New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-14
|NTERBOROUCH BALKS
At NEW SUBWAY PLAN
Demands Guarantee Of Profits
Before City Gets Any
Interest.
ALL OPPOSE CONCESSION
Mayor Gaynor Against 1t Flatly
and Mitchell Calls 1t Robbery
Outlook for Agree
ment Dark.

Shrouded in a haze OF figures running
beyond the hundred million dollar marx
out of which haze the conflicting inter
ests were drawing different and conflict
ing illustrations as to how any proposed
settlement of subway terms with the IN
terborough Rapid Transit Company
would affect that corporation on the one
hand and the city on the other. the com
plete and final settlement OF the transit
situation did not appear to be bright
last night.
Mayor Gaynor, I'm a statement issued
as he was leaving the City Hall for the
day. raised the question as to whether
II would not be a violation of the state
constitution for the city TO guarantee
either the Interborough or the Brooklyn
Rapid Company any return on the cor
poration's capital before the city Gould
get interest on the money put into the
same general scheme.
Several members OF the Board Of Es
innate said that an understandlng-not
an agreement--was reached at a secret
session i'm the afternoon that some sort
Of a settlement should be made at
special meeting Of the board on Monday.
In an effort 70 untangle the situation in
q satisfactory manner the Public Service
Commission. the McAneny committee
and representatives of the Interborough
Company will hold q conference at the
home Of Chairman Wilcox OF the Pub
lie Service Commission on Sunday night
on the decision reached then, If any, will
depend the settlement of the question by
the Board of Estimate the following day.
Mitchell Denounces Guarantee Demand.
the city's representatives. will never
yield TO the demands Of the INTERIOR
ough that it have guarantee Of q
per cent, or S1l, ,250,0oO, on the SD
100000 that it claims it would have in
vested if it puts up S75,W0oOO for new
lines. President Mitchell OF the Board of
Aldermen said that such an agreement
would be nothing short Of robbery of the
city.
Mayor Gaynor I'm his statement said
that not only was he not in favor Of
guaranteeing o per cent TO the Inter
borough. but he was not In favor OF
guaranteeing that any profits at all
should be held out for the companies
before interest on the city's capital
should be paid.
He went further. and announced he
was opposed TO a guarantee to the
Brooklyn Rapid Transit Company of q
per cent on its elevated line. He has al
ready voted with other members Of the
board in having contracts with the
Brooklyn Rapid Transit Company drawn
up to include this proposition. ~he con-
tracts have still to be signed, however.
Colonel Timothy S. Williams, president
of the Brooklyn Rapid Transit Company,
after talk with Borough President Nc
Aneny yesterday, said he had not served
any ultimatum on the city. but he was
tired of the pickering with the Inter
borough. and his company could not be
supposed to stand for delay forever.
Asked if there was any chance Of the
Brooklyn Rapid Transit Company with
drawing if there was further delay on
the disposition OF the remaining routes,
Colonel Williams replied: IL have moth
ing to say on that point now--not yet"
Colonel Williams had engaged passage
for Europe this week, but has been
obliged to postpone his trip.
Assertion of the statement made before
in other quarters that the terms the
Interborough was now asking were more
advantageous to it than what it had
asked before was also made in Mayor
Gaynor's statement yesterday.
That the Mayor is still unreconciled to
the idea of having the Brooklyn Rapid
Transit COMPANY get any lines to par
allel the present Interborough subway is
shown in his statement: IF the city
builds rival subways which do not pay, it
seems not unreasonable for 1t to be
called on to bear the loss"