Additional charges as follows: Cost of operation and maintenance of joint facilities, taxes and power consumed, to be charged pro-rata on basis of cars handled. Any and all additional tracks, stations and other facilities required by the joint use, to be installed by The Long Island Railroad Company at its own expense, 7 per cent of the cost of additional facilities to be pro-rated on basis of cars handled and added to the rental charge per annum. All grade crossing elimination carried out under the statute, during the term of the agreement, to be paid for in the usual manner, 7 per cent of the amount expended by The Long Island Railroad Company as its proportion of said eliminations to be pro-rated on basis of cars handled and added to the rental charge per annum. The Long Island Railroad Company will reserve the news, vending, advertising and other station privileges." The Commission was advised that the Rapid Transit Act as it then existed did not cover an arrangement such as was proposed by The Long Island Railroad Company and in order that there might be requisite authority in case satisfactory terms could be negotiated, the Commission caused a proposed enabling act to be introduced in the Legislature which was enacted as Chapter 534 of the Laws of 1915 (Rapid Transit Act, Section 32, Subdivision 3) and which provided in part: "If a contract has been made for equipment, maintenance and operation of a railroad constructed or to be constructed by the city and owned by the city upon any route or routes established and consented to as provided in this act, which contract provides for construction by the city and equipment, maintenance and operation by the contractor of branches and extensions of said railroad and additional lines also to be owned by the city upon terms and conditions as in said contract provided, the commission in lieu of constructing a branch or extension or an additional line may with the consent of the board of estimate and apportionment or other analogous local authority of such city acquire by conveyance or grant to such city to be delivered to said commission the right to connect said railroad with and to operate within said city over any track or tracks of a railroad already constructed or in process of construction and which right in the opinion of the commission it is for the interest of the public and the city to acquire for rapid transit purposes in lieu of constructing such branch, extension or such additional lines." The proposition of March 12, 1915 as amplified by the letter of April 6, 1915 was carefully considered by the Commission and numerous conferences in regard thereto were held with representatives of civic associations and property interests in the district affected and with repre sentatives of the Long Island Company. As a result of such consideration and of such conferences the Commission came to the conclusion that the proposition could not be entertained. On this conclusion being informally communicated to the Long Island Company it withdrew the first proposition and submitted the following: "The Long Island Railroad Company is willing to enter into an agreement with The City of New York, which shall provide for the connection of the rapid transit service with the tracks of the Long Island Railroad at a point in the Flushing Meadows, near the interlocking towers at Whitestone Junction; the elevated line, now terminating at Corona, to be extended, and the suggested connection made by the City; the service thence to extend over the tracks of The Long Island Railroad Company to Whitestone Landing, via the Whitestone branch, and to Little Neck, via the North Side division, through Main street, Flushing; this proposition to contemplate the use of the tracks, stations and facilities of The Long Island Railroad Company, whereby the trains of the City rapid transit service could be operated over the tracks of The Long Island Railroad Company to the termini mentioned, such trackage agreement to provide for the joint use of the tracks by The Long Island Railroad Company in conducting its freight and passenger business, as at present, and by the City or the operating companies in conducting rapid transit service, without interference, one by the other, but over the same tracks. Such agreement to provide for a trackage arrangement to cover a period of 10 years, with the privilege of renewal for an additional period of 10 years, either party to the agreement to have a right to terminate the same upon giving 3 years' notice to the other. The rental therefor to be paid by the City to be on the basis of $125,000 a year, adding 6 per cent per annum each year, beginning the first year, such payments to be made at such periods and in such installments as may be arranged. And additional charges as follows:— The cost of operation and maintenance of joint facilities, taxes and power consumed, to be charged pro rata, upon the basis of car mileage; any and all additional tracks, stations and other facilities required by the joint use, as may be ordered by your Commission, to be installed by The Long Island Railroad Company at its own expense, 7 per cent upon the cost of such additional facilities to be prorated upon the basis of car mileage, and added to the rental charge per annum. All grade crossing eliminations, carried out under the statute during the term of the agreement, to be paid for in the usual manner, and 7 per cent upon the amount expended by The Long Island Railroad Company, as its proportion of said eliminations, to be prorated upon the basis of car mileage, and added to the rental charge aforesaid. The Long Island Railroad Company to reserve the news, vending, advertising and other station privileges.” In connection with the consideration of this proposition the question was raised whether such an arrangement would come within the provisions of the contracts of March 19, 1913 (Contracts Nos. 3 and 4) with Interborough Rapid Transit Company and New York Municipal Railway Corporation relative to extensions under which the City could compel operation under a separate accounting system in the event of the refusal of the rapid transit operating companies to operate. In opinions dated December 13, 1915 and December 31, 1915, respectively, Counsel to the Commission advised the Commission, and the Corporation Counsel advised the Board of Estimate and Apportionment, that while Chapter 534 of the Laws of 1915 empowered the City to make such an arrangement it did not and could not operate to affect the rights of the operating companies under the provisions of Contracts Nos. 3 and 4 relative to extensions which both Counsel to the Commission and the Corporation Counsel united in construing as applying only to Citybuilt extensions and not to leased lines or trackage rights over private lines. This, therefore, makes it necessary in the event of an agreement with the Long Island Company to negotiate with the operating companies satisfactory modifications of the extension provisions of Contracts Nos. 3 and 4 to cover such an arrangement as is here proposed. Under date of November 22, 1915 the Degnon Realty & Terminal Improvement Company made the following proposition to construct a connection between the Corona line as projected and The Long Island Railroad Company: Referring to applications for a connection between the Dual System at Roosevelt and Peartree avenues and the Long Island Railroad, we beg leave to submit a plan dated May 24th, 1915, File No. 41, Drawing No. 2, and estimate for the construction of the extension from Alburtis avenue to a connection with the Long Island Railroad at a point east of Peartree avenue, to make it practicable for one signal tower and switch system to operate the Whitestone and College Point branch of the Long Island Railroad and the proposed connection. This plan will provide for a station at Peartree and Roosevelt avenues to accommodate a large territory to the north thereof, including Louona Park and East Elmhurst, as well as the property lying to the east of Peartree avenue on which we plan to have a large terminal and factory development, where a large number of laborers and mechanics will be employed. We agree to construct this extension consisting of a doubletrack structure, including a station at Peartree avenue about 500 feet in length and also including the property which will be required for the connection between Peartree avenue and the Long Island Railroad, for the lump sum of four hundred and ten thousand ($410,000) dollars, any increase in the cost of steel after November 30th, 1915, to be added to the above amount. This price does not include trackwork or signal system." It was about this time there occurred the changes in personnel of the Commission made during the latter part. of 1915 and the early part of 1916. Under date of January 18, 1916 the Chief Engineer made the following report, supported by various memoranda and analyses: "I reported upon this matter on June 9, 1915, in reference to a proposal which had been made by the Long Island Railroad Company. On September 30, 1915, the L. I. R. R. Co. submitted a revised proposal. In answer to this last proposal, and to communications from the Borough President of Queens, the Degnon Realty Company and the North Shore Transit Association, and as a result of field observations and a further detailed analysis of the problem, I have concluded that: As a result of (1) An expenditure by the City for connecting the Corona line with the L. I. R. R. tracks (Table VIII) of..... An expenditure by the L. I. R. R. Co. for improvements and grade crossing eliminations (Table VI) An expenditure by the I. R. T. Co. for additional cars and power facilities (Table V) of... or a total expenditure of.... $410,000 1,400,000 640,000 $2,450,000 the extension of the Corona line operation over the tracks of the L. I. R. R. to Whitestone and Little Neck can be effected. (2) Such lines operated as extensions under Contract 3 will result in A deficit to the City in 1917 (excluding interest on the grade crossing eliminations, which cannot be completed during the first year) of.. A deficit to the City in 1920 (after the completion of the grade crossing eliminations) of..... A deficit to the City in 1927 of.. $180,300 225,975 207,000 or, say, an annual deficit to the City of about... 200,000 (3) If, instead of extending the operation over as against $410,000, and the resulting operating 1917 1927 $7,750,000 412,250 273,500 Therefore, by utilizing the L. I. R. R. tracks at present there would be a saving to the City on the average (as per 2) of about $150,000 per year until such time as the increase in traffic would justify the City in building its own lines. The foregoing conclusion is based upon a five-cent fare to the extreme ends of both the Whitestone and Little Neck branches. (4) If beyond Broadway, Flushing, and College Point all passengers are required to pay a second fare, about 7500 people would pay an additional fare each way, both of which fares would be collected on the extensions, and therefore would add to the revenue of the extensions. This added revenue would amount, in 1917, to about. . . . . . Less additional operating expenses. providing a net additional revenue of. $250,000 96,000 $154,000 180,000 which subtracted from the original deficit on the leaves only a deficit of about. 26,000 (5) Compared with corresponding territory in the upper Bronx on the west side, it appears that the present assessed valuation of the Third Ward ($71,000,000) will enhance 11 per cent, almost enough to wipe out the deficit noted in (3) in the first year of operation, all further enhancement thereafter accruing to the full benefit of the City. If the two fare arrangement described in (4) is effected, the deficit therein noted will be practically wiped out in a short time. However, the revenue, operating expenses and property enhancement figures upon which these conclusions are dependent are necessarily uncertain. For this reason the results are problematical. (6) Finally, from the foregoing, in my judgment, the operation of the Corona line over the L. I. R. R. tracks to Whitestone and Little Neck might reasonably be justified, even on the onefare basis, but, owing to the problematical character of the results of such operation, the City's best interest would be conserved if the two-fare arrangement can be effected.” The statement of construction and equipment costs in the above report is apt to be misleading unless it be kept in * Modified by a supplementary report dated July 19, 1816, so as to substitute "Main street" for "Broadway" and "Bridge street" for "College Point." |