New-York tribune., 1912-01-17
"FR|TTERED AWAY GREAT
SUBWAY OFFER"- "-GAYNOR
"No One Can Compare Case with
What 1t Was in December,
1910, Without Regret"
ONE MORE CONFERENCE
Rea Confers with Pennsylvania
President, but Rumor Says
He Considers All His
Efforts Were Useless.

yania Railroad, who has been trying 10
hiring the city and the Interborough RAPID
Transit Company together on terms under
which the Interborough would take its part
of the new subway lines outlined IN the
Wilcox -McAneny report. was in Philadel>
mia last night to report to President NC
Crea. 1t was rumored here that he WouIu
report that all his efforts were useless, and
there seemed little prospect OF an agree
nent being reached.
When seen in Philadelphia Mr.. Rea re-
fused TO discuss the subway plans at all
From sources close to the Pennsylvania
management however, IT was learned that
all hope had not been abandoned. ana that
there would be another conference here TO-
morrow or Friday. Some Of the represen-
tatives Of the city believed it would be the
last, and that both sides would acknowledge
the futiity of further negotiations at that
time
Mayor Gaynor, who had Ions talk win
Vice President Rea on Monday issued
statement last night in which, after re-
ferring to the offer Of December 1910 OF
the Interborough he said it had been en-
tirely frittered away" and added:
can. It is best that the people of the city
be informed Of the facts" He referred 10
the fact that the Interborough in that offer
had asked for no guarantee, and went on 10
.av that the Brooklyn Rapid Transit Com
pany did not care anything for the lines IN
The Bronx, and continued: such are pres
ent subway conditions. The way we nave
been brought to them is distressing. But
oil @
do the best we can"
The repetition Of this sentiment was taken
by some as meaning that the Mayor be-
leyed the Interborough should have some
OF the lines, and that. If it was now neces-
sary TO give some sort OF guarantee ne
would yield it grudgingly.
However II is a question as to whether
a guarantee that would be acceptable TO the
marlborough would get a majority vote in
the Board of Estimate. President Mitchell
of the Board Of Aldermen is against 1t and
Borough President McAneny is opposed to
several Of the conditions asked by the In
borough Much depends upon the attitude
of Controller Prendergast. 1t is not believed
that he will yield on several Of the points
that we're bones Of contention at the recent
conferences.
Of the Interborough- Metropolitan Company
Yesterday intimated that the energies OF the
interests with which he was connected
might be devoted in the future to earning
money on the reorganized surface lines
rather than in reaching out for more sub
way property.
Mayor Gaynor's Statement.
Mayor Gaynor's statement follows in full:
No one can compare the present subway
case with what II was in December lglo'
without regret 1t was then that the IN
terborough company made It's large oneI
for the construction and operation OF all
OF these extensions of the present SUBWAY
which are being talked about II offered 10
put in one half of the construction capltaI
and ali OF the equipment capital, and share
the net profit with the city II asked ior
no guaranty against loss or deficit OF prlh-
Although the Broadway route had been
laid out several years before and was al
ready to be built II did not make any
condition that the city should not construct
that competing route Its offer grew piece
by piece until the routes TO be built under
ii were as follows: The present East Side
subway was to be continued uptown be-
yond 42d street through Lexington avenue
Into Bronx Borough there splitting into
! three prongs across that borough.
NJ The present West Side subway was TO be
continued downtown from 42d street
through Seventh avenue, by the Pehnsyl-
vania Station and under the river over
into Brooklyn through Fulton street and
Flatbush avenue 10 Prospect Park and out
Eastern Parkway, and through Lafayette
avenue TO Broadway. and the Fourth ave-
nue. subway was to be connected with the
system, and Richmond Borough by tun-
mel was to be connected with the Fourth
avenue subway.
with the system by the Belmont tunnel,
and two great prOngs Of that tunnel were TO
run across queens Borough In different di-
r1a cd gtY atgfr a. Ynl4
system was 90 be operated on single five
cent fare. And all was TO be complete in
side Of five years.
Straightway two or three newspaper
proprietors set up hue and cry that this
offer meant that the subways were to be
owned by the company. Give city
city now knows how they were miSed by
these newspaper proprietors. Under the
rapid transit act the city owns all sub
ways from the beginning. No company can
own them 1t does not matter whether the
city puts in all the capital, or only half Of
IT, or none at all-all the same II owns the
out to companies to operate The rapid
transit act prescribes the term or length
OF the lease. NO longer lease can be given.
BIames Some Newspapers.
No matter whether the operating COM
pany puts I'm One-half the construction
money, or even all Of II. or none OF tit
gets the very same term Of lease, not a
day longer or shorter. Such is the statute.
And vet these newspaper proprietors by
daily falsifcation for months misled even
many intelligent persons TO hink otherwise.
But that is all passed. They now know
how they We're fooled. and are reading
decent newspapers, | trust.
Meanwhile the Mayor and others had 10
take this daily false abuse. And what be-
came OF the offer? II Is gone-fritteCed
away The offer was turned over to a c0m-
mittee to be run out into the details of a
contract The long story Of meetings and
negotiations ends In thls-that the offer is
gone IL was said that competition was
the thing. and then that the marlborough
company would have 10 bid quick and
high" 10 get anything. Instead II with
drew it's offer altogether Then the COM
nIttee began to request the InterborouRh
company to negotiate Ihlngs were turned
about.
supphcated the city: now city officials had
10 supplicate the company. And so it went
on until the company made new OfTer.
namely that II the city should by the aid
Of It's capital guarantee 10 the company g
per cent net on it's capital already invested
and per cent on all hereafter TO he in
vested II would put up one-half the con-
struction money, and the committee re-
norted I'm favor Of this. OF course Il was
not sanctioned The committee has con-
tinued to negotiate, and some proposed
guarantee is now being discussed
In a word, the great offer of the com
pany Of December, 1910 has been entirely
frittered away. II is gone, and we must
40 the best can II Is best that the
people OF the city be Informed OF the facts
The city borrowing margin is so short
that II will take many years TO build a
subway system on city capital alone in
stead Of completing the present system,
laid out by the old rapid transit board. and
of which the present subway is only a
crooked fragment.
The Brooklyn Rapid Transit Company
has never offered TO put up dollar for