The evening world., 1911-07-22

can with safety anticipate the Mayor
upnoldlng the decllnation OF the Cor
poration Counsel to approve the pro-
posed contract. and mayhap comment
ing In his singular style: 1T n we'll.
This young -.nn. wno.n ] appointed. Ia
indeed learned In the law"
That the Mayor can refuse 10 ap-
prove Of the routes for the unbuilt sub
ways. and thus defeat tho constr uction
OF more than one-third OF the new lines
promised TO the unborn offspring Of the
b. IL. 4. mas been set fortn ~ enGtn
PUBLIC LETTING or CONTRACT
ANOTHER HURDLE.
But there 10 still another hurdle for
the p.5oo,eoo guarantee to get v . be-
fore It 10 In the pockets Of the IMAM
ciers. who. from AVA In the rear. are
working the wires. The law provides
that there shall be . public letting Of
all contracts for equipment and opera
ton Of rapid transit lines. 1t 10 a part
Of Section 80 Of the Rapid Transit Act,
a. follows:
Advertising for proposals.-The said
Public Service Commission before
awarding n contract or contracts
shall advertise for proposals for such
contracts by a notice TO be printed
once . week FOR two successive
weeks In no less than two Of the
daily newspapers. Such notice shall
set forth and state the points within
said city between which said road
OF roads are to run. the route or
routes to be followed. the term Of
ysars for which Il II proposed to
make . contract. and such other
details and specifications a. said
commlssien shall deem to be proper.
oAid notice shall state tho time and
place at which said proposals will
b opened. and the said commission
shsli publicly open oil proposals.
that ahAil have been received. But
The said commission shall not DO
bound TO accept m proposals 20
received. but may reject all such
proposals. and r~eadvsrtise for pro-
posals or nay accept any OF such
proposals a. will. In the judgment
Of such commission. best promote
the public interest. and award
contract accordingly.
A member Of the commission recently
III Il was not for the law
with respect to advertising for pro-
posals. we could let the proposed con-
tract In jig time once |. IL drawn and
approved as TO form by the Corporation
Counsel"
NOTHING BUT WORDS" so FAR
BIND THE BARGAIN.
Many banker cannot understand the
failure OF the gentlemen behind tho I'M
known company to put up a bond 70
Indicate that they were acting In rood
faitn Such a deposit with the city be.
fore the award Of the Board OF Esti-
these bankers declare. would
have been good consideration In law,
binding the bargain. This has brought
up the question whether the gentlemen
intend to carry out thedr programme or
whether they intend to market their
shares In the elevated and
let some other group OF financiers form
the new company n capture the city's
rnbuilt subways.
1t took 6Ta pages OF printed matter to
p'oNbue INV citN WIN n contract Tor the
present subway OF t%wenty-six miles.
over q year was spent in drafting It's
terms. As there has been nothing
done toward preparing the contracts
Tor the new subways AS a whole, Il Is
clear that the concluding stage OF the
subway talk Is a long way of.
A big feature OF the contract for the
present subway was the fact that IL
provided that the city should have a
first lien upon earnings to meet the in
terest and sinking fund upon the city's
investment, The return to the city has
precedence over the interest upon the
cost OF the operating company's equip
ment.
Although tho now subways are TO be
built and paid for entirely by the city,
as was the present subway. the Board
OF Estimate n the Public Service
Commission have promised 20 move
back the interest and sinking fund on
the city's investment, They have prom
'sed not only to let private capital ex-
pended In equipment have a precedence
over the city's bonds. but they pro.
poe a preference Of $500. 90 10 meet
dividends upon elevated lines which
can never be owned by the city be.
cause Of their perpetual franchises,
A former legal adviser OF the city
said: How fortunate for tho city they
have only promised 10 DO these things.
Whistler they can do them Is the real
question before the people."