Year: 1879

The interest evoked in Wall by the fact that


small clique controls the rapid transit in this city.
to which the HERALD has this week drawn attention.
continued unabated yesterday. Significant facts
were quoted here and there to show the skill with
which the entire series of operations has been
carried on by means Of which the workings OF the
whole rapid transit system have been brought rnder
a single board of directors in which the clique
holds sway. One thing of especial importance to
the public has been demonstrated beyond ques-
ton unless it be that number Of reputable gentle
men have conspired to e. and that is that there is
no present intention the part of majority of
the directors Of reducing the fares. statement
that such change had been decided on made
several days ago and for time believed. 1t was
contradicted the next day the HERALD only to be
renewed yesterday and again the public was led to
believe that there had been discussion of the pol
10y Of reduction and that in some shape reduc-
ton would be made. probably by lengthening the
hours Of the running Of commission" trains.


.F+ A TOTALLY UNFoUNpED STORY.


This statement is without foundation. The
HERALD reporter has been assured by ive Of the
eight directors OF the Manhattan Railway Company
that the subject of reduction of fares not been
even discussed in the board for months. and from
such information be obtained it appears that
at least four of the eight strongly opposed to





adoption of uniform five fare Is to their inter
est. They that in order to maintain their
gross earnings at the present figure with fve cent
fare at all hours it would be necessary to carry
double the present number OF passengers during the
present ten cent hours. and that this additional
traffic would impose additional expense it would be
necessary to carry more than double to keep the
profits where they now Assuming that one-half
the passengers now carried pay ten cents land this
is said to be under estimate rather than over) it
would require more than fifty per cent increase in
the traffic to keep from losing money. As the
New York IL" road carries according to Mr..
Guilfords statements yesterday to the reporter)
about ninety thousand ninety tho ousand pas
sengers day. and the Metropolitan road something
like fifty thousand. increase would be necessary
of at least seventy five thousand passengers day.
The directors disposed to doubt that the
would be so large and some are convinced that It
would not.


Notwithstanding the statements Of the directors
given above gentleman who is closely identified
with rapid transit interests In this city. said to
HERALD reporter last night that the subject OF re-
duction Of fares did come up before the meeting
held on Wednesday and that the matter was still
under advisement.


ABOUT THE MONOPOLY.


As to the control of the system being in the hands
y
This is easily by glance at partial list of the
stockholders of the New York Loan and Improve
ment Company. and by remembering the fact that
this company holds the key to the situation. It will
be recalled that tins company took the 900 shares
of Metropolitan stock in the bargain that made
for the building of the road This stock they have
held until now when they are paying it out div
idend on their own stock. The Loan and Improve
ment Company has $3.ooo,ooo capital, in $4,000
shares To each shareholder the dividend now being
paid brings So so and two shares of Metropolitan
stock. The Loan and Improvement Company thus
1t also received block So 500 OOO or one-haf
the Manhattan Railway stock which is still held in
tact in the Loan and Improvement Company's treas
ury So that while 1t holds all the Metropolitan
stock which ten per cent Is guaranteed and the
mortgages for construction. on which per
must first be paid. it holds one-halt the Manhattan
stock which takes all the surplus. And as indicated
in yesterday HERALD. the purchase of share of
Manhattan stock (which is plenty in the open mar.
Company entire control OF rapid transit rs it now
exists. Without competition. therefore, and with
out the conpusion of law, With pressure upon
them but public opinion. 1t is not thought strange
that they refuse to lower the rates of fare


CONTROLLING STOCKHOLDERS


But this Loan and Improvement Company is
again subdivided into stockholders, and while it
is necessary tor this clique to control the Loan ana
Improvement Company in order to hold tho
mastery. There are many stockholders, and ths
clique does not absolutely hold the controlling vote
unless there are more members Of 1t than has yet
been made apparent to the public. The Board Of
Directors may be presumed to hold. collectively,
more than one-half the stock. but the Board con-
sists OF nine members. to wt:-William Il. Garr-
Porter John Baird. william Adams. Jr: MpfsSo M a
lings. GeorgeJ. Forrest and John J. McCook. These
nine men own tho controlling interest and among
the ''L companies directly They are Messrs Garri-
son. Navarro, Pullman. Porter and Baird, and all
they need to be the autocrats Ia the ownership or
control of Oo shares OF the stock Of the Loan and
Improvement Company. and 1t is shrewdly hinted
on the street that II they do not that amount
of the stock they own enough TO be able. with the
proxies they command, to cast the deciding vote
In all questions that may come up. That the
monopoly exists no one in Wall street doubts. and
the principal matter Of doubt il whether Mr.. Field
who is next to these FIVE. tho heaviest capitalist in
rapid transit. is opposed to them In policy. and
likely to remain So or whether he Is likely TO com
bine with them.


RAPID TRANSIT COMMISSIONERS


The Rapid Transit Commisslo ners met yesterday
ut No. "a Exchange place and kept busy all day
in determining the plans for construction OF the
They stated that their work would be finished to-
day. the time prescribed by law but that 1t would
not be given to the press until next week.


The clam of tho Comm, ,ssioners and their friends
that the action OF the Board Aldermen In rejecting
their report entirely uncaled tor and even '.an
impertincnce" was concurrcd yesterday by some
people aud fatty con,radicted by others. !
Even the Commissioners. however. confessed
that the City Fathers had some control
the matter, but In what degree none
of them would definitely attempt to say. The many
points that have been raised as to the limitations
and restrictions governing the action OF the gentle
men appointed by Mayor Cooper to lay out routes
in the annexed territory have been supplemented
by another-one which IL is claimed will have
u very important bearing on the questions at
issue should the Commissioners still go on perform
ing their duties in defiance OF the action OF the local
authorities. The very first section of what is known
the Rapid Transit act. passed by the Legislature
OF 1875 provides that "when any hity reputable
householdcrs of any county In the State
shall in q communication to the Mayor state |
that steam railway steam railways necessary
to be constructed for tho convenience and comfort
OF the residents Of said district the Mayor shall
theroupon appoint Commissioners OF Rapid Transit,
who shall lay out, locate and do all the things per-
tanning to laying out routes and plans for such |
proposed steam railway or railways" Now. as
the petition from the residents or the annexed
district made to Mayor Cooper only made mention OF
the necessity OF rapid transit In the district above
the Harlem River. and ~ the duties OF the Commis
soners are apparently limited to the consideration
of the railway railways mentioned in the petition
for their appointments II follows, Il IN claimed that
right whatever existed for their laying out new |
roads below the Harlem River.