New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-05-23

while he still felt that an independent 'i,'
line would be the best solution OF tle P.'"
Iem he was prepared to accept the uua'
n,an unon the proper terms. But as he
indicated later. he consldereu inc
terms most improper He said
am opposed to the acceptance OF M IN
rresent otter ~ the lnterborough nov pe
cause II involves the dual pan hot
cause OF the identity or recoru VI orar nro-
ticular operator but because Tue oi tba PFity
poses a bad business sr DalsT Of the accepted
a and annrovad rauid transit policy OF the
city OF New York. .rho-oueh com
The present offer Of the 1nteroorous - Ia q,
pany is substantially the proPoSIiit ori,v vote
rejected at that time. The form IL s soidr,
what changed Certain minor coa,s the
have been made In some a., sub-
terms are worse for the CIV, IT. is the
stance and fl fact the prop'
same. 1900, which this
The fundamental scheme upon 80 NOT a
offer is predicted is pracllcdtt its entire
legal guarantee 10 the company W In ad.
net earnings OF the present s"u reW capital
dition to carving charges on new w. Liter
n oNers To the people OF the cltS .no suh.
natives Of perpetual congestion W ,,gr the
sidization Of private investors
carrying Of deficits IN taXes tho po,icies OF
n is directly opposed to me control
,,,,,,icinoI construction. munlclpal - ~ n,
and nniInicIoal profit sharing aPlIobeTs n,
nonular election and which the HlsI,actad Ia
This board were sent here anu COY
carry out
prosidart Mitchell said he Voulo ''''0
t,ova contract with the same ternls a.
tho nresnnt subway than one WI"
-, :, the new offer. because utiuei
the rrosent contract the city was
~, ,he interest and sinking fund on h'
bond. having preference on that a"'o"'''
It cspitaIzes Congestion
,r,or, the objections to the plan emu
/ -, -. president Mitchell were tho fol-
loving:
II capitalizes congestion and insures,
t,roug, the excessive preferential payment
70 he made the company. that ne IdSt, ~,
ling public viii either be more 'Io" ~ -,
future subways than they are ,,t,ooraet q nd
that ths CITY rill never receive lh,etts' g.
sinking fund on its bonds Issued ior cur
II Comhines all tho worst features ~ mn
nicipal operation with all the Wors. sr ,he
of private operation, and fortnlls TOT w
city all Of the benefits ~ munlclpsI opel
alton and most 81 the beneficial features 81
pTiNa'e operation. T., ,,I,
The city's power 10 recapture is lllad1i
practically impossible by the prop2seG
terms and is surrounded with conditions
that practically insure confusion ana lusa'
ton -, 1880. 90
BY insuring that the city VII never r.
, celve interest and sinking fund upon tne
construction bonds il will prevent me 81
emttiCn of those bonds from the dep' llimlt
thereby impairing the citys subway pu'"-
ing cana ,itv for tho future.
An iudefensible failure 10 proNlde lot
Depreciation and obsoloscenCe in the pres,
emf subways Is Wade the basis OF gu,
to private capital of more than SIV"V'Vo'
A wear for forty-nine years
from $4,000. 600 TO s5O.OOO.Ooo is heed'
lessly given TO private capital pS saCIl.
ficing terms I'm existing contracts as to
read jus tmentS. -, a.,
The company is TO receive BACK the
value Of the equipment Of the present SUP
way three times over and the Nalue OF 'ht
new equipment twice over.
The sinking funds are grossly eNces'
sive without any provision that the Guy
shall share I'm the Surplus created.
II denies the city a share OF any Ad'
vantage that may he reaped by the com
pany through the sale Of its bonds at a
premium.
In his report President McAneny re-
viewed tho history OF subway negoha'
lions leading up TO the latest oner or the
Interboroush.