New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-02-12
ShOnts Letter to Morgan
Shows Costly City Deal
Give. Details of Subway Contracts Year Before i"e'
Are Signed - Foreshadows
Test Suits.

way Company lease for the last Two
wears have been approximately Fh'
100000
Tho amount. required to be raised
bv tho Interborough Rapid lrahsl'
Company are AZ follows: ,.o..,o.o
For refuniins its present deb ma ''''''N''
For construction ~ nsF snnN1 inner "a oao ooo
borough company's ono ham ...-..,- '''''V'
FOR Msnid-n Railway Improvements "a ono ooo
r6 ~, Equipment o, new subway. 1900 'oo
Fog other charges Including u''''''' 300. ooo
~, ,io7l5s.3so
In order 10 procure the necessary
funds to carry out this contract, ar d
retire it's present debt. the INTERIOR
ough Rapid Transit Company proposes
70 issue new first mortgage I'VE PEI
cent hfty-three year gold Donds 70
the amount Of about Sl7O,OOO,OVO ne
mortgage securing these bonds W,ll
also provide for the issue OF such aNd'-
tional amounts Of bonds as may De
needed Tor extensions and improve
ments as may be authorized By the CITY
and agreed 10 by the company during
the period OF the lease as provide III
the agreement. .r
A sinking fund OF per cent VIZ
be provided for, 10 begin hve years
from the date Of opening the re"
subwavs or i'm any event not more
than ten wears from the date or me
bonds. Bonds may be drawn Tor me
sinking fund al 10, or bought IN mo
market AZ lower price, and BY me
operation Of tho sinking fund Will be
paid off during the term Of the lacse
Our company has agreed 20 sell To
YOU and YOU have agreed 70 buy from
il about Sl70.000,G0O Of these bonds 20
provide Cor the company's financial re-
auirements for construction and equip,
ment OF the new subways, elevrte
extensions and improvements. and TO
refund the present debt OF the com
pany. the bonds to De taken and paid
for "a follows:
Duins 20. y,,r from july g. 1914 20 -, mn ooo
DSria s 5 n. g,sr from july l. 1918 70 mo ooo
Dung a1s ,6e 5esr from July l. 1911. TO ,,,,oooo
DUN, s m, tsar from Jui, ]. 1911, % .....
June so. 1915 not more than '-''''''''
r.,, $40 900 ooo
All OF any part OF such annual insta!-
ment Of bonds may be taken ana pau
for by you AZ any time during the year
Your company has also agreed thst
the syndicate which you VIII form 70
take these bonds will divide equal "
with this company any amount re-
cpived on the sale Of the bonds 10 eN,
cess OF an average price OF par ana
accrued interest
Whom the subwavs are completed tie
Interborough Rapid Transit Company
o,,ll have a prior claim on the net earn
,nes Of the properties. which claim VIII
aggregate Sis,j6S.000. This IS made up
"a follows:
A,c,aFe , annual ,. .' ,d ,so ,s.,. $50 900
r.r cert interest and per cs,'
nusl sirNng fu0d $50 81 100000 80
amount - frferno-olghs res h''t so. .oo
ln',re., AMI ,n.aa ..9sins fIaa o. a. q.
ET ,,.iss ~ .s.o, WV ,.i 6 200 oc'
rfaa,. from Manhattan hnivay 's..s
,s.i rs" year, have Averaged snnuaiv. 'i' 900
During the iss' tr9 yssr' ne a',.ss'
annual earr'nzs ~ the pr' sen l,op
critics. including prof', rom he MA
haitian RdIs4T lease. snd other DO ,f.o mn
,p, i11 ~ aa siaooo ono o, rev naa,v
provided b. no riiv. there VII -
Dion ne nee suheay' and el,'a'et
extensions s-e ronpI"'ei rev
.,.' sa p,ss. ;aa'sa'' 49, ' l,'
Al b. BE- oon'ervaii''1 es mated in.'
dung re first four fs7fs rf'-a' oI
otter ,hc res shsst, sre ol'' ei '1-
stiI.ir' sar'i'', 800, .-.m .,s
- rove thereon. or. cav .in''A4'ns ,.,, .,,
Al ,ro, t,.anlns With no 'l-o
,es- ,he ci-uIrs, should amop7' %
,.9 1.-' - q, 20 ~ ''''' on Tue s,,''o'
90 ue OPERATION = fne n-s .ln'ai.
Ito ss-ressfe annual re. earn'ngs O. -,,..
.." a..