New-York tribune., 1911-12-02
SUBWAY CONTRACTS GOOD
Unanimous Decision Against
Petition for Injunction.
6 NO DELAY NOW PROBABLE
Court Says Discussion of Pro-
posed Contract with B. r l.
Would Be Premature.

The Appellate Division Of the supreme
Court decided unanimously yesterday
against the petition Of the Admiral keally
Comnsnv for an Injunction 10 restrain the
arriving ont of the contracts awarded oy
the Board of Estimate and Apporuohiheh'
Cor the building Of the new subway system.
Justice Ford in the Supreme Court hau
denied the motion for the inJuncuon' ana
,ba petitioner. who was proceeding as d
,axpsyer. appealed the case TO the hlsher
court The unanimity Of the latter IN the
decision Yesterday viii make II impossible
~ take the case 10 the Court Of Appeals as
roc intended. without the consent OF the
,nnera,o Division, so that it IS probable
that the worl, on the subway will not be
halted by the proceeding.
rho chief contention made by the Admiral
Realty Company was that the proposed con-
tract with the Brooklyn Rapid Transit COM
many for the operation was not legal but'
as the Appellate Division pointed out this
tentative contract and the four contracts
awarded for tho construction Of the sub
way were entirely separate The court aud
Ga that no charge Of fraud or bad faith was
made by tho petitioner. The court said:
..The Bradley contracts are only for the
construction Of subways to be used for the
purposes OF a rapid transit railroad. The
other contract. when made will be for the
oporation Of the railroad and subways TO 5e
constructed. II is conceded that it is en-
treIy legal and competent for the pubic
authorities 10 separately contract for con-
Struction and operation, and no complaint
is made on that score
The Admiral Realty Company contended
that the contract with the Brooklyn Rapid
Transit Company would be illegal because
10 would violate an article of the state con
.ttution which forb!ds any city TO give
money or property or lend its money or
credit and because under the contract there
could be no competition against the Brook
lyn company for the right to operate the
railroad. The court said of this
"The contract in many respects is an un-
usual and extraordinary one. doubtless be
cause the problem 10 be solved was itseli
unusual and extraordinary, but we DO not
fnd il necessary at this time 10 consider or
discuss the objections 10 it which are urged
bv the plaintiff, and expressly forbear TO
pass upon them, because their discussion
and consideration al this time would be
premature and academic
The court added that the contracts have
been approved by the Corporation Counsel
and counsel for the Public Service Commits
sion. neither of whom would be likely TO
approye a manifestly illegal and unconsutu-
tional contract
Louis Marshall. counsel for the Admiral
Realty Company. said last night that he
had not had time to confer at length with
his clients concerning the decision, but he
had no doubt that they would keep ur the
fight I'M some way. Mr.. Marshall believes
that il will be possible. when the time
comes. To prevent the city from entering
into any contract with the Brooklyn Rapid
Transit Company for the operation of sub
wavs. which will include any guarantee OF
interest on property already owned by the
company.
Members Of the Public Service Commis-
sion were much pleased at the decision Of
the Appellate Division. although they had
anticipated 1t.
"Of course. 1 am much sratifed. said
chairman Wilcox. hut 7 do not care IN
make any more extended comment until J
have had q chance to study the opinion
more carefully. II seems clear that the de
CfeluN mas no Ufdi til- Wv INV ~
Grafton of any new subway.
1T is a mistake TO speak of the proposed
operating contracts as BROOKLYN Rapid
Transit contracts They arc 10 no 50 dra"r
that any corporation desiring 90 do So may
lud for the operation. Tho contracts have
rot been advertised before because Of the
great amount Of detail I'm their draftinc
7 never had any doubt said Commis-
sicner cram. Chat tho court would uphold
the right of the commission 10 go ahead
and construct subwaye. To connect the
present construction with any operating
contract with the Brooklyn Rapid Transit
Company is ridiculous, for there has never
been any contract with tho Brooklyn Rapid
Transit Company.'
Commissioner Cram oppressed tho opinion
that the conferences which were being held
between Samuel Eea, vice-p president Of the
Pennsylvania Railroad Chairman Wilcox
Borough President NcAncnv and otheri
were of little Consequence
you do not see me al any If them" he
said. They will not amount tn anything.