The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-05-24
TRACTION TRUST HOPES TO MULCT
CITY OF S7OO,OOO,OOO IN LONG CONTRACT
(Continned from Pnnc One

Continued from Page Ope)
directors were practically the same
set of individuals who were behind the
Interborough Rapid Transit Company
when il was later formed
1t would be too long story to go
into the records Of graft and corrup-
ton, the buying off of city officials
and the plumber of public funds which
accompanied this deal. 1t need mere
ly be said here that out of an original
investment of approximately $10,-
100000, the Interborough Subway
Construction Company made oyer
$10,000,O00 profit. This profit as
well as the exaggerated original in
vestment was turned in as part of the
Interborough Rapid Transit Com
pany's investment under Contract No
/.
Other Contracts Even Worse.
The conditions under which the
agreement with the subsidiary com
pany of the B. M. 7. were carried
out were no less vicious though on a
smaller scale. Bad as these condi-
tons were, they are nothing as COM
pared with the circumstances sur
rounding the execution of the later
Contracts Nos. and A. Under the
first two agreements the city sunk
some S63,0O0,O00 already referred to.
Millions of this amount were plainly
plundered through unnecessary and
excessive construction and excavation
costs. But at least the city has re-
ceived about 4 per cent return on the
investment from which it has been
able to meet part of the interest on
the bonds floated for the purpose of
raising the principle.
In the case of Contracts No. and
No. 4, under which the city has in
vested over $240,O0O,OO0, the swindle
was so executed that the city has re-
ceived not a single cent in interest on
this enormous investment. In addi-
ton it has been forced to meet a
yearly deficit now amounting to over
$11,000,000 to cover the interest
charges on its bonds. The total of
these yearly deficits has reached
sum which is rapidly approaching
Sl50,0O0,000 of dead and irrecoverable
loss.
Dual Contracts.
These Contracts No. and No. 4
were likewise executed with the I. r.
T. and the B. M. T. They date from
March 10, 1913. They came to be
known as the Dual Subway Contracts,
Incorporating and superseding the
earlier agreements. The excavation
and construction work was again paid
for by the city. The companies doing
this work were again the same con-
Germs which operated the subways.
OF the $240,000,0O0 now invested
by the city, vastly greater amount
than in the case of the earlier con-
tracts was plundered from the public
treasury through the padding of con-
struction accounts, double charges,
wholesale corruption and unchecked
graft. But this was by far the lesser
evil!
The conditions under which the
traction companies undertook to oper-
ate the completed subways stand out
as a monument of diagrace to the
people and the public officials who
permitted such conditions TO be exc
cuted.
Lines To Be Built.
Under Contracts No. and No. 4, |
some 4S miles were added to the l. |
r. T. lines and about 80 miles were
added to the B. NJ. T. On the l. R. T. |
there was built the Seventh Ave. ex-
tension from Times Square south
through the Clark st. tunnel into
Brooklyn. The east side line was
built beginning from Grand Central
RIISINESS e DROEES