New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-02-15
Opponents of Contracts Conceal
Advantages, He Declares,
as Hearing Ends.
CITY OWNS NEW SUBWAYS
Municipal Construction Also
Obtained and Skilled Oper-
ator Gets Lease-Crowd
Wants Action.

or the Board OF Aldermen on tne nCSdtlNe
and Borough President McAneny on the
affirmative the two-day hearing on the
proposed contracts for the dual transit
system came TO a close in the council
chamber at the City Hall at G 80 o'clock
last night. The temper of the audience
was plainly i'll favor Of the immediate
signing of the contracts, and one taxpayer
from Brooklyn wanted the chairman to
act within few hours.
All the members Of the commission.
with the exception Of Commissioner Cram,
and all the members of the Board Of Esti-
mate. except Mayor Gaynor and Borough
President steers Of Brooklyn were seat
cd around the desk in the council cham
Der When President Mitchell descended
20 the floor to make his argument against
the contracts he was Intercepted by Con-
troller Prendergast and President Nc
Aneny. on the other hand. President
/ Mitchell and Commissioner Maltbie shot
: all sorts of questions at President Nc
hueny when he was talking
Borough President McAneny laid great
stress on the fact that the city was get
ting many advantages in the contracts
which their opponents had been careful
not to point out. He said in making
bargain with the companies it had been
| necessary to give as well as take, but the
1 ADVANTAGES to be gained by the city were
worth everything that was conceded for
them by the city Speaking OF the arsu-
| ment OF the opposition that the bankers or
the Interborouch were going to make a
| big profit on the purchase of the bonds, he
! said
Are We going to stop to arrest the
progress of all future subway building
until the American system of financing
con he reformed?'
City Absolute Owner Of Lines.
Ending his argument. President Nc
Anenv pointed cut the following things
that we're 10 be gained by the city in the
contracts:
In the first place the new lines are
20 be- owned by the city and not by the
company that will operate them; we are
gaining absolute municipal ownership of
the city's rapid transit system. AS
have said. every line. every dollar OF
value vests in the city immediately
I'VE are gaining absolute universal mu-
nicral construction. which has been the
second slogan. and properly so, because
we did not agree to the companys propo- |
sition that they build these lines, and
that We should contribute so much OF
our money and our millions for their pur-
poses but We insisted that we should
build them. that we should let the con
tracts and that they should pay over our
counter the quota of money We eXacted
Of them. i'm other words. VIC are getting |
municipal construction. ard We are get |
ting. as I have pointed out. larger |
measure Of municipal control than we
had ever dreamed possible few yeats
ago.
And while there are many who adyo !
cate tho furthest step Of municipal opera
ton. just as there are many OF us who
believe that to-day, under existing CON
ditions 1t would not be wise. we have
reserved TO the city the right 10 take
the roads after ten years by any OF
the methods Of recapture ] have men
ltioned. II then it is deemed wise TO take
leuch a course.
With the ownership of this vast system
we gain the services Of skilled OPERATOR
J for its development. and by placing the
whole matter upon a business basis, cor
trolled by such a body as yours. we arc
! making the best possible start. and we
are going 10 develop these lines TO their
! full value under this management.
! and mark me, il it should be deemed
wise to take the furthest step we are at
ttiberty 10 do so: and we are gaining this
I've are gaining service. the development OF
lparts Of this city that have been neglect
led. where real estate values have fallen
lis at a standstiD because it has so long
waited tor this subway. this vivifyinG
blood OF new traffic.
"Tho Department Of Taxes and Assess
ments has figured out that through the
building OF these lines there will be at
least 50o0Oo,0cO Of taxable values. and
that means that at our present rate of
taxation not far from $l0c00.cO will come
On from added taxes"
What marlborough Gives Up.
Speaking Of the preferentials given to
tAhe Interborough. Mr.. McAneny said
"In return for the protection of their
fines from the losses that otherwise they
must suffer for brief period Of years
they have given us free carriage of our
nassengers over the new lines and old
three times the mileage. as I have said.
They have given ms the investment or
sl45o00Cco without further return to them
upon that than the carrying charges OF
the money. and they have practically lin
tied their chance of profit on this rebled
evstem 10 the earnings OF to-day until the
city shall have earned like amount.
enabling both from that point forward to
divide as they so along
President Mitchell argued that there
would DO the incentive TO financial jug
glery by which profits might be turned
into the Golfers of some subsidiary com
pany. lie spoke Of playing with the sys-
tenn as a political machine. Il do not
mean" he added. that necessarily any
one of the political organizations in OK