The sun., 1910-12-12
STRING ON SUBWAY CONTRACTS
tITIZENS Union TO H.E tITy
TO kEEP ONE.
FA,srs Making . Contract whereof, the
tit, Ma, Take operation A~Ay From
COMPANY after Ten Years an'i
Turn n D,er TO Another Concern

Tn. Citizens Union will submit to the
Public Service Commission and the Board
of Estimate "A brief urging the preserving
Of effective competitive elements In the
rapid transit situation The union Will
urge that whatever plan of rapid transit
extension il adopted the operating cor
tract shonld contain provision empower
ing ,hs. city To take rv"r tn. subway lines
AZ any time after "A lmit.d period 81 not
NOR. than ten years upon "A proper nay
rr"nt mad" aIther by the city itself or
by "a company 10 which "A new .ea>" may
h.' given Tor operating the subway. In
describing tn. plan tho heads .: the t:tl-
zen, Union say
SuppoS" for "Xa'Rrl". the M"td"o Hi"-
po-Bl should bc ador ted hy tn" 'itv ami tie
operating contract should contain rrorI-
sions like those described. II tho Inter
borough Ra.id Transit Company should
continue a competitor Of the Hudson and
Manhattan kailrOad COMPANY IL would
have the opportunity after "A period OF ten
years 20 mako an Offer for the operation Of
some or all of the Mo cAdon lines built under
the NrAdoo Troposll II the city should
he dissail sn.d with tho saryic. rendered by
~" McAdoo Company or with tho terms
Of 80 contract with This company it could
then cause. these lines To l.. turned over TO
the Inicrborough "ofnpany and operated
by IL under a n"S and more favorable con
tract unlr.s N" MCAdoo company on It's
side should oF"r s'sll better '-rulI Cor
t"ntIon of - lH.S".
This could all b. done without requiring
the payment II 4 single dollar OF city
money. sine" the payments MIGEt all DO
made by III" int"rborouga company 20 the
Hudson and Manhattan Railroad Company,
In the sam" VA 'hr McAdoO contract. II
u should prov" Ynratisfactory. could b"
terminated and nav contract made with
any other company which would be willing
10 make Tho u.GEsaa.v pa, ssnsWag. ~ TIM
McAdoo company and to leS-ss tho Ines an
terms more satisfactory 20 th. CitJ.
Similarly u N" lntarborouEh proposal
~er. aonsptad and -" operating contract
should contain IL" provisions above Ge-
srribed tha rity would have an oppor-
tuni'y after .sn ysar~ Sitbou. .hs pay
ment OF sing" dollar OF city money n
TAX" away from the interborouEh Company
'ho nev lines h'!ilt Under .hls proposal and
turn hem over TO ,he MCAdoo "ouipany
nr 20 som. other company TOR operation
either Independently or in connection wi.h
another system. all payments required 20
bs mad" IN ne 1ntsrbOrough company
Icing made '!irec-ly by the MCAdoo com
PAM or .hs other company receiving the
operating Gas"
1t is Conterdel by the Citizens Union
that the proposed clauses in the contracts
for the new subways which provide that
the city may purchase the lines at the
end Of ten years are practically worthless
for the reason that tn. growing demand
for public improvements is 80 great that
TIM. city would never be in a position
financially To spend the vast amount ~
mone2 tia, would bs need.Si for the
purchas.. Of the subwavS tn b" built 10y
tn. lntarhorough company should the
offer of that company he accepted. II is
urged by the union that the city instead
Of being required to purchase the roads
should be permitted To turn over the
routes tn a new operating company and
have the money for the roads paid directly
To the Interborough by the new company.
The brief adds
obviously this would carry out every
fair and equitable provision of the con
tract Yet 10 would not be legally pos
sible for this 10 he accomplished unless
tn. contract with tn" lnierhnrough for
opera tion specifically So provided. With
out such n specIii" provision in the con
tract II would be necessary for the city
to have the purchase money available
within its debt limit. otherwise To- take
over the subway lines would hn to exceed
its debt limit. though perhaps only for "A
day