New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-05
COMPROMISE OFFERED
IN SUBWAY DIFFICULTY
Conference at Union League
Club Regarding Interest on
$40,000,000 Loan.
WILLIAMS GIVES HIS IDEA
B. R. T. Head Believes Pay
ments Should Be Credited
to the Cost of Con-
struction.

Chairman Wilcox Of the Public Service
Commission. Borough President McAneny.
representing the Board of Estimate. and
President Williams of the Brooklyn Rapid
Transit Company had another conference
yesterday at the Union League Club In
regard to the interest on the 100000
borrowed by the corporation to pay for
the construction OF its share OF the dual
subway system. The company has In
sisted that this interest. which now
amounts to $4,000 a month. be allowed TO
go. into the construction account The
city authorities have held that the city
should not be forced to pay interest on
any money that had not actually been
put into construction.
A compromise was suggested yesterday
which may solve the difficulty. although
none OF the conferrees would discuss the
nature of the suggestion.
Before the conference President Will
Jams issued statement, in which he said
that in August his company had submit
ted an amendment to the proposed form
Of contract, in which II was made clear
that interest should be allowed from the
time moneys were provided. He added:
In the months OF discussion which fol-
lowed over all parts Of the contract no
objection Whatever was raised by the
commission TO our proposed amendment,
except that offered 10y counsel FOR the
commission that interest on deposits OF
construction money should be credited 70
the cost OF construction. and we accepted
this suggestion. In the meanwhile we
sold our securities. took the money from
the bankers and II Is now awaiting eA-
pend.ture.
Within the last three weeks. however
the commission In our intormal CONFER
such interest should he added TO con-
struction cost as accrues from the time
the money is actually spent. Is need
less to say that no operation Involving so
many millions OF dollars can Ia carried
on In any such way.
On behalf OF the commission It is
stated that while Mr.. Williams did dis
cuss informally with the commission his
plan for borrowing $40 900. 900 II was un-
dcrstood that all he sought was the per-
mission Of the commission 10 get the
money In advance Of the actual begin
ming OF the work. There was no sugses-
ton that interest should be PAID BY the
city on The money while e. was lying idle.
Mr. Williams explained that he bor-
cause Il was cheap on October !. and
declared that II the arrangement FOR the
money had not been made at that time
the whole subway plan would have been
indie nnitely pos tponed because such large
sums OF money could not be obtained
now, at any cost, and 1t may be months
or wears before a condition similar to
that OF last summer reours." lie con-
tinued
TIE equitable considerations are 30
strOEs in favor OF our position and the
public interest 4 40 great IN the SPEEDY
consummstion OK the transit programme
that am sure the authorities will finally
look upon this matter the same way we
do Every DAYS delay In the approval OF
the contract Is adding many thousands Of
dollars 20 the cost Of the project. In Au-
gust last expecting that the contract
would soon he executed and recognizing
the low markets for materials, We took
bids on one hundred thousand tons q!
steel and fiyc hundred thousand barrels
OF cement, and since that time prices
ha gone up from 10 To 20 per cent