALS.
Would Add Right Of Pirate Cap'-
tai to Build Subscays.

tn. Allied Real Estate Interests. through their
rand transit committee. made public their proposed
amendments to the Elsberg act yesterday al
meeting in the Of the Board of Trace ahu
TRANSFORMATION a No. @3 Broadway The com
,nitiee maintains that the amendments would ho'
aeniye the city of its right TO build subways but
that -, do this right is added the right Of private
caniral 10 do the work. In its statement the COM
Inittee said:
The Public Service Commission is allowed by
live flll Cor the operation OF subway built by the
CITY. the term Of such lease TO be limited 10 i6ifo IN f
7t5 construction and operation Of subway with a
,eh5 70 Tey9k the Same at any time thereafter
payment OF cost of construction
William r. wilcox gave brief talk al the
meeting on the views of the Public Service Com
mission Tie explained that the commission was IN
favor Of the of private capital only if the CITY
was unable 10 supply the funds. He was emphatic
II his expression in faror of more subways and
said that the present facilities below Duane street
were wholly inadequate
In explaining the amendments, the committee
statement sae
Upon examining the present law It was foana una
thai the commission could net advertise for blds
Tor private construction by reason of the PROVISIONS
in Section limiting the power TO sell me rsr t6 10
private capital only the event that ii should not
me se referendGm @ OF is0i that the railway then
der consideration be constructed for and at the
II is believed that it was not the intent of the
.onfT7,tfed. Scepf at the Expense of the city but
that the electors voted only upon me prop4ei'Im On
stated upon the ballots and with reference 10 Inc me
railway which had then been planned The, The ni n
the provso limiting the power OF the commission
as above stated -. = - -
the commission provide in the terms and con-
d1ions OF sale for franchise for a reasonahliE any
an ndeerninate franchise thereafter until the city
repav the cost of construction and purchase the
equipment OF the route.
Ample provision is made for protecting the inter
Of the city and lor 3morflzaton of cost OF con-
struction by proper sinking funds. the proceeds OF
which can pe nade 10 operate IN fedncuon ol Tue
cost OF construction 10 be repaid TO the operating
The right TO exercise the option of the city is
given TO The Board OF Estimate ana Apportlon-
inal rapid transit law concerning the organization
and supervision of the company which might sue
cessfuy bid for the right and privilege TO con-
struct, operate and maintain such a railway are
bid under the law as purposed TO be amended by
& n, m ag oy ie;6 l ar u he srnInt and
right 10 limit the amount cf capital stock is ex-
stock nor bonded Indebtedness may be issued with
out approval of the commission.
BY amendment % 4 proposed
enable The commission permit franchises for
extensions of existing routes TO be made. upon
terms that viii expire with the franchise for the
main route extended. but with provision that
the amount Of compensation he fixed for a period
not more Than twenty-five years. with readjustment
thgFea1ter and te4-Xear en- Yea periods iu ,o
chises granted under municipal construction may
r7r- al Of twenty years. has been found 10 be a
] short as 10 be unattractive TO capital.
purposed by amendment to Section "a a TO
lfake the initial operating period thirtyhve years.
with a possible renewal Of twenty years, the pro
visions Of the present law being retained. that If
& renewal ne granted the city may obligate
itself purchase the equipment Of the route at the
expiration Of the first period.
An amendment is added 10 Section "a by which
tie board will he able, whenever IL shall have
adopted a route. TO advertise for bids in many
alternative forms the board may deem proper
and 10 accept such bid or bids IL deems for the
hest interests of the city Further amendments to
tie bill the following subjects:
Sections ]. 2 and 3 were repealed hy the Public
Service Commission law The bin proposes the en-
Rctment of a section explaining the reference
Commissioners and referring those words and the
words the board" and the said board 10 the
Public Service Commission Of the First Depart
rnert upon which the powers Of the rapid transit
act were conferred by public service commits sion
law. Certain important acts under the rapid tran
sit law be performed only by vote Of six of
5he Of the commission The rapid transit
commission consisted Of eight members while the
present commission consists CT five.
Amendments are proposed whereby. carrying out
the same principle Il is provided that in those
which call a vote Of six members there shall
row required vote of foUr-fifJhs Of the mem
ters Of the commission. Al amendment is proposed
70 Subdivision Of Section "a under which II shall
he forbidden steam locomotives on any
ravid transit hereafter authorized II Is pro
posed 10 amend Section 81 by raising the limit of
Of rapid transit routes from per cent to AZ
cent per annurn, 1t being believed that such in
crease the rate is necessary under present fnan
Ctal conditions.