New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-07-15
OBJECT TO SUBWAY PLAN
Cram Calls Conferences Illegal:
Unfair, CheSebrOugh Hints.
STILL GOING OVER FIGURES
Chances Against Interborough
Agreement at the Meeting
on Monday Night.

Doubts as 10 the legality OF the proposed
contract between the city and the broohlHh
Ranid Transit Company, so far as ue
guaranteeing Of profits TO the company be
fore the city gets its interest is concerned
which were expressed by Mayor GaNnor
I'm his statement OF Thursday night were
taken up Yesterday by others. Among
,hen was Commissioner Cram, OF the PUP
lie Service Commission.
'The whole proposition now being con-
siderod Is illegal" he said at the regular
FRIDAY meeting OF the commission - nc
rity cannot lend its credit for the oenen'
Of a private individual or corporation. That
.pn,ies 70 the Brooklyn Rapid Transit AS
Vel As 10 the PETERBOROUGH. The city can
not undertake 10 make MI bIauI I'M
any more than Mr.. Ryan.
commissioner Cram seemed quite peeN'Sn
about the entire matter. He had no manu-
IN SHAPING the McAneny-WillcoX repo' l.
and. perhaps. ne thought he could nav
done better. At any rate, lie had TINS u
say: -
when came into the commission ! was
told this body would resume its norman
functions by June %, but it is now July ~.
These conferences are still going on, and
the end is not yet. The conferences are al!
Illegal. and | hope this board VIII BRING
them 20 an end
Il was said yesterday that so-caiIed
civic organization. working in the inter-
csts OF the Interborough Rapid Transit
Company. had already drawn up papers
in suit TO prevent the carrying out OF
any contract with the Brooklyn Rapid
Transit which would carry with 1t a guar
antee. in case the Interborough does not
succeed in making terms. The basis Tor
this suit would be that the state consutu-
iion did not permit a municipality TO pledge
its credit 10 the aid of any corporation.
II may be said that the McAneny COM
mittee and the Public Service Commission
looked into this phase OF the situation
carefully before making their report and
received the advice OF eminent counsel that
the proposed guarantee in the case Of the
BROOKLYN Rapid Transit would be entirely
within tho law.
Tho so-called guarantee OF some $4,000
on the elevated lines of the Brooklyn Rap
id Transit would be more in the nature OF
a rental for private property which was
being put into a municipal scheme by a pri-
Nate corporation. IL was said. The PROPOSE
ton that the city guarantee prOHIS 10 tHe
marlborough on the present subway would
be entirely different. The subway. oper-
sted by the Interborough. was city prop
erty. and there were those who said II
might he considered improper 10 guarantee
p private corporation any earnings on city
property.
William II. Chescbrough. chairman OF the
special committee on rapid transit OF the
Allied Real Estate interests. in state
ment last night argued that II It was right
10 guarantee anything 10 the Brooklyn
Rapid Transit It was equally just 10 guar
antee profits 20 the InterborOugh,
The point has been raised" he said
that there is a legal obstacle 10 tie cIty's
pledging its credit in this rega-1 TO either
company. and am doubtful of the advlsa-
bility Of such a course. but the McAneny