effect the title to and right of possession of the property, 34-1 and the right of possession of the said railroad may nevertheless pass to the city or to a new contractor, and that the city or such new contractor having given proper and sufficient sureties shall pay to the contractor the amount so determined, with interest from the time aforesaid.

2. Every grant or contract made under the provision of this article by the terms of which the city in lieu of rental shall be entitled to a portion of income or increase derived from the enterprise shall make provisions for definition and determination from time to time of the items to be included in operating expenses, taxes, payments to reserve and amortization funds and for the percentages or amounts to be set aside therefor and for interest upon construction cost. The commission shall prescribe in the grant or contract a period for amortization by the grantee or contractor of the actual cost of plant and property other than equipment, or actual cost to the contractor of the construction of such road, and the period so prescribed shall end with the term of the grant. Any and all sums of moneys hereafter received by the city from or under any grant or contract heretofore or hereafter made under the provisions of this act, over and above such sum or sums as are required by law to be paid into a sinking fund to meet the payment of interest or principal on city bonds issued for construction and equipment of any railroad pursuant to any contract, and except any sum or sums of money that may be contributed toward the construction of any road or roads by the contractor having the contract for the equipment and operation of such road or roads, shall be kept separate and apart from any and all other moneys of such city and paid into a fund to be known as the rapid transit fund, and shall be applied under the direction of the board of estimate and apportionment or other analogous local authority of such city only to or toward the construction of railroads, or the purchase of plant and property or equipment of railroads, pursuant to the provisions of this act, or to deficiencies in the operation or rental of railroads owned by the city, or in

34-2 the operation of railroads owned and operated by the city pursuant to this act.

3. Unless otherwise provided by law the commission with the approval of the board of estimate and apportionment, or other analogous local authority of such city, shall have and exercise the powers, rights and privileges reserved or given to the city to terminate any right, privilege, franchise, authority or contract granted or entered into, or which may be exercised under the provisions of this act, and may do and perform any and all things requisite and necessary to any such termination. (New section added by L. 1909, ch. 498, § 15, as amended by L. 1912, ch. 226, § 17)

§ 35. Equipment. The equipment to be supplied by the person, firm or corporation contracting for the equipment or any part thereof, of any such road shall include all such rolling stock, motors, boilers, engines, wires, ways, conduits and mechanisms, machinery, tools, implements and devices of every nature whatsoever used for the generation or transmission of motive power and including all power houses, and all apparatus and all devices for signaling and ventilation as may be required for the operation of such road and specified in the contract for such equipment.* (Added by L. 1894, ch. 752, § 9, as amended by L. 1896, ch. 729, § 4; L. 1900, ch. 616, § 2; L. 1905, ch. 599, § 2; L. 1906, ch. 472, § 7 and L. 1909, ch. 498, § 16)

§ 36. Advertising for proposals. The said public service commission before awarding any contract or contracts shall advertise for proposals for such contracts by a notice to be printed once a week for two successive weeks in no less

* Prior to the amendment of 1905 (which took effect May 24, 1905), this section contained the following clause: "Such person, firm or corporation shall be exempt from taxation in respect to his, their or its interest under said contract and in respect to the rolling stock and all other equipment of said road, but this exemption shall not extend to any real property which may be owned or employed by said person, firm or corporation in connection with said road." The amending act (Laws 1905, ch. 599, § 3), limited the effect of the repeal of the foregoing clause by the following provision: "nothing in this act contained shall be held to repeal, modify or alter any provision of the act hereby amended with respect to any railroad or railroads constructed, constructing or contracted for thereunder when this act takes effect; but the act hereby amended shall be and continue in full force and effect in respect of such railway or railways so constructed, constructing or contracted for as if this act had not been passed."

than two of the daily newspapers published in said city, and 36 in such newspapers published elsewhere than in said city as said commission shall determine. Such notice shall set forth and state the points within said city, between which said road or roads is or are to run, the general method of construction, the route or routes to be followed, the term of years for which it is proposed to make such contract, and such other details and specifications as said commission shall deem to be proper. Said notice shall state the time and place at which said proposals will be opened, and the said commission shall attend at the time and place so specified, and shall publicly open all proposals that shall have been received, but the said commission shall not be bound to accept any proposals so received, but may reject all such proposals and readvertise for proposals in the manner hereinbefore provided, or may accept any of such proposals as will, in the judgment of such commission, best promote the public interest, and award a contract accordingly. All such contracts must before execution be approved as to form by the corporation counsel, or other chief legal adviser of such city. (Added by L. 1894, ch. 752, § 9, as amended by L. 1895, ch. 519, § 11 and L. 1909, ch. 498, § 16)

37. Issue of bonds by city. 1. For the purpose of providing the necessary means for such construction, or equipment, or both, as the case may be, or acquiring by purchase, at the public expense, of any such road or roads, or of galleries, ways, subways and tunnels for subsurface structures, and the necessary means to pay for lands, property, rights, terms, privileges and easements, whether of owners, abutting owners or others, which shall be acquired by the city for the purposes of the construction or the operation of such road or roads as hereinafter provided, and of meeting the interest on the bonds in this section hereinafter provided for accruing thereon prior to the completion and rediness for operation of the portion of such road or roads, and the said galleries, ways, subways and tunnels for subsurface structures, for the purchase, construction, or equipment of which such bonds shall have been respectively issued, the

37-1 board of estimate and apportionment, or other local authority in said city, in which such road or roads are to be constructed, having power to make appropriations of moneys to be raised by taxation therein, from time to time, and as the same shall be necessary, and upon the requisition of said public service commission, shall direct the comptroller or other chief financial officer of said city, and it shall thereupon become his duty, to issue the bonds of said city at such a rate of interest as the board of commissioners of the sinking fund of said city, if there be such a board, or if there be no such board, then as other local authority directing the issue of such bonds, may prescribe. Said bonds shall provide for the payment of the principal and interest in gold coin of the United States of America. They shall not be sold for less than the par value thereof, and the proceeds of the same shall be paid out and expended for the purposes for which the same are issued, upon vouchers certified by said public service commission. Said bonds shall be free from all taxation for city and county purposes, and shall be payable at maturity out of a sinking fund to be established and created out of the annual rentals or revenues of said road, including galleries, ways, subways, or tunnels for subsurface structures, as hereinbefore provided. But this provision that the said bonds shall be payable out of such sinking fund shall not diminish or affect the obligation of said city as a debtor upon said bonds, or any other right or remedy of any holder or owner of any such bonds, to collect the principal or interest thereof.

2. The amount of bonds authorized to be issued and sold by this section shall not exceed the limit of amount which shall be prescribed by the board of estimate and apportionment or such other local authority having power to make appropriations of moneys to be raised by taxation; and no contract for the construction of such road or roads shall be made unless and until such board of estimate and apportionment or such other local authority shall have consented thereto and prescribed a limit to the amount of bonds available for the purposes of this section which shall

be sufficient to meet the requirements of such contract in 37-2 addition to all obligations theretofore incurred and to be satisfied from such bonds. Before finally fixing the terms and conditions of any contract for any of the purposes contained and set forth in this act, the public service commission shall set a date or dates for a public hearing upon the proposed terms and conditions thereof, at which citizens shall be entitled to appear and be heard. No such hearing shall be held, however, until notice thereof shall have been published for *a least two weeks immediately prior thereto in the City Record, or other official publication of the city, and at least twice in two daily newspapers published in the city. It shall be the duty of the commission to cause as many copies of a draft of the proposed contract to be printed at least two weeks in advance of such hearing as may be necessary. The said notice of such public hearing shall state where copies of such drafts may be obtained upon payment of a fee, to be fixed by said commission,.but not to exceed one dollar for each such copy. The commission may, after the hearing to be held as above required, alter, modify or amend such draft contract in any manner in its discretion.

3. The words "rapid transit railroad," "railroad," or "improvement" as hereinafter in this section used shall severally include a rapid transit railroad, and any part thereof, and any improvement or addition thereto, that shall be the subject of action hereunder, and shall severally include any and all property, including equipment other than rolling stock, that shall be necessary either for the construction or the operation of such a rapid transit railroad. A rapid transit railroad owned or to be owned by the city, and for the construction of which with public money in whole or in part a contract or contracts have been or are authorized by this act to be entered into as aforesaid, shall be a local improvement the cost of which may be met in whole or in part by assessment on the property benefited. The public service commission with the approval of the

* So in original.