New-York tribune., 1913-07-25
P. S. {. APPROVES PLAN
FOR STE|NWAY TUNNEL
lnterborOugh to Reconstruct
Under Supervision of Com.
missions Engineer.
MALTBIE OPPOSES SCHEME
Company To Be Reimbursed for
Actual Cost Plus Ten Per
Cent to Cover Admin.
istration Expenses.

BY vote Of 10 l. Commissioner Malt
bic voting in the negative and Commits
sioner Cram being absent, the Public Ser
vice Commission approved yesterday af-
ternoon form of contract for the re-
construction Of the Steinway tunnel and
its equipment for temporary operation
The contract. or agreement, is that the
I lnterborough Rapid Transit Company
which has taken over the property from
the old New York & Long Island Rail-
road Company shall do the work under
the supervision of the chief engineer OF
( the commission. As compensation the
company shall receive the actual cost OF
the work and the materials. plus 10 per
! cent TO cover the expenses OF administra-
ton. superintendence, engineering and
legal expenses directly connected with
the work. The company intends to do it
| through the Rapid Transit Construction
| Company, subsidiary
As the company has agreed to turn the
tunnel into the general subway pool as
$4,000 Of fits promised contribution Of
$5S,000 900, and the cost Of reconstruction
will all come out Of what is left Of the
contribution, this cost vitally affects the
city's interests.
At first the Interborough wanted IS per
cent TO cover the overhead charges, and
Chairman Mccall said he was willing to
grant that amount. After much argu-
ment. however. the contract was modified
TO 10 per cent. II is understood that the
Interborough will be willing TO accept the
10 per cent
Explaining his opposition Commissioner
Maltbie said the proposition was in direct
violation of subway contract No. 8. which
provided that the cost of construction
should be limited to the actual cost IN
money. and that If any increase or profit
should accrue directly or indirectly TO the
lessee Cthe InterborOugh Rapid Transit
Company that such amount should De
applied 10 reduce the cost of construc-
ton. The only exception, he said. was
where the Interborough company or a
subsidiary should secure contract
through competitive bidding He made
the further point that increasing the cost
of construction put off the time when the
city would receive profit.
A member Of the Board OF Estimate
said last night that the contract would
come before that body. and intimated
that some objection 20 it might be raised
there.
Advocating the contract Chairman Nc
Call said that it was a great emergency
and that there was no reason why the
Rapid Transit Construction Company the
subsidiary Of the operating company
should not do the work, as IT was per
fectly familiar with II. lie was tired OF
the delay and thought something ought
TO be done at once.
Leroy r. Harkuess. counsel Of the com
mission. said he thought the overhead
| charges on the work ought not 10 be more
than per cent, but Chairman Mccall
| said some Of the commissions engineers
| had estimated that they would exceed
| that IL was suggested that the time that
/ the various officers and engineers of the
/ Interborough might give TO the work De
/ estimated pro rata. This suggestion was
rejected, however az being impracticaDls'
II is estimated that the cost OF the
work will be about $4,000, out Of which
the Interborough company would get an
extra allowance Of $4,000. When the tube
IS reconstructed and equipped for tenn
porary operation il will be operated from
42d street and Park avenue 10 Jackson
and Van Alst avenues, Long Island Ci'y'
with free transfers 10 and from the exist
ing subway.
The commission awarded yesterday the
contract for the construction Of Section /
Of the Broadway line Of subway 10 the
K. L. Smith Contracting Company the
lowest bidder for t205s102 90. This sec
ton lies between Union Square and -6'h
street and includes the express station az
Union Square and local station at 20
street or Madison Square.