New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-12

or the many letters that passed ne
tween Morgan e. Co. and Mr.. Shonts
rome impressed the Thompson commit
,.e an much as one written by MI.
shonts TO the hnsnciers on Apr'i .
1879. This was about year before
,he contracts were signed by the rep
re,entat.ves Of the city and the com
panies
This letter. which went into com
pletc details OF the part the city ana
Enc Interborough would play in the
contracts. WINS the basis OF long hne
Of questioning Of Mr.. Fisher by MI
Colby.
I, il was foreshadowod the Admiral
Realty Company's test suit against Tue
lntcrborough and the city TO determine
( The legality Of the contracts. ! ne coun-
sci on both sides in this suit, 1t was
shown recently, were paid by the H.
terborough.
All n. questions asked by Mr.. COPY
caught 70 show that the city got 'he
moor end OF the bargain. and the re-
lnctsnt answers OF the witness bore out
tho contention Of the committees eoun-
sci
April ., 1912.
Messrs. j. p. Morgan Co. 40. -
Wall Street. New York City.
Gentlemen: The City OF New ORR
and the marlborough Rapid Transit
Company have agreed upon CONTRACT
hv which the city and the lnteroorough
Rapid Transit Company shall build ana
he Interborough Rapid Transit COM
pany equip and operate extensions 10
the present subway, particulars OF
which are fully set forth ard described
in the inclosed analysis OF the pro
po,al OF the Interborough Rapid Tran
sit Company TO the citg. The agree
ment has been entered into subject on
both sides 10 the reservation that "
shall be passed upon By the courts De
fore any action Is taken under IL an
all agreements suggested d" lh's wv.
are 10 be taken subject 10 the s""e
provision. l. ..o,ireJ
ror tho construction Of the new subway
~ s112 600 600. of which sum the Inter
borough Rapid Transit Company agree
"a contribute one-haif. should inc
+ construction cost exceed this amour
Tho CITY agrees 20 furnish the Addl-
tiona smount required. ..-
Tnder the terms Of the contract tic
Interborough Rapid Transit company
+ will modify its present leases. uNlug
/ the expiration Of all its subway leases
+ a. fortv-nine years from the compile
non OF the new subways. The company
,I be authorized 20 take annually
during this period from the aggregate
, ~ earnings OF the old and new suD-
F ,eavs the sum Of S6.935,000, being the
average amount Of the net earnings
during the last two years on the pre-
ent subway; also the sum OF $4'oZoV"V'
, the equivalent % 2 per cent interest
and per cent sinking fund. on the IN.
restment hy the lnterborouIh RAPID
Transit Company Of - ',OOo,ooo o. re"
money. VIZ, $4,000, 600, the company :
contribution toward the cost Of CON
struction. and S2l.0oo.000. the est
mated total cost OF cquipping the me-"
J. subways. These payments arc TO BE- ("
first charge on such net earnings and
/ arc 10 be cumulative.
Manhattan Railway Company The
( Interborough Rapid Transit Company
is lessee OF the Manhattan Railway
Company. which owns the elevated raul
ways I'm New York city and receives au-
thority. under the agreement With the
. city. 70 make extensions and additions.
including third tricks on the Second
Avenue. Third Avenue and Ninth Ave
nue. elevated lines.
The estimated cost Of these cxtcn-
sions. additions and equipment Of same
IS approximately S3o.00o.o0o. The city
and the Interborough Rapid Transit
Company agree 20 divide equally the
additional earnings produced By these
extensions beyond interest and sinking
fund on the new money invested. The
average profits Of the Manhattan Rail