New-York tribune., 1912-01-24
lav,yers Hold a Conference.


Lawyers Hold a Conference
Francis Lynde stetson. counsel for the
banking house of ]. Z. Morgan IL Co.
which would finance the new SUBWAY
ope-a tions OF the lnterboroush' IN"
George 5. Coleman, counsel for the Pu"-
IL, Service Commission, conferred l"r
several hours yesterday over varioG Z
legal points involved in the proposed
agreement. The principal point con-
sidered. it was said, was the Legality OF
the city offering any preferential paw
mcnc-to the Interborough. The question
is based on the constitution OF the state
which prohibits the city from lending Us
credt, to any private corporation
Uanv 'awyers. however, have already
stated their belief that the city can
grant a preferential payment, whereas II
could not well offer guarantee. Under
a guarantee the city would have 10 dlp
down I'm it's pocket and make good dny
dclici; that might occur in the $40 per
cent. Under the preferential payment
the Tnterborougn would get that amount,
or as much Of 1t as there was to get, he
fore the city got anything.
Mr.. Stetson and SIR. Coleman started
their conference at the Downtown AS
sociation. in Pine street. and later went
to the Offices OF Mr.. Coleman, In the
Tribune Building. MIR. Stetson left MT
Coleman's office and had a long talk
with Chairman Wilcox. None OF them
would discuss their conference for pub
llcatiOn.
It is also understood that the Inter
borough has agreed To the contention of
the city that the latter be not required
10 pay for the equipment OF the subway
Al the end of the lcasehold period, after
the equipment bonds had already been
amortized out OF earnings and the main
tenancc charges had been taken from
the same source. Just what disposition
will be made of the contention OF tbs
city that II should not have to pay thf
interest and sinking fund charges after
the bonds had been amorti2ed is not
known.
Wants City to Make Proposition,
President Shonts since he announce
after withdrawing his offer in July that
the Interborough would make no morJ
offers so long az lie remained president,
has been careful not to appear 10 b.
dickcring with the city officials. Every
thing has been done through third
parties. From what he said yesterday It
would seem that he wants the city To
make the next proposition. In other
words, II the city representatives agree
To what the ntcrborough has informally
laid before them the latter may MAKE
public a proposition to which the Inte"-
borough can th0n publicly agree.
Colonel Williams, president of the
Brooklyn Rapid Transit Company, is
mucn disturbed about the turn subway
negotiations have taken He vas
pressed To say whether his company
would withdraw its offer In case part Of
the lines that wore tentatively awarded
to IL in July were now turned over TO
the lntarborough. lie would not make
any direct reply, but declared that bolh
NbNNIblleI iIfiluNI Bust anu I-ItSlutIl
ut a meeting in Brooklyn hqd
publicly stated that they would see that
the implied contract of the city was car
ried out.
There was some speculation yesterday
as 10 just what could be done with the
Broadway subway one section of which
is already under contract I'm case the |
Brooklyn Rapid Transit Company should
not operate II through a connection with
its lines I'm Brooklyn. IL was learned
that the Mayor had suggested that the
Broadway subway might be operated,
possibly 10y the city, from South Ferry
TO 59th street for a fve-ccnt fare, anu
give free transfers to the Staten. Isllnl
and the 39th street ferries, or possibly
charge one cent additional for such
transfer. He is said to believe that suen
a line, getting all the short haul traffic,
would be most profitable.
s3e,375,472 Available for Subways.
The Mayor in his annual message to
the Board of Aldermen went on TO say:
| particularly call your attentic" =" 'h-