New-York tribune., 1912-02-29

assurance Of profits on any investment II
may make either In construction or equip
ment over and above the s1fo09,oco II now
proposes 10 invest on such future invest
ments 1t will retain out Of pooled earnings
only the interest and sinking fund charges
necessary - carry its bonds until anorti.
zation.
Extensions Cases Forced.
Another important agreement the COM
pany is willing 10 make is 10 equip and
operate all extensions that the city may
decide to construct in the future and to
furnish the necessary capital on the same
basis of interest and other carrying charges
only. Under the proposition Of last sum
mer the company would have received an
additional profit Of per cent upon all such
investment.
Though | do not care to state positively
In advance of formal consideration by the
Board OF Estimate that shall vote for the
plan submitted" said President McAneny.
as basis of settlement | certainly favor
II, and am inclined to believe that it will
be received with almost unanimous favor 4"
Mayor Gaynors statement Is addre sed
To the people OF the city Of New York d"
1t begins as follows:
The subway negotiation is not a an end,
and We all ask for your intelligent ana
honest consideration of the result II WAS
always obvious that these extensions or
branches OF the present subway had to la
built IN order TO have an adequate sys-
TEN with single fare connecting all the
boroughs. The present subway is only a
crooked fragment OF a complete system
laid out years ago by the former Rapid
Transit Commissioners. Not 10 complete
that system would be an irreparable mis-
take. But it is now to be completed. NV
associates. and espeC ally Chairman WN-
cox, Comptroller Prerdergast and Bor-
ough President McAusnv, have worked
hard and are entitled to the credit When
the company's offer of December s. 1910.
slipped through our fingers / feared we
would never get back TO II, but all de-
manGs 81 guarantees and the Ike after
ward made by the company have been
defeated ana withdrawn. by the hard work
OF these officials. and we are actually back
n the said offer of December }. 1910. In
deed. as Mr. McAneny has pointed out TO
me. il has been bettered in several respects
Tor tho city.
City and Company to Share Alike.
Tho Mayor gives his understanding of the
financial terms as follows:
The net earnings Of these new extensions
are TO he divided equally between the COM
pany and the city. The COmpany's earn
iHgs and profit on the existing subway rest
on it's existing contract, which We cannot
take away from IL or change. But the COM
pany does agree that I'm deduCtng such
profit hereafter II shall be taken at the
average Of the last two years, and shall
never grow any larger. The company takes
the risk Of its growing less. II gets no
guarantee from the city. ON the new cap
ital ii puts i'm II is 10 receive { per cent
mot SIS per cent as some are saying.
namely. the per cent which Il will have
10 pay on its bonds 10 be issued To raise
such capital, plus ! per cent to form a
sinking fund to pay Off the principal within
the said term Of 80 years. Next the city IL
TO be paid the interest on its bonds 10 be
issued by II TO raise its share OF Coustruc-
tiOn money, plus I per cent for a sinking
fund. and also plus as much more as VIII
make up SO per cent TO the city ON its
capital. Tho last IL very favOrabl" to the
city The division OK net profits comes
after all of this.
Samuel Rea. vlcc-prosidcnt OF the Penn
sylvana Railroad, who acted as an inter-
mediary between the city and the Inter
borough R the negotiations. largely be-
cause he was interested In transit facilities
for bis company new station, issued
statement thanking the various officials
and private citizens such as Seth Low and
A. Barton Hepburn FOR the interest they
had taken I'm settling the dispute.