New-York tribune., 1910-07-16
WE'LL MODIFY -SHONTS
Writes to Mayor to Suggest
Changes in Subway Plans.
BE CALM, SAYS GAYNOR
Interborough Likes Lexington
Avenue Route, but viii Look
Into Other Suggestions.


Avenue Route, but Will Look
Into Other Suggestions.
President Shonts of the Interborough
Rapid Transit Company wrote TO Mayor
Gaynor yesterday to say that the company
was willing to make technical modi1ca-
ton of the terms on which 1t offered to
operate the extensions to its subway sys-
tenn recently proposed. He also assured the
Mayor that while the company believed
Lexington avenue would be the logical
street for an East Side extension Of the
present subway, it would be willing to give
careful consideration to any alternative
plan which the city may see fit to propose"
The first proposition of the Interborough
was that if the gross revenue should at
any time be insufficient to meet the gross
expenses, the annual deficit should be made
good by the city. Both Chairman Wilcox
of the Public Service Commission and the
Mayor declared such a proposition intoler-
able. Seemingly in answer to this objec-
tion Mr. Shonts wrote yesterday:
Our estimates show that this deficit would
be in interest and sinking fund only, and
would occur the first three years of opera
ton. decreasing in amount each year, and
would be substantially refunded by the
profits accFuing to the city during the next
ings go TO the city.
Offers to Modify Plan.
In order. however. to meet your objection.
we are prepared to modify this, in submit
ting our final proposal to the Public Ser
vice Commission, so that the making good
Of any temporary deficit by the city would
be limited to the payment of any interest
on its own bonds not met by the net earn
ings of the road, and all interest so paid,
together with a sinking fund of / per cent
of OI1-
GRAFTON Of the extensions, to be a preferred
and cumulative charge against the net
earnings Of the road, to be paid in full
before any division Of the profits is made.
Assuming that the estimates of the Inter
borough are right-that is. that the deficit
would be In interest and sinking fund only
the new proposition does not differ in es-
sence from the old, as such deficits would
he charged to the city eventually coming
out of profits in the last two years Of the
five-year period for which it was supposed
to get all the net profits, If any, instead of
being paid year by year.
Some one, after reading President Shonts's
letter, suggested that the company had in
a measure abandoned it's first position as
to the way in which the city should make
good any deficit, and as to insisting on
Lexington avenue for the East Side extern
sion.
things are abandoned, and dare say when
we come to a discussion of the matter there
are other things that will be abandoned
What I earnestly hope for is a calm and
even-minded considera ton and discussion by
the intelligent public and by the intelligent
and decent press, so that a correct conclu-
sion may be arrived at.
! The question really is. Should the city
now start in to build independent and
rival line o. should 1t extend and add
| branches from time TO time to the subway
system which it already owns, and into
which IT has put s600O0,000? | hope the
matter will be most carefully considered.
and 1 am certain the officials of the city
will be ready to follow whatever intelligent
public opinion may decide upon l have
come to no decision about 1t.
What the City Would Prefer.
..Of course. we city officials would greatly
| nrefer to have these extensions and
branches built on the credit Of the Inter
borough company, if that can be brought
about or forced and it may be that it can
OF all things. before any OF us commit our
selves let the whole subject be considered
fairly and carefully.
President Shonts explained at length his
conpany's preference for the Lexington
| avenue route. He said Work could peslI
AT once because the necessary consents
, ! had already been obtained; that cohhec
tions between the present subway and Lex
irgton avenue would be easy TO make an'
that the crowded East Side section woul'
he hetter served by subway IN Lexington
avenue than by one in Madison avenue
Moreover. he said. the Grand Central sta
ton the new Hudson River tunnel exten
sion and the Belmont tunnel TO Queen
Borough would be better served by thi
route and there need be no interference
by reason of immediate use OF LeXlnsto
avenue for a northward extension OF tn
present subway with the use of the rout
2 in connection with further development
planned by the city
Commissioner McCarrol, acting head @
:, the Public Service Commission in the ar
d sence of Chairman Wilcox. said Mr.. Shont'
S hadn't written TO him TO modify one of tn
e Interborough's proposals. and therefore n
= couldn't say anything about the matter.