The sun. [volume] (New York [N.Y.]) 1833-1916, 1913-01-31

, uu. - TIA. clauses wh.,h has come
; III Tor public criticism was that which
! pro, idod frl q board II arbitration in
3 case uf dispute between tn. commission
! and the lnt.rborough In the contract
| for the present subway it IS provided that
! each party shall appoint an arbitrator
and that a third shall h" chosen 10y the
pres dent of the Chamber of Commerce
or the president Of tho Bar Association
I This claus. vas put bodily into the first
drafts " the new contracts. II was
, changed Yesterday so that the third
( arbitrator Will b. named 10y IL, chief
Judge ~ the cour, of Appeals The
! chang. was mad" also N the contract
FOR thu BROOKLYN Rapid Transit COM
panS
Roth companies are Forbidden tu .Lake
contracts for sdppIies or maintenance
to run over Nv years or contracts for
power TO run over ten years In the
former drafts of the contracts such
engagea"uts could h- entered into for
an ind"tnit. period and II was feared
that tn" companies might make con
tracts with subsidiaries or outsiders
prior 20 III" time when the commission
viii have power To supervise their
activities
I \ claus N n, lui.rboroug contract
which has excited tn, criticism "f Mr
! Malthi. was that which provided for
! the exchange of legs ot the present tube
/ for a section of the new subway. So that
| Tia" city could tan" for .'S own opera
tinn part Of lhs present Inter hu'uHsh
| line To form with the Lexington Avenue
! subway nr ih, Seventh HycnUr subway
complc,, East or West side lne, Mr.
Malibic pointed 20 q proviso n IN" con-
! tract which read that a section Of the
! present subway could ps taken N'r
provided no lien uf a duly authorized
mortgage he disturbed
"Nortgagr" Clause stricken ont.
! TINS prov SO. Nj Maith.c held, nUlt.-
, fled the whole proceeding. The lnier-
horuUgh- Metropolitan Securities Com
pany has used lnt"rboruugh notes as
| security f"r lts mortgage and has for
| hidden IN. lnlcrboTough to par with
any OF its property. since IN" Inter
| borough metropolitan company is not
a parry to the present engagement th"
provisu would be ID bar 10 the exchange
Of legs So the pruviso was stricken
out of The contract Yesterday.
lntrrboruugh real estat" worth APP
prpNimatel> slO0Y,Oo0 was to he paid
| for out of earnings. Their" Is one plot
AT 21sth street and the Harlem River
which is worth about sSS6.000. As the
contract was originally drafted the In
| terboroueh was to be allowed 10 issue
bonds against its present property TO
the extent Of s;S,00O.o0o, and this prop
! ertN was held not 10 hr included in it,
| and paymcn, was to he met ont Of
| futur" earnings
II was pointed out that tn" Inter
borough would then receive doubl" pay
mont for its real esta'e. So the pro-
vision for payment out of earnings was
cut out of the contract.
\ similar rule was held to apply 10 a
| section OF the track which the Inter
! borough owns beneath the present sub
way station at Times Square The
tunnel connecting platforms in part
OF this unused section, The line was
put down in the beginning as the start
for an marlborough subway under
| Broadway, hut under h" dual system
the Rroollyn Rapid Transit Company
will operate This line. In giving up its
righ, to this track, which will proba bis
! be thrown into the brooklyn Rapid
Transit Times Square station, the In
terborough asked an allowance of SilS,-
/ 900, but il was pointed out that this
sum too was included in the $4,000 900
, bond issue. This provision was cut out
ShOnt. May MAKE Flight.
AZ the contract stood. the INTERIOR