New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-06-24
TO ACCEPT SUBWAY PLAN
Wall Street Feels marlborough
and B. R. T. Will Agree to Terms.
DECLARE OFFER is "SAFE"
Counsel Advises Manhattan Com
pany It Will Lose Nothing
by Franchise Swap.

Nv L duCulSC ~ Nv F'
There was a general feeling IN tho wa"
Street district yesterday that not only tne
Rrooklyn Rapid Transit Company, out also
,,. 1nt.rhorouSh Rapid Transit Company
would sccept the terms laid down IN the
McAnery- Wilcox report for the extension
~, rap,d transit lines. 1t was reported
,ha, financial interests which have made
q careful examination of the terms oherea
20 the marlborough have informed the ol-
r.ctors Of that corporation that they OF
f.red a safe, II not an attractive hha''o''i
opportunity. o,s
Members OF the Public Service ConifnS-
s,on and ~ the Board Of Estimate are
strongly OF the opinion tnet 'he me
borough will find that 1t must accept w
nronos,tion made to It, in order that 'he
company may retain Its place i" INC
sit situetion Of the city
II is learned Oh excellent authority Una.
eminent counsel has advised the oilcerS Vi
the Interborough that II VIII be saIe /"
Undertaking to swap franchises on ule
lower legs of the present subway ana inc
new one that IS to be built. Borough fresi-
dent McAneny said yesterday that ne u'-
de,stood the InterborOuCh was contempia'-
ing placing blanket mortgage on All Ns
lines. which would necessitate the reoa"
Of the present bonds and the putting OUT
of a new issue. This would do P"aN VIII"
The possibility Of n bondholder's suit hu'
IL env such suit should he brought mem
hers Of the Board of Estimate feel thd'
the courts would hold that there was TO
breach Of equity in such swap
Such a suit could be fought out while the
roads we're under construction, SO that II
could Re finished long before they were
ready for operation That Is one OF the
advantages In undertaking 10 make inc
swan AZ this time. rather than wait until
the end ~ the ten-year period Sncn a sul'
would receive preference on all court cal
endars
"If long litigation should be threatened
nv 1nterhoroueh Interests" said Borough
president McAneny, "the city would be en-
tirelv AT liberty T. give all the lines to the
Broollvn Rapid Transit Company, under
,ha oefer ~ the latter company. OF course
either side would be able to withdraw from
the arrangement at any time PRIOR 10 'he
actual signing OF the contracts
roy report the city is to go ahead imme-
diately with the construction or the lines
20 be built with city money, after 1t IS de-
oided what the companies are TO 90. Mem
hers of the Public Service Commission were
inclined 10 believe yesterday that not more
than sixty DAYS would be required for pre-
naring the plans and specifications ana let-
ting the contracts, SO that work coulu oe
started within sixty days or before inc
end OF August OF course. work could Oe
hesun much earlier than that on the parIs
of the triborough route that are lnciuueu
I'm the latest arrangements. as bids ior the
construction Of sections Of this line nave
already been received by the Public Service
Commission. II would he simply matter
~ letting the contracts and having them
approyed by the Board of Estimate.
Members of the board of directors of the
marlborough met yesterday TO go over the
terms offered to them, but they would give
no intimation of what the final action on
them would be. II is not believed that the
answer of either company will he received
before Tuesday.
Fx-Judee 4. J. Dittenhoefer said yester-
dav that he was of the opinion that II
would not be wise TO grant the Immensely
valuable new subway and elevated fran
chises to either the Interborough or the
Brooklyn Rapid Transit exclusively, but
10 divide them as suggested in the Nc
Aneny-WillcoX report.
"In that way. competition will be Sc
cured" he said. "and competition will in
sure good service by both companies, to
the great advantage of the public. 1t
should be provided that If these companies
should at any time merge or should enter
into any arrangement or agreement that
would have the enect of avoiding or i'm
pairing competition, Of which there is
great danger. the franchises should at
once revert to the city"
Borough Presidents McAneny. Cromwell
and Miller and commissioner Matbie. Of
the Public Service Commission, will take a
trip through South Brooklyn this afternoon
in order 10 look over the sround in prepa-
ration for working out a proper routing OF
the new lines TO he built as extensions OF
the Fourth avenue subway.