New-York tribune., 1912-01-04
blunt TALK ON SUBWAYS
Officials Say Time for New Inter-
borough Offer Is Short.
DISPUTE ON PREFERENTIAL
Williams Says He Sees no Rea-
son for Delay in Carrying
Out B. r. T. Plan.

Representatives Of the city at another
subway conference at the Union League
Club last night bluntly told A. J. County,
representing Samuel Rea, vice-president OF
the Pennsylvania Railroad and II. p. Davi-
son. of the banking firm of J. r. Morgan
& Co.. who have been the Intermediates
between the city and the lnterborough
Rapid Transit Company recently that the
Interborough must come forward with an"
other offer quickly or not at all.
Both Chairman Wilcox and Borough
President McAneny said at II 30 that there
was nothing to indicate any agreement
but they would keep at it until a. M
1t is understood that the great dispute
between the city and the Interborough now
is as to the size of the preferential pay
ment The Interborough demanded last
July a guarantee of Q per cent fiat. Since
then II has signified its willingness to have
a lump sum guaranteed as 'preferen-
tial." The place where the hitch is coming
Is on the size of this preferential" The
Interborough, it is said, is demanding that
the "preferentiar' shall be based on the
profits of the present subway for the last
year. Controller Prendergast and Borough
President McAneny, for the city on the
other hand, hold that this would lie too
large an amount, as the earnings of the
subway have been increasing tremendously
from year to year. They hold that an av-
erage of the profits for the last three or
four years would be more just. There Is
some question of a compromise on two
years. it is understood. without either side
having agreed to accept such compro-
mise.
Another point that the city's representa-
tives are holding out against is the inter-
borough's demand that the ''preferential
shall come out OF net earnings before the
interest and sinking fund charges are paid.
With last nights conference in pros
pect, Chairman Wilcox OF the Public
Service Commission had an hours confer
ence with Controller Prendergast and
Borough President McAneny in his once
early in the afternoon. Later the Con-
troller and the Borough President went
10 the lstter's office and had long talk
with Colonel Williams, president OF the
Brooklyn Rapid Transit Company. The
latter company IS getting restive over the
dilatory policy adopted In attempting TO
persuade the Interborough 10 come back
into the situation. Colonel Williams holds
that the city in good faith approved the
plan of the Brooklyn Rapid Transit Com
pany after the marlborough had with
drawn, and that he sees no reason why
that plan should not be carried out. He
wants the operating contracts pushed
along, so that they can come up for exc
cution speedily.
Those st the Union League Club last
night included Chairman wilcox. Con-
troller Prendergast Borough President
McAneny. II. P. Dawson, Morgan D.
O'Brien. OF counsel for the Pennsylvania
and Seth Low. Mr.. Rae, Of the Pennsyl-
vania. was detained, but was represented
by Mr. County, his assistant, who is thor
oughly familiar with the entire situation.
The scheme shat is now being discussed
is for the Interborough to pool the finances
of the present subway with those Of the
proposed system In such 8 pooling
there would be the $50 900 invested In
the present subway and the S5eoo,c0 the
Interborough plans to put into the pro-
posed new lines. The city's interest wouid
be I'm the SIS. 100000 II would furnish for
the new lines. In all s2oo,oooooo would
be invested.
The Interborough would have to get I
per cent interest and per cent sinking
fund on the bonds for the present subway
and s per cent interest and per cent sink
ing fund II is estimated. on the money IN
vested in the new lines. The city wouid
also have TO pay the fixed charges OF per
cent for interest and sinking fund on It's
bonds.
That these fixed charges must be paid