The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-06-14
In order that work may be started imme-
orrRArlSa TERMS.

diately.
orfRAriSd TERMS.
The report recommends that the operat-
ing terms. to be applied in common TO the
two competing companies or TO any other
operator. shall include the following con-
ditions.
That either operating company shall
agree with the city TO operate any extension
that may hereafter be built connecting
with any of i's lines upon the city's agree
ment to carry deficits but that the profits
Of the operator upon inner lines shall be
limited 10 per cent, above the cost OF It's
investment 80 long as such deficits con
tinue; the surplus over per cent. being
applied to their liquidation.
That the cost Of all real estate and ease
men's shall be included in the construction
cost. The Interboroush company has con
tended that the city should bear this ex-
pense, as it did in the cost OF construction
of the present subway. The conferees say.
however. that they see no reason why this
distinction should be made. and why real
estate costs should not be amortized from
the earnings ot the roads along with other
expenses.
That wherever tho city acquires the
right OF rccapture over a particular line IL
shall have the rixht either 10 retake II upon
payment of mn amount required to rem
burso the operator or to transfer directly
to IA second operator upon the payment
of the amount involved directly to the
original operator.
The Interborough Company. the report
SAYS, has insisted that II will only consent
10 consider additions to its subway system
on condition that il be allowed to third
track its elevated lines. The conferees
are in agreement that the third tracking z
il necessary. but they urge that the
privile should not be granted TO the
, marlborough ON its own terms. but on
terms that adequately compensate he
city for the extraordinary valuable rights
they confer" The Belmont tunnel under
the East River. which cost -. 600. 600 is
to be conveyed to the city. If the city 40
elects, for $4,000 or entered In the
! construction cost OF any continuous rail
road of which 1t may become part a, a
| like sum"
FIVE CENT PARE TO COSEY ISLAND.
| On the question Of the Coney Island
fare the report SAYS:
The Brooklyn company proposes to re-
! tain the present 10 cent fare on the lines
reaching Coney leland. arguing that the
recent examination by the Public Service
Commission demonstrated the fact that the
| roads in question would not Yield fair re-
turn upon a Ave cent basis and that II
lh'NoIbheiN slchlu hoN bt ieVhiIt to W
the lower rate. The conferses are OF the
opinion. however. that as the city allows
| the company TO reserve To itself the aggre-
gate rate Of present net profit on i's elevated
lines. without regard to tha segregated
profit or loss Of indiv idual lines no reason
remains WHY 1ve cent fare should not hc
extended 90 this a. to other parts of the city
IL is promised by the committee that
once the general subway proposition Is
disposed Of the working out of transit
plans for Staten Island will be taken up.
ISTERBoRouoH's INVESTMENT SAFE.
| The conierees dismiss as wit hout basis
the fears Of the lnterborough that if rhe
Brooklyn Rapid Transit is allowed to
link its system with Manhattan 10y a
Broadway subway the revenues of the
former company would shrink SO that
il could not afford TO construct new lines
On this point they say
The marlborough company's earning.
upon i,s investment in the present subway
are bet ween /. and ~ per cent. The figures
OF the Public Service Commission indicate
| that. although the percentage Of profit
on all the old lines must of necessity tai
temporarily within the fra' wears of opera
ZION OF the new. the margin remaining e
! the ln'erborough COMPANY would toe ampi.
to carry ~ present investment.
ctrYs SHARE OF FINASCiNG
Dealing with the financial considera-
tonS the conferees saw:
| Upon the basis Of figures furnished b,
the officials OF the Citv he amount of avail
! able credit. above the constitutional marxii
OF indebtedness. dErlng the next FIVE year.
will he a. follows
Cosr or 1HE SEw LfNEs.
Margin on June ~. 1871. general sia."or
! Special credit Tor transit purposes on
June ~. 1911. reserved under the
recent constitutional amendment
cyemptlns self Supporting invest
leu per con, Of the additional assessed
valuation OF Tue city, becoming
Ten per cent of the estimated Increase
o' assessed valuation dnring the four
Proportion Of the current ci,y debt
pad annually throush TAXATION ;nunrn
Total .............. s3.auOi
Allowing a deduction of So 900 800 20 tai.
ear" of uncollec ibl" taxes ia be balance,
under recent statute through the i~su.
of bonds this would leave s2Oo .UOn .oon 10
all purposes. including -ubways We arr
adv i-ed also that IN addition 10 n. seO. .p. ot-
reserved specially for subway purposes h.
city can readily spare $40 Ooo ouo from TIM
sum for use during he next nVo years
They show hat the lines 20 he con-t ruct g,
anc. of 81 600 oOo be included for the liel
mont tunnel would oos' slOl. 500 900. hal
OF which amount. or So. .Son 0" would h,
borne by the city and hHlt hy he COMPANY
The tu'al amount Of money thni the cir
would ne called upon to invest IN the new
lines in addition 10 rs present subway IN
yrStiEenls would he 'hercfore sIi3. 700 600
lnpd If there be added the allowances pro
posed for the South brooklyn lines $40
900 900. and allowances Tor real estate. 'h
cty- share of which * estimated al -,
600 900. The outlay IN view would lie sl3I ,
zoo 900.
IN" lnterborough company figures il
addition an aggregate Of s2l .ooo. 900 70
new equipment aud the Brooklyn company
) s2i 900 900.
The total outlay II all lines are included
; would therefore he
...,.,. conWr.c1on ,9s,,,. Equipment To,Gl
Bv the CITY. slal ?""o ........ sl3l 200 ~
borough as"o" Sl"',o"o 7a.SnW
| Pv tie BROOK
pany. 0. 2s4ncn :.noon ,o,oo N
: soN7 4n ~
The report was first submitted 10 th.
Boerd of Est rimRte sitting as a commi'te,
of tho whole and afterwad il was pre-
sentcd TO an open meeting of fh" board
Az that ga h"ring it wa, decided tha
beginning with next Saturday the com