Board of 
 Estimate and Apportionment 
 
 REPORT ' 
 
 OMMITTEE ON FRANCHISES 
 
 IN RELATION TO PENDING PE1\ : NS 
 FOR THE RIGHT TO OPERATF 
 
 MOTOR BUS ROUTES 
 
 IN' THF. 
 
 BOROUGH OF MANHATTAN 
 
 Will i 
 
 PROPOSED FORM OF CONTRACT 
 
 'XTOBER 13, r" 
 
 BUREAU OF FRANCHISE; 
 ROOM 1307 
 
 MLNICIPU, fU.lLDlNC. 
 
.^ 
 
 
'^^. boifo^ 
 
 Board of 
 Estimate and Apportionment 
 
 REPORT OF 
 
 COMMITTEE ON FRANCHISES 
 
 IN RELATION TO PENDING PETITIONS 
 FOR THE RIGHT TO OPERATE 
 
 MOTOR BUS ROUTES 
 
 IN THE 
 
 BOROUGH OF MANHATTAN 
 
 WITH 
 PROPOSED FORM OF CONTRACT 
 
 OCTOBER 15, I9I5 
 
 BUREAU OF FRANCHISES 
 
 ROOM 1307 
 MUNICIPAL BUILDING 
 
M. B. Beown Pbinting i Binding Co., 
 37-41 Chambers Street. N. Y. 
 
City of New York, 
 Board of Estimate and Apportionment, 
 
 October IS, 1915. 
 
 To the Board of Estimate and Apportionment: 
 
 Gentlemen — The Franchise Committee, to which has been referred the question 
 of the advisability of granting the right to operate additional motor omnibus' routes 
 in the Borough of Manhattan, begs to present its report thereon and submit for your 
 consideration a form of contract, which is herein recommended be granted to one of 
 the applicant companies. 
 
 Your Committee recognizes the urgent needs of transit facilities in certain dis- 
 tricts in the Borough of Manhattan, and has therefore viewed with much interest the 
 pending applications as' having an important effect on the needs of the community. 
 It seems desirable that there be included in this report a brief statement of the 
 action with respect to motor buses already taken by the Board, as well as of the 
 various steps taken by your Committee before arriving at the conclusions herein 
 presented. 
 
 But one stage coach or omnibus company has. during recent years, been author- 
 ized to operate in the Borough of Manhattan. Prior to the year 1913 the laws were 
 such that the company had and would continue to have a virtual monopoly unless 
 amendments were affected by the legislature. Obligations, which in many cases were 
 impossible to fulfill, were required of new corporations, while practically no condi- 
 tions were imposed on the existing corporation. The attention of the Board was 
 directed to this condition by a report of the Bureau of Franchises, which recom- 
 mended amendments to the law, designed to remove this inequality. The Board 
 immediately took the necessary action to obtain the legislation, resulting in the enact- 
 ment of chapter 769 of the Laws of 1913, which law accomplished the object sought. 
 
 The Board at that time had before it one petition for the right to operate omni- 
 buses, which had been presented by the New York Motor Bus Company. Inc., under 
 date of December 19, 1912. Subsequent to the enactment of the new law the Board 
 received petitions from three other companies', namely : the Manhattan Motor Bus 
 Company, Inc.. the Fifth Avenue Coach Company and the People's Five Cent Bus 
 Corporation. All of the petitions were referred to the Bureau of Franchises for 
 report. 
 
 It was well known that motor omnibuses had, during a number of years, been 
 used to a very large extent and with apparent success in several European cities, 
 notably London and Paris. Because of the limited experience with these vehicles in 
 New York, a representative of the Bureau of Franchises, pursuant to the authority 
 of a resolution of the Board, was sent abroad for the purpose of investigating the 
 operation of motor omnibuses in London and Paris, with a view to obtaining such 
 information relative thereto as would aid the City in reaching a determination upon 
 
the proposed operation of motor omnibuses in this City. The report upon this 
 investigation was presented to the Board in November, 1913, and was quite illuminative 
 in that it showed particularly what should be (guarded against and pointed out the 
 necessity for strict regulation of the service. The report was referred to your 
 Committee to recommend a policy to be followed with reference to the pending 
 applications. 
 
 Your Committee agreed that there arc points in the Borough of Manhattan 
 between which there is no direct means' of transportation, though the need for such 
 facilities is quite apparent. It was recopnized. however, that to merely operate lines 
 connecting the points between which facilities are urgently needed would result in a 
 system of disconnected routes, unattractive to the operator and less serviceable to the 
 traveling public than a more comprehensive system. For example, cross-town lines 
 through Central Park, operated alone, would be of less service than similar lines 
 operated in conjunction with longitudinal lines on both the East and West Sides 
 with transfer privileges. Consequently the Bureau of Franchises was directed to 
 lay out a comprehensive system of routes and to draft a form of franchise contract 
 which it would recommend for the franchise. 
 
 After your Committee had considered the system of routes and form of contract 
 submitted by the Bureau of Franchises, it ordered the same printed for distribution 
 and advertised a public hearing thereon, to be held on December 18, 1914. At this 
 hearing there were heard many property owners and representatives of civic associa- 
 tions, ■ the applicant companies and the street railway companies operating in the 
 Borough of Manhattan. So much interest was taken in the matter that an adjourned 
 hearing was held on December 29 and still another on December 31, 1914. At the 
 close of the hearings the applicant companies and others were given until January 9, 
 1915, to file briefs. Your Committee received before and subsequent to the hearing 
 hundreds of communications in favor of and against the granting of specific routes 
 and in favor of and against the proposal of some particular applicant, as set forth in 
 its petition. Several meetings of the Committee were subsequently held at which the 
 suggestions and criticisms contained in the communications and briefs were consid- 
 ered. Many modifications of the routes and of the contract were made as a result. 
 After these modifications, the contract and the map of the routes were again printed 
 for distribution and on April 27, 1915, a further public hearing was held. 
 
 In laying out the system of routes finally adopted, your Committee has followed 
 three principles : 
 
 First — That the system should be a comprehensive one. 
 
 Second — It should contain routes giving facilities between various points 
 
 where none now exist, and 
 
 Third — That the routes should be such as to directly compete as little as 
 
 possible with existing transit systems. 
 
 The form of contract for a franchise finally adopted contains clauses providing 
 for most complete regulation as to the weight and dimensions of vehicles and as to 
 their operation. It is unique in that provision is made for extension upon order of 
 the Board, and routes may, within certain fixed limits, be modified to conform with 
 traffic conditions. The system of routes adopted by the Committee in no way con- 
 
forms with that applied for by any of the applicants. In consequence it was decided 
 by the Committee to ask each of the applicant companies to submit proposals based 
 upon the form of contract and system of routes adopted by the Committee. The con- 
 ditions upon which the proposals were to be made were outlined in the letter 
 addressed to the applicants by the Committee (See Appendix A). The form of con- 
 tract left blank the provisions for compensation to the City, the date upon which the 
 operation should commence, the maximum weight and dimensions of vehicles (the 
 maximum weight and dimensions adopted by the Committee being indicated), the 
 maximum rate of fare, the headway of vehicles and the conditions under which the 
 Board may order extensions. 
 
 Four proposals were received and publicly opened by the Acting Mayor on behalf 
 of the Committee on June 1, 1915, at noon. After these proposals had been read and 
 the meeting adjourned a communication was received from the Manhattan Motor Bus 
 Company, one of the original applicants, submitting a proposal based upon a plan of 
 sharing the operating profits with the City after first deducting eight per cent, upon 
 the investment. Your Committee has refused to receive this proposal for the 
 reason that it was presented to the Committee after the hour fixed for the opening 
 of the proposals. If it had been received it would have been rejected for the reason 
 that the proposal was incomplete in that no effort had been made on the part of 
 the Company to modify the contract adopted by the Committee in accordance with 
 the terms of its proposal. Therefore, the proposal could not be compared with the 
 others which had been submitted in complete form. 
 
 The proposals opened and publicly read were: Two by the Fifth Avenue Coach 
 Company, one by the New York Motor Bus Company, Inc., and one by .Messrs. 
 O. C. Brunner and W. T. Gridley, jointly. The last named had no pending applica- 
 tion for a franchise. 
 
 Your Committee has made a careful study of these proposals and of the analysis 
 and comparison of the same made by the Bureau of Franchises, and beg to submit 
 the following with respect thereto: 
 
 Proposal of O. C. Brunner and W. T. Gridley (Jointly). 
 
 This proposal is incomplete. It shows that the proponents are unfamiliar with the 
 previous negotiations, and it is not based primarily on the form of contract submitted 
 by the Committee. It was therefore impossible to make a comparison with the other 
 bids. It offers no guaranteed minimum annual payments, nor does it offer an initial 
 payment. The type of vehicle has evidently not been considered. The zones into 
 which it proposes to divide the City are not given, therefore the rate of fare is not 
 accurately stated. There is no definite offer in regard to extensions. 
 
 It is therefore the opinion of the Committee that this proposal should be rejected. 
 
 Proposal No. 2 of the Fifth Avenue Coach Company, the Present Operating Company. 
 
 This is a proposal in which the prominent feature is an offer to divide equally with 
 
 the City the net profits in excess of a sum equal to the net operating profits from the 
 
 existing routes for the year ending June 30, 1915. The net profits are to be those 
 
accruing from both the existing and new routes, and are defined as any and all in- 
 come or profits from whatever source, less deductions, as follows : 
 
 1. All taxes against the Company in connection with or incident to the operation 
 
 of the Company's routes. 
 2.- All operating expenses, including reasonable maintenance, depreciation and ob- 
 - solescence. 
 
 3. A sum equal to 6 per cent, per annum, on plant and equipment furnished for 
 
 the operation of new routes or future extensions thereof and upon cost 
 of additional equipment for existing routes, together with such sum neces- 
 sary to amortize within the period of 25 years the equipment for the opera- 
 tion of the new routes or extensions thereof. 
 
 4. .'\ sum equal to net profits from the existing routes for year ending June 30, 
 
 1915. 
 
 If there be a deficit in any year after such deductions, the same shall be cumulative 
 and must be made up with interest, compounded semi-annually at five per cent, per 
 annum, before the City is entitled to any of the net profits. In case of disagreement 
 as to the amount of depreciation, obsolescence and amortization, it shall be submitted 
 to arbitration. 
 
 Under this offer the existing and proposed new lines would be merged and operated 
 as one system and would practically be put on the same basis, sirKe the Company agrees 
 to accept the net profits for the year ending June 30, 1915, as the annual profits for the 
 existing lines during the term of the grant. 
 
 Any plan for the operation of a public utility on the profit sharing basis requires 
 an accurate and fair determination of the net profits, and should therefore provide a 
 manner by which each party shall have at least sufficient supervising power to protect 
 itself against expenditures detrimental to its interests. A method should also be 
 provided whereby the sums expended should be authorized after a fair determination 
 as to their necessity. There is no hint of any such control in this proposal of the Fifth 
 Avenue Coach Company. For example, the sums representing reasonable maintenance, 
 depreciation and obsolescence must be determined ; so must also the rate of amortiza- 
 tion to be applied to the equipment of the new routes or extensions thereof; likewise 
 the cost of the plant and equipment to be furnished for the operation of new routes 
 or future extensions and the cost of the additional equipment for the existing lines. 
 In fixing all these items, disagreement between the City and the Company is almost 
 certain to appear. It is true the Company proposes that in case of a disagreement as 
 to the amount of depreciation, obsolescence or amortization, arbitration may be re- 
 sorted to, but there is no such provision with respect to a disagreement as to the amount 
 expended for maintenance or the determination of the amounts upon which six per 
 cent, per annum is to be computed. 
 
 The City has had one notable experience with the profit sharing plan, where the 
 City did not by the terms of the franchise have any supervision over expenditures 
 either in the original investment or in subsequent operations. The result has been such 
 that one could hardly conscientiously recommend another similar grant. 
 
 The certificates of the Public Service Commission for the extensions of the ele- 
 
vated railroad system of the Inlerborough Rapid Transit Company :md the New York 
 Municipal Railway Corporation provide for a division of profits with the City, but 
 unlike the proposal of the Fifth Avenue Coach Company, these certificates provide 
 for the full and complete supervision of all operations in connection with the enter- 
 prise of construction, equipment, maintenance and operation. The certificates them- 
 selves state that it is the intention of the Commission that the certificates shall be con- 
 strued in such a manner that the City shall be afforded all proper and necessary means 
 of safeguarding its right to one-half the excess of net profits. However, the City's 
 experience with respect to these certificates has not as yet been sufficient to base thereon 
 any conclusion. 
 
 There are other objections to the proposal which would justify the Committee's 
 recommending its rejection, but it is believed that the one given is sufficiently apparent 
 to make further discussion needless. 
 
 Your Committee recommends that this proposal be rejected. 
 
 Comparison of Proposal No. 1 of tiik Fifth Avenue Ciuch Company with the 
 Proposal of thf. New York Motor Bus Company, Inc. 
 Routes Prof'oscd to be Ol>cratcd. 
 l-'iflh .Izcitue Coach Conitaity — This Company, generally speaking, adopted the 
 routes proposed by the Committee, with the following exceptions : 
 
 (a) The routes upon which the Company is already operating. 
 
 (b) The portion of the West Side Route between 72nd Street and 135th Street, 
 
 the Company proposing to substitute its own route on Riverside Drive 
 to take the place of that portion of the West Side Route. 
 
 (c) Manhattan Street and 12Sth Street Route. 
 
 (d) Convent Avenue Route (Already operated by the Company). 
 
 (e) Columbia University Loop and connection with 110th Street. 
 
 (f) The Crosstown Route in 39th and 40th Streets. 
 
 In addition to the above, certain minor changes and additions are made in the 
 system adopted by the Committee. It will be noted from the above that the system 
 adopted by the Committee has been amended to enable the Company to operate the 
 new routes in conjunction with the existing system. 
 
 Nnv York Motor Bus Company, Inc. — This Company, generally speaking, adopted 
 all the routes proposed by the Committee, with the following exceptions : 
 
 (a) The St. Nicholas Avenue, Edgecombe Road and 167th Street Route, for the 
 
 reason that the Fifth Avenue Coach Company is already operating upon 
 the portion of this route which lies south of 155th Street. 
 
 (b) .\ portion of the loop around Columbia University and its connection with 
 
 110th Street. 
 
 The Company proposed certain routes in addition to those adopted by the Com- 
 mittee, which it states may be included in its proposal at the option of the City, but 
 which arc not made a necessary part of the proposal by the applicant. These routes 
 consist of : 
 
 1. Minor changes and additions, such as streets necessary to make loop terminals. 
 
8 
 
 2. The substitution of Broadway from 72nd Street to 107fh Street for Amster- 
 
 dam Avenue, 86th Street and West End Avenue. 
 
 3. Fiftli Avenue, from 26th Street to 48tli Street; I'.roadvvay from 39th Street 
 
 to 34th Street; 31st, 32iid, 33ril, 3-lth and 46th Streets, between the East and 
 West Side Routes. 
 The four crosstown streets in the vicinity of 34th Street are selected for the pur- 
 pose of forming one crosstown route only, the actual operation of such route to lake 
 place in such streets as will ofTer the greatest convenience and conform with trafTic 
 conditions. 
 
 Forty-sixth Street is selected by the Company as a substitute for 48th Street. 
 It is stated that the Company believes that 46th and 47h Streets would make a better 
 crosstown route than would 47th and 48th Streets. 
 
 Both of these proposals arc based upon the form of contract adopted by the Com- 
 mittee and arc submitted in such form tliat a direct comparison of the two proposals 
 can be made. 
 
 Each Company has made certain changes in the form of contract in addition to 
 submitting proposals for the clauses which the Committee left blank. In an analysis, 
 therefore, of the two proposals the clauses divide themselves naturally into three 
 classes : 
 
 First — Those for which amendments are asked by the Fifth Avenue Coach 
 Company, but which arc accepted by the New York Motor Bus Company. 
 Second — Those for which amendments are asked by both Companies. 
 Third — Those with respect to which the Committee requested the Companies 
 to submit proposals. 
 Each class is herein discussed in the order named above. 
 
 First — Clauses for Which Amendments are Asked by the Fifth Avenue 
 Coach Company, but Which .Are .Accepted by the N'nw York Motor Bus Com- 
 pany. 
 
 1. The Company asks that section 2, subdivision fourth, which provides that the 
 right granted shall not be exclusive, be amended by adding the provision that if any 
 loss of revenue results from the granting of a franchise to another company on the 
 same route, then such loss of revenue shall be ascertained and fixed, cither by agree- 
 ment or by arbitration, and the damage deducted from the franchise payments for 
 either the existing routes of the Company or new routes for which a franchise is pro- 
 posed to be granted. 
 
 The Constitution of the State of New York prohibits the granting of an exclu- 
 sive franchise. Therefore, any grant which the City may make would not be an exclu- 
 sive one, even if the clause in question were omitted. The reason for inserting the 
 clause in franchises other than for street railways, which the Board has granted dur- 
 ing the past ten years is that there can thereafter be no misunderstanding with re- 
 spect to the intent of the City in making the grant. The modification of the clause 
 suggested, whereby the City would be penalized in carrying out the provisions of the 
 Constitution would tend to estop the City from granting similar rights, and, in effect, 
 
make the original grant an exclusive one. The clause might better be omitted entirely 
 than modified as requested by the Fifth Avenue Coach Company. 
 
 There is, however, another feature of this proposed amendment which deserves 
 attention. Can the City fix conditions for a new franchise to this Company which will, 
 in eflfect, modify the conditions of the existing franchise? The Company is now 
 operating under laws which require the payment to the City of five per cent, of its 
 gross receipts, and annual car license fees of twenty dollars ($20) per car. The 
 amendment proposed by the Company for the so-called non-exclusive clause might in 
 effect result in tlie reduction of the payments under the existing franchise. Your Com- 
 mittee feels that such an amendment could not be accepted. 
 
 Another important point with respect to this amendment is that it would prac- 
 tically be impossible to determine the amount of the loss of revenue resulting from 
 the granting of a franchise to another company on the same route. 
 
 2. Section 2, fifth, whicli provides that the City may purchase the property of the 
 Company at the end of the term of grant, has been modified by requiring the City 
 to give the Company six months' notice before the end of the term of grant should the 
 City decide to purchase the property. The Committee does not feel that there should 
 be any objection to such proposed amendment. 
 
 3. Section 2, Subdivisions Sixteenth and Seventeenth, have been amended by 
 eliminating the provision which permits the Board to require withdrawal of vehicles 
 from service should defects develop which would render them unsuitable for public 
 service after having been approved by the Board. 
 
 This is supervision which the Board should have. If exercised, it would tend 
 toward the general betterment of the type of vehicle, a matter in which the City is 
 vitally interested if it is to authorize the operation of self-propelled passenger 
 vehicles in public streets. 
 
 4. Section 2, Subdivision Eighteenth, has been amended by providing that the 
 Company will only obligate itself to comply with laws and ordinances not inconsistent 
 with the prii-ilege conferred under the contract. The clause adopted by the Com- 
 mittee requires the Company to comply with all laws and ordinances. 
 
 Manifestly the City cannot, by the terms of the contract, relieve the Company 
 from its obligations under any law or ordinance. The Committee feels that it cannot 
 recommend a nio<lilicatiun similar to that proposed by the Company. 
 
 5. Section 2, Subdivision Twenty- fourth, is amended by adding thereto a pro- 
 vision to the effect that if the Company does not consent to a substitution of route 
 when ordered by the Board, then, if such substitution is made without such consent, 
 the net loss of revenue by reason of such change shall be ascertained, fixed and ad- 
 justed between the City and the Company. 
 
 It is believed tliat the substitution of routes upon order of the City is one of the 
 more important provisions of the franchise. The mobility of the motor bus makes 
 the substitution of routes possible where it would be impracticable in the case of a 
 street surface railway. In making new grants the City should insist on provisions 
 by which it may avail itself of that desirable feature should it become necessary after 
 operations begin. Traffic conditions are changing from day to day and the necessity 
 
10 
 
 for the substitution of routes will undoubtedly arise. The proposed amendment would 
 to some extent nullify the object to the clause. 
 
 6. Section 2, Subdivision Twenty-eight, is modified so that the riKbt of for- 
 feiture is practically eliminated. Instead thereof the Company is given ninety days 
 to cure any defect specified by the Board; if there be a dispute as to the fact of 
 default or as to the remedy thereof, the courts may be resorted to, and if not 
 remedied within ninety days or within such fiirlliir time as may be allowed by the 
 Board or by the Courts, the franchise shall be deemed to be forfeited. The word 
 "reasonable" with respect to the orders of the lioard when acting under the powers 
 reserved in the c<intract has been inserted. 
 
 The proposal of the Company is a decided departure from the standard forfeiture 
 clause which has been insisted upon for a number of years. 
 
 7. Section 2, Subdivision Twenty-ninth, has not been accepted by the Company. 
 This subdivision provides for a fine for inefficient public service at the rates fixed in 
 the contract and for failure to maintain its equipment in good condition. This is 
 another amendment which indicates the Company does not wish to abide by the form 
 of contract which has been adopted by the Committee. No substitute whatever has 
 been offered. 
 
 8. The Company asks that a new section be added wherein it shall be provided 
 that nothing in the contract shall be deemed to prejudice the existing franchises of the 
 Company, and in the event of the termination of the franchise, whether by default, 
 forfeiture or otherwise, the Company's existing franchise shall be deemed unatTecteil 
 by the fact that the Company has become a party to this contract. 
 
 Second — Clauses for Which Amendments Are Asked by Both Companies. 
 
 1. Section 2, Subdivision Twenty-first, provides for the removal of snow and ice 
 or clearing by means of snow plows a space equivalent to sixteen feet in widtli if the 
 latter method is consented to by the Commissioner of Street Cleaning and the Board. 
 
 The Viflh Ai'eiitic Coach Company has stricken out all of this provision and offers 
 no substitute. 
 
 The Sew York Motor Bus Com(iany offers, as a substitute, to open a passage by 
 means of snow plows or brooms sixteen feet in width over all or any of the routes 
 which are not occupied by a street surface railway; the work to be done under the 
 direction of tlie Commissioner of Street Cleaning. 
 
 The Mfth Avenue Coach Company offers nothing whatever toward the removal 
 of snow and ice, while the New York Motor Bus Company partially meets the re- 
 (|uiremenls of tlie clause as adopted by the Committee. Thcxcforc, the offer of 
 the New York Motor Bus Company is more advantageous to the City. 
 
 2. Section 2, Subdivision Thirty-first, provides for a security deposit of $30,000, 
 out of which damages or penalties are to be deducted. 
 
 The Fifth Avenue Coach Company strikes out reference to the removal of snow 
 and ice as one of the obligations under the contract for which the deposit shall be 
 security. This is done for the reason that, as above explained, the Company does not 
 accept the clause providing for the removal of snow and ice. It also inserts the word 
 "reasonable" with respect to orders of the Board issued under the terms of the con- 
 
11 
 
 tract. This conforms with the chanse which tlic Company proposes in Section 2, 
 Twenty-eighth, already discussed. It also amends the clause so that failure to restore 
 the security fund to its full amount in case of withdrawals therefrom shall, instead 
 of coiistitutintj a forfeiture as proposed by the Committee, be a ground for default. 
 This amendment is made in accordance with the policy of the Company to eliminate 
 all provisions providing for forfeiture. 
 
 The New York Motor Bus Company strikes out the reference to the removal of 
 snow and ice for the reason that that Company does not oflFer to remove snow and 
 ice in Section 2, Thirty-first, but offers, as a compromise, to clear a space by snow 
 plows or brooms. The Company requests that it be given ninety days, instead of 
 thirty, to make the $30,000 security deposit, but does not submit this suggestion as an 
 integral part of its proposal. 
 
 The Fifth Avenue Coach Company proposes, therefore, to change the wording 
 of this clause which has become standard, while the New York Motor Rus Company 
 agrees to accept the clause in its present form except the one change in reference to 
 snow and ice, which is made necessary because of other conditions of its proposal. 
 
 Third— Ci..\usEs With Respect to Which the Committee Requested the 
 Applicant Companies to Submit Proposals. 
 1. Compensation. 
 
 (a) Initial payments. 
 
 The Fifth Avenue Coach Company offers $23,000. 
 
 The New York Motor Bus Company oflfers $30,000. 
 
 Balance in favor of the New York Motor Bus Company, $5,000. 
 
 (b) Minimum annual sums. 
 
 The Fifth Avenue Coach Company oflfers sums varying from $35,000 per annum 
 to $63,000 per annum, or a total of $730,000. 
 
 The New York Motor Bus Company offers varying sums from $30,000 per annum 
 to $60,000 per annum, or a total of $735,000. The New York Motor Bus Company, 
 however, asked that payments begin on the date when the Company commences regu- 
 lar operation on any of its routes. It oflfers to operate 100 vehicles within six months 
 unless prevented by legal proceedings. There is a possibility, therefore, that opera- 
 tion may not begin until the end of six months, in which case the minimum payments 
 for the first year offered by that Company would be reduced one-half, or the sum of 
 $15,000. This would reduce the total to $720,000. 
 
 Therefore, the total oflfered by the Fifth .\venue Company exceeds that of the 
 New York Motor Bus Company by a sum which may vary from $15,000 to $30,000. 
 As the minimum annual payments oflfered by both Companies are substantial sums, 
 they cannot be considered as an all important factor in the comparison of the pro- 
 posals. 
 
 (c) Percentages of gross receipts. 
 
 Each Company oflfers five per cent, of the gross receipts. The Fifth Avenue 
 Coach Company proposes to operate the new routes as extensions to its existing 
 routes and fixes the method of computing the percentage of gross receipts. For the 
 new routes, these are assumed to be that the proportion of the total gross receipts 
 
12 
 
 from both the existing and the new routes which the mileage of the new routes bears 
 to the milcn^e of the entire system. 
 
 The offers of the Companies with respect to initial payment, minimum annual 
 sums and percentages of gross receipts do not differ materially. The length of the 
 new routes of the Fifth Avenue Coach Company is about 21 miles, while that of the 
 routes of the N'cw York Motor Bus Company is about 31 miles. 
 
 The offer of the fifth Avenue Company with respect to compensation is affected 
 by three other amendments proposed ; namely : 
 
 1st. — The amendment of the non-e.xclusive clause whereby the City would be 
 
 required to make up a loss of revenue resulting from the granting of a franchise 
 
 to another company upon the same routes ; 
 
 2nd. — The amendment of the clause providing for the substitution of routes 
 
 upon order of the Board, which would require the City to make up to the Company 
 
 any loss of revenue due to such change of route, and 
 
 3rd. — The amendment of the clause providing for extensions which would re- 
 quire the City to make up from any franchise payments any loss of revenue which 
 
 might result from such extensions. 
 
 Any of these amendments might result in reducing the amount of compensa- 
 tion which the City would receive. 
 
 The New York Motor Bus Company has also proposed an amendment whereby 
 the loss due to the operation of any extension ordered by the Board shall be made 
 up by deductions, equal to the deficit, from the compensation, but these deductions 
 are so limited that they will never exceed the franchise payments due the City, and 
 there is an added proviso that in the event that the deficit equals seventy-five per cent 
 of the franchise payments then the extension may be abandoned without further 
 prejudice to the City's interest. 
 
 The Committee recognized that the clause which it adopted with respect to future 
 extensions might be unsatisfactory to the Companies, and therefore they were given 
 an opportunity to submit limitations as to the number or length of extensions which 
 may be ordered, or to submit a substitute provision for the entire clause. It will be 
 noted that both Companies adopted the same scheme of limitation with the exceptions 
 already noted. The Fifth Avenue Coach Company, however, has not limited the plan 
 to require the City to make up deficits from operation of extensions only, but has 
 adopted the same plan with respect to two other conditions of the proposal. 
 
 The Fifth Avenue Coach Company asks that the words 
 
 "not including, however, any tax for the privilege of operating omnibuses over 
 
 the franchise routes" 
 — be added to the tax clause. 
 
 The New York Motor Bus Company has accepted the clause in the standard form. 
 
 There is no doubt that a special franchise tax would be construed to mean a 
 tax for the privilege of operating, and the amendment proposed by the Fifth Avenue 
 Coach Company would permit the deductions of the franchise payments from the 
 special franchise tax pursuant to Section 48 of the Tax Law. The tax clause thus 
 amended would therefore be without effect. At the present time the State Tax Com- 
 
13 
 
 mission does not assess the special franchise against the Fifth Avenue Coach Com- 
 pany, but it should not be assumed that no such assessment will be fixed during the 
 term of the contract. Therefore, it is important that the tax clause lie retained in 
 its standard form, which has been the policy of the Board. 
 
 To summarize the comparison between the offers of compensation by the two 
 companies, it may be stated that the initial payments, percentages of gioss receipts and 
 the guaranteed annual payments do not materially differ. 
 
 The possible deductions of the franchise payments which would result from the 
 amendments to the tax, non-exclusive, substitution of routes and e-xtension clauses 
 proposed by the Fifth Avenue Coach Company make the offer of the New York 
 Motor Bus Company more favorable. 
 
 2. Section 2. Seventh. Time zvithin uhich to commence operation. 
 The Fifth Avenue Coach Company offers to begin operation of 
 About six miles of route within one month, 
 
 A little more than si.x additional miles of route in four months, 
 About four and one-half additional miles in six months, and 
 The Transverse Roads through Central Park, consisting of about four and one- 
 half miles, within one month after completion by the City of smooth pave- 
 ments therein. 
 The New York Motor Bus Company offers to operate 100 vehicles within six 
 months after the signing of the contract and to add a sufficient number to operate 
 all routes in twelve months after signing the contract, with mandatory instead of 
 discretionary extension of said time if operation is prevented by legal proceedings, 
 works of public improvement, or other causes not within the control of the Company. 
 Each Company offers to put the routes in operation in the least possible time, and 
 since both Companies offer a substantial initial payment to be made within thirty 
 days after the signing of the contract, it is probably safe to assume that every effort 
 will be made by the Companies to fulfill this condition. The Companies adopt dif- 
 ferent methods in their offers which cannot be directly compared. In view of the 
 guarantee afforded, the time within which operation would become complete on all 
 parts of the proposed routes is not of supreme importance. 
 
 3. Section 2, Ninth. Specification mth respect to vehicles. Neither Company in 
 its specifications of dimensions and weights of vehicles exceeds the maximum fixed 
 by the Committee. The Fifth Avenue Coach Company offers a vehicle two inches 
 less in width than that of the New York Motor Bus Company, while the New York 
 Motor Bus Company offers a vehicle of considerably less height than that adopted by 
 the Fifth Avenue Coach Company. The offers of both Companies fall below the 
 maximum fixed by the Committee. Probably the two most important dimensions 
 from the traffic standpoint are length and width, and in the latter dimension the 
 Fifth Avenue Coach Company's offer is slightly more favorable than that of the 
 New York Motor Bus Company. The height is also important for the safety of 
 passengers when operating under the elevated railroad structures, overhead trolley 
 wires and shade trees. In this respect the dimensions offered by the New York 
 Motor Bus Company are more advantageous. 
 
14 
 
 The difference between the two offers is, however, so shght that a comparison 
 is not important. 
 
 4. Section 2, Nineteenth. Rale of Fare. 
 
 Both Companies arc in error in so drafting the rate of fare clause as to put the 
 City in a position of absohitcly fixing a rate of fare rather than a maximum. 
 
 The most probable interpretation which can be put upon the clauses as submitted 
 by the Companies is as follows : 
 
 The Fifth Avenue Coach Company will operate all the routes proposed under the 
 franchise in conjunction with or as extensions of the existing routes of the Com- 
 pany. A fare of ten cents will be charged for each passenger, including free transfer 
 privileges entitling a passenger to one continuous trip in the same general direction. 
 The New York Motor Bus Company will operate two classes of routes called 
 by the Company "regular routes" and "special routes." The rate of fare on the 
 regular routes will be ten cents with free transfers entitling a passenger to a con- 
 tinuous ride in the same general direction upon cither a regular or special route. 
 The rate of fare on the special routes shall be five cents with free transfers entitling 
 a passenger to a continuous ride in the same general direction upon any of the 
 special routes'. Transfers will also be issued on special routes for an additional fare 
 of five cents, which will entitle a passenger to a continuous ride in the same 
 general direction upon a regular route. 
 
 The offer of the Fifth Avenue Coach Company, therefore, is an extension of the 
 existing system of the Company on a ten-cent fare basis with the new feature of free 
 transfers added. The ofTer of the New York Motor Bus Company is the operation 
 of a comprehensive system on a ten-cent basis with the addition of certain five-cent 
 routes with also the feature of free transfers. 
 
 A transportation system operated by one company, thus permitting universal 
 transfers for a single fare, is ordinarily more advantageous from the public stand- 
 point than the operation of two or more independent systems with no interchange of 
 transfers between the separate systems. Whether that is true in this case is a matter 
 which will have some bearing upon the relative desirability of the two offers. 
 
 The Fifth Avenue Coach Company now operates about 19 miles of route. Its 
 proposal would add about 21 miles to the system, making a total of about 40 miles. 
 The New York Motor Bus Company proposes to operate about 30 miles. If its offer 
 were accepted then there would be two systems in operation having an aggregate of 
 about SO miles of routes. There is to be compared, therefore, the serviceability of 
 two systems having a mileage of 21 and 30, respectively, with the serviceability of a 
 single system having a total mileage of about 40. 
 
 Your Committee has given the matter considerable thought and has come to the 
 conclusion that there would not be an appreciable advantage in the operation of the 
 new routes as extensions to the existing system over the operation of the new routes 
 as a separate system. 
 
 If the conclusion just stated is correct, there remains only the direct comparison 
 of the rates of fare offered by the two companies. Since both companies offer a 
 fare of ten cents with free transfers upon the entire system, neither has the advantage 
 in that respect. 
 
15 
 
 In addition to the ten-cent fare, the New York Motor Bus Company oflers ten 
 special routes upon which the fare is only five cents. These special routes are. in 
 brief, as follows : 
 
 A connection between the Gramercy Park and Union Square districts and the 
 Pennsylvania Station by the way of Madison Avenue and other streets. 
 
 A connection between the Union Square and Pennsylvania Station by the way 
 of 14th Street and Seventh Avenue. 
 
 A connection between the Pennsylvania and the Grand Central Railroad Stations. 
 
 Three cross-town routes connecting the East and West Sides by the way of the 
 Transverse Roads through Central Park. 
 
 Four routes in and north of 12Sth Street. 
 
 The introduction of five-cent routes which will enable passengers to ride by 
 direct route between the East and West Sides through Central Park, between the 
 Grand Central and the Pennsylvania Railroad Terminals and from the Upper West 
 Side into the retail district of Harlem at 125th Street is a very advantageous feature 
 to those districts. These services are not provided by any transportation system now 
 existing. 
 
 It is believed that in this respect the offer of the New York Motor Bus Company 
 is decidedly more desirable than that of the Fifth Avenue Coach Company. 
 
 5. Section 2, Twentieth. Headway of vehicles during operation. 
 
 The most probable interpretation of the offer of the Fifth Avenue Coach Com- 
 pany is that it will operate vehicles at intervals of not more than fifteen (15) 
 minutes between 7 a. m. and midnight, and that it will also operate on a fifteen 
 minute headway between midnight and 7 a. m. if reasonable convenience of the public 
 requires and it be so directed by resolution of the Board. 
 
 The New York Motor Bus Company offers to operate vehicles at intervals of not 
 more than fifteen (15) minutes between the hours of 7 a. m. and midnight, and as 
 much oftener as reasonable convenience of the public may require, or as may be 
 directed by resolution of the Board, and to operate at such intervals between mid- 
 night and 7 a. ni. as reasonable convenience of the public may require or as may 
 be directed by the Board. 
 
 The maximum headway between 7 a. m. and midnight proposed by both com- 
 panies is the same, though the Fifth Avenue Coach Company has eliminated the pro- 
 vision which would require it to operate as much oftener than fifteen minutes as con- 
 venience of the public requires or as directed by the Board. 
 
 With respect to the period between midnight and 7 a. m. the Fifth Avenue Coach 
 Company offers to operate on a fifteen minute headway only if reasonable convenience 
 of the public requires, and if it be so ordered by the Board. It does not (guarantee 
 to operate on a less headway even if public convenience does require it. The New 
 York Motor Bus Company offers to operate on any headway (maximum not fixed) 
 during those hours if reasonable convenience of the public requires or if the Board 
 directs. 
 
 Thus the New York Motor Bus Company goes much further in guaranteeing 
 service in accord with public demands than does the Fifth Avenue Coach Company. 
 
16 
 
 6. Section 2, Twenty-tliird. Company to cxlciid routes during the term of the 
 contract upon direction of Board. 
 
 The Fifth Avenue Coach Company's proposal is as follows: 
 
 Amends so that upon notice by Board to Company to extend, the Company may 
 or may not acquiesce. If it acquiesces it shall apply for franchise and accept the 
 same for a term co-terminous with the original contract and upon the same terms and 
 conditions, except that no further initial or minimum payments shall be required. If 
 the Company does not acquiesce it will nevertheless equip and operate the extension, 
 but upon the following conditions : 
 
 Separate account to be kept of the operation of the extension. 
 
 Deduct from gross receipts : 
 
 1st — The operating expenses. 
 
 2nd — Six per cent, on additional equipment required for extension. 
 
 3rd — A sum sufficient to amortize not less than one-half the cost of such 
 
 equipment before the termination of the extension franchise. 
 
 If there be an excess of such receipts over such deductions, then such excess shall 
 be divided equally with the City. 
 
 If there be a deficit after such deductions, then the same is to be offset against 
 any franchise payments or collected as a debt due from the City. 
 
 Cross receipts of extension shall be fares collected thereon plus that proportion 
 of other operating revenue as mileage of the extension bears to the mileage of the 
 general system. 
 
 Operatinq expenses shall be arrived at by pro rating the same for the extension 
 and the system in proportion to the mileage of extension to mileage of general sys- 
 tem. 
 
 The New York Motor Bus Company's proposal is as follows : 
 
 Extensions may be ordered by Board at any time during the original term and 
 the first seven years of the renewal term. 
 
 Provision made for additions as well as extensions. 
 
 Agrees to accept the new franchise which will contain terms and conditions sim- 
 ilar to those of the original contract and also the following special conditions : 
 
 1st — Company to keep accurate accounts of gross income from extension or 
 
 addition and adopt such means to keep accurate account as are necessary and 
 
 approved of by the Board. 
 
 2nd — Cost of operation shall be deemed to equal: 
 
 (a) Actual bus miles on extension or addition multiplied by average cost of 
 operation per bus mile on whole system, including the cost of amortization of 
 physical property on whole system. 
 
 (b) Also 6 per cent, per annum upon a sum equal to $10,000 per vehicle 
 actually required to carry on the operation of the extension or addition. 
 
 3rd — If cost of operation of extension or addition, as above, exceeds gross 
 income, the difference shall be deducted from franchise payments for the original 
 franchise. 
 
 4th — If for any quarter of a. fiscal year the operating costs of such extension or 
 addition exceeds the gross income by an amount in excess of 75 per cent, of 
 
17 
 
 the franchise payments for the original frr.nchise for that period then the Com- 
 pany shall have the right to declare void the franchise for that extension or ad- 
 dition. 
 
 It will be noted that if there is a deficit in the operation of extensions ordered by 
 the Board, the Fiflli Avenue Company proposes that it shall be deducted from any 
 franchise payment, which means payments for the existing franchises as well as for 
 the proposed extensions, or collect the same as a debt due from the City. This might 
 result in the effect of modifying the provisions which govern the existing operations, 
 namely, that the Company must pay into the City Treasury five per cent, of its gross 
 receipts. This could not legally be done in the form proposed. It is also a doubtful 
 question whether the City could lawfully assume by the terms of a franchise contract 
 the obligation to make up a deficit, beyond the amount payable to the City under the 
 franchise. 
 
 The Fifth .Avenue Coach Company proposes to compute the operating expenses 
 of an extension liy applying the average operating expense per mile of the entire 
 system. This method is entirely unfair to the City. In all probability the average 
 operating cost per mile of the whole system would exceed that of the extension for 
 the reason that the headway on the extension would be greater than on many of the 
 routes of the system. The more equitable basis upon which to figure the operating 
 expenses would be to apply to the number of bus miles on the extension the average 
 cost per bus mile of the system. One probable result of the application of the method 
 of computing the operating expenses proposed by the Coach Company is that no profits 
 whatever would result from the extension. Either the method of computing the oper- 
 ating expenses should be changed or else the gross receipts should be fixed on the 
 basis of the average of the whole system. 
 
 The New York Motor Bus Company offers to compute the operating expenses on 
 the basis of the average cost per bus mile and in that respect its offer is more favor- 
 able to the City. 
 
 The Fifth Avenue Coach Company proposes as a deduction from the income six 
 per cent, per annum on additional equipment required for extensions, while the New 
 York Motor Bus Company proposes to deduct six per cent, per annum upon $10,000 
 per vehicle required to carry on the operation of the extension. 
 
 The fixed amount is probably more advantageous to the City in that the deduc- 
 tion can be more easily calculated. If $10,000 per vehicle is a fair amount upon which 
 to compute the six per cent., tlien the scheme of the New York Motor Bus Company is 
 more advantageous. 
 
18 
 
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19 
 
 III view of the foregoing, your Committee is of tlic opinion that the offer of the 
 New York Motor Bus Company, Inc., is the one most advantageous to the City and 
 the public, and that, in fact, Proposal No. 1 of the Fifth Avenue Coach Company is 
 one which could not properly be accepted by the City. 
 
 After the Committee reached this conclusion it next directed its attention to 
 the wording of the clauses and changes sulimitlcd in the proposal of the New York 
 Motor Bus Company. It was believed that tlie wording was in some cases insuf- 
 ficiently clear for the terms of a contract. Tin's was true particularly in respect to 
 tlic rate of fare and extension of time clauses. The Bureau of Franchises was accord- 
 ingly directed to redraft those clau.<;es in such a way to avoid as far as possible any 
 misunderstanding as to their meaning and to insert therein such provisions as are 
 necessary to protect the interests of the City in carrying out the offer of the Com- 
 pany. The Committee felt also that tliis Company's offer to commence making the 
 miiiiinum aiimial payments on the date wlien operation shall begin upon any of the 
 lines, instead of on the date when the contract is signed by the Mayor, was not in 
 line with the City's former policy. The same was also true with reference to that 
 portion of the Company's ofTcr which provided for mandatory instead of discretionary 
 extension of time liy the Board if operation is prevented by legal proceedings, works 
 of public improvement, or otlier causes not within the control of the Company. 
 Consequently the Bureau of Franchises was directed to confer with representatives 
 of the Company with a view to making those changes in the contract which would 
 eliminate the two objections above noted. 
 
 The Company has expressed its willingness to eliminate the mandatory provision 
 with respect to the extension of time for the commencement of operation. It argues, 
 however, that conditions have materially changed with respect to the deliveries of 
 material since its proposal was made. While it believes it can place 100 vehicles in 
 operation within six months, it feels that two months' additional time would be of 
 great benefit and would place the Company in a position where it would feel better 
 able to comply with the terms of the contract. Consequently the Company has agreed 
 to commence the payments to the City upon the date when the certificate of con- 
 venience and necessity by the Public Service Commission is granted, provided it is 
 given eight months instead of six months to place in operation 100 vehicles. 
 
 The contract herewith presented contains the amendments agreed to by the 
 Company and a redraft of the rate of fare and extension of route clauses. 
 
 Some of the changes and additions to routes proposed by the Xcw York Motor 
 Bus Company have been accepted by your Committee as follows : 
 
 The addition of a loop at the northerly end of the West Side line at 193rd Street; 
 the addition of a two-block extension for terminal purposes on Park Avenue, between 
 12Sth and 127th Streets; the addition of a loop in the vicinity of Morningside Drive 
 and 120th Street ; the addition of a loop at the westerly and easterly terminals for 
 the crosstown line through 79th Street; the addition of a loop in the vicinity of 
 Park Avenue at the easterly terminal of the Crosstown Line in Transverse Road 
 No. 1 through Central Park; the substitution of 46th Street between Park Avenue 
 and Broadway for 48tli Street between the same limits; the addition of 31st and 
 
20 
 
 33r(l Streets between Madison Avenue and Seventh Avcnnc ; tlic elimination of th« 
 line from ll.fth Street to Broadway by tlie way of St. Nicliolas Avenue, St. Nicholas 
 Place, Edgecomb Koad and 167th Street; the elimination of St. Nicholas Avenue 
 from 148th Street to 152nd Street; the elimination of Morningsidc Drive from 110th 
 Street to 116th Street; the elimination of 120th Street from Amsterdam Avenue to 
 Broadway and from Claremont Avenue to Riverside Drive, and the elimination of 
 79th Street from West End Avenue to Riverside Drive. 
 
 W illi respect to the other changes proposed, your Committee feels that it would 
 be unwise to alter the system in accordance therewith. The Committee feels that 
 while it is desirable to introduce a crosstown line in the vicinity of 34th Street, that 
 street should not be used for that purpose on account of the congested traffic con- 
 ditions. The use of Broadway south of 39th Street v\oul(l likewise tend to add to 
 congestion in the vicinity of Herald Square. Your Committee agrees that no rights 
 should be granted on those thoroughfares at the present time. 
 
 There has been included, though not asked for by tlie Company, 42nd and 4Sth 
 Streets from Park Avenue to Vanderbilt Avenue and Vanderbilt Avenue from 42nd 
 Street to 45th Street. The right to use those thoroughfares has been proposed upon 
 the condition that the Board shall have the right at all times to fix the ratio of the 
 number of vehicles which shall be operated upon Vanderbilt Avenue to the number 
 whicli shall be operated upon the elevated roadway around the Grand Central Station 
 or upon the temporary route in Lexington Avenue. The same recommendation has 
 been made with resi)ect to the operation in 31st Street and 3,ird Street. 
 
 The contract containing these modifications is submitted herewith. 
 
 The recommendations of your Committee arc: 
 
 First. — That the proposal of the Manhattan Motor Bus Company be not received. 
 
 Second. — That the proposal of Messrs. Brunncr and Gridley be rejected. 
 
 Third. — That both proposals of the Fifth Avenue Coach Company be rejected. 
 
 Fourth — That the New York Motor Company be advised to file an amended 
 petition for the routes contained in this form of contract, in order that the Board 
 may r.ct thereon. It is believed that that Company has submitted the best offer and 
 that the contract as now presented, which embodies this ofTcr, is a good and satis- 
 factory one for the City to accept. 
 
 The Company has stated that it is willing to accept the amendments hereinbefore 
 discussed. The President of the Company has, as a guarantee of the Company's good 
 faith, placed in the hands of the Committee a certified check in the sum of sixty 
 thousand dollars ($60,000) drawn to the order of the Comptroller. This check is 
 presented upon the condition that it is to be returned forthwith if the Board fails 
 to grant the franchise to the New York Motor Bus Company. If, on the other hand, 
 the Board grants the franchise according to the proposal the check is to be delivered 
 to the Comptroller of tlie City with instructions that in the event the Company fails 
 to accept the franchise the money is to remain the property of the City, but if the 
 
21 
 
 franchise is accepted by the Company the money is to be applied by the Comptroller 
 to the initial payment and security deposit required by the franchise, which sums 
 amount to sixty thousand dollars ($60,000). 
 Respectfully submitted, 
 
 JOHN PURROY MITCHEL, Mayor; 
 
 GEORGE McANENY, President, Board of Aldermen ; 
 
 DOUGLAS MATHEWSON, President, Borough of The Bronx; 
 
 Franchise Committee. 
 
22 
 
 Synopsis of Provisions of Contract. 
 
 Section 1. Grant; descriptions of streets in which right is granted. 
 
 Section 2. Conditions of grant. 
 
 First — Term of grant: 15 years with privilege of 10 years renewal. 
 
 Second — Compensation. 
 
 Initial payment $,?0,riOO 00 
 
 Five per cent, of ktoss rcifipls with minimum aiimi;il payments as 
 follows : 
 
 I'irst year $.1(),(X)0 (K) 
 
 Second year 35,000 00 
 
 Succccdinji; flircc years -lO/XX) 00 per annum 
 
 Succeeding five years 50,000 CO per annum 
 
 Succeeding five years 60,000 00 per annum 
 
 Third — .Annual charges to continue throughout wliole term. 
 
 I'Ourth — Kiglit not exclusive. 
 
 Fifth — City may purchase all or any part of the property of Company upon an 
 agreed value or value to be determined l)y arbitration. 
 
 Si.xth — Rights not to be assigned williout consent of Board. 
 
 Seventh — Commencement of operation; Company to place in operation 100 ve- 
 liicks iii>Hniicnths and a sufficient number to operate all lines in twelve months. 
 
 Eighth — Company not allowed to erect structures in the streets. 
 
 Ninth — Limitations of weight, dimensions, etc., of vehicles. 
 
 Tenth — Information to be painted on vehicles. 
 
 EleveiUh — No advertising signs to be permitted on tlic outside of vehicles. 
 
 Twelfth — Destinalion of vehicles to he plainly indicated. 
 
 Tliirteenth — Number of passengers to l)c carried not to exceed seating capacity. 
 
 I'ourteenth — Vehicles to be heated. 
 
 Fifteenth — Vehicles to be lighted. 
 
 Sixteenth — \'ehicles must be submitted for approval before they are put in opera- 
 tion. 
 
 Seventeenth — Vehicles to be maintained in good and safe repair; Company to 
 permit inspection of vehicles and to withdraw vehicles from service if unfit for 
 public use and to remedy defect before restoring same to service. 
 
 Eighteenth — Laws and ordinances affecting operation to lie compliid with. 
 
 Ninetecntl) — Kate of fare, b'are to be ten cents between all points willi certain 
 named routes upon which the fare .shall be five cents. 
 
 Twentieth — I'requency of service and discretion of Hoard with reference to num- 
 ber of vehicles on certain streets. 
 
 Twenty-first — Company to open, by means of snow plows, passage sixteen feet in 
 width over all routes not occupied by street railways. 
 
 Twenty-second — Use of streets other than those described in the contract. 
 
 Twenty-third — Coinpany to operate, pursuant to specified conditions, extensions 
 or additional routes upon order of the Board. 
 
 Twenty-fourth — Board has right to change routes of Company within fixed 
 limits. 
 
23 
 
 Twenty-fifth — Company to report to Board. 
 
 Twenty-sixth — Company to keep accurate books of account. 
 
 Twenty-seventh — Company to keep accurate books of data with respect to different 
 service and different classes of vehicles. 
 
 Twenty-eighth — City may sue for forfeiture. 
 
 Twenty-ninth — Damages for inefficient public service. 
 
 Thirtieth — Company to assume all liability to persons and property. 
 
 Thirty-first — Security deposit. 
 
 Thirty-second — Definition of words "notice," "order" and "direction." 
 Thirty-third — Definition of words "streets" or "avenues." 
 
 Thirty- fourth — If powers of the Boanl or other authorities are transferred to any 
 other board or authority, then such other board or authority to act in place of Board 
 or such other authority. 
 
 Section 3 — Nothing in the contract to be construed as limiting power of Public 
 Service Commission. 
 
 Section 4 — Company promises, covenants and agrees to conform to and abide by al' 
 the terms and conditions. 
 
 Proposed Form of Motor Bus Franchise. 
 
 This contract, made and executed in duplicate this day of " 
 
 19 , by and between The City of New York (hereinafter called the City), party of the 
 first part, by the Mayor of said City, acting for and in the name of said City, under 
 and in pursuance of the authority of the Board of Estimate and .Apportionment of 
 said City (hereinafter called the Board), and the 
 Company (hereinafter called the Company), party of the second part, Witnesseth : 
 
 In consideration of the mutual covenants and agreements herein contained, the 
 parties hereto do hereby covenant and agree as follows: 
 
 Section 1. The City hereby grants to the Company, subject to the conditions and 
 provisions hereinafter set forth, the right and privilege to maintain and operate a 
 stage or omnibus route for public use in the Borough of 'Manhattan, in The City of 
 New York, upon the following routes, to wit: 
 
 Beginning in 14th Street at Union Square; thence along 14th Street to Irving 
 Place; thence along Irving Place to 20th Street; thence east along 20th Street to 
 Graniercy Park East; also west along 20th Street to Gramercy Park West; thence 
 north along both Gramercy Park East and Gramercy Park West to 21st Street; thence 
 cast along 21st Street from Gramercy Park West, and west along 21st Street from 
 Gramercy Park East to Lexington Avenue; thence along Lexington Avenue to 23d 
 Street; thence along 23d Street to Madison Avenue; thence along Madison Avenue 
 to 40th Street; thence along both 39th and 40th streets from Madison Avenue to 
 Park Avenue; thence along Park Avenue to 42d Street; thence along 42d Street to 
 Vanderbilt Avenue ; thence along Vanderbilt Avenue to 45th Street ; thence along 45th 
 Street to Park Avenue, and also upon a viaduct proposed to be constructed in Park 
 Avenue for the purpose of connecting the roadway of Park Avenue at about 40th 
 Street with the elevated roadway on the southerly side of the Grand Central Station ; 
 thence along said viaduct to said elevated roadway on the southerly side of the Grand 
 
 •1 
 
24 
 
 Central Station ; thence along the elevated roadway on the southerly and on the 
 westerly sides of the Grand Central Station to 45th Street ; thence along 45th Street 
 to Park Avenue ; thence along Park Avenue to 96th Street ; provided that during the 
 period prior to the date of the opening to traffic of said viaduct in Park Avenue 
 from about 40th Street to the elevated roadway on the southerly side of the Grand 
 Central Station, the route of the operation around the Grand Central Station shall 
 be northerly along Park Avenue to 42d Street ; thence along 42d Street to Lexington 
 Avenue ; thence along Lexington Avenue to 46th Street ; thence along 46th Street 
 to Park Avenue ; thence northerly along Park Avenue ; but after the completion of 
 said viaduct the operation along Park Avenue from the southerly terminus of said 
 proposed viaduct to 42d Street, along 42d Street from Park Avenue to Lexington 
 Avenue, along Lexington Avenue from 42d Street to 46th Street, and along 46th 
 Street from Lexington Avenue to Park Avenue, shall cease, and the operation shall 
 be continued upon the said viaduct and said elevated roadways on the southerly and 
 westerly sides of the Grand Central Station. 
 
 Beginning in 14th Street at Union Square ; thence along 14th Street to 7th Avenue ; 
 thence along 7th Avenue to Longacre Square and Broadway ; thence along Longacre 
 Square and along Broadway to Columbus Circle. (Provided that if the Board sees 
 fit it may at any time during the term of the contract order the Company to operate 
 along 7th Avenue from Broadway to 57th Street; thence along 57th Street to Broad- 
 way, instead of along Broadway from 7th Avenue to 57th Street, and if the Board 
 shall so order, then the Company shall discontinue the operation on tliat portion of 
 Broadway between 48th and 57th streets) ; thence along Columbus Circle on each 
 side thereof to Broadway; thence along Broadway to its intersection with 72d Street 
 and Amsterdam Avenue (provided that if and when the existing street railway 
 tracks in Central Park West, between Columbus Circle and 72d Street, shall be 
 removed to a position at or near the center of the roadway, the route shall then 
 continue along Central Park West from Columbus Circle to 72d Street; thence along 
 72d Street to its intersection with Broadway or Amsterdam Avenue, and the company 
 shall then discontinue the use of that portion of Broadway between its intersection 
 with Columbus Circle and its intersection with 72d Street or Amsterdam Avenue) ; 
 thence along Amsterdam Avenue to 86th Street; thence along 86th Street to West 
 End Avenue; thence along West End Avenue to Broadway; thence along Broadway 
 to St. Nicholas Avenue; thence along St. Nicholas Avenue to its intersection with 
 Wadsworth .\venue or 193d Street; thence along Wadsworth Avenue or 193d Street 
 to 192d Street; thence along 192d Street to St. Nicholas Avenue. 
 
 Beginning at the intersection of Madison Avenue and 31st Street; thence along 
 31st Street to 8th Avenue; thence along 8th Avenue to 33d Street; thence along 33d 
 Street to Madison Avenue. Beginning at the intersection of Sixth Avenue and 
 31st Street, thence along Sixth Avenue to 33rd Street. Beginning at the intersection 
 of Broadway and 39th Street; thence along Broadway to 7th Avenue, or Longacre 
 Square. 
 
 Beginning at the intersection of 7th Avenue with 39th and 40th streets; thence 
 along both 39th and 40th streets to their intersection with Park Avenue; said route 
 
25 
 
 in 39th Street to lie used for one-way traffic only, and said route in 40th Street 
 to be used for one way traffic only. Beginning at the intersection of 6th Avenue 
 and 39th Street; thence along 6th Avenue to 40th Street. 
 
 Beginning at the intersection of Broadway with 46th and 47th streets ; thence 
 along both 46th and 47th streets to their intersections with Park Avenue; said route 
 in 46th Street to be used for one way traffic only and said route in 47th Street to 
 be used for one way traffic only. 
 
 Beginning in 6Sth Street at its intersection with Park Avenue; thence along 
 65th Street to and across 5th Avenue to Transverse Road No. 1 through Central 
 Park ; thence along said Transverse Road to Central Park West at 66th Street ; thence 
 along 66th Street to Broadway (provided that if the Company shall subsequently 
 operate along Central Park West and 72d Street from Columbus Circle to the inter- 
 section of 72d Street and Broadway, instead of along Broadway from Columbus 
 Circle to 72d Street, as herein provided, then the Company shall discontinue the 
 operation along that portion of 66th Street between Central Park West and Broadway. 
 Also beginning at the intersection of Park Avenue and 64th Street ; thence along 
 64th Street to Madison Avenue ; thence along Madison Avenue to 65th Street. 
 
 Beginning at the intersection of Avenue A and 79th Street; thence along Avenue 
 A to 80th Street ; thence along 80th Street to East End Avenue ; thence along 
 East End Avenue to 79th Street ; thence along 79th Street to and across 5th Avenue 
 to Transverse Road No. 2 through Central Park; thence along said Transverse Road 
 to Central Park West, at 81st Street ; thence along Central Park West to 77th Street ; 
 thence along 77th Street to Columbus Avenue ; thence along Columbus Avenue to 
 79th Street; thence along 79th Street to West End Avenue; thence along West 
 End Avenue to 80th Street ; thence along 80th Street to Broadway ; thence along 
 Broadway to 79th Street. 
 
 Beginning in 96th Street, at its intersection with Park Avenue ; thence along 96th 
 Street to 5th Avenue; thence along 5th Avenue to Transverse Road No. 4 through 
 Central Park at 97th Street; thence along said Transverse Road to Central Park 
 West; thence along Central Park West to 96th Street; thence along 96th Street to 
 West End Avenue. 
 
 Beginning in 110th Street at its intersection with Broadway; thence along 110th 
 Street to 8th .Avenue and around the Circle at the intersection of 8th .Avenue and 
 110th Street. 
 
 Beginning at the intersection of Morningside Drive and 119th Street; thence along 
 119th Street to Amsterdam .Avenue; thence along Amsterdam .Avenue to 120th Street; 
 thence along 120th Street to Morningside Drive ; thence along Morningside Drive 
 to 116th Street; thence along 116th Street to Claremont Avenue; thence along Clare- 
 mont Avenue to 120th Street ; thence along 120th Street to Broadway. 
 
 Beginning in Manhattan .Avenue at its intersection with 110th Street; thence along 
 Manhattan Avenue to Morningside Avenue (Morningside Park East) ; thence along 
 Morningside Avenue, or Morningside Park East, to Convent Avenue : thence along 
 Convent Avenue to St. Nicholas .Avenue ; thence along St. Nicholas Avenue to its 
 intersection with Broadway. 
 
26 
 
 BcKinning in Manhattan Street at or near tlic terminal of the 130th Street Ferry 
 to Fort Lee; thence along Manhattan Street to 125th Street; thence along 12Sth 
 Street to Park Avenue; thence along Park Avenue to 127th Street. 
 
 Beginning in ISSth Street at its intersection with Broadway; thence along ISSth 
 Street and along the viaduct in 155th Street to a point on said viaduct over tlic 
 station of the elevated railroad at the intersection of ISSth Street and yth Avenue. 
 
 Beginning in Fort Washington Avenue at its intersection with Broadway; thence 
 along Fort Washington Avenue to ISlst Street; thence along 181st Street to St. 
 Nicholas .\vcnuc. 
 
 Also along any or all of the following portions of streets and avenue which 
 may be necessary for the Company to use in order that it may conform with traffic 
 regulations : 
 
 Union Siiuare West and Union Siiuare East from their intersections with 14th 
 Street to their intcr.sections with 17th Street. 
 
 Fifteenth and 16th streets from their intersections with Irving Place to their 
 intersections with Union Sijuare East- 
 
 Seventeenth Street from its intersection with Irving Place to its intersection with 
 
 Broadway. 
 
 Forty-first, 42d and ASlh streets from their intersections with Broadway to their 
 intersections with 7th Avenue. 
 
 Seventh Avenue from Longacre Square to 48th Street. 
 
 Fifty-seventh and 58th streets from their intersections with Broadway to tluir 
 intersections with 8th .Xvcnuc and 8lh Avenue from its intersection with 57th Street 
 to Columbus Circle. 
 
 One Hundred and Sixty-seventh Street from Broadway to St. Nicholas Avenue. 
 
 .■\nd to cross such oilier streets and avenues, named and unnamed, as may be 
 encountered in said routes. 
 
 The said routes hereby authorized are shown upon a map entitled : 
 (Here insert title of map.) 
 and signed by , President, and 
 
 Engineer, copy of which is attached hereto, is to be deemed a part of this contract, 
 is to be construed with the text thereof, and is to be substantially followed, provided 
 that temporary deviations therefrom may be permitted as hereinafter set forth. 
 
 Section 2. The grant of tliis privilege is subject to the following conditions, 
 which shall lie complied with by the Company: 
 
 pirst Tlic said riglit to maintain or operate said stage or omnibus routes shall 
 
 be held and enjoyed by the Company for the term of fifteen (15) years from the 
 date upon which this contract is signed by the Mayor, with the privilege of renewal 
 of said contract for the further period of ten (10) years upon a fair revaluation of 
 such right and privilege. Such right and privilege shall be valued as if the Company 
 had not exercised the same for the said period of fifteen (15) years, and no allowance 
 shall be made to the Company in such valuation by reason of such exercise. 
 
 If the Company shall determine to exercise its privilege of renewal it shall 
 make application to the Board, or any authority which shall be authorized by law to 
 act for the City in place of the Board. Such application shall be made at any time 
 not earlier than two (2) years and not later than one (1) year before the expiration 
 
of the original term of this contract. The determination of the revaluation shall be 
 sufficient if agreed to in writing by the Company and the Board, but in no case shall 
 the annual rate of compensation to the City be fixed at a less amount than the sum 
 required to be paid during the last year prior to the termination of the original 
 term of this contract. 
 
 If the Company and the Board shall not reach such agreement on or before the 
 day one (1) year before the expiration of the original term of this contract, then 
 the annual rate of compensation for such succeeding ten (10) years shall be reasonable, 
 and either the City (by the Board) or the Company shall be bound upon request of 
 the other to enter into a written agreement with each other fixing the rate of such 
 compensation at such amount as shall be reasonable, but in no case shall the annual 
 rate so fixed be less than the sum required to be paid for the last year prior to the 
 termination of the original term of this contract, and if the parties shall not forthwith 
 agree upon what is reasonable, then the parties shall enter into a written agreement 
 fixing such annual rate and at such amount as shall be determined by three dis- 
 interested persons selected in the following manner: 
 
 One disinterested person shall be chosen by the Board; one disinterested person 
 shall be chosen by the Company; these two shall choose a third disinterested person, 
 and tlie three so chosen shall act as appraisers and shall make the revaluation aforesaid. 
 Such appraisers shall be chosen at least six (6) months prior to the expiration of this 
 original contract, and their report shall be filed with the Board within three (3) 
 months after they are chosen. They shall act as appraisers and not as arbitrators. 
 They may base their judgment upon their own experience and upon such information 
 as they may obtain by inquiries and investigations, without the presence of either 
 party. They shall have the right to examine any of the books of the Company and 
 its officers under oath. The valuations so ascertained, fixed and determined shall be 
 conclusive upon both parties, but no annual sum shall, in any event, be less than the 
 sum refjuired to be paid for the last year of the original term of this contract. If in 
 any case the annual rate shall not be fixed prior to the termination of the original 
 term of this contract, then the Company shall pay the annual rate theretofore prevailing 
 until the new rate shall be determined, and shall then make up to the City the amount 
 of any excess of the annual rate then determined over the previous annual rate. The 
 compensation and expenses of the said appraisers shall be borne jointly by the City 
 and the Company, each paying one-half thereof. 
 
 Second — The Company shall pay to the City for the privilege hereby granted the 
 following sums of money : 
 
 (a) The sum of thirty thousand dollars ($30,(KX)) in cash within thirty (30) days 
 after the date on which this contract is signed by the Mayor, and before anything is 
 done in exercise of the privilege hereby granted. 
 
 (b) During the first term of five (5) years an annual sum which shall be equal 
 to five (5) per cent, of its gross annual receipts, but which sum shall not be less 
 than thirty thousand dollars ($30,000) during the first year of this contract, thirty-five 
 thousand dollars ($,^.\000) during the second year of this contract and forty thousand 
 dollars ($40,000) per annum during the succeeding three (3) years of this contract. 
 
 During the succeeding term of five (5) years an annual sum which shall be equal 
 
28 
 
 to five (5) pir cent, of its gross annual rccupts, but wliicli sum shall not be less 
 than fifty thousand dollars ($50,000). 
 
 During the remaining term of five (5) years an annual sum which shall be equal 
 to five (5) per cent, of its gross annual receipts, but which sum shall not be less 
 than sixty thoueand dollars ($60,000). 
 
 The gross annual receipts mentioned almve shall l)c the gross receipts of the 
 Company from all sources, except from the operation of extensions and additional 
 routes which may he hereafter authorized. 
 
 The annual charges shall commence from the date upon which the Company 
 obtains the approval of this contract and a certificate of convenience and necessity 
 from the Public Service Commission, as required by law. The Company hereby 
 agrees to file this application with the Public Service Commission fur such approval 
 and such certificate within ten (10) days from the date of this contract. 
 
 All annual charges as above shall be paid into the Treasury of the City on 
 November 1 of each year and shall be for the amount due to September 30 next 
 preceding. Provided that the first payment shall he only for that proportion of the 
 annual charge fixed as the time between the date upon which such annual charges 
 commence, as determined under the conditions of the preceding paragraph and 
 September 30 following shall bear to the whole of one year. 
 
 .\ny and all payments to be made by the term of this contract to the City by 
 the Company shall not be considered in any manner in the nature" of a tax, but 
 such payments shall be made in addition to any and all taxes of whatsoever kind or 
 description, now or hereafter required to lie paid by any ordinance of the City, or 
 resolution of the Board, or any law of the State of New York. 
 
 Third — The annual charges or payments shall continue throughout the whole 
 term of this contract, notwithstanding any clause in any statute or in the charter 
 of any other company providing for payment for similar rights or franchises at a 
 different rate. 
 
 Fourth — Nothing in this contract shall be deemed to affect in any way the right 
 of the City to grant to any individual or other corporation a similar right or privilege 
 upon the same or other terms and conditions, over the same streets and avenues, here- 
 inbefore described. 
 
 Fifth — At the termination or forfeiture of this grant, the City, at the election of 
 the Board, shall have the right to purchase all or any part of the property of the 
 Company used for the purpose of the operation of the stage or omnibus system 
 hereby authorized at a sum equal to a fair value of such property, exclusive of any 
 value which such property may have by reason of this contract. 
 
 If the Company and the City cannot agree upon a fair value of such property, 
 then the value thereof shall be determined and fixed by arbitration at the instance 
 of either party upon notice to the other party hereto, in the following manner : 
 
 One disinterested person shall be chosen by the Company, one disinterested person 
 shall be chosen by the Board, and the two so chosen shall choose a third disinterested 
 person. The decision under oath of any two of such persons, who shall be so selected, 
 shall be final and conclusive. 
 
29 
 
 If cither the Company or the City fails to appoint an arbitrator as herein provided, 
 or should the first two arbitrators fail to agree on the selection of the third arbitrator 
 within thirty (30) days after the first two arbitrators shall be chosen, or if no two 
 arbitrators so selected shall agree upon the value of such property within sixty (60) 
 days after the arbitrators shall be so selected, then such value may be fixed by a 
 ^ Q ^ comm issiongr appointed by the Supreme Court on the application of either party. 
 
 Sixth — The rights and privileges hereby granted shall not be assigned, either in 
 whole or in part, or leased or sublet in any manner, nor shall title thereto, or right, 
 interest or property therein, pass to or vest in any other person or corporation 
 whatsoever, either by the act of the Company, or by operation of law, whether under 
 the provisions of the statutes relating to the consolidation or merger of corporations 
 or otherwise, without the consent of the City, acting by the Board, evidenced by an 
 instrument under seal, anything herein contained to the contrary thereof in any wise 
 notwithstanding, and the granting, giving or waiving of any one or more of such 
 consents shall not render unnecessary any subsequent consent or consents; and no 
 assignment, lease or sub-lease of the rights or privileges hereby granted, or of any 
 part thereof, or of any of the routes mentioned herein, or of any part thereof, shall 
 be valid or effectual for any purpose unless the said assignment, lease or sub-lease 
 shall contain a covenant on the part of the assignee or lessee that the same is subject 
 to all the conditions of this contract; and that the assignee or lessee assumes and 
 will be bound by all of said conditions, and especially said conditions as to payments, 
 anything in any statute or in the charter of such assignee or lessee to the contrary 
 notwithstanding, and that the said assignee or lessee waives any more favorable 
 conditions created by such statute or its charter, and that it will not claim by reason 
 thereof or otherwise exemption from liability to perform each and all of the conditions 
 of this contract. 
 
 Seventh — The Company shall place at least one hundred vehicles in regular opera- 
 tion within eight (8) months from the date of the signing of this contract and a 
 sufficient number of vehicles to operate all of the routes herein authorized within 
 twelve (12) months from the date upon which this contract is signed by the Mayor, 
 provided that such period may be extended by the Board for a period or periods not 
 exceeding in the aggregate six (6) months; and, provided, further, that when the 
 commencement of said operation shall be prevented by legal proceedings in any court 
 or by works of public improvement, or from other causes not within the control of 
 the Company, the time for the commencement of such operation may be extended for 
 the period of such prevention, but no delay shall be allowed for unless the court pro- 
 ceedings shall be diligently prosecuted by the Company, and provided further that in 
 no case shall such delay be deemed to begin until the Company shall have given 
 written notice to the Board of any such court proceedings or other occasion of delay, 
 and deliver to the Board copies of any injunction or other orders, and the papers 
 upon which the same shall have been granted, and unless upon the request of the 
 Board, the Company shall, in writing, consent that the Board, either in its own 
 name as a party, or in the name of the City as a party, may intervene in any such 
 proceeding. 
 
 Eighth — Nothing herein contained shall be construed as permitting the grantee to 
 
30 
 
 erect any structures whatever upon City streets, and the Company shall not construct 
 or maintain any fixture or structure in the street unless especially authorized by reso- 
 lution of the Board. 
 
 Nintli— .Ml vehicles which may be operated pursuant to this contract sliall com- 
 ply with the following general requirements : 
 
 1. They shall be propelled by power generated or contained within the vehicle 
 itself, bi:t no power shall be used which will in its generation or use produce smoke 
 or noxious odors sufficient, in the opinion of the Board or its authorized representa- 
 tives, to constitute a nuisance. 
 
 2. The maximum weight, includins fuel, water, oil or any other material or any 
 accessories used in operation, shall not exceed ten thousand five hundred (10,500) 
 pounds. 
 
 3. The maximum width shall not exceed seven (7) feet six (6) inches. 
 
 4. The maximum height over all shall not exceed ten (10) feet nine (9) inches. 
 
 5. The maximum height of the floor of the upper deck shall not exceed eight (8) 
 feet. 
 
 6. The maximum length shall not exceed twenty-five (25) feet. 
 
 7. Tlicy shall be designed and constructed in a manner which will permit ease and 
 freedom of movement under all conditions. 
 
 8. The distribution of weight on axles, length of wheel base and other features 
 of design shall be such as to avoid skidding as far as possible and shall be such as to 
 permit easy steering and control. 
 
 9. They shall be fitted with brakes capable of stopping and holding the same under 
 all conditions. 
 
 10. All parts shall be so constructed that no undue noise or vibration shall result 
 from operation. 
 
 11. They shall be so constructed that the oil or grease cannot drop on the 
 roadway. 
 
 Tenth — No stage or omnibus shall be operated pursuant to this contract unless 
 there shall be painted thereon in letters sufficiently large to be clearly legible at a 
 distance of seventy-five feet : 
 
 (a) The name of the Company owning and operating such vehicle. 
 
 (b) The number of the vehicle which is assigned to it upon receiving the approval 
 of the Board or its authorized representatives. 
 
 (c) The number of adults for which the vehicle has seating space. 
 
 Eleventh — No advertising signs shall appear on the outside of any stage or 
 omnibus. 
 
 Twelfth— The destination of each stage or omnibus shall be plainly indicated on 
 the front of the vehicle, and shall lie illuminated at night. 
 
 Thirteenth— The numlier of passengers to be carried in any vehicle shall at no 
 time exceed the seating capacity of the vehicles. 
 
 Fourteenth — The inclosed portion of all stages or omnibuses which are operated 
 on said routes shall be heated during the cold weather, in conformity with such laws 
 and ordinances as are now in force affecting surface railway cars or such laws and 
 
31 
 
 ordinances affecting stages or omnibuses as may hereafter, during the term of this 
 contract, be in force, or as may be required by resolution of the Board. 
 
 .Fifteenth— Tile inclosed portion of all stages or omnibuses operated on said 
 routes shall be well lighted and as may be required by resolution of the Board. 
 
 Sixteenth — Before any stage or omnibus is put in service it must be submitted to 
 the Board or its authorized representatives and receive the approval thereof. If any 
 vehicle which may be so submitted for approval shall not conform with the require- 
 ments herein the Company shall not operate such vehicle. If after a vehicle shall 
 have been so approved, defects develop which in the opinion of the Board or its 
 authorized representatives render it unsuitable for public service, then the Board 
 or its authorized representatives may require the withdrawal of such vehicle from 
 service. 
 
 Upon being approved by the Board or its authorized representatives, each vehicle 
 shall be given a number which shall not be changed so long as such vehicle shall 
 be operated by the Company, unless and until the Company shall notify the Board 
 that it proposes to change the number of the vehicle and of the new number which 
 it is proposed to use. 
 
 Seventeenth — All vehicles operated pursuant to this grant shall be maintained in 
 good and safe repair and in a manner which will in all ways render the vehicle fit for 
 public service. The Company shall permit the Board or its authorized representatives 
 to inspect at all reasonable times any or all the vehicles used by the Company. If 
 upon inspection any vehicle shall appear in the judgment of said Board or its 
 authorized representatives to be unfit for public service, then the Company shall, 
 upon notice, immediately withdraw such vehicle from service, and shall remedy the 
 defect and notify the Board or its authorized representatives that the defect has been 
 remedied before such vehicle shall be restored to service. 
 
 Eighteenth — .-Ml laws and ordinances affecting the operation of stages or omnibuses 
 now in force or which may be in force during the term of this contract shall be 
 complied with by the Company. The Company shall also comply with and enforce 
 the carrying out of any orders or regulations which may be issued by the Board, de- 
 signed for the protection of persons, of property or of the comfort and health of 
 the public. 
 
 Nineteenth — The rate of fare for any passenger shall not exceed ten (10) cents, 
 and upon the payment of such fare a passenger shall be entitled to ride as directly 
 as possible from any point on the routes hereby authorized to any other point on 
 the routes hereby authorized, either in one vehicle or by means of one or more 
 transfers to other vehicles, provided that for a single fare of ten (10) cents no pas- 
 senger shall be entitled to return toward the point at which the ride originated, and 
 the Company shall accordingly issue transfers upon demand, good within a reasonable 
 time, at the intersection or meeting of any two of the Company's operating routes at 
 some point of such intersection or meeting to be designated by the Company. 
 
 In consideration of the right hereby granted the Company agrees to operate 
 "special" five-cent lines over the streets hereinafter described, all of which streets 
 are included in the routes hereby authorized. 
 
 The rate of fare for any passenger upon said "special" lines shall not exceed 
 
32 
 
 five (5) cents, and upon the payment of such fare a passenger shall be entitled to 
 ride as directly as possible from any point on said "special" lines herein described 
 to any other point connected by said "special" lines, either in one vehicle or by means 
 of one or more transfers to other vehicles, provided that for a single fare of five 
 (S) cents no passenger shall be entitled to return toward the point at which the ride 
 originated, and the Company shall accordingly issue transfers upon demand, good 
 within a reasonable time at the intersection or meeting of any two of the said "special" 
 lines at some point of sucli intersection or meeting to be designated by the Company. 
 
 The streets in which said "special" five-cent lines shall be operated are described 
 as follows : 
 
 Broadway from 14th Street to 17th Street; 17th Street from Broadway to Irving 
 Place; 4th Avenue from 14th Street to 17th Street; 16th Street from 4th Avenue 
 to Irving Place; 15th Street from 4th Avenue to Irving Place; 14th Street from 
 Irving Place to 7th Avenue; 7th Avenue from 14th Street to 33d; 33d Street irum 
 8th Avenue to Madison Avenue; 8th Avenue from 31st Street to 33d Street; 3Ist 
 Street from 8th Avenue to Madison Avenue ; Irving Place from 14th Street to 20th 
 Street; all streets bounding Gramcrcy Park; Lexington Avenue from 21st Street to 
 23d Street ; 23d Street from Lexington Avenue to Madison Avenue ; Madison Avenue 
 from 23d Street to 40th Street; 40th Street from Madison Avenue to Park Avenue; 
 39th Street from Madison Avenue to Park Avenue ; Park Avenue from 39th Street to 
 42d Street ; along the viaduct proposed to be constructed in Park Avenue for the pur- 
 pose of connecting the roadway of Park Avenue at or about 40th Street with the ele- 
 vated roadway on the southerly side of the Grand Central Station ; the elevated road- 
 way on the southerly side of the Grand Central Station between the said viaduct and 
 the elevated roadway on the westerly side of the Grand Central Station ; the elevated 
 roadway on the westerly side of the Grand Central Station; 45th Street from Van- 
 derbilt Avenue to Park Avenue; Park Avenue from 45fh Street to 46th Street; 46th 
 Street from Park Avenue to Lexington Avenue; Lexington Avenue from 42d Street 
 to 46th Street; 42d Street from Lexington Avenue to Vanderbilt Avenue; Vanderbilt 
 Avenue from 42d Street to 43th Street. 
 
 Sixty-sixth Street from Broadway to Central Park West ; Transverse Road No. 1 
 through Central Park from Central Park West to 5th Avenue; 65th Street from 5th 
 Avenue to Park Avenue ; Park Avenue from 65th Street to 64th Street ; 64th Street 
 from Park Avenue to Madison Avenue; Madison Avenue from 64th Street to OSth 
 Street. 
 
 Broadway from 79th Street to 80th Street; 80th Street from Broadway to West 
 End Avenue; West End Avenue from 80th Street to 79th Street; 79th Street from 
 West End Avenue to Columbus Avenue; Columbus .Avenue from 79th Street to 77th 
 Street; 77th Street from Columbus Avenue to Central Park West; Central Park 
 West from 77th Street to Transverse Road No. 2 through Central Park; Transverse 
 Road No. 2 through Central Park from Central Park West to Fifth Avenue; 79th 
 Street from Fifth Avenue to East End Avenue; East End Avenue from 79th Street 
 to 80th Street; 80th Street from East End Avenue to Avenue A; Avenue A from 
 80th Street to 79th Street. 
 
33 
 
 Ninety-sixth Street from West End Avenue to Central Park West; Central Park 
 West from 96th Street to Transverse Road No. 4 through Central Park; Transverse 
 Road No- 4 through Central Park from Central Park West to Fifth Avenue ; Fifth 
 Avenue from Transverse Road No. 4 through Central Park to 96th Street; 96th 
 Street from Fifth Avenue to Park Avenue. 
 
 Park Avenue from 127th Street to 125th Street; 125th Street from Park Avenue 
 to Manhattan Street; Manhattan Street from 125th Street to Fort Lee Ferry; Broad- 
 way from Manhattan Street to St. Nicholas Avenue ; St. Nicholas Avenue from Broad- 
 way to 193d Street; 193d Street or Wadsworth Avenue from St. Nicholas Avenue to 
 192d Street; 192d Street from Wadsworth Avenue to St. Nicholas Avenue; Morning- 
 side Avenue from 125th Street to Convent Avenue; Convent Avenue from Morning- 
 side Avenue to St. Nicholas Avenue ; St. Nicholas Avenue from Convent Avenue to 
 Broadway; 167th Street from Broadway to St. Nicholas Avenue; 155th Street from 
 Broadway to Eighth Avenue; Fort Washington Avenue from Broadway to 181st 
 Street; 181st Street from Fort Washington Avenue to St. Nicholas Avenue- 
 
 Twentieth — Stages or omnibuses shall be run on said routes at intervals of not 
 more than fifteen (15) minutes between the hours of 7 A. M. and 12 o'clock midnight, 
 and as much oftener as reasonable convenience of the public may require or as may 
 be directed by resolution of the Board, and stages or omnibuses shall be operated 
 on such routes and at such intervals between the hours of 12 o'clock midnight and 
 7 A. M. as reasonable convenience of the public may require, or as may be directed 
 by resolution of the Board. 
 
 It is hereby agreed that the Board shall at all times during the term of this 
 contract have the right to fix, for any period, the maximum number of vehicles 
 which shall be operated in 31st Street and 33d Street, from Madison Avenue 
 to Eighth Avenue, and to fix, for any period, the ratio of the number of vehicles 
 operated on Vanderbilt Avenue between 42d Street and 45th Street to the number of 
 vehicles operated over the elevated roadway on the southerly and westerly sides 
 of the Grand Central Station, and to fix. for any period, the ratio of the number of 
 vehicles operated on Vanderbilt Avenue between 42d Street and 45th Street, to the 
 number of vehicles operated over the temporary route, Lexington Avenue from 46th 
 Street to 42d Street. 
 
 Twenty-first — In the event of snowfall the Company shall, as directed by the Com- 
 missioner of Street Cleaning, open by means of snow plows or brooms, a passage 
 sixteen feet in width over all or any of the routes herein authorized and not occupied 
 by a street railway. 
 
 Twenty-second— It is understood that the Company shall operate, pursuant to 
 this contract, only the routes herein authorized, but should vehicular traffic be diverted 
 from any portion of any of the streets or avenues upon which the Company is herein 
 authorized to operate because of fires, parades or because of any other event which 
 will close the street to vehicular traffic temporarily, then the Company may use such 
 other streets, or avenues as are necessary to continue the operation. If, however, for 
 any reason any of the streets and avenues in which the operation is hereby author- 
 ized shall be closed to vehicular traffic for a longer period than twenty-four hours, 
 
34 
 
 then the Company shall communicate with the Board or its authorized representatives 
 and obtain authority for the operation upon other streets and avenues for the period 
 during which said street or avenue may be closed. 
 
 Twenty-third — If in the opinion of the Board it shall at any time during the 
 uriginal term, or during the first seven (7) years of the renewal term of this contract, 
 be deemed necessary that the Company operate an extension or extensions to any of the 
 routes herein authorized or routes in addition to and distinct from and in no way con- 
 nected with those herein authorized, and the Board shall so order after a public hearing, 
 notification of which shall be given to the Company at least ten (10) days prior to the 
 date thereof, then the Company shall within thirty (30) days after the date of such 
 order, apply for a franchise for a term expiring not later than the date of the expiration 
 of this contract, and shall accept a franchise or right to operate such extension, exten- 
 sions or additional routes, which franchise shall contain the following special clauses: 
 "(1) The Company shall keep accurate accounts of the gross receipts from 
 all sources acquired from the operation of the route herein aulhoriccd and of the 
 number of bus miles operated thereon, and shall take such means as are necessary 
 and approved by the Board to keep such accounts. 
 
 "(2) The annual cost of operation of the route herein authorized shall be 
 deemed to equal the sum of the follounng items: 
 
 "(a) The number of bus miles actually operated thereon, multiplied by the 
 average cost of operation per bus mile over the entire system of the 
 Company, which average cost of operation shall include a sum suffi- 
 cient to pay for the depreciation of physical property, which sum shall 
 in no ez'cnt be less than an amount sufficient to pay for three (3) 
 years' depreciation during the term of this franchise. 
 "(b) Interest at the rate of si.v (6) per cent, per annum upon the value of 
 the physical property actually required to carry on the operation of 
 the route herein authorized, which value, unless a less z'alue is agreed 
 to by the Company and the City, or a less value determined by arbitra- 
 tion, shall be an amount equal to ten thousarnd dollars ($10,000) for 
 each additional vehicle for the operation of the route herein author- 
 ized. The number of additional vehicles necessary for said operation 
 on the route herein authorized shall be deemed to be equal to the num- 
 ber of bus miles operated thereon per annum, divided by the average 
 number of bus miles per annum operated by each of the vehicles of 
 the Company over its entire system, which shall in no case be less than 
 twenty thousand miles. 
 "(3) The gross receipts as hereein used shall be the actual receipts to the 
 Cotnpany resulting from the operation of the route herein authorized from 
 any source wluitsoever. If said route is operated in conjunction with 
 any other route or routes of the Company not described in this frat\- 
 chise, then the gross receipts shall be deemed to be one and one-third (I'A) 
 times the cash fares collected on said route, one half (■/$) the cash fare value 
 of the transfers collected on said route and that proportion of the receipts of the 
 
35 
 
 Company from advcrlisiiiy privileges as the number of bus miles per annum 
 operated on the route herein authorized bears to the total bus miles operated per 
 annum by the Company upon all the routes then operated u-ithin the City, unless 
 some other method to determine the gross receipts shall be agreed to by the Com- 
 pany and the City. 
 
 "(4) // during any year ending September 30 the cost of operation of the 
 route herein authorized shall exceed the gross receipts therefrom for that year, 
 then the amount of the excess of cost of operation over such gross receipts 
 shall be deducted frmn the payments to the City for that year required by the 
 first or original franchise granted to the Company. 
 
 "(5) // during any year the total cost of operation of all the routes operated 
 by the Company under franchises applied for in compliance linth orders of the 
 Board pursuant to section 2, subdiiision ticenty-third, of the original franchise of 
 the Company, exceeds for the corresponding year the aggregate of the gross re- 
 ceipts therefrom by an amount in excess of three and three-fourths (3J4) per 
 cent, of the gross receipts of the routes of the Company operated pursuant to 
 said original franchise, then the Company shall hare the right to discontinue and 
 abandon one or more of such routes operated in compliance with orders of the 
 Board as is necessary to limit the loss to an amount not exceeding said three and 
 three-fourths (3f4) per cent, of said gross receipts. The routes to be abandoned 
 shall be selected by the Board." 
 
 All other terms and conditions of such franchise shall be the same as contained 
 in this contract, unless otherwise mutually agreed to by the Company and the City, with, 
 however, the following exceptions, omissions, changes and additions : 
 
 1. Section 2. subdivision second, clause (a) shall provide for the payment of an 
 amount bearing the same ratio to thirty thousand dollars ($30,000) as the length of 
 such extension or additional route bears to the length of the streets described herein 
 unless a greater amount is agreed to by the Company. 
 
 2. Section 2, subdivision second, clause (b) shall provide for a payment of five 
 (5) per cent, of the gross receipts for such extension or additional route during the 
 term of the contract, with reasonable minimum annual payments, to be agreed upon 
 between the City and the Company. 
 
 3. Section 2, subdivision seventh, shall contain a specified period within which to 
 commence operation, which period shall be sufficient to enable the Company to reason- 
 ably comply therewith. 
 
 4. Section 2, subdivision nineteenth shall provide for a maximum rate of fare 
 to be determined by the Board, but which shall in no case, without the consent of the 
 Company, be fixed at an amount less than five (5) cents. 
 
 5. Section 2, subdivision twentieth shall provide for maximum headway of vehi- 
 cles to be determined by the Board. 
 
 6. Section 2, subdivision thirty-first shall provide for the deposit as security of 
 a sum which may be mutually agreed upon by the Ciiy and the Company. In case, how- 
 ever, such an agreement cannot be reached, the amount of the security deposit shall 
 
36 
 
 bear the same ratio to tliirty thousand dollars ($30,000) as the length of the extension 
 or additional route shall bear to tlic streets herein described. 
 
 7. Section 2, subdivision twenty-third sliall be omitted. 
 
 8. Said contract shall also contain the following clause : 
 
 "// any dispute shall at any time arise bet~veen the parties hereto in regard 
 to the amount or amounts due or to be credited to either the Cily or the Conu- 
 /iiiiiy under the terms of this contract, or if the City at any time questions the 
 cquily of the sum of ten thousand dollars ($10,000) per %-ehicle as the amount upon 
 K'/iiV/i interest at the rate of six (6) per cent, per annum is to he charged as a 
 port of operatintj cost, as herein proiided for, then such amount or amounts shall 
 be determined by arbitration at the instance of either parly upon notice to the 
 other party hereto, in the folloxving manner: 
 
 "One disinterested person shall be chosen by the Company, one disinterested 
 person shall be chosen by the Board, and the two so chosen shall choose a third 
 disinterested person. The decision under oath of any two of such persons who 
 shall be so selected, shall be final and conclusive. 
 
 "If either the Company or the City fails to appoint an arbitrator as herein pro- 
 7.<ided uilhin thirty (30) days from the date of such notice, or should the first 
 two arbitrators fail to agree on the selection of the third arbitrator unthin thirty 
 (30) days after the first two arbitrators shall be chosen, or if no two arbitrators 
 so selected shall agree upon said amount or amounts within sixty (60) days after 
 the arbitrators shall be so selected, then such amount or amounts may be fixed 
 by a commission appointed by the Supreme Court on the application of either, 
 party." 
 
 9. Such additional provisions as may be required by reason of conditions peculiar 
 to the operation of such extension or additional route and wliich may be agreed upon 
 between the City and the Company. 
 
 Nothing contained in this subdivision shall apply to any extension or additional 
 route for which a franchise is voluntarily applied for by the Company 
 
 Twenty-fourth — If, in the opinion of the Board, it shall at any time during the 
 term of this contract be deemed necessary that tlie Company operate upon streets 
 or avenues other than those in which the Company is herein authorized to operate, in 
 substitution for any route or portion of a route herein authorized running in a 
 general northerly and southerly direction, and not greater than one mile in length, 
 or in substitution for any route herein authorized running in a general easterly and 
 westerly direction, and the Board shall so order after a public hearing, notification of 
 which sliall be given to the Company at least ten (10) days prior to the date thereof, 
 then the Company .shall apply for a franchise or right to operate such substituted 
 route or routes within thirty (30) days after the date of such order and accept a 
 franchise therefor upon the same terms and conditions as those contained herein 
 for a term expiring not later than the date of the expiration of this contrast, and 
 upon receiving such franchise the Company shall surrender the franchise rights over 
 the route for which such substitution has been made. 
 
 Twenty-fifth— The Company shall submit to the Board a report not later than 
 
37 
 
 November 1 of each year for the year ending September 30 next preceding, and at 
 any other time, upon request of the Board, which shall state: 
 
 1. The amount of stock issued, for cash, for property. 
 
 2. The amount paid in as by last report. 
 
 3. The total amount of capital stock paid in. 
 
 4. The funded debt by last report. 
 
 5. The total amount of funded debt. 
 
 6. The floating doI)t as by last report. 
 
 7. The total amount of floating debt. 
 
 8. The total amount of funded and floating debt. 
 
 9. The average rate per annum of interest on funded debt. 
 
 10. Statement of dividends paid during the year. 
 
 11. The total amount expended for same. 
 
 12. The names of the directors elected at the last meeting of the corporation 
 
 held for such purpose. 
 
 13. Location, value and amount paid for real estate owned by the Company as bj 
 
 last report. 
 
 14. Location, value and amount paid for real estate now owned by the Company. 
 
 15. Number of passengers carried during the year. 
 
 16. Number of bus miles operated during the year. 
 
 17. Total receipts of Company for each class of business. 
 
 18. Amounts paid by the Company for damage to persons or property on account 
 
 of construction and operation. 
 
 19. Total expenses for operation, including salaries, and such other information 
 
 in regard to the business of the Company as may be required by the Board. 
 
 Twenty-Sixth— The Company shall at all times keep accurate books of account 
 of the gross receipts from all sources within the limits of the City, and shall, on or 
 before November 1 of each year, make a verified report to the Comptroller of the 
 City of the business done by the Company, for the year ending September 30 nexi 
 preceding, in such form as he may prescribe. Such report shall contain a statement 
 of such gross receipts, the total miles in operation within the limits of the City and 
 the miles operated under this contract, and such other information as the Comptroller 
 may require. The Comptroller shall have access to all books of the Company for 
 tlic purpose of ascertaining the correctness of its report, and may examine its 
 officers under oath. 
 
 Twenty-seventh— The Company shall keep accurate books of the performance of 
 different types of vehicles and the different services rendered and the cost thereof, 
 and shall at any time fiirmsh the Board, or its authorized representatives, such informa- 
 tion with respect thereto as shall be requested. 
 
 Twcnty-eiglilli— In case of any violation or breach or failure to comply with any 
 of the provisions herein contained or with any orders of the Board or its authorized 
 representatives, acting under the powers herein reserved, the franchise or consent 
 herein granted may he forfeited, at the option of the Board by resolution of said 
 Board, without proceedings at law or in equity. Provided, however, that such action 
 by the Board shall not be taken until the Board shall give notice to the Company 
 
38 
 
 to appear before it on a certain day not less than ten (10) clays after the date of 
 sutli nolitc. to sliow cause why such resolution deilaring the contract forfeited should 
 not he adopted. In case the Company fails to appear, action may he taken by the 
 '^ U/^^ Co mpan y forthwith. 
 
 Any false entry in the hooks of the Company or false statement in the reports to 
 
 the Comptroller as to a material fact, knowingly made by tlie Company, shall 
 constitute such a violation or breach or failure to comply with the provisions herein 
 contained as to warrant the forfeiture of the franchise. 
 
 Nothing herein contained shall affect in any way the ri^ht of the Company to 
 apply to a court of competent jurisdiction for review of any action of the Board 
 forfeiting the franchise or consent herein granted. 
 
 Twenty-nintli — If the Company shall fail to give efficient public service at the 
 rates herein lixed, or fail to maintain its c(iuipment as herein provided in good 
 condition throughout the whole term of tliis contract, the Hoard may give notice 
 to the Company specifying any default on the part of the Company, and requiring 
 the Company to remedy the same within a reasonable time; and upon failure of the 
 Company to remedy such default within a reasonable time, the Company shall for 
 each day thereafter (hiring which the <Iefaidt or defect remains, pay to the City 
 the sum of two hundred and fifty dollars ($250), as fixed or liquidated damages, 
 or, at the option of the Hoard, this contract may be forfeited upon ten (10) days' 
 notice to the Company, as hereinafter provided. 
 
 Thirtieth— The Company shall assume all liability for damages to persons or 
 property occasioned by reason of the operation of the stage or omnibus routes 
 authorized by this contract, and it is a condition of this contract that the City 
 shall assume no liability whatsoever to either persons or property on account of the 
 same, and the Company hereby agrees to repay the City any damage which the City 
 shall be compelled to pay by reason of any acts or default of the Company. 
 
 Thirty-first— This grant is upon the express condition that the Company, within 
 thirty (30) days after the signing of this contract by the Mayor, and before anything 
 is done in exercise of the rights conferred hereby, shall deposit with the Comptroller 
 of the City the sum of thirty thousand dollars ($,30,000), either in money or securities, 
 to be approved by him, which fund shall be security for the performance by the Com- 
 pany of all of the terms and conditions of this contract and compliance with all orders 
 of the Board acting under the powers herein reserved, especially those which relate 
 to the payment of the annual charges for the privilege hereby granted, the rendering 
 of efficient public service at the rates herein fixed, the opening of a passage sixteen 
 feet in width in the event of a snowfall and the maintenance of vehicles in good con- 
 dition throughout the whole term of this contract; and in case of default in the per- 
 formance by the Company of such terms and conditions or compliance with such 
 orders or either or any of them, the City shall have the right to cause the work to 
 be done and the materials to be furnished for the performance thereof after due 
 notice, and shall collect the reasonable costs thereof from the said fund without legal 
 proceedings; or after default in the payment of the annual charges shall collect 
 the same, with interest, from the said fund after ten (10) days' notice to the Com- 
 pany; or in case of failure to observe the said terms and conditions of this contract 
 
39 
 
 and orders of the Board acting hereunder, relating to the headway, repair, maintenance 
 or withdrawal from service of vehicles, the Company shall pay a sum of fifty dollars 
 ($50) per day for each day of violation, and the further sum of ten dollars ($10) 
 per day for each vehicle that shall not be properly heated, lighted or withdrawn in 
 case of the violation of the provisions relating to those matters, as fixed or liquidated 
 damages, all of which sums may be deducted from said fund. 
 
 The procedure for the imposition and collection of the sums as fixed or liquidated 
 damages in this contract shall be as follows : 
 
 The Board, on complaint made, shall give notice to the Company, directing its 
 President or other officer to appear before the Board on a certain day not less than 
 ten (10) days after the date of such notice, to show cause why the Company should 
 not pay such liquidated damages, in accordance with the foregoing provisions. If 
 the Company fails to make an appearance, or after a hearing appears in the judgment 
 of the Board to be in fault, said Board shall forthwith impose the prescribed damages, 
 or where the amount of such damages is not prescribed herein, such amount as appears 
 to the Board to be just, and without legal procedure direct the Comptroller to 
 withdraw the amount of such damages from the security fund deposited with him. 
 In case of any drafts made upon the security fund, the Company shall, upon ten 
 (10) days' notice, pay to the City a sum sufficient to restore said security fund to 
 the original amount of thirty thousand dollars ($30,000), and in default thereof 
 this contract shall be cancelled and annulled at the option of the Board, acting in 
 behalf of the City. No action or proceeding or right under the provisions of this 
 contract shall affect any other legal rights, remedies or causes of action belonging to 
 the City. 
 
 These provisions for the recovery of such damages are in addition to the right 
 to forfeit the franchise conferred by Section 2, Subdivision Twenty-eighth of this 
 contract. 
 
 Thirtj'-second — The words "notice," "order" or "direction," wherever used in 
 this contract, shall be deemed to mean a written notice, order or direction. Every 
 such notice, order or direction to be served upon the Company shall be delivered 
 at such office in the City as shall have been designated by the Company, or if no such 
 office shall have been designated, or if such designation shall have for any reason 
 become inoperative, shall be mailed in the City, postage prepaid, addressed to the 
 Company at the City. Delivery or mailing of such notice, order or direction as and 
 when aliove provided shall be equivalent to direct personal notice, order or direction, 
 and shall be deemed to have been given at the time of delivery or mailing. 
 
 Thirty-third — Tlie words "streets or avenues" and "streets and avenues," wherever 
 used in this contract, shall be deemed to mean "streets, avenues, highways, parkways, 
 driveways, concourses, boulevards, bridges, viaducts, tunnels, public places or any 
 other property to which the City has title" encountered in the routes hereinabove 
 described and upon or in which authority is hereby given to the Company to operate 
 stages or omnibuses. 
 
 Thirty-fourth— If at any time the powers of the Board or any other of the 
 authorities herein mentioned or intended to be mentioned shall be transferred by 
 
40 
 
 law to any other board, authority, officer or officers, then and in such case such 
 other board, authority, officer or officers shall have all the powers, rights and duties 
 herein reserved to or prescribed for the Board or other autliorities, officer or officers. 
 Section 3. Nothing in this contract shall be construed as in any way limiting 
 the present or future jurisdiction of the Public Service Commission under the Laws 
 
 of the State of New York. 
 
 Section 4. The Company promises, covenants and agrees on its part and behalf 
 to conform to and abide by and perform all the terms, conditions and requirements 
 in this contract fixed and contained. 
 
 In witness whereof, the party of the first part, by its Mayor, thereunto duly author- 
 ized by the Board of Estimate and Apportionment of said City, has caused the 
 corporate name of said City to be hereunto signed and the corporate seal of said 
 City to be hereunto affixed ; and the party of the second part, by its officers, thereunto 
 duly authorized, has caused its corporate name to be hereunto signed and its corporate 
 seal to be hereunto affixed, the day and year first above written. 
 
 THE CITY OF NEW YORK, By Mayor. 
 
 (Corporate Seal.) 
 
 Attest : City Clerk. 
 
 , (Here insert name of Company.) by 
 
 President. 
 (Seal.) 
 
 Attest : Secretary. 
 
 (Here add acknowledgments.) 
 
41 
 
 Appendix A. 
 Form of Letter Sent to the Applicant Motor Bus Companies by the Franchise Com- 
 mittee. 
 Board of Estimate and Apportionment, 
 Committee on Franchises, 
 
 New York, May 4, 1915. 
 
 Dear Sir — There are before the Board of Estimate and Apportionment applica- 
 tions from four different companies for the right to maintain and operate stage or 
 omnibus lines for the transportation of passengers in the Borough of Manhattan. 
 These applications Iiave been referred to the Franchise Committee. The routes ap- 
 plied for by the several companies extend into almost every portion of the Borough 
 of Manhattan. Many of the routes of the different applicants are identical, and some 
 are coincident with the routes of street surface railways. The Committee has felt 
 that it may be desirable that the City should permit the operation of further stage 
 or omnibus routes provided an agreement can be reached with the operating com- 
 pany upon terms satisfactory to the City. 
 
 The questions which the Committee has had before it, therefore, are : Upon 
 what routes should the right to operate such vehicles be granted and upon what 
 terms and conditions should the grant be made? 
 
 With respect to routes, the Committee does not feel that all those applied for 
 should be operated, at least in the beginning, but that rather the field for the motor 
 bus at the present time is to supply facihties for transportation which are not now 
 furnished by the street railway companies, or, if a duplication of service is permitted, 
 it should be along routes which will present as little direct competition as possible 
 with street surface railways. With this in mind, the Bureau of Franchises was in- 
 structed to lay out a comprehensive system of routes which would serve as a basis 
 for operation, either by the Fifth Avenue Coach Company as extensions to its exist- 
 ing system or by an independent company as a complete system in itself. The Bureau 
 was also instructed to draft a form of franchise for the routes proposed. Such a 
 comprehensive system was so laid out and form of franchise contract prepared by 
 the Bureau of Franchises. The Committee subsequent to receiving this data held 
 duly advertised public hearings on December 18, 29 and 31, 1914, at which a great 
 many citizens appeared, as well as representatives of the applicant companies and 
 of the several railway companies operating within the Borough of Manhattan. In 
 addition, many communications have been received from residents or property owners 
 either in favor of or against the routes as proposed. Memoranda have been pre- 
 pared by three of the four applicant companies and one by a railway company. 
 
 Subsequent to the hearings in December, the Franchise Committee carefully con- 
 sidered the proposed routes and the form of contract. In view of the suggestions 
 and criticisms presented at the hearings, many changes were made in both the routes 
 and the contract. 
 
 A further hearing was given on April 27, 1915, upon the amended form of con- 
 tract and the amended routes. At that hearing there seemed to be a desire on the 
 part of many that the Broadway route should extend southerly from the Longacre 
 
42 
 
 Square district to Herald Square, in order to accommodate passcn^•crs desiring to 
 reach the hotels and retail stores in the Herald Square district. This portion of 
 the route on Broadway was eliminated liy the Committee after the hearings in De- 
 cemhcr. ohjcction having heen presented at that time to the use of liroadway south 
 of Longacre Square on account of the existing traffic congestion. The Committee, 
 however, still has an open mind with respect to the advisability of the use of Broad- 
 way between Longacre Square and Herald Square. Should such a route extend 
 southerly on Broadway to Herald Square, it probably should continue westerly along 
 34th Street, connecting with tlic Seventh .\venue route. 
 
 The revised form of contract is submitted herewith, together with a map show- 
 ing the routes as modified by the Committee. 
 
 To aid in the selection of the company to which the grant mny be made, it ha< 
 been deemed advisable to request each of the applicant companies to present its 
 proposition for the operation of routes so modified by the Committee. You arc, 
 therefore, requested to submit to the Committee your proposition, based upon the 
 draft form of franchise contract and the routes as shown upon the map transmitted 
 herewith. It is the intention of the Committee that the company to which the fran- 
 chise may be granted shall operate substantially all of such routes. You may, how- 
 ever, in accordance with the announcement of the Chairman of the Franchise Com- 
 mittee at tile close of the hearing on .\pril 11, suggest clauses which you desire sub- 
 stituted for those contained in the form of contract transmitted herewith, and make 
 such mi; or changes in the system of routes as you deem necessary, giving in each 
 case your reasons for the substitution of clauses and for the minor changes of route. 
 If new clauses are substituted and changes in routes are made by you, then your 
 proposition should be for the operation of the routes so changed and under the pro- 
 vision of the contract containing clauses so substituted. 
 
 llie draft form of contract for the franchise leaves blank the different items 
 and clauses to be supplied by each of the applicants. They are as follows : 
 
 First— 
 
 (a) Maximum initial amount which you are willing to pay for the franchise. 
 franeh iy c . 
 
 (b) Maximum percentage of gross receipts which you are willing to pay, with 
 
 guaranteed minimum annual payments — 
 
 1. During the first term of five years. 
 
 2. During the succeeding term of five years. 
 
 3. During the remaining term of five years. 
 
 Second — Tlic minimum period or periods within which you are willing to begin 
 operation. 
 
 Third — The minimum wciiilit and dimensions of vehicle to be operated under 
 the franchise. The maximum weight and dimensions which will be entertained by 
 the Committee are indicated in the contract. 
 
 Fourth — The maximum rate or rates of fare which you propose to charge. 
 
 Fifth — Tlic minimum headway which you are willing to agree to operate during 
 different periods of the day and night. 
 
t 
 
 :^^:->!. 
 
 H^^;*;"" 
 
 ■s \N ■'■■: " 
 
 __,ujiiii]P||W|||^ji|i^ 
 
 --^''*\>; 
 
 •Miii- 
 
 
 
 -. „3; ; ;iOi[r*Q!|QilD(lJ5?!''''snnnni|5nna:i5!||ff^.7; 
 
 I 
 
 
 CITY OF NEW YORK 
 
 BOARD OF ESTIMATE AND APPORTIONMENT 
 BUREAU OF FRANCHISES 
 
 ■louDmfBninaoiJDBHGarinr' ' 
 
 Vinaifliijnnrffinpii^gglljr.;.,' 
 
 OnmDDCOOQCffilDIIODI)'^ 
 
 MAP 
 
 FRANCHISE COMMITTEE 
 
 RECOMMENDING IHE GRANTING OF * fNANCHiSC 
 
 FOR ADDITIONAL 
 
 MOTOR BUS ROUTES 
 
 OATCD OCTOBER, 1915 
 
 - ■■■ ■ --lO^p-^QOOUyQDL' 
 
 
 . «>.-V> MIHV^^Ar 'nmtftmt ^b>-KAW 
 
 
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43 
 
 Sixth — The minimum number and length of extensions which you are willing 
 to construct at the order of the Board at any time during the term of the contract. 
 
 You are asked to submit your proposition with the understanding that the Com- 
 mittee shall have the right to reject any proposition you may make. The Commit- 
 tee, however, will only recommend to the Board the grant of a franchise to the 
 company which, in its opinion, offers the best proposition as to adequate service, 
 rate of fare and compensation to the City, and is able to demonstrate that a grant 
 to it will best serve the interests of the City and the traveling public. 
 
 Your proposition should be submitted to his Honor, the Mayor, Chairman of 
 the Franchise Committee, on or before 12 o'clock noon, June 1, 1915, on which date 
 the propositions of all the companies will be opened. The envelopes should be 
 marked "Proposition of the Company for motor bus opera- 
 tion." 
 
 By order of Franchise Committee. 
 
 JOHN PURROY MITCHEL, Mayor; GEORGE McANENY, President, Board 
 of Aldermen; DOUGLAS MATHEWSON, President, Borough of The Bronx. 
 
 James D. McG.\nn. Secretary.