But if the city constructs, equips and operates it is provided that the rates of fare shall always be adjusted with a view to securing sufficient receipts to pay interest on the total cost of construction and equipment and one per cent. into a sinking fund without recourse to taxation.

As to franchises for extensions and connections of existing railroads to be built as private ventures, the act of 1906 also provided that they should be granted with the approval only of the Board of Estimate and Apportionment, and as to trunk line tunnels and trunk line connecting roads in perpetuity, the compensation should be prescribed by the board for not more than twentyfive years, and readjusted thereafter at intervals each of not more than twenty-five years, and as to extra tracks, additional facilities, extensions and connections for railways wholly or in part within the city, that the grant should be to one owning, leasing, constructing or actually operating a railroad in the city, and should not be longer than twenty-five years with a twenty year renewal; that in no event should the grant be for a longer time than the original franchise of the road to which the grant was an extension or addition; that at the end of the term the rights of the holder in streets, etc., should cease without compensation, and the plant, except rolling stock and other movable equipment, vest in the city without compensation and that the compensation for the franchise should be prescribed for not more than twenty-five years and thereafter be readjusted at intervals of not more than ten years until the end of the term.

Under this last section it would be practicable, if approved by the Board of Estimate and Apportionment, to grant extensions to be built at private expense of the subways constructed or now in process of construction, but the term of such extension could not exceed, with renewals, forty-five years, whereas, the contracts for the present subways define them as continuing, with their renewals for seventy-five and sixty years, respectively.

Duration of Franchises. It would seem that if franchises to bring by tunnel under the North River and East River the trunk lines and electric roads of other states to terminals in the center of the borough of Manhattan, are so valuable as to tempt the

investment of private funds in the construction thereof, authority to offer for sale franchises for rapid transit subways in the city of New York, to be built as private ventures and on terms equally or more favorable to the city ought to be given as one way of realizing the needed addition to the city's transit system. Moreover, as it has been deemed wise by the Legislature to allow separate advertising and letting of contracts for construction at the expense of the city, for equipment, and for operation, it would seem right to make lawful a longer term than the twenty years now prescribed by law, in order to invite competition. A hard and fast limit especially if so short a period as twenty years will render some propositions unattractive, restrict bidders on all propositions however good, and allow no leeway to this Commission and the Board of Estimate and Apportionment to take advantage of the different degrees of desirability of various routes. It should be made possible for the letting authorities to obtain information on all the elements making up the cost and value of a venture of this kind and, by balancing a valuable term of operation against the cost of construction, secure a road built without much, or, perhaps, any expense to the city.

The City's Needs. This city is in great need of more rapid transit railroads. Slow moving surface cars cannot take their place. Yet, under the existing law private capital cannot be used for their construction, and the ten per cent. debt limit imposed upon the city by the State Constitution renders sufficient municipal construction an impossibility. If the Constitution should be amended so that money borrowed for self-supporting utilities would also be exempt from the debt limit, the borrowing capacity of the city would be increased so that additional subways could be built by the city. Even if this course should commend itself to the Legislature, the amendment could not be submitted to popular vote until the fall of 1909. A determination on the part of the Legislature to amend the Constitution. will not cause an increase of municipal construction for three or four years, and the growth of the city is such that it should be made possible to enlist private capital for rapid transit construction in the meantime. There is no good reason why the city of

New York should be cut off from the exercise of both methods of building rapid transit roads. The granting of franchises is now hedged about with provisions that make it certain that fair terms both as to time and compensation will be imposed. The financial success of the subway now in operation has removed the doubts that existed fifteen years ago. Private capital would probably not be afraid of subway investments.

In conclusion we make the following recommendations:

A constitutional amendment exempting from the ten per cent. debt limit bonds for the construction of rapid transit lines, when, so far and so long as such rapid transit lines shall be self-supporting.

An amendment to the Rapid Transit Law providing that leases of extensions of rapid transit lines may be made to terminate at the same time as the original lease, this Commission having the power, in conjunction with the Board of Estimate and Apportionment, to fix the terms, conditions and compensation, and to readjust the same each twenty or twenty-five years thereafter.

An amendment to the Rapid Transit Law which shall give the local authorities and this Commission the power to allow the construction and operation of rapid transit lines by private companies upon payment of part of the earnings to the city or other proper terms, and with a reservation to the city of the privilege to purchase at any time after a certain period, not more than twenty or twenty-five years, and without any payment for the franchise itself.

An amendment to the Rapid Transit Law making it possible for the local authorities and this Commission to let contracts for operation for a longer period than twenty years, or else to make the lease terminable at any time after a certain period, not more than twenty years, with a provision that the equipment shall be purchased at a fair price by the city on the termination of the lease.

E. WEST SIDE TRACKS, ELEVENTH AVENUE.

The New York Central tracks on the surface of the west side of the borough of Manhattan should be removed. In 1846 the

Legislature granted a charter to the Hudson River Railroad Company with power to construct a railroad on any of the streets or avenues of the city of New York west of Eighth avenue and on or westerly of Hudson street. This was followed by ordinances of the city of New York granting to the railroad company permission to construct a double track of rails with suitable turnouts along the line of the Hudson river from Spuyten Duyvil creek south through certain streets to Chambers street, and subsequently to Broadway at Warren street.*

The Saxe Law. This subject has been a pressing one before the Commission because the so-called Saxe law (Laws of 1906, chapter 109) imposed upon the Board of Rapid Transit Railroad Commissioners the duty of endeavoring to make an agreement with the railroad company to do away with operation at grade and to construct a subway south of 59th street, and in case such an agreement should not be entered into before the expiration of one year from the passage of the act then the Board of Rapid Transit Railroad Commissioners was directed to condemn all the rights, privileges and franchises of the railroad company across, through or along the streets, public parks or places. The year specified in the law expired before any contract was made, the date of expiration being March 26, 1907.

It therefore became necessary for this Commission, following the plain direction of the law, to begin condemnation proceedings. The Commission early started a careful and exhaustive research to ascertain and compile the laws, franchises and permits which have been passed or issued. Surveys were made to determine

The first ordinance, dated May 6, 1847, authorized the construction of the railroad from Spuyten Duyvil creek as far south as Canal street. The road was extended through Canal and Hudson streets down to Chambers street under authority of an ordinance dated September 25, 1849. Chapter 216 of the Laws of 1846 and the ordinances of May 6, 1847 and September 25, 1849, constitute the authority for the main stem of the road as it exists to-day. By an ordinance dated December 20, 1864, the railroad was authorized to extend its tracks from Chambers street, through College Place and Warren street, to Broadway, "for the use of their city cars." Subsequently, by additional ordinances, authority was granted to construct various tracks. spurs, switches, sidings and turnouts to be operated in connection with the main stem of the railroad. To-day the company has no tracks south of its freight depot at Beach and Hudson streets.

what tracks were laid in conformity therewith, what tracks, if any, were laid without sanction of law, and what rights existed that were not used. All of these facts have been brought together in reports and maps. Condemnation maps have been prepared and duly transmitted to the corporation counsel of the city of New York, as he is the person designated by law to take charge of condemnation proceedings initiated by this Commission. All subsequent steps, therefore, are to be taken by the corporation counsel. It should be added that a provision in the Saxe law allows this Commission to discontinue the condemnation proceedings at any time before the confirmation of the final report of the condemnation commissioners.

It was discovered that some of the tracks, especially spurs leading into private grounds for business purposes, were laid under many revocable permits granted by the city of New York. These were collated and a list thereof transmitted to the Board of Estimate and Apportionment and to the corporation counsel with a suggestion that they should be revoked at a suitable time so that there would be no danger that the condemnation comnissioners would place a valuation upon them.*

Methods of Relief - Eleventh Avenue. From the forego

ing it will be seen that the mandatory provisions of the law