New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-01-02
Shonts Says Interboro Is Sturuing:
1sks 8-Cent fare To Meet Situation

Continued fron, plst
fact actually Ct S2ooooco ii casa INTO
is treasury.
Time for Plain Speaking
Il. $ With great reluctance that the
vord panic IS used N this comnauuica-
on IL. shonts continued. But 4hn
'ime has come Cor plain speaking. and
u would be 4 failure Of duty 10 one
partner III al enterprise not TO poilic
out that the bankruptcy OF The ot.ler
partner might be 50 disastrous "a 10
result in d financial cataclysm from
"hioh. as pTominen. bamne. said yes
,~rdaJ a public hearing, nc nation
might not recover IN d sele4atioa.
The city can gain nothing b.. inc
oe~Aruptcs' G. a partner IN the dua!
subway SYSTEM, and yet ie may by con-
tinucd refusal to increase fares pre-
c.pis@te such bankruptcy and still. have
TO lace the problem OF Increasing fares
70 osca9e luiNoAs taxatiol,."
Text of Shonts's Letter
'dr. Shonts's letter follows:
december 81, 1918.
Gentlemen: AS the lease Of the
new subways TO be operated by the In
terhorough Rapid Transit Company
viii commence tomorrow. January I
1919, in accordance with the arrange
! ment made on August /, 1918, deem it
appropriate. at this time to call YOUR
attention briefly to the Importance Of
immediate consideration by you OF the
necessity Of action to remedy a stua-
ton brought about by conditions due
to tile war.
almost from the time when the
original subway was opened, in 1904.
the Interborough began to urge upon
the city authorities the Importance Of
immediate subway extensions to COM
plete the system as planned. Various
methods were proposed and many writ
ten offers were submitted on behalf OF
the company to construct and operate
such enlarged system with funds pro
Vlded exclusively By the company.
Such offers finally eliminated in q pro-
posal in 1910 whereby the company
offered al It's own cost to construct and
operate complete East Side and West
! Side subway with branches in Brook
/ Ign and The Bronx.
Dual Plan Created
THIS offer was not accepted by The
city, although never withdrawn by the
company, and as a substitute the city
brought the Brooklyn Rapid Transit
Company into the situation under tho
so-called dual subway plan.
The dual plan, as formulated by the
city, was so ambitious that it was i'm
possible TO finance it with city credit.
indeed, 1t was beyond the available CITY
credit under the debt limit. and coop
Grafton Of private capital was neces
ssrj. In these circumstances, after
various failures Of the neqotiators to
agree, certain public spirited citizens.
among whom were the late Seth Low.
Morgan j. O'Bricn. l.. II. Outerbridco
and others of similar standing, rendered
their good offices, with the result tkat
& tentative plan was formulated and
the PETERBOROUGH was invited by the
city to participate in the dual subway
enterprise.
The plan provided that the Inter
ard the cost Of constructing the new
railroads Chat being then estimated
AS onc-half the cost) and the citv
would furnish the remainder Of the
cost O. such construction, while the
lntcrborough agreed, in addition. to
furnish the funds for the cost Of the
equipment. then estimated at s22 600
GOO, but all equipment to be furnished
~ the Irteroorough, no matter what
the additional cost
IN order that investors could he
assured of tho safety of their invest
mcnt, the proposed contracts for the
dual system were submitted TO the
courts and their legality was adjudgcd
by the Court cf Appeals IN the summer
rt 4Vl2. The contracts were Nnallv
executed On Jarch 10, 1911.
Sl6o,oo0,OoO Bonds Sold
Tito Peterborough forthwith pro-
eeeded to raise She necessary FUNDS
y beth subway and elevated railroad
ArroTement by the issue and sale Of
sl6o,0o0,o0o Of its first and refundinc
pc" cent bonds, secured by mort
gage upon its interest in tho enter
prise
''From time 70 time as the construc-
ton WORK progressed the Interborougl,
punctually paid every dollar required