The sun. [volume] (New York [N.Y.]) 1833-1916, 1911-07-20

reaching city officials and craftily getting
hold of the city's credit to pcrpetuate
och imitation.
Flower and his associates ran their
holding company stock up to 1877 and then
down il dropped to 20. II was in fact
worth nothing. Flower died suddenly
and the inventory Of his estate showed
that he had completely unloaded the stock.
Many thousands were basely swindled.
The thing was rehahilitated at about
3eO. 900 900 and has been growing larger
ever since. lts career is we'll known. IL
remains to he said that annual dividends
As high as 10 per cent. are guaranteed to
be paid TO the underlying actual railroad
companies. controlled by leases Of 900
years by the said holding company or
trust. And this financing. bound very
soon. II left alone. to fall in heap. as it
did in the case Of the roads of Manhattan
and The Bronx. is now to he saved and
perpetuated by aid of the city's credit
and cooperation.
I'VE can have sibways without entering
into such alliances and contracts as this.
II would be far better for the city to
operate it's subways than to do what it is
now being committed to. II now under
; Let IL operate them also sooner than lend
it's aid to the saving and perpetua,ion of a
generation Of past stock swindling But
It does not need to operate them. Proper
, operating contracts can be made. as We
set out to do at the start.
Il am only too willing to accept the
mature views Of competent persons. in
| stead Of my own. at all times, but this is
| -. ~ =
day morality forbids that unite in what
+ 10 being done. have too long written
and spoken against such damnable ras-
|; calities to now turn about and ally myself
\ ~ Mayor of this great and intelligent city
with them. shall 60 out of Office without
putting that stain on my name.
Nv. j. GAYNoR, Mayor"
PRENpERoAsr rAvoRs d. r.. T.
Comptroller Prendergist said last
night:
THE proposition of the Interborough
Rapid Transit Company issued to-day
il not satisfactory. have made an
, earnest effort to convince myself that the
terms discussed during the last few days
were in the city's interest. but the action
Of that company to-day. as shown in the
first offer they made and which they have
not materially improved in their second
letter. indicate the futility Of gettin 6
than to deal in frank manner.
My position on this entire question
has never changed, and while I would
have preferred for the sake of compe-
tition to have both companies represented
in the division of our enlarged rapid tram
ait system / believe it will be best for
the city to award a contract strictly to
the Brooklyn Rapid Transit Company.
and also Immediately confirm the con-
tracts for the construction Of the Lex
ington avenue subway. This means sub
way construction at once and will put
the city in a position of independence
that no other action will afford. ! will
vote accordingly in the Board Of Esti-
mate tomorrow.
Mitchell n. y. r. OR TRlBoRoCGH,
Aldermen said:
The latest offer Of the lnterborouGh
10 q barefaced attempt to involve the
city in a contract which would assure
to the company all of the profits and
would leave to the city all of the risks
1t is to my mind the most outraSeously
unjust proposition to the city which has
ever been put forward in tho whole course
of the rapid transit history of this city
The proposed preferential payment of
per cent OH old and . per cent. on new
capital while not strictly legal guar
antee by the city. is to all intents and pur.
poses an actual guarantee to the com
pany of 100 per cent Of its present net
earnings derived from the present sub
ways. and in addition of interest and
sinking fund upon it's proposed new in
vestment. all before the city gets a single
cent upon its investment in the new sub
ways. or in consideration Of the inesti-
mably valuable franchises which il is
asked to award
when this matter is presented officially
to tie Board Of Estimate Tomorrow,
shall insist upon prompt action looking
10 the actual construction of the new sub
ways either under the Brooklyn Rapio
Transit offer or the triborough plan
sHoNTs oPFER OF YESTERDAY
The Interborough company sent il,
amended offer for the construction and
operation of new subways to the Board oi
Estimate yesterday afternoon The meet
ing OF the board was adjourned because Mr.
Shonts was unable 10 get his offer in SHAPE
yesterday He had prepared one letter
In time for the meeting. but after it hac
been looked over by President McAneny
and Chairman Wilcox of the Public Ser
vice Commission they declared that the
phraseology of some parts would have to
be changed. Mr.. Shonts declared that i,
would be impossible for him TO refrain
his letter in time to have it ready for tn
meeting, which WAS thereupon postponed
until this morning,
President Mitchell OF the Board Of AL
dermen and Borough President Steers oi
Brooklyn were waiting for the meetins
TO begin. When the message came from
Mr.. McAneny that there would be M
meeting Mr. Mitchell got angry. He de
manded from the clerks by whose author
ity the meeting had been ordered over
hut they were unable to say. Then Mr.
Mitchell announced that ho had come tc
the City Hall for the purpose Of forcin,
avote. but that he couldn't, since he an'
Mr.. Steers were not quorum.
There was not much in Mr. Shonts'
letter that has not already been made