New-York tribune., 1910-12-07

| line that could be operated independently
Of the present SYSTEM, Mr.. Shonts said
was no obstacle Not only could the city
do this at d very small cost, he sald' nut
Il would be very poor business policy on
| the part OF the Interborough to give
grounds for such proceeding
"1-he city would get the cream Of our
traffic on the upper East Side, ne sala.
but It would also get the cream OF fhe
traffic on the lower West side and give
us the most serious competition"
Mr.. Shonts expressed doubts as TO
whether the proposed reduction or the
present subway lease 70 49 years after
the opening of extensions. so as TO nave
4 uniform term covering the wnoie sFs-
tern. would be possible without special
legislation. But this, he said. should not
delay construction
From this time on" Mr. Shonts
added. no railroad will give snap for
2 lease All we want is TO have term
fixed that we may be able to make hnan-
cial arrangements
An intimatisn that Mayor Gaynor
knew of the coming offer of the Inter
! borough is contained in a letter which
the Mayor wrote under the date OF De
cember ) to Edward Polak. a real estate
broker, who expressed his sympathy
with the Mayors troubles over the sub
way situation. Mayor Gaynor wrote In
part:
IF some company will put up as much
money as the city now has available for
the purpose we could break ground in
all the boroughs at once and have all
/ the routes built within five years. and
| your borough could get more in that way
than has vet been offered to It. l am
| certain that you are carefully studying
| the matter, and I hope you will study
every offer which may hereafter be
| made I am against neither the trf-
| borough nor the interborough. nor the
! five borough, nor any other company or
route, and 7 am simply trying to work
the matter out SO as to do the greatest
good and give the greatest accommeda-
ton to the city at large.
William G. McAdoo said yesterday that
the Interborough offer should be care
fully scrutinized before judgment was
passed upon IL He thought the offer
an interesting contribution to the situa-
ton, but refused TO say what he intended
TO do in regard to his own offer to
operate the triborouEh system.
It was said yesterday that the Hudson
& Manhattan Railroad Company had
not retired from the field. and that some
announcement IN connection with it's pro-
posal might soon be made.
Think Both Rely on Moraar.
The new Interborough offer was dis
cussed with interest in the financial dis
| trict yesterday. but the view there was
| still. as said in The Tribune when the
| McAdoo proposal was submitted. that
J. P. Morgan & Co. would furnish the
| funds required for that part OF the con-
| struction work the cost OF which was
not assumed by the city, whichever of
| the two companies should finally sue
ceed in having its plans adopted
President Shonts announced publicly
! months ago that the Morgan house stood
| ready to back his company to the ex-
tent of S1O0,0G0000 If necessary for SUBJ
| way extension. and he has never with
drawn his statement Of that guarantee
On the other hand, the relations between
the Morgan firm and Harvey Fisk &
Sons, the bankers Of the McAdoo system
are close and cordial, and If is com
monty understood that in Offering to
provide S50,o00,ooo toward the construc-
/ ton cost if its pending offer should be
accepted, the Hudson & Manhattan Rail
! road Company regards J. P. Morgan &
co. as the source from which IT Will Sc
| cure the required money
The Hudson & Manhattan company
has 35000.000 first mortgage AZ per
cent ffty-year convertible bonds avail
able for new construction, which might
be sold to meet part OF the cost Of the
projected tunnels but the probability is
Wall Street believes. that a new COM
ysanv would be formed TO undertake the
work It is said that the Interhorough
Rapid Transit Company. If its new sub
vav proposal shall meet the approval
o< the Public Service Commission. will
urovide the needed funds by an issue of
new first and refunding mortgage bonds