New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-21

ne b!dctCdl guarantee 10 the 'oilNdH'
OF S6.33J,Vu In the preferential paNlnehi
allowed on account Of old capital invest
ed III the present system, L. based upon
earnings from Inadequate service ana IN
decent congestion. Is predlcaltd "p1h
false accounting and indeienslbI( Pau-
ded 10 the extent Of "A vast sum- WhIc" u
thereby donated each year by the Guy
10 the company.
The Interborough contract offers no IN
centivc or reward for efficient or ecoi'H IN
zeal operation, but does offer every IN
ccntive for chicancry and poliicaI mhiilP-
ulatiOn
The plan effectuated 10y this contract
contains none of the auNdi taStS oi pr.
Vate management. but pracu'alN an vl
the observation-disclosures features Of h"'lc'-
pal operation.
BY insuring that the city Will never re-
ceive interest and sinking iund upon ItS
bonds issued for construction IL pitN'H'H
the exemption of these bonds from tie
debt limit and thereby impdlrS lhe Guy
subway building capacity Tor the Iu'uie'
Mr.. Mitchell laid particular stress upon
his objection to the plan for the sale OF
the lnterborough's bonds 10 J. +. Morgan
& Co. the underwriting syndicate. at
gSia The lnterborough AT the same uh'e
asks permission of the bankers to reure
the bonds from time to time at Ill., MI
Mitchell said. He made the point mat 'he
bonds were To all practical lnten's anu
purposes being secured by the contracts
guaranteed by the faith and credit oil the
city. and should be put up Tor compeu-
! tive public bidding ON the sale.
Mr. Mitchell declared that the extent 10
which the commission had surrendered
| its control over the lnterborouSh coIh-
pany was shown by the section of the
contract which provided that the payrolis
of the company in force December l. 49,
which had not been produced FOR the IN
spection of the commission. were not
subject TO audit or objection upon Dehai
of the city. though all the city's eNpendl-
lures relative TO the cost of construction
, of the new lines had to be- approved 10y
the companys auditor.
Interboroueh Salaries Up.
This was "A pretty important section. he
said in view of the fact that there had
been material increases in salaries OF the
executive officers of the lnterbOrough be-
tween the time of the agreement last May
and December l. 1912. Nj. Mitchell SAID
afterward he understood this increase III
salary applied 10 the president of the
company and other executive officers.
T.. T. OLoughlin Register of Kings
County. indorsed President Mitchels on
jeCtions. and caused excitement ana
general laugh by his loud denunciaiion 81
the project. which he termed gigantic
steal" Other citizens and representatives,
of civic bodies argued pro and con IN
noisy manner. Professor Samuel McCune
Lindsay. of Columbia, urged prompt ac-
ton i'm adopting the contracts ana sus-
gested that consideration should he shown
the employees in the subways by inserting
an eight hour workday clause IN the con-
tract. Mr. Mitchell applied many of his
objections to the PETERBOROUGH contract
TO the proposed contract with the Brook
Ign Rapid Transit Company, and added
others specifically.
Chairman Wilcox, after the adjourn
m,nt Of the hearing. gave out statement
answering some OF the principal onJec-
lions made 10 the contracts by President
Mitchell and others. He said there was
no difference Of opinion on the point That
all the lines which 1t is proposed 10 build
ought to be built. and that if the city had
the money il could safely use ii all for
building these lines. The money 10 he
supplied by the two companies TO the con
tract together with the city, was provided
for to the best possible advantage of tn
city he said.
Wilcox Defends Contracts.
1T should be remembered he said.
that the Interborough company furnish
Ing. a. it does, S71.CppDy0, does not get
penny more than il is earning to-day
until the city receives about SO per cent.
The $77.cc0W0 is raised by the sale OF
bonds. and after interest and sinking
funds on these bonds are paid the city
receives the interest and sinking fund on
its payment. with an additional amount
which brings the total up to SIS per cent.
after which the profits are divided be-
tween the city and the company. II Will
be- seen from the foregoing that the com
pany after all its outlay and the Couse-
quent enlargement Of its system. gets not
a penny Of additional profit over what it
is making to-day until the city's share
has been taken care Of
Borough President McAneny made reply
last night to some Of the attacks that had
been made on the forms of the proposed
contracts He summed up his remarks BY
/ SAYING that the plan now contemplated
was the result of two years OF harl and
patient work. in the course Of which the
companies had been beaten down 10 tho
last degree Of what they considered it
possible TO accept"
The commission continued the hearings
on the proposed elevated line extensions
! In Brooklyn and Queens at the morning
session. The Rev John l.. Bedford. pas
tor Of the Church Of the Nativity. spoke
against the proposed crosstown line
! through the Bedford section. and created
sensation by declaring that "one OF the
! biggest politicians In Brooklyn" had tried
10 sail him off, from attending the hear
/ Ing. Or. s Parkes Cadman, pastor of the
Central Congregational Church, also
spoke in opposition 10 the line.
Edward NJ Bassett. former Public
. Service Commissioner. tainted evidently
as result Of a severe attack directed at
/ him by DR.. j. Richard Kelvin. a promi-
/ nent Brooklyn physician. who intimatcd
! that Mr.. Bassett was employed by the
! Brooklyn Rapid Transit Company to
speak in favor Of the extensions. As soon
! as Mr.. Bassett recovered his Composure
, he declared he had been working hard for
many months as the legal representative
I OF property owners in Queens and South
! Brooklyn In reference to matters touch
! ing upon the marlborough. as well as the
Brooklyn Rapid Transit