New-York tribune., 1912-01-23
EXPECT NEW |. R. 7. OFFER
Preferential Payment May Take
Place of Guarantee by City.
s.75 PER CENT MENTIONED
]. P. Morgan & Go. May Form
Syndicate to Furnish Subway
Construction Funds.

Kea, NlCe"preSldent or the pennsylvania
Railroad, after the conference at the rooms
Of the Downtown Association on Friday, it
was predicted last night that it did not
mean that the Interborough would finally
come back into the subway game. Tho
main thing that will be dealt with in the
reply of the Interborough. it is understood
is the question of guarantee or preferential
payment.
The city's representatives suggested, aC-
Cording to report. that, while a guarantee
could not be allowed by the city, a pref
orential payment was another matter. To
this the Interborough will accede, it is said.
The amount is SIS per cent on approximate
~ S4S 100000 that the 1nterborough has In
vested in the present subway and some
thing over $4,000 900 that It proposes to in
vest in future subways.
1t is not at all improbable that the Inter
borough, assuming that the city will allow
a preferential payment Of $40 per cent,
will formulate another offer on that basis.
But there are other details stin TO be
agreed upon, and it is great question as
10 whether they can he worked out salts
factorily.
There was a three-hour conference yes
terday afternoon at the Offices of the Public
Service Commission by Chairman Wilcox
of the commission and Commissioners
I,ustis. McCarroll and Maltbe, Control
Ter Prendergast and Borough Presidents
NIcAnenv. Miller and Cromwell. When it
was over It was stated without reservation
that no definite agreement had been reached
with the Interborough, and care was taken
TO emphasize the fact that, even should the
1nterhorough Weld to the preferential pay
rent idea, instead of guarantee. 1t would
not mean that a final agreement on all the
pojnts involved could be reached.
No Offer by City, Says Wilcox.
Chairman Wilcox was asked II the In
terborourh had been asked TO resume di-
rect negotiations with the city. lie re-
rIied. The city has made no offer to the
1nterborough and. so far as L Know no
member of our conference has asked Tor
any further conference with the INTERIOR
ough'
Aske5 in regard to the fundamentals"
all Chairman Wilcox would say was; we
Will not stand for guarantee nut
preferential payment is different.
It was learned, however. that George .
Coleman. counsel. and Leroy T. Hardness,
assistant counsel of the commission would
meet with counsel OF the Interborough I'm
regard TO several legal problems that are
involved
There viii be another conference Of the
CITY authorities Wednesday. BY that time
# is expected they will have, either In
formally or officially, the reply Of the In
terhorough.
we have not been dealing with the In
terborough direct" sand President Nc
Aneny. but with intermediates. These
Intermediates asked US what fundamentals
the city would agree upon, and we told
them. Up 10 date we have not heard
whether these fundamentals would be ac-
ceptable to the Interborough."
I'm the absence of President Shonts, who
returns from Chicago this morning, An
drew Freedman, director Of the INTERIOR
ough was in charge of the Interborough's
end Of the argument yesterday. He made
long visit to Mayor Gaynor. When he
left the Mayor he said: II am extremely
hopeful that an agreement between the
Interborough and the city will be reached.
! think definite statement will be made
by President shonts on his return
Mayor to Do Best He Can.
Mayor Gaynor said he did not care to
comment on his talk with Mr.. Freedman.
Asked whether he would be against
guarantee now, the Mayor said he did not
want to add anything to what he said, but
called attention to the fact that he had
always opposed a guarantee and said that
the Interborough's offer Of December 1910,
asked for no guarantee.
But now we must do the best we can"
he added.
Friends Of the Brooklyn Rapid Transit
Company are fearful that all that the In
terborough wants TO do is TO keep that
company out Of Manhattan. 1t has been
repeatedly said that the B. r. T. would
be satisfied with an entrance into Manhat-
tan and an outlet through Broadway and
18Th street. In regard TO this President
Williams said: I'VE certainly would pre-
fer to go ahead with the entire plan we
originally made and that the city ac
cepted."
1t has been pointed out to the B. r. T.
that If the 1nterborough should get It's
"H" extensions in Manhattan and the ex-
tension of its Brooklyn line up the Eastern
Parkway public sentiment would be
appeascd TO such an extent that Mayor
Gaynor could hold up the entrance Of the
b. r. r. into Manhattan by refusing to
approve the necessary routes. 1t still re-
mains for the Mayor to approve the seth
street route and the Atlantic avenue route
in Brooklyn which would connect the b.
r. T. with the proposed tunnel TO Man
haitian.
The Public Service Commission, however,
is going ahead letting contracts for the
construction Of the lower Broadway line,
which would not be used by the INTERIOR
ough. but is intended solely for the B. r.
T's entrance to Manhattan. 1t is not be-
leved that the Mayor would hold up the
construction of links which are necessary
to make the operation of this route pos
sible .,
Morgan Syndicate Possible
j. p. Morgan e. Co., it is said in well in
formed quarters in Wall Street would
head a syndicate that would furnish the
money necessary for the construction ana
eariproent of the new subways which the
marlborough RAPID Transit Company would
build. II il should reach an agreement with
the city.
II is believed that the First National
Bank and the National City Bank mlsht
be associated with J. p. Morgan co. III
this new Interborough financing and that
a representative of each of these institu-
tlons and two members of the Morgan hrin
would be elected 20 the lnterborough hapiu
Transit board I'm that event.
Tho commission yesterday opened olus
for the construction of Section ?, which Is
lower Broadway between Park Place anu
Walker street. AS the bids were on the
unit system IL will require two or three
davs accurately TO tabulate them ana 30
determine who Is the lowest pidder' IN
formal calculations by engineers yester-
4tyaay fIff1-