New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-12-12
Accepted New Conditions.

Ne found that the contract. as su9 40 ,he
tod lnstctd nf rejecting the terms OF tne
renort approved by the Board OF hsti
mate on May q. contained many new mn
ilrde n some provisions, sCine OF WihCu .a'
been considered in the preceu'ns inese
addi,i,ns uecessitnt.G radical mOdlncs-
tious Nevertheless, We put our VIZ ~
tine and energy upon the work appToh
Ing the question WIN ,he dttfo c and
u,ifbin two weeks from the recelp' OF VA,
tentative draft We transmitted III pII, u
form 10 the commission our subb.stt.L
changes. Then followed c0hIer eli ''o,i lie
thav yielding somewhat, but up 10 tIe
nresent day we have no lnformauoI' as W
the commissioners conciuslohs ", -, ,ara-
euage OF any one or the huHuieNs VI P
Gro nbs IN that contract $1,000 -.
'Enr mis- situation / do not feel that 9ur
comnany liz I'm any respect 10 DIANE
started out I'm this transit calIlpa ass g.
hroad lines OF policy, We nave tuhereu "
biSb standards OF frsnkness ana falr pay
a.. onnan,iatlous. we have made concession
af,cr concession ia terms; relying uPon
the good faith OF the city We nave hi'""t
our own good faith by proNlulns ~ a"
vance for tWo-thrdH or the money ~ ~ ~
| ,,,d.r banking arrangements, Whlch nave
ontv hecu commended ana nowhere cIlu'
ci.ed. and with the hope mat having 'n M
money on hand We might push WIN al
possible energy the |orS cor .. ,ba, we are
dis,ppointed and discouraged that no OF.
Grating contract In yet IN mana IL pu,
feebly echoing your own sentiment Vi
| WEAKNESS. -. 40, g..
| forrued us OF their conclusions as 10 any
| ~ the matters I'm controversy In inc con.
| tract we cannot do more than guebs AZ
what the differences stu ekistns are
| that guess being based upon our lnltI
probation Of the attitude asshme1 III con
| ierences by the various members OF inc
Ynu refer. however. particularly TO the
question OF interest. because TINS question
| Is publicly reported as being tne onIS
| serious question remaining unsettled, ana
as TO this question ] am glad TO put our
own case before yourself and associates
| The matter involves tho dennitiOn OF ,ne
| cost OF construction or the cost OF equiP-
| ment Generally speaking. there = no
difference of opinion I'm private or public
practice or theory as 10 the pr'Posiuol,
| that interest paid during the progress OF
construction on moneys prov lded for Goa,
| .truction If an element to be computed
| a, the final cost OF such construction
Every man who builds house, every
| contractor every manufacturer, every
! corporation. knows that the use OF money
during construction must Dc consiue, 20
as part Of the cost Of construction ana II
| that Individual or corporation ~ prudent
| and unless he or II has unlimited re.
| sources to be commanded AT any time.
| money for construction requirements VIII
| be provided literally In advance. The
failure to make such provision u eyer
day leading individuals and corporations
| into bankruptcy. The people OF Brooklyn
| know that II was this failure which
| brought disaster upon the hrst atteinlts
to give rapid transit To Brooklyn. You
DO not have 10 look far Into your own
| territory OF South Brooklyn TO see many
instances where buildings are incomplete
| or unoccuplcd because the builders failed
| TO provide themselves with surlcient
1 funds and construction has ceased OF
| title has passed TO mortgage creditors
Question Of Interest.
Now. what did the report upon which
| the Board OF Estimate and Apportionment
| based it's resolution OF May "A last say as
TO this question OF interest during con-
structIon? II defined the cost OF construc-
! zion whether borne by the city or by the
operating company; as including all car,
rying charges during construction and
IL defined the cost OF equipment TO be
| furnished by the operating company az
Including "all carrying charges on the
cost Of equipment prior to the operation
| thereof
Broader language than this could not
| well have been chosen. Was there any
| question what II meant? III So could
there be any better Interpretation than
the definition embodied In a formal order
| of the Public Service Commission adopted
on December s. 1908. outlining the manner
in which the accounts OF the public ser
vice corporations should be kept? That
| definition Is as follows:
INTEREST DURING CONSTRUCTION.
Charge TO this account the interest &C
crued upon all moneys land credits avail
| able upon demandJ acquired for use In
| connection with the construction and equip
| nent OF the property from the time OF such
| acquisition until the construction In ready
/ for use Interest receivable accrued upon
| such moneys and credits shall be credited
| 10 this account. To this account shall also
be credited discounts realized through
| prompt payment OF bills for materials and
Il LIZ at.lLct LIZ.