New-York tribune., 1909-04-10
FRANCHISE FOR NJ MADOO
GOES TO GRAND CENTRAL.
Commission agrees Upon Draft
Uhich Seems to assure ErtenSton.

The tentative draft C the franchise Nhlrh me
Public Service Commission expects TO grant to the
hudson & Manhattan Railway Company Tor the
extension Il It's tunnel system from SD street ana
Sixth avenue 10 the Grand Central Stat1uH vas
made public yesterday at the Offices Of the commits
sion. Tie proposed franchise is of the indetermi-
nate TYPE recommended bs the commission ana i
similar u that tnde- which the McAdoo company
bulR and operates its present Sixth avenue tunnel
The draft Of the franchise shows that The COM
mission believes stations ~ Sixth avenue and
ssth street and Firth avenue and 425 street VIII
probably be decided upon when the details are
arranged by the company and the commission
Merchants in the neishbo-hood Of Fifth avenue
snd sd street are strongly in favor Of station al
that point
= punlic hearing Will be held Aprll 3 on the
form of certificate be sranted the COMPANY but
the announcement Of the tentative draft seems 10
snow thar the commission has decided already on
Just what ii intends to do As stated in The IT'D
ne forecast the -h,se gives the city the right
10 purchase the extension At cost any time after
the expiration Of twenty-five years.
The Franchise viii he void unless within six
months aftev its acceptance by The company the
consent OF the Board Of Estimate and Apqortion-
tne1t is obtainel. The company must OBTAIN Win
in fifteen months and file With the commission the
Of the owners of one-half Of the properly
value on the streets through which tbs extension
passes or in lieu OF sHch consents. the determ'na
non O: commissioners appointed To- the Appellate
Division Of the Supreme Court
extension within six months after obtaining the
consents Of the property holders, and The road
must be completed within three years after con
struction work begins.
The company : called upon to pag to the city an
annual rental of $4,000 for the years Of the
life Of the franchise ana after that per cent of
the annual gross earnings This rental rs for rights
under streets. avenues, parks, etc The charges
FOR vault rights stairway rights etc are similar
TO those made in the original McAdoo franchise
The provision for the taking over OF the eNleh-
sion by the city reads as follows:
In case the city or The commission shall at any
time or times hereafter determine that the rall-
Tor l,se as 4 part of seme municipal sl stem Of
rspid transit he owned by the city, me Clt}
shall have. ana The tunnel COMPANY By the & &aS.
city, The right and option to purchase ana @ axe re
times after the e6Jh day Of February. 1898 In
case the city the commission determines 10
exercise said option or acquire the Tairoao nfr5
BY authorized the city or the commission s.aiI t
IN Hrit;nE: and upon the day fNed by said notlce
for such acquisition the city shall pay or tenaeI
sre2 r+sn5edS a. as determined bv agreement OF
by appraisal in the manner provided In Arucie
Of tIfs certificate: such value however. not TO
exceed the actual cost in money Of the construc-
-ior Of the railroad hereby authorized. including
cost Of stations. real estate and any easements;
necessary therefor as the same exists al the time
when the said option shall be exercised
Before beginning construction the company must
ties to approved by the commission, conditioneo
uuon the faithful performance Of the requirements
4 the franchise OF. lieu of such bond. must de
posir with the Controller securities satisfactory TO
the commission 10 the amount OF s20a,Gie
In the construction OF the extension the company
must make good the city all damages done to
city property and must reimburse private owners
for any DANA ge done private property lhe tupe
must BE- built Of masonry, steel and iron. Neces-
sarx excavations must he made without disturbing
the surfaces Of the streets except In such cases as
the commission may grant the right to make eAca-
Hstions from the surface.
William q. MeAdoo. president Of the Hudson q
Manhattan Railroad COMPANY commented upon
the tentative franchise last night follows:
The terms Of the franchise We think, very
fstr and liberal the city and will. II accepted oy
the commission assure the construction Of line
obviously advsntag geous 10 me community
q; IS understood the McAdoo interests feel that
the annual rental Of 5000 fcT the first ten
years is TOO high. This IS the amount which the
company pays for Sixth avenue franchise. which
is for tunnel twice the length Of the proposed eN-
tension 10 the Grand Central Station. The COM
usr1- feels therefore that il Will he paying twice
as much for the extension for the original tube
TIE earnings Of the eHtensions according TO an Off
cizl Of the McAdoo company, vii not JUSTIFY suct
Z lsrZe annual rental