New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-31
Radical Changes IN Contract.


Radical changes were determined
upon yesterday in the contract with
the Interborough Tho amendments
which had been agreed upon by the
Public Service Commission and the
transit committee Of the Board Of Es,i-
mate, Commissioner Maltbie declared
would mean a saving Of some Sfo.pp
90 To the city. The approval 20 the
amendments by the TntcrborouGh must
be obtained, but the company WAS eX
pected to give II. otherwise the city
was likely To refuse to sanction the
contract. Commissioner Maltbie said.
The. amendments 10 the Brooklyn
Rapid Transit contract have all been
approved by that company, and some
OF them are common TO the contracts
Of both companies Among the princi-
pal amendments determined upon yes
terday in the Interborough contract. it
was understood. were the following:
|. The paragraph providing as Mr..
Mal,ble and Mr. Mitchell contendcd-that
the city must pay for equipment twice,
once through the capitalization OF the
earnings thercfrom and once for the
property Itself, was eliminated. The cost
Of equipment according to the 1912 re-
port OF the InterborOugh company, was
approximately t5.yr,Hh
. The StcinWay Tunnel will cost the
city 10000 fiat, instead Of s3eo,"", AS
provided I'm the original contract.
3. Discounts on the cost OF future con-
structlon Of Interborough lines was linz
tied to per cent. No limit was set in
the contracts as first reported. This
amendment also applies TO the Brooklyn
Rapid Transit COMPANY
4 The clause relating to organization
expenses allowed the 1ntcrborough and
charged 10 construction was stricken out.
>. The company was required To make
an additional provision FOR depreciation
on the property II now owns.
D. Contracts affecting maintenance and
supplies were limited TO 1--WE years. ana
power contracts TO ten years. That Is
the Public Service Commission may not
approve Of such contracts for more than
that period. Under the original contract
IT would have been possible 10 tic up such
contracts for forty-nne years. This
amendment also applies 10 the Brooklyn
company.
: The amount 10 he set aside for ie-
precialion during the first year was very
greatly increased. approximately two and
"A half times; IL was less than per cent
under the original contract and IL now
over per cent This amendment also
applies to the Brooklyn Rapid Transit.
3. The city must approve, through the
Board Of Estimate and Apportionment.
all amendments 10 the original contracts.
This applied TO the contract of both com
panies, and was not provided for in the
original
o The real estate which the company
now owns is not to BE- paid for and cap
italizcd against new operation. having
already been included in the fS.GDyC. on
which the city guarantees interest The
schedule of property under this amend
ment shows a value Of about S.cO.UC.
10 The company will have To face pen
altics for contract violation. IL any. Orig
inally it, was provided that they could
arbitrate damages In case Of default OF
contract. could pay the arbitrated dam
ages and escape the general penalties for
violation. This applies to both companies.
H. The clause providing for an arbitra-
tion board to consist Of one member ap-
pointed ny the city. one Ey the com
panies and the third 10 he appointed
either by the president Of the Chamber
Of Commerce or the president OF the Bar
Association was changed so that the APP
pointment Of the third member now rests
with the chief judge OF the Court Of Ap-
peals.
Many Changes in 9. r. T. Contract.
Other amendments under the Brook