The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-19
HIT UPON SUBWAY TERMS
ESTIMATE BOARD MEMBERS
MOSTLY FAVOR NEW OFFER,
ny which lnterborough Gets Not . Guar.
antec tut q y Per Cent. r referentiai
SIainn on Earnings Of Both Old and
New Lines es-1beinite D0ings To-day.

uUtec UuJ - yer tent. VFeIebeUvlaI
SIaim on Earnings Of Both Old and
New Lines -lbeiinite Doings To-day.
At last there seems to have been a
settlement reached in the subway situa-
tion. The conferences which have been
going on for nearly week between tho
representatives Of the city and Of the
lnterborough company have. from what
WAS stated yesterday, ended in a proposal
to which a majority OF the members Of
the Bbard Of Estimate are willing to agree.
IL is that instead OF a per cent. guar
antee on the capital the Interborough al
ready has invested in the present subways
and the $4,000. .OOO which it ia willing to
spend in the construction Of new transit
lines the company shall have preferen-
tial claim on the earnings OF the lines to
the amount OF the per cent. which it
insists on having OH its old and new out
lays.
1t is to be agreed that IL there are any
deficits the shortage. shall not be made
good by taxation. but that the earnings
shall he allowed to accumulate until the
receipts wipe out that deficit. This means
that the 1nterborough's interest will not
be'paid unless il is earned and that II the
cumulative earnings during the period Of
the lease are not sufficient to pay the In.
terest TO the company the company will
be the loser.
II is understood also that the Inter-
borough has consented to pool it's entire
interests; that the receipts from the pres
ent subways. the new lines to be built and
the elevated lines shall be piled together
and that after the company has received
the interest it is demanding the remainder
OF the profits shall be divided between
the company and the city. Further than
that the company has also consented to
agree to the "recapture" terms laid down
in the. McAneny report. which would
allow the city to take over either the West
or East Side trunk lines at the end Of ten
years.
President Shonts Of the InterborouRh
company and his colleagues were busy all
day yesterday whipping their amended
proposal into shape. and they were in
hopes that they would have il ready to
make public last night. Later Mr. Shonts
said that this was impossible and that the
new offer would not be finished until the
adjourned meeting of the. Board OF Esti-
mate this afternoon
The impression yesterday among those
who are active in the situation was that
tbV oHeT III vne IuIeTDOTOhRn
company will be accepted. They ex-
planned, and several of the members Of
the Board OF Estimate agreed with them,
that II New York is to have a cOmpre-
hensive rapid transit system it is impera-
tive that the plans for the cnlarging OF the
marlborough system must he carried out.
There is no hiding our eyes to the fact"
said one Of these asserting members.
that the lnterborough routes must he
made part OF the new scheme or that We
must fall back on the triborough route.
But don't think that there will be any
need for this because | am sure that the
new offer OF the marlborough company
will be found to be satisfactory. Even
il the lnterborough does ask for per
cent on it's outlay IL must not be forgotten
that this does not mean entirely an interest
payment but also an adequate return for
the work OF company skilled in the
operation of city railroads"
II had been the purpose of President
Mitchell OF the Board of Aldermen to in
troduce at the morning meeting Of the
Board of Estimate yesterday a resolution
forcing n vote on the McAneny-Willcox
report, but he announced that ne under
stood that there was "a possibility Of the
city and the company coming to an agree
ment that would be satisfactory to both
sides and that therefore he did not wish
| to do anything that would complicate
matters All that he was anxious for.
he said. was expedition and il this
| could be promised he would not seek to
embarrass the committee Ivy asking for n
| vote in the board.
| Mr. McAneny promised this and an ad-
, journment was taken until the afternoon.
But when the time came for the meeting
Mr.. Shonts had been unable to get his new
proposal ready and when this was ex-
| planned TO Mr.. Mitchell he agreed to an
| adjournment until o'clock this after
noon. While this meant another day q
delay the outlook Ia that some kind OF
definite action will be taken at this after
Moons meeting.