New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-13
M'ANENY OPPOSES
PETERBOROUGH OFFER
Figures New Plan Would Mean
az Per Cent Guarantee on
Investment.
LOW SENDS BOARD LETTER
Former Mayor Advises City to
Accept - Shonts Turns
Down Substitute
Propositions.
LOW SENDS BOARD LETTER

Borough President McAneny, chair
man of the conference committee of the
Board OF Estimate, has figured that the
Sf1 10000 gross profit that the Inter
borough Rapid Transit Company is de-
manding on the total investment OF
S12J 100000 capital. if the company
should put S7J,0000O0 into new lines,
would practically be guarantee Of
dividends of 10 per cent on the pre-
ferred stock of the marlborough Metro
politan Company. He does not see why
the city should be called upon to give
any such guarantee.
This amount Of money would be .
per cent on the total Investment. At
, one time the company demanded only
100000 which would be an S per
cent guarantee
President McAneny is having his fig
ures verified and tabulated by the Pub
lie Service Commission and will present
them at the meeting Of the Board of
Estimate to-day. If he finds his figures
are wrong he will advocate drawing up
another proposition to be submitted 10
the Interborough, asking them TO an
swer by Saturday night.
1t is expected that Mayor Gaynor will
probably ask that the final considera-
ton of the question be put over until
Monday, anyway. At the meeting yes
terday, which was i'm secret session,
Borough President steers indicated that
he wanted some more time to consider
the proposition. although he did not
want TO be put in the position of block
ing Il speedy solution Of tho problem.
Lows Letter to Estimate Board.
Ex-Mayor Seth Low, chairman of the
joint transit committee Of the Chamber
of Commerce and the Merchants Asso-
citation, sent a letter to the Board Of
Estimate last night, in which ne ad-
vocatcd the terms the Interborough is
now demanding. The letter in part, fol-
lows.
As I have been earnest I'm advocating an
agreement on the part OF the city WIN the
lnterborough Rapid Transit Company, ana
as terms that seem to me fair are now IN
sight, il is becoming that should accept
publicly the responsibility for the advice
which / have given and state my reasons
therefor ! am under the impression that
an agreement can boz made with the inter-
borough company substantially on the toi-
lowing terms: That the lnterborouGh COM
pany shall agree 10 furnish SJ,'WNW or
new capital, more or less for the cOnstruc-
ton and equipment Of that part OF the
McAneny plan assigned To it, If the city IN
any way that may be found legal viii per
nit IL TO earn per cent above interest ana
amortization charges on its old ana new
private capital.
If any one at all questions the arrange
ment II will be upon the ground that the
allowance 10 the Irterborougb company Is
too large Under the arrangement suggest
ed, that allowance is To be per cent above
interest and amortization charges on the
total amount OF private capital involved In
the enterprise represented by bonds. which
IL is estimated will he about $l25,00OOo.
that is 10 say the Intertorough company
will receive g. 10000 a year i'm excess Of its
interest and amortization charges.
/ should have been glad. as every one else
would be glad. if it had been possible TO
make the arrangement with the INTERIOR
ough company on more favorable terms,
but ! do not hesitate TO say that | think
the terms agreed upon are fair. and IL is
altogether in the citys interest TO have
agreed To them.
Under the arrangement proposed the In
terborough company Will furnish S15,0o0OO0
Of new capital for construction and oper-
alton: will put in for &,ooo000 the Steinway
Tunnel, which costs il $4,000. and will
receive for operating the enlarged system
$4,000 a year instead OF 100000. which
IT is earning to-day for operating the
smaller system.
II IS true that the Interhorough COM
pany is earning to-day more than il should,
because II IS carrying passengers under
conditions OF crowding that are abnormal
on the other hand. when the extent Of
the system To- be operated Is more than
doubled as II will be under the new ar
rangement. | submit that il is not unrea-
Sonable 10 permit the operators to receive
for this service the sum Of $4,000 a year
for the term Of the lease. This would
make the return on the company's capital
about 1913 per cent