^ ^■^^:''' .. jP^-n --- - ^ 
 
 jm. 128. 
 
 Board of 
 ^1 ^Estimate and Apportionment^ 
 
 CITY OF NE'W YORK 
 
 D 
 
 s 
 
 
 
 
 n 
 
 III 
 
 5 
 2 
 9 
 
 ^E 
 
 AL LIBH* 
 
 III 
 
 2 
 
 1 
 1 
 
 ^ 
 
 5 
 
 ^^ 
 
 if"i-nfV>ii<y<: ^C" ■^"^+' 
 
 15 
 
 REPORT BY THE ^s^ 
 
 BUREAU OF FRANCHISES '"' 
 
 Upon the application -ef-tks / 
 
 DEGNON TERMINAL RAILROAD 
 CORPORATION 
 
 For the right to construct, maintain and operate railroad tracks across 
 
 various streets in the district bounded by Thomson Avenue, 
 
 Van Dam Street, Hunters Point Avenue, Hayward Street 
 
 and Meadow Street in the Dutch Kills section of the 
 
 First Ward, Borough of Queens, for the purpose 
 
 of conveying goods, wares and 
 
 merchandise only. 
 
 ACCOMPANIED BY PROPOSED FORM OF CONTRACT. 
 
 STp 
 
 MARCH 16, 1914
 
 M. B. BROWN PRINTING & BINDING CO. 
 49-57 Park Place. New York. 
 
 412-14r-150
 
 The City of New York, 1 
 
 Board of Estimate and Apportionment, I 
 
 Bureau of Franchises, Room 801, 277 Broadway. ( 
 
 March 16, 1914. J 
 
 Hon. John Purroy Mitchel, Mayor, Chairman of Board of Estimate and Appor- 
 tionment: 
 
 Sir — The Degnon Terminal Railroad Corporation, under date of December 10, 
 1913, petitioned the Board for the right to construct, maintain and operate a freight 
 terminal railroad across several streets at twenty-three different points in the First 
 Ward, Borough of Queens. The petition was presented to the Board on December 
 11, 1913, and referred to the Bureau of Franchises. 
 
 On January 9, 1914, the Board adopted a resolution fixing February 6, 1914, as 
 the date for the preliminary public hearing. At the hearing no one appeared in 
 opposition and only the attorneys for the company appeared in favor of the granting 
 of the franchise. 
 
 This company was formed by the Degnon Realty and Terminal Improvement 
 Company, which owns practically the entire area bounded by Meadow street, Thomson 
 avenue, School street, Hunters Point avenue and Hayward street, Long Island City, 
 which area includes the northern terminal of Dutch Kills Canal; the canal running 
 into the property near the middle of the southern boundary and extending to a point 
 near Nott avenue. This property comprises about seventy acres, including street 
 and canal area. The area of the streets and of the canal is equal to about eighteen 
 acres; leaving more than fifty acres of property to be developed for terminal purposes. 
 The property was purchased by the Degnon Realty and Terminal Improvement Com- 
 pany several years ago, at which time neither Dutch Kills Canal nor the streets con- 
 tained therein were improved, the property consisting largely of salt marsh. Since 
 purchasing the property the Improvement Company has constructed a bulkhead along 
 the canal and around the terminal thereof and to a large extent filled in the streets 
 sufficient to bring them to near established grades. The property was so reclaimed 
 by using materials excavated from the "Sunnyside Yard" of the Pennsylvania, New 
 York and Long Island Railroad Company and materials obtained from other excava- 
 tion work in the vicinity. 
 
 The Borough President of Queens has advised me that all the streets in the 
 district in which it is proposed to construct the tracks have been legally opened, 
 originaly by certain street opening proceedings, confirmed on or about Decetnber 9, 
 1881, and later by deeds of cession made under an agreement between the City and 
 Michael J. Degnon and others, approved by the Board of Estimate and Apportionment 
 November 4, 1910, a copy of which agreement, as executed, appearing in the minutes 
 of January 12, 1911, at page 149, and subsequent deeds of cession from the Degnon 
 Realty and Terminal Improvement Company in 1911. These deeds of cession were 
 made necessary on account of a change in the street system since the original acquisi- 
 tion of the streets in 1881, by a change in the layout of this district, which change was 
 approved by the Board on April 19, 1907 (Minutes, page 1275). 
 
 The purpose of the Improvement Company is to develop the area on lines not 
 unlike those of the Bush Terminal Company in South Brooklyn for manufacturing, 
 storing and shipping merchandise, either by the sale of such property for the erec- 
 tion thereon of buildings to be devoted to manufacturing or storage purposes or 
 by the erection of such buildings for a similar purpose by capital supplied by the 
 Improvement Company itself. One of the necessary features to such development 
 is a quick and economical means of handling the freight which such a development 
 would stimulate. This freight may consist of raw material brought to the manu- 
 facturing plants or the finished goods manufactured or stored in the area. There 
 has already been constructed one building facing on Thomson Avenue between 
 Queens Place and Orton Street, which covers an area about 200 feet wide and 400 
 feet in length which is to be devoted to the manufacture of biscuit by the Loose- 
 Wiles Company. It is estimated that this building alone will require facilities for 
 handling about 400 tons of freight a day, including both raw material and finished 
 product. It is with a view of providing an economic method of handling the antici-
 
 pated increased volume of freight which will appear as the development goes on 
 that the Company laid out a system of track through the whole area and asks for a 
 franchise therefor. 
 
 The railroad proposed is so laid out that tracks running longitudinally through 
 the center of each block may be connected with the docks on the Dutch Kills Canal 
 terminal within the property, thus affording a means of either shipping by water or 
 of transferring loaded cars from rail to floats and thence to the various tide water 
 terminals of the trunk railroads in the Borough of Manhattan or on the New Jersey 
 shore. It is proposed to cross eight different streets by twenty-three tracks. Ten 
 such crossings are on Nott Avenue, four on Anable Avenue, four on Creek Street 
 and five on other streets. The railroad also connects with the tracks of the Long 
 Island Railroad which in turn connect with the tracks in Sunnyside Yard. This 
 would afford a means of direct shipment over the Long Island Railroad system as 
 well as the New York, New Haven and Hartford Railroad and Pennsylvania Rail- 
 road systems by the connection between the Long Island Railroad and the New York 
 Connecting Railroad, which latter railroad is now being constructed. 
 
 It was at first believed by the Company that authority for the construction of the 
 tracks proposed could best be obtained through the application of Chapters 776 and 
 778 of the Laws of 1911. which acts provided for the improvement of water front 
 facilities of the City of New York in relation to the receipt, delivery and shipment 
 of freight, and amends the Transportation Corporations Law by providing for the 
 incorporation of freight terminal companies. 
 
 Plans showing the layout of the tracks, both on the private property of the Im- 
 provement Company and on streets within the district were submitted to the Dock 
 Department. The Commissioner of Docks subsequently forwarded these plans to 
 the Board of Estimate and Apportionment, which on April 3, 1913, certified the 
 same pursuant to the provisions of the laws above named. (Public Improvement 
 Minutes, page 2686.) Later conferences were held by the various representatives of 
 the City and the Company, at which it developed that there was considerable doubt 
 as to the application of Chapters 776 and 778 of the Laws of 1911, to a terminal 
 railroad to be built upon private property. There having been up to that time no sim- 
 ilar application made, it was considered that the granting of a franchise for terminal 
 facilities pursuant to those laws might meet with considerable delays even if such 
 a proceeding could be legally consummated thereunder. In consequence, the 
 Company decided that a franchise granted under the provisions of the Railroad 
 Law and the Charter would be adequate for all purposes and as a result the appli- 
 cant, the Degnon Terminal Railroad Corporation, was incorporated. The certificate 
 of incorporation was filed in the office of the Secretary of State pursuant to the Rail- 
 road Law on November 24, 1913. By it the Company is incorporated for the terra 
 of nine hundred and ninety-nine years for the purpose of building, maintaining and 
 operating a standard gauge railroad to be operated by locomotive, steam power, 
 electricity or other suitable motive power for the transportation of freight and other 
 commodities, but not for the transportation of passengers. The length of the railroad 
 is to be between one-half mile and a mile, exclusive of switches and sidings, and 
 the capital stock is to be $250,000. 
 
 Under date of December 31, 1913, the Company made application to the Public 
 Service Commission for a certificate of public convenience and a necessity, pursuant 
 to Section 9 of the Railroad Law. Hearings were subsequently held upon this peti- 
 tion by the Public Service Commission, and as the result of the investigation, the 
 certificate was granted by the Commission on January 27, 1914. 
 
 Although this is the first application for a franchise for the right to maintain a 
 freight terminal railroad in public streets which has been made to the Board since 
 the taking effect of the terminal acts hereinbefore referred to, it is by no means the 
 first time the Board has been asked to grant such a right. Four such authorizations 
 have been made by the Board during the past five years. The first one was to the 
 East River Terminal Railroad, which obtained in 1909 rights to cross Kent and 
 Wythe Avenues in the Williamsburg district of the Borough of Brooklyn, to extend 
 the terminal area and facilities of the Brooklyn and Eastern District Terminal Com- 
 pany. Subsequently, during the same year, this Company obtained additional rights 
 in order to legalize the existence of tracks which had been in use for some time. 
 
 The Jav Street Connecting Railroad in 1911 was granted a franchise to cross 
 John, Jay, Pearl and Plymouth Streets for the purpose of extending tracks maintained 
 by the Jay Street Terminal Company into buildings used for manufacturing and stor- 
 age purposes, situated on property back from the water front. 
 
 The New York Dock Railway obtained a franchise in 1912 to legalize the exist- 
 ence of tracks across several streets which had been maintained for a number of
 
 years as a part of the railroad of the New York Dock Company along the water 
 front in the Borough of Brooklyn, extending from Fulton Street southerly to the 
 Atlantic Basin. 
 
 Besides these grants, the Bush Terminal Railroad Company obtained from the 
 Board of Aldermen in 1905 a franchise to operate along the water front in South 
 Brooklyn. By this railroad, the Bush Terminal Company moves all its freight be- 
 tween its warehouses and docks. 
 
 All the grants, above referred to. are for purposes similar in almost all respects 
 to that desired by the applicant, and the form of those franchises may be also used 
 in this case. 
 
 It may be that the plans which have been certified and adopted for a terminal rail- 
 road covering this property, pursuant to terminal acts hereinbefore referred to, may 
 have some effect upon the granting of the franchise now proposed though I believe 
 it is generally conceded by those who are familiar with the terminal acts tliat this is 
 not the case. The reasons for the existence of these plans, however, have now ceased 
 and I am informed the Chief Engineer will recommend that the Board may properly 
 rescind the action formerly taken. This should be done prior to or coincident with 
 the final adoption of the proposed franchise, in order that there may be no question 
 as to the effect of the existence of such plans upon the granting of the franchise pro- 
 posed. 
 
 Conditions for the Contract. 
 
 A form of contract has been drafted for the proposed franchise, and there follows 
 a discussion of some of the conditions contained therein. 
 
 Crossing at grade and subsequent elimination of grade crossing. The Company 
 plans to cross the streets at the grade thereof, at all the points where such crossing's 
 are proposed. Section 89 of the Railroad Law provides that all steam surface rail- 
 roads hereafter built, 
 
 "except additional switches and sidings, must be constructed so as to avoid all 
 
 public crossings at grade whenever practicable so to do." 
 — The same section requires the Public Service Commission to determine whether such 
 crossing shall be under or over the grade of the street, except where the Commission 
 shall determine that such method of crossing is impracticable. It is evident, therefore, 
 that in any event, whether the City should attempt to fix the grade of the railway or 
 not, a proceeding before the Public Service Commission is necessary, in order to 
 legalize the grades established. The grant, as proposed in the contract herewith, per- 
 mits the Company to construct, maintain and operate the railroad tracks either at the 
 same grade of the surface of the streets, above or below the grade thereof, as shall 
 be determined by the Public Service Commission. This is exactly the same form of 
 grant heretofore made by the Board, hereinabove referred to; the Public Service Com. 
 mission fixing the grade subsequent to the granting of the franchise by the Board. 
 
 The contract, while it is based primarily upon the assumption that tracks will be 
 permitted to be operated on the surface, yet it will apply also to a railroad constructed 
 either above or below the surface of the street. It has been somewhat questionable to my 
 mind whether it is more to the advantage of the Company to construct these tracks 
 oti the surface or on an elevated structure above street grade. Connection is to be made 
 with the Long Island Railroad near a point where the tracks of that railroad intersect 
 Hunters Point avenue by an overhead crossing. In consequence, the grade of the 
 applicant's railroad must be raised at that point to make the connection. I am informed 
 that the operation of the railroad into the buildings proposed to be constructed can 
 take place as well from an elevated structure as from the surface of the street. There- 
 fore, the only apparent difficulty in operatin,? all the tracks upon an elevated structure 
 seems to be the initial expense and perhaps the excessive grade to reach the bulkhead 
 on the canal basin. This latter difficulty, however, is one which is also largely a 
 question of expense, since there is sufficient space within which to build an incline 
 track having a grade which will not be excessive. 
 
 The construction of a large number of factories or warehouses upon this property 
 will, of course, tend to add greatly to the street traffic, and might make it desirable, 
 if not absolutely necessary, for the removal of the tracks from the surface to such 
 elevated structure within a few years after the development of the property begins. 
 In that case, the Company would be put to considerable expense of elevating its 
 tracks, and at least some of the expenditures which would be avoided by the 
 construction of the tracks upon the surface at the initial installation would be 
 required at some subsequent date. If the change of grade were later made, under 
 the provisions of the Railroad Law. the City would be required to contribute toward 
 the cost of such improvement. However, a provision has been inserted in the contract 
 which will free the City from any expenditure for the elimination of such grade
 
 crossings, and will require the Company to pay any sum which the City might be 
 required to pay on account of such improvement. 
 
 Connections ziilh and service to other railroads; provisions for extension. The 
 property owned by the Degnon Realty and Terminal Improvement Company is not 
 the only property in the district which seems capable of improving for terminal 
 purposes along the lines proposed by that Company. The property lying south of 
 Hunters Point Avenue as far as Borden Avenue between Hayward Avenue and Van 
 Dam Street seems also capable of such improvement ; the property being low, unfit for 
 residential purposes, and also fronts on the Dutch Kills Canal. The portion lying 
 west of the Dutch Kills Canal is adjacent to the track of the Long Island Railroad, 
 with which the applicant proposes to make its connection. Therefore that property 
 might in itself be developed with both a water-front and rail connection. The rail 
 connection with property east of the Dutch Kills Canal, however, necessitates oper- 
 ating a railroad in one of three ways, each of which might present considerable dif- 
 ficulty ; that is : first, crossing Borden Avenue and private property and perhaps other 
 streets to make connections \vith the Grecnpoint .\venue yard of the Long Island 
 Railroad Company, which might be difficult because of the necessity of condemning 
 land already developed to some extent for manufacturing purposes; second, crossing 
 Dutch Kills Canal and thence by private property to make connection with the 
 Long Island Railroad, involving large expense to construct and maintain a bridge across 
 the Canal, or, third, crossing Hunters Point Avenue and connecting with the tracks 
 proposed by the applicant and thence by that railroad to the connection with the 
 Long Island Railroad. If, therefore, the property on the easterly side of the Canal 
 is to be developed with all the railroad facilities which the other property in the 
 vicinity would have upon the granting of franchises therefor, it would seem that some 
 provision should be made in the grant for any railroad in the vicinity for its use 
 in the development of other property or its extension into other development area. 
 
 With this in mind two provisions have been inserted in the contract which it is 
 believed will afford facilities for the property in the vicinity, should the need arise, 
 which are: first, requiring the Company to apply for and accept a franchise upon 
 terms and conditions similar to those contained in the present proposed grant and upon 
 receiving such franchise to so extend its tracks into other property beyond the layout 
 of track as shown upon the map accompanying the petition, whether the extension 
 take place from a point on private property or from a point on a public street; 
 such franchise to be applied for and accepted upon the direction of the Board, and 
 after reaching an agreement with the applicant for such extension as to the terms upon 
 which such extension shall be made or upon the determination of arbitrators in lieu 
 of such agreement; and second, if the right of way of another railroad corporation 
 crosses, intersects or joins the right of way of this Company, as shown upon the map, 
 then this Company shall join with such railroad corporation in forming a con- 
 nection between the tracks of the two companies, and shall grant facilities therefor. 
 When such railroads are so connected, it shall receive freight from and forward 
 freight to such other corporation with the same dispatch and at a rate not exceeding 
 that charged for similar service. If the two companies cannot agree upon the terms 
 upon which such connection of track shall be made, then it shall be submitted to 
 arbitrators, as required by the Railroad Law. 
 
 The first of these provisions would afford facilities to property other than that 
 now being developed by the Degnon Realty and Terminal Improvement Company 
 without the construction and operation of a railroad by another railroad corporation. 
 There are, however, limitations to this provision which might prevent the construction 
 of the extension, even though the Company endeavored in good faith to fulfill the 
 conditions. I refer to the difficulties which might arise to the crossing of private 
 property to reach the desired point and to the possible difficulty of obtaining property 
 owners' consents should they be required. Of course, private property probably could 
 be condemned and likewise an order might be obtained from the Appellate Division 
 in lieu of such consents, under the provisions of the Railroad Law. Nevertheless, the 
 uncertainty as to the outcome of these proceedings is such that the City would hardly 
 be justified in depending upon this method alone in providing terminal railroad facilities 
 in a district which is so evidently intended for terminal development. 
 
 The second provision, above referred to, would permit the construction and 
 operation of a terminal railroad by another railroad corporation, and obtaining a 
 water-front or rail connection by means of the railroad for which a franchise is 
 proposed to this Company. 
 
 It is believed that these provisions will afford a means of water-front or rail 
 connection for any property which is capable of development for terminal purposes 
 in the vicinity of the property owned by the Degnon Realty and Terminal Company.
 
 While it is advisable to provide for extensions to the railroad now proposed, it 
 certainly would be a mistake to extend the tracks across Hunters Point Avenue or 
 Borden Avenue at grade. Those thoroughfares in all probability will be subjected 
 to very heavy traffic in the future, being continuous from the water front section of 
 Long island City to points east of Dutch Kills. The clauses providing for extensions 
 and for connections with other railroads are silent as to the grade upon which such 
 extension or connections shall be made, it being a function of the Public Service Com- 
 mission to determine what the grade will be after the right has been granted, but such 
 clauses are sufficiently broad to permit of their application whether the crossings shall 
 be at the grade or over or under the grade of such streets. 
 
 Motile Power. The Company is required to operate its railroad by electric power 
 or any other motive power which may be approved by the Board and consented to by 
 property owners and the proper officials, as required by law, but no overhead wires, 
 except trolley wires are permitted. The Company states that during the installation 
 of its electrical equipment it may be necessary to operate by steam locomotives; there- 
 fore the contract provides that the Company may have the option of using 
 steam prior to January 1, 1916, after which time electric power must be employed. 
 
 Term of Grant. The original term is fixed so that it will expire on January 1, 
 1929, with the privilege of renewal for a term of ten years, making a total of prac- 
 tically twenty-five years. This is the term which has been fixed for the four pre- 
 vious railroad terminal grants made by the Board of Estimate and Apportionment, 
 with the exception of the one to the Jay Street Connecting Railroad, which was 
 for a term of fifteen years with no renewal. The reason that no privilege of renewal 
 was granted to that Company was that at the time the application was pending, the 
 terminal acts, hereinbefore referred to, were being drafted or pending in the Legis- 
 lature, and the Commissioner of Docks and the Board of Estimate and Apportionment 
 were considering the operation of a City terminal railroad to be operated along the 
 Brooklyn water front. It was thought that if such a City terminal railroad were 
 operated the Jay Street Connecting Railroad might be subsequently used as a part 
 thereof, and for that reason a short term grant was made to permit the merging of 
 that railroad with the City's railroad at the termination of the grant without waiting 
 for such action longer than necessary in fairness to the Company. 
 
 The franchise to the New York Dock Railway Company, which was subsequently 
 granted, provided for the renewal term but contained provisions whereby the New 
 York Dock Company and the Railway Company joined in permitting the City to 
 condemn tlie property of those Companies and allowing the City to enter imme- 
 diately into the use of such property, in whicli case no awards shall be made for 
 the value of any franchise granted by the City. 
 
 I am informed by the Chief Engineer of the Dock Department that that De- 
 partment's plans do not contemplate the operation of a terminal railroad by the 
 City in the vicinity of the tracks proposed by this Company or the establishment of 
 a City terminal under the act of 1911 as amended. This property, together with the 
 property lying south thereof, before referred to, seems to be all the large vacant 
 tracts in the vicinity capable of development for freight terminal purposes, and it 
 is entirely isolated from any other terminal property. Therefore, should the City 
 construct or operate a terminal railroad, it must necessarily be used in connection with 
 this property only, and it is quite unlikely that the City will, within the next twenty- 
 five years at least, consider operating a terminal railroad within this area. 
 
 For these reasons the length of the term has been fixed for approximately twenty- 
 five years, which is perhaps the shortest term which the Company could conscienciously 
 accept, in view of the tremenduous investment which must be made in this vicinity, 
 depending largely upon this railroad connection. 
 
 Commencement and completion of construction. It will be noticed that by far 
 the larger part of the proposed street occupation will be by switches turning into 
 private property, the main line being parallel and adjacent to Nott Avenue, en- 
 tirely upon private property, with the exception of the street crossings at right 
 angles. The necessity for any particular private property connection will cmly 
 arise upon the development of that property by the construction thereon of buildings. 
 In view of this, the Company is required to construct any track authorized within 
 sixty days after application for railroad service has been made by an owner or an 
 occupant of the property with which such track is proposed to connect, or in case the 
 necessary consents of property owners are not obtained, within sixty days after the 
 issuance of an order by the Appellate Division in lieu of such property owners' con- 
 sents, pursuant to the Railroad Law. In this respect this clause differs from that 
 usually employed, it being the custom to require the completion of construction within 
 a fixed period after the consents of property owners have been obtained.
 
 8 
 
 Protection of street crossings. The contract requires that if the tracks are to be 
 permitted at the grade of the streets, flagmen shall be stationed at all points necessary 
 to exclude pedestrians and vehicles from the tracks when trains are operated thereon, 
 and that vehicles or pedestrians shall not be prevented from crossing the tracks by cars 
 or trains at any time for a period greater than live consecutive minutes at one time and 
 that the aggregate of such periods shall not exceed ten minutes at any hour between 
 seven o'clock a. m. and six o'clock p. m. These provisions are similar to those which 
 have been inserted in consents for similar privileges heretofore granted by the Board. 
 
 Pazing of streets: snoixj removal. In view of the large number of switches or 
 turnouts in that portion of Nott Avenue between Meadow Street and School Street 
 and Anable Avenue between Orton Street and School Street, the contract has been 
 drawn to require the Company to pave the entire roadways between those limits in- 
 stead of between the rails of the tracks and two feet outside thereof. In all other 
 cases the Company is required to pave between the tracks and two feet outside thereof. 
 The removal of snow and ice by the Company within llie same limits is alsn required. 
 
 Compensation and Security Deposit. It has been the custom in fixing the rate of 
 compensation for grants of this character to base the charge upon the occupation of 
 the street and use the assessed valuation as a basis of computation. This method has 
 been used somewhat in this case, but the annual payment during the first period of 
 ten years has been adjusted to meet the objections of the Company. It is believed that 
 during the Hrst years of operation and prior to the time when a large development 
 takes place upon the property, the railroad would yield no profits, but on the contrary 
 would be operated at a loss. In consequence of this, the annual payments during that 
 period have been somewhat reduced from those first proposed. The compensation 
 recommended and fixed by the contract is: 
 
 (a) Fifteen thousand dollars ($15,000) initial payment. 
 
 (b) During the portion of the grant expiring on January 1, 1924, an annual sum of 
 two thousand, five hundred dollars ($2,500). 
 
 During the remainder of the initial term an annual sum of ten thousand dollars 
 ($10,000). 
 
 The annual payments are made to begin on January 1, 1914. The reason for this 
 is that some of the tracks for which authority is requested have already been con- 
 structed, particularly those proposed on Nott Avenue. Little use has been made of 
 these tracks except for the delivery of material used in the construction of buildings 
 on the property. 
 
 The sum of ten thousand dollars ($10,(XX)), either in cash or securities, is required 
 to insure the faithful performance of the terms and conditions of the contract. This 
 sum is to be deposited with the Comptroller. 
 
 On December 12, 1913, a communication was addressed to the President of the 
 Borough of Queens, requesting him to examine the petition and make any suggestions 
 he saw fit for conditions to govern the grant. In his reply on January 2, 1914, he 
 stated that the only conditions which he recommended be inserted in the contract are 
 requirements for the paving of the portions of the streets occupied, the lighting and 
 safeguarding of the railroad crossings during operations and the supporting of the 
 tracks during the subsurface construction on the streets crossed, at the expense of the 
 railroad corporation. 
 
 All the conditions suggested by the President of the Borough of Queens, with the 
 exception of the one which would require the lighting of the streets, are those which 
 are usually employed in railroad grants of this character and have been inserted in the 
 contract, the modifications of some of which are discussed herein. The lighting of 
 streets is a condition which has never been included in a grant for the occupation of 
 streets by a railroad, and it does not appear to be an obligation which a railroad com- 
 pany should be called upon to fulfill. However, if the Board should decide that the 
 Company should light these streets, I should be glad to take it up vs'ith the Company 
 with a view to obtaining such a concession. 
 
 On February 8, 1914, a tentative form of contract was submitted to the Commis- 
 sioner of Docks with a request that he examine the same to ascertain if there are any 
 special conditions which he desired inserted. In reply, under date of February 27, 
 1914. he states that he believes that the conditions contained in the proposed contract 
 as affecting the Department of Docks and Ferries would safeguard the interests of the 
 City. 
 
 The form of contract has been submitted to the Company and several conferences 
 have been had with its representatives in relation to the terms and conditions con- 
 tained therein. It is believed that the contract as submitted is acceptable to the Com- 
 pany. 
 
 The form of contract has been submitted to the Corporation Counsel for his ap-
 
 proval as to form. If his approval is received prior to the mcetinfj at which this re- 
 port shall be presented, then if the Board sees tit to grant the franchise in the form so 
 approved, it may, since the hearing on the application has already been held, adopt a 
 resolution tentatively approving the contract, entering the same upon the minutes Qf 
 the Board and fixing a date for final public hearing, after which final action may be 
 taken. Should the Board desire to take such action, it is suggested that May 1, 1914, 
 be fixed as the date for the final public hearing. .Advance copies of this report will 
 be forwarded to the Committee on Port and Terminal Facilities. Respectfully, 
 
 HARRY P. NICHOLS, Engineer, Chief of Bureau.
 
 10 
 
 Decnon Terminal Railroad Corporation. 
 Proposed Form of Contract. 
 
 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 Degnon Terminal Railroad Corpora- 
 tion (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 construct, maintain 
 and operate railroad tracks in the Borough of Queens cither at the same grade as the 
 surface of the streets, or above or below the grade thereof, as shall be determined by 
 the Public Service Commission for the First District of ihc State of New York, 
 pursuant to law, for the purpose of conveying goods, wares and merchandise only, 
 in the Borough of Queens, City of New York, the centre lines of which arc as follows : 
 
 1. A double track crossing Pearson Street parallel to Meadow Street and about 
 twelve (12) feet southeasterly therefrom. 
 
 2. A double track beginning on the southwesterly side of Anable Avenue about 
 twelve (12) feet southeasterly from the southeasterly side of Meadow Street; thence 
 northeasterly in a curve across Anable Avenue to a point on the northeasterly side 
 thereof. 
 
 3. A double track crossing Creek Street parallel to Nott Avenue and about 
 twelve (12) feet southerly therefrom. 
 
 4. A double track crossing Orton Street parallel to Nott Avenue and about 
 twelve (12) feet southerly therefrom. 
 
 5. A double track crossing Manly Street parallel to Nott Avenue and about 
 twelve (12) feet southerly therefrom. 
 
 6. A single track crossing Nott Avenue at right angles near the center of the 
 block between Orton Street and Manly Street. 
 
 7. A single track beginning at a point on the northwesterly side of Davis Street 
 about eight (8) feet southwesterly from the intersection of said northwesterly side 
 of Davis Street with the southwesterly side of Pearson Street: thence southerly in 
 a curve across Davis Street to the southeasterly side thereof at a point about seventy 
 (70) feet southwesterly from the intersection of said southeasterly side of Davis 
 Street with the southwesterly side of Pearson Street. 
 
 8. A single track beginning at a point on the northwesterly side of Creek Street 
 near the center line of the block between Anable .Avenue and Pearson Street; thence 
 southerly in a curve across Creek Street to a point in the southeasterly side of Creek 
 Street about two hundred and fifty-five (255) feet northerly from the intersection of 
 said southeasterly side of Creek Street and the northerly side of Hunters Pomt 
 Avenue. . _ , _ 
 
 9. A single track beginning at a point on the westerly side of Creek Street about 
 seventy-two (72) feet southerly from the intersection of said westerly side of Creek 
 Street with the southerly side of Nott Avenue; thence southeasterly in a curve across 
 Creek Street to the easterly side thereof at a point about one hundred and sixty-seven 
 (167) feet southerly from the intersection of said easterly side of Creek Street with 
 the southerly side of Nott Avenue. 
 
 10. A single track beginning at a point in the westerly side of Creek Street about 
 three (3) feet southerly from the intersection of said westerly side of Creek Street 
 with the southerly side of Nott Avenue : thence northeasterly in a curve across Creek 
 Street and Nott Avenue to a point on the northerly side of Nott Avenue about sixty- 
 five (65) feet easterly from the intersection of said northerly side of Nott Avenue 
 with the easterly side of Creek Street. 
 
 11. A single track beginning at a point on the southerly side of Nott Avenue 
 about two hundred and twenty-five (225) feet easterly from the intersection of said 
 southerly side of Nott Avenue with the easterly side of Creek Street; thence north- 
 easterly in a curve across Nott Avenue to a point on the northerly side thereof about 
 sixty-five (65) feet easterly from the intersection of said northerly side of Nott Ave- 
 nue with the easterly side of Dutch Kills Place. 
 
 12. -A single track beginning at a point on the southerly side of Nott Avenue 
 about two hundred and ninety-five (295) feet westerly from the intersection of said 
 southerly side of Nott Avenue with the westerly side of Orton Street ; thence north- 
 easterly in a curve across Nott Avenue to a point on the northerly side thereof about
 
 11 
 
 ten (10) feet easterly from the intersection of said northerly side of Nott Avenue 
 with the easterly side of Queens Place. 
 
 13. A single track beginning at a point on the southerly side of Nott Avenue 
 about one hundred and fifty (150) feet westerly from the intersection of said south- 
 erly side of Nott Avenue with the westerly side of Orton Street; thence northeasterly 
 in a curve across Nott Avenue to a point on the northerly side thereof about fifty (50) 
 feet westerly from the intersection of said northerly side of Nott Avenue with the 
 westerly side of Orton Street. 
 
 14. A single track beginning at a point on the westerly side of Orton Street 
 about three (3) feet southerly from the intersection of said westerly side of Orton 
 Street with the southerly side of Nott Avenue ; thence northeasterly in a curve across 
 Orton Street and Nott Avenue to a point on the northerly side of Nott Avenue about 
 fifty-nine (59) feet easterly from the intersection of the said northerly side of Nott 
 Avenue with the easterly side of Orton Street. 
 
 15. A single track crossing Nott Avenue at right angles near the center line of 
 the block between Manly Street and Mount Street. 
 
 16. A single track crossing Nott Avenue at right angles near the center line of 
 the block between Mount Street and School Street. 
 
 17. A single track crossing Anable Avenue at right angles near the center line 
 of the block between Orton Street and Manly Street. 
 
 18. A single track crossing Anable Avenue at right angles near the center line of 
 the block between Manly Street and Mount Street. 
 
 19. A single track crossing Anable Avenue at right angles near the center line 
 of the block between Mount Street and School Street. 
 
 20. A single track beginning at a point in Creek Street on the center line of the 
 track hereinbefore described as No. 9; thence southeasterly in a curve to a point on 
 the easterly side of Creek Street about one hundred and thirty-seven (137) feet south- 
 erly from the intersection of said easterly side of Creek Street with the southerly side 
 of Nott Avenue. 
 
 21. A single track beginning at a point on the westerly side of Manlv Street 
 about three (3) feet southerly from the intersection of said westerly side of Manly 
 Street with the southerly side of Nott Avenue ; thence northeasterlv in a curve across 
 Manly Street and Nott Avenue to a point on the northerlv side of Nott Avenue about 
 fifty-nine (59) feet easterly from the intersection of said' northerly side of Nott Ave- 
 nue with the easterly side of Manly Street. 
 
 22. A single track beginning at a point on the westerly side of Mount Stree* 
 about two (2) feet southerly from the intersection of said westerly side of Mount 
 Street with the southerly side of Nott Avenue; thence northeasterly in a curve across 
 Mount Street and Nott Avenue to a point on the northerly side of Nott .■X venue about 
 fifty-nme (59) feet easterly from the intersection of said northerlv side of Nott \ve- 
 nue with the easterly side of Mount Street. 
 
 23. A single track beginning at a point on the northwesterly side of Pearson 
 Street about eighteen (18) feet southeasterly from the intersection of said northeast- 
 erly side of Pearson Street with the southeasterly side of Meadow Street; thence 
 southwesterly in a curve across Pearson Street to a point on the southwesterly side 
 thereof about fifty (oO) feet southeasterly from the intersection of said southwesterlv 
 side of Pearson Street with the southeasterly side of Meadow Street. 
 
 The said tracks hereby authorized are shown upon a map entitled : 
 
 "Map showing proposed tracks of Degnon Terminal Railroad Corporation to 
 be located in First Ward, Borough of Queens, in the territorj' bounded on the 
 east by School Street, on the south bv Hunters Point Avenue, on the west and 
 northwest by Meadow Street and on the north by Thomson .\venue To accom- 
 pany petition verified December 10, 1913, to the Board of Estimate and Appor- 
 tionment, " ' ' 
 —and signed by Alfred .\. Stuart. President, and Norman G. Degnon Engineer- a 
 copy of which is attached hereto, is to be deemed a part of this contract, is to be con- 
 strued with the text thereof, and is to be substantially followed, provided that devi- 
 ations therefrom and the description thereof which are not inconsistent with the other 
 provisions ot this contract mav be permitted by resolution of the Board 
 
 This grant is made with the understanding that the tracks herein authorized are 
 to be operated as a necessary part of the railroad of the Company, as shown bv the 
 layout upon the map attached hereto, and is onlv granted upon condition that ill of 
 the tracks shown upon said map whether upon private property or upon streets or 
 avenues shall be operated as one railroad. 
 
 u ,h^- "■ ^i-i,^''^ru °J ^'^'-' P"^''ese is subject to the following conditions, which 
 shall be complied with by the Company.
 
 12 
 
 First — The consent in writing of tiie owners of half in value of the property 
 bounded on said streets and avenues to the construction and t>peration of said rail- 
 road shall be obtained by the Company within three (3) months from the signing of 
 this contract by the Mayor, and a copy of such consents shall be tiled with the Board 
 within such time, or in the event that such consents cannot l)e obtained within such 
 time, the Company shall, within said three (J) months or within one (1 ) 
 month thereafter, make application to the Appellate Division of the Supreme Court 
 for the appointment of Commissioners in the manner provided by the Railroad Law 
 to determine if said railroad ought to be constructed; otherwise this grant shall cease 
 and determine. 
 
 Second — The said right to construct, maintain and operate said railroad shall be 
 held and enjoyed by the Company from the date upon which this contract is signed by 
 the Mayor, until January I, 1929. 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. 
 
 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 orig- 
 inal 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 con- 
 tract. 
 
 If the Company and the Board shall not reacli 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 rcasqii- 
 able. 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 wliat 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 disinterested 
 freeholders selected in the following manner : 
 
 One disinterested freeholder shall be chosen by the Board ; one disinterested 
 freeholder shall lie chosen by tlie Company; these two shall choose a tliird disintere--tc(l 
 freeholder, and the three so chosen shall act as appraisers and shall make the revalua- 
 tion 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 oalli. The valuations so ascertained, tixed and 
 determined shjill be conclusive upon both parties, but no annual sum shall, in any 
 event be less than the sum required 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 ter- 
 mination of the original term of this contract, then the Company shall pay the an- 
 nual rate thcrctofnre prevailini; until the new rate shnll 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 th'- yi'd appraisers 
 shall be borne jointly by the City and the Company each paying one-half thereof. 
 
 Third — Upon the termination of this original contract, or if the sarne be renewed, 
 then at the termination of the said renewal term, or upon the termination of the 
 rights hereby granted for any cause or upon the dissolution of the Company before 
 termination, the tracks and equipments of the Company constructed pursuant to 
 this contract within the streets and avenues shall become the property of the City 
 without cost, and the same may be used or disposed of by the City for any purpose 
 whatsoever, or the same may be leased to any company or individual. 
 
 Fourth— The Company shall pay to the City for the privilege hereby granted 
 the following sums of money: 
 
 (a) The sum of fifteen thousand dollars ($15,000) in cash within thirty (30) 
 days after the date on which this contract is sig^ned by the Mayor and before any- 
 thing is done in exercise of the privilege hereby granted. 
 
 (b) During the first term expiring January 1, 1924, an annual sum of two thou- 
 sand five hundred dollars ($2,500).
 
 13 
 
 During the remainder term of five (5) years an annual sum of ten thousand dol- 
 lars ($10,(X)0). 
 
 The annual charges shall commence from January 1, 1914. 
 
 All annual charges as above shall be paid into the treasury of the City on No- 
 vember 1 of each year and shall be for the amount due to September 30 next pre- 
 ceding. Provided that the first annual payment shall be only for that proportion of 
 the first annual charge as the time between the date upon which this contract is 
 signed by the Mayor and September 30 following shall bear to the whole of one 
 year. 
 
 Any and all payments to be made by the terms 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 ta.xes of whatsoever kind or de- 
 scription, now or hereafter required to be paid by any ordinance of the City, or reso- 
 lution of the Board, or any law of the State of New York. 
 
 Fifth — The annual charges or payments shall continue throughout the whole term 
 of this contract (whether original or renewal), notwithstanding any clause in any 
 statute or in the charter of any other railway or railroad company providing for 
 payment for railway or railroad rights or franchises at a different rate, and no 
 assignment, lease or sublease of the rights or privileges hereby granted (whether 
 original or renewal), 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 sublease 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 as- 
 signee 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. 
 
 Sixth — Nothing in this contract shall be deemed to affect in any way the right of 
 the City to grant to any person or corporation a franchise or right to use the streets 
 hereinbefore mentioned, or any part of them, for railroad purposes, and the Com- 
 pany shall not at any time oppose, but shall consent to the construction and operation 
 of a railroad by any such other corporation or individual which may receive a 
 franchise therefor from the City: provided, however, that nothing in this clause con- 
 tained shall estop the Company from appearing before the Board and being heard on 
 any application for rights in said streets. 
 
 Seventh — If the right of way on private property upon which the Company pro- 
 poses to operate or any location of track herein authorized (all as shown on the 
 map hereto attached) shall be crossed, intersected or joined by the ris;ht of wav 
 or tracks of another railroad corporation, then the Company shall unite with such 
 corporation in forming the necessary connections between the railroads of the 
 Company and such corporation, and shall grant the requisite facilities therefor, 
 whether the tracks on tlie right of way of such corporation are at the same or a 
 different grade from the tracks of the Company at the point of such crossing or 
 intersection. 
 
 In case the Company and such corporation cannot agree upon the amount of com- 
 ])ensation to be paid therefor, such compensation shall be fixed in the manner pro- 
 vided in Section 22 of the Railroad Law. 
 
 When such railroads shall be so connected, the Company shall receive from such 
 other corporation, and forward to their destination, all goods, merchandise and other 
 property intended for points on its railroad, and receive and forward to the railroad 
 of such other corporation all goods, merchandise and other property shipped by way 
 of the Company's railroad and intended for points thereon, with the same despatch and 
 at a rate of freight not exceeding the local tariff rate charged for similar goods, 
 merchandise and other property received at or forwarded from the same points for 
 individuals and other corporations. 
 
 The intent and purpose of the foregoing is to provide for the use of the Company's 
 railroad by any other railroad which may be constructed in the vicinity, so that such 
 other railroad may be afforded an outlet and rail connection with a trunk line railroad 
 or a water connection with the Dutch Kills Creek by means of the railroad of the 
 Company. 
 
 Eighth — 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 the 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
 
 14 
 
 the provisions of the statutes relating to the consolidation or merger of corporations or 
 otherwise, without the consent of the City." acting hy the Board, evidenced by an 
 instrument under seal, anvthini; herein contained to the contrary thereof in anywise 
 notwithstanding, and the granting, giving or waiving of any one or more of such 
 cosents shall not render unnecessary any suhscqucnt consent or consents. 
 
 Ninth — Should it he deemed advisable by the Board at any time during the term 
 of this contract to require the extension of the tracks of the Company to reach property 
 owned by any individual or corporation making application to the Board for such ex- 
 tension and the Board shall so order, then the Company shall, immediately after reach- 
 ing an agreement with such applicants with respect to the terms upon which such ex- 
 tension shall be constructed, or in lieu thereof a determination of the arbitrators, as 
 herein provided, apply fur and accept a franchise upon terms and conditions similar 
 lo those contained herein to extend its tracks beyond the tracks now planned by the 
 Company, as indicated by the layout of track shown upon the map attached hereto, 
 to the property of such applicant, and upon receiving such a franchise the Company 
 shall, upon terms to be agreed upon between the petitioner and the Company, so extend 
 its tracks and deliver and receive freight for shipment to all persons desiring such 
 service along the line of such extension or extensions; such service to be performed at 
 the rates charged for similar service upon the railroad herein authorized, or as may 
 be fixed by the Board. 
 
 In case the Company and the applicants for such extension cannot agree upon 
 the terms upon which such extension shall he constructed, including the division, if any. 
 of the cost of the extension and of the maintenance thereof, then such terms shall be 
 determined and fixed by tliree arbitrators selected, in the following manner. 
 
 One fit and impartial person shall be chosen by the Company; one 
 fit and impartial i)ers(in shall be chosen by the applicant or applicants for 
 each extension and the two so chosen shall choose a third fit and impar- 
 tial 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 such applicant fails to 
 appoint an arbitrator, as herein provided, or should the first two arbitrators fail to 
 agree on the selection of a third arbitrator within thirty days after the first two 
 arbitrators .shall lie chosen, or if no two arbitrators so selected shall agree upon the 
 terms upon which such extension shall be constructed and maintained within sixty 
 (60) days after the arbitrators shall be so selected, then such terms may be fixed 
 by a Commissioner appointed by the Supreme Court on the appHcation of either 
 party. 
 
 Tenth — The Company shall commence construction of any portion of the railroad 
 herein authorized which shall be necessary to transport freight to or from property 
 proposed to be so served, as indicated by the layout of the railroad shown upon a map 
 attached hereto, within thirty (30) days from the date upon which application for 
 service shall be made by the owner or occupier of sucli property, provided that the 
 consents of the property owners, as herein required have been obtained, or. in lieu 
 thereof, an order of the Appellate Division of the Supreme Court made pursuant to 
 Section 174 of the Railroad Law Cfnifirming the determination of the commissioners 
 appointed thereunder that such railroad ought to be constructea, has been issued. 
 If the consents of property owners have not been obtained, nor the order of the 
 Appellate Division issued, at the time when application for the use of such railroad is 
 made by such owner or occupier of such property, then, the Company shall commence 
 the construction of that portion of the railroad for which application has been so 
 made within thirty (30) days after the obtaining of such consents or the issuance 
 of such order. The Company shall complete such portion of said railroad and place 
 the same in operation within sixty (60) days after such application has been made by 
 such owner or occupier of said property, or if neither the consents of the property 
 owners or said order of the .Appellate Division of the Supreme Court has been 
 obtained at the time such application is made, then within sixty (CO) days from the date 
 of filing such consents or the date of such order. If the company sliall fail to complete 
 the construction of the railroad and put the same in operation as herein required, all 
 rights hereunder shall cease and determine, and all sums paid, or which may be deposited 
 with the Comptroller of the City, as hereinafter provided, shall thereupon be for- 
 feited to the City. Provided, h.^wever. that the period for commencement and the 
 period for completion and placing the railroad in operation may be extended by 
 the Board ; and provided, further, that when the commencement or completion of said 
 construction shall be prevented by legal proceedings in any court or by works of 
 public improvement, or from other causes not witliin control of the Company, the , 
 time for the commencement or completion of such construction, may be ej^endeU "C- 
 for the period of such prevention, but no delay shall be allowed for unless the court
 
 13 
 
 proceedings 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 proceedings. 
 
 Eleventh — If the grade of the tracks or any portion thereof herein authorized 
 be at any time during the existence of this contract changed to a position either above 
 or below the surface of the streets or avenues, then the Company shall pay to the City 
 any sum or sums which the City may be required by law to pay towards the change 
 of grade of such tracks. 
 
 Twelfth — Said railroad shall be constructed, maintained and operated subject 
 to the supervision and control of all the authorities of the City who have jurisdiction 
 in such matters, as provided by the Charter of the City. 
 
 No construction upon said railroad shall be commenced until written permits 
 have been obtained from the proper City officials. 
 
 In any permits so issued such officials may also impose such conditions, as a 
 condition of the granting of the same, as are necessary for the purpose of protecting 
 any structures in the streets and avenues, over which such officials have jurisdiction 
 and the Company shall comply with such conditions. 
 
 The electrical equipment to be installed by the Company for the operation of the 
 railroad within the limits of the City, whether the same be upon streets or avenues 
 or upon private property, shall be constructed and maintained under the supervision 
 and control of the Commissioner of Water Supply, Gas and Electricity. 
 
 Thirteenth — The work of construction of the tracks hereby authorized shall be 
 done in such manner as shall not substantially interfere with the ordinary use of any 
 street or avenue as a public highway. 
 
 Fourteenth — During the period prior to January 1, 1916, cars may be operated 
 upon said tracks by steam locomotives which shall be housed or boxed so as to con- 
 form with the type commonly known as the "dummy engine." On or before January 
 1. 1916, the Company shall discontinue the use of said dummy steam locomotives 
 and operate said tracks by electric power or any other motive power which may be 
 approved by the Board and consented to by the abutting property owners in accord- 
 ance with the provisions of law and by the Public Service Commission for the First 
 District of the State of New York. It is understood, however, that no overhead 
 wires except trolley wires shall be permitted for the operation of said tracks by the 
 electric power. 
 
 Fifteenth — Neither pedestrians nor vehicles shall be prevented from crossing the 
 tracks hereby authorized by the occupation of such tracks by cars or trains operated 
 thereon, for a greater period than five (5j consecutive minutes at any time, and the 
 aggregate of such periods shall not exceed ten (10) minutes in any hour between 
 7 o'clock a. m. and 6 o'clock p. m. 
 
 Sixteenth — Should the Company be allowed to operate at the same grade as the 
 streets and avenues, the Company shall station flagmen at such points as shall be 
 necessary to e-xclude pedestrians and vehicles from the tracks at all times when cars 
 or trains shall be operated thereon. Should it seem necessary in the opinion of the 
 Board at any time during the term of this contract that gates be erected, maintained 
 and operated across any of the streets or avenues for the purpose of excluding 
 pedestrians and vehicles from the tracks hereby authorized, then the Company shall 
 erect, maintain and operate such gates as may be designated upon thirty (30) days' 
 notice by the Board to the Company. 
 
 Seventeenth — .-^s long as the said tracks or any portion thereof shall remain in 
 the streets and avenues during the term of this contract the Company shall, at its 
 own expense, set the curbs and pave the entire roadway and sidewalk and keep 
 the same in permanent repair upon that portion of Nott Avenue between the south- 
 easterly side of Meadow Street and the westerly side of School Street, that portion 
 of Anable Avenue between the easterly side of Orton Street and the westerly side 
 of School Street and those portions of Davis Street, Pearson Street, Creek Street, 
 Orton Street, Manly Street, Mount Street and Anable Avenue, except Anable Avenue 
 between Orton Street and School Street, between the tracks and the rails of the 
 tracks hereby authorized in said streets and avenues and for a distance of two (2) 
 feet beyond such rails on either side thereof; all of the work to be done under the 
 supervision of the local authorities in such manner and at such time as they may 
 prescribe. In case of the neglect of the Company to make pavement or repairs after 
 the expiration of twenty (20) days' notice to do so from the President of the
 
 16 
 
 Borough of Queens, said Prcsidcnl may make ihc same at the expense of the Com- 
 pany, and the City shall have the rigin to change the material or character of the 
 pavement of any street or avenue, and in that event the Company shall lie bound to 
 replace such pavement in the manner directed by the proper City official, at its own 
 expense, and the provisions as to repairs herein contained shall apply to such 
 renewed or altered pavement. 
 
 Eighteenth — Should the Company be allowed to operate at the same grade as 
 the streets and avenues, it shall at all times keep that portion of Nott avenue between 
 the southeasterly side of Meadow Street and the westerly side of School Street, that 
 portion of Anable Avenue between the easterly side of Orton Street and the westerly 
 side of School Street and those portions of Davis Street, Pearson Street. Creek Street, 
 (Jrton Street, Manly Street, Mount Street and .\nable .Xvenue (except Anable Avenue 
 between Orton Street and School Street), l)etwecn its tracks, the rails of its tracks 
 and for a distance of two (2) feet beyond the rails, on cither side thereof, free and 
 clear from ice and snow ; provided, however, that the Company shall, at the option of 
 the President of the Borough of Queens enter into an agreement for each winter 
 season, or part thereof, to clean an equivalent amount of street surface from house 
 line to house line. 
 
 Nineteenth — Should the grades or lines of the streets and avenues in which the 
 railroad is hereby authorized be changed at any time after the railroad has been con- 
 structed and during the term of this contract, the Company shall, at its own expense, 
 change its tracks and appurtenances to conform with such new grades and lines, and 
 during the construction of any public improvement upon said streets or avenues the 
 Company shall take care of and protect the tracks and appurtenances at its own 
 expense, all to be done subject to the direction of the City official having jurisdiction 
 over the construction of such change. 
 
 Twentietli — It is agreed that the right hereby granted tooperate a railroad shall 
 not be in preference or in hindrance to public work of the City, and should the said 
 railroad in any way interfere with the construction of public works in the streets 
 and avenues, whether the same is done by the City directly or by a contractor for the 
 City, the Company shall, at its own expense, protect or move the tracks and appur- 
 tenances in the manner directed by the City officials having jurisdiction over such 
 public work. 
 
 Twenty-first— Any alteration to the sewerage or drainage systems, or to any other 
 subsurface or to any surface structures in the streets, required on account of the 
 construction or operation of tlie railroad, shall be made at the sole cost of the Com- 
 pany, and in such manner as the proper City officials may prescribe. 
 
 Twenty-second — Said railroad shall be constructed and operated in the latest 
 approved manner of railroad construction and operation, and it is hereby agreed that 
 the Board may require the Company to improve or add to the railroad equipment, 
 including rolling stock and railroad appurtenances, from time to time, as such additions 
 and improvements are necessary, in the opinion of the Board. Upon failure on the 
 part of the Company to comply with the direction of the Board within a reasonable 
 lime, the rights hereby granted shall cease and determine. 
 
 Twenty-third— Tlie rates for carrying property upon the tracks hereby authorized 
 shall in all cases be reasonable in amount, subject to the control of the Board, and 
 may be fixed by the Board after notice to the Company, and a hearing had thereon, 
 and when so fixed such rates shall be binding upon the Company, and no rates in 
 excess of those fixed shall be charged for such service. 
 
 Twenty-fourth — The Company shall submit to the Board a report not later than 
 November 1 of each year for the year ending September 30 next preceding and at any 
 otlier time upon request of the I'.oard. which shall give the result of the operations 
 of the railroad during the year and such other information in regard to the business 
 of the Companv as may be required by the Board. 
 
 Twenty-fifth — 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 Ctiy 
 of the business done by the Company, for the year ending September 30 next pre- 
 ceding, in such form as he may prescribe. Such report shall contain a statement of 
 such gross receipts, the total length of track in operation within the limits of the 
 City and the length of track construction and 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 the purpose of ascertaining the correctness 
 of its report, and mav examine its officers under oath. 
 
 Twenty-sixth— 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 acting under the
 
 17 
 
 powers herein reserved, the franchise or consent herein granted, may be forfeited by a 
 suit brought by the Corporation Counsel, on notice of ten (10) days to the Com- 
 pany, or at the option of the Board by resolution of said Board, which said resolution 
 may contain a provision to the effect that the railroad constructed and in use by 
 virtue of this contract shall thereupon become the property of the City without pro- 
 ceedings 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 to appear before it on 
 a certain day not less than ten (10) days after the date of such notice, to show 
 cause why such resolution declaring the contract forfeited should not be adopted. In 
 case the Company fails to appear, action may be taken by the Board forthwith. 
 
 Twenty-seventh — If the Company shall fail to give efficient public service at the 
 rates herein provided, or fail to maintain its structures and equipment as herein pro- 
 vided in good condition throughout the whole term of this contract, the Board may give 
 notice to the Company specifying any default on the part of the Company, and requir- 
 ing 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 during which the default or defect remains, pay to the City the 
 sum of two hundred and lifty dollars ($250) as fixed or liquidated damages, or the 
 Board, in case such structures or equipment which may affect the surface of the 
 streets shall not be put in good condition within a reasonable time after notice by 
 the Board as aforesaid shall have the right to make all needed repairs at the expense 
 of the Company, in which case the Company shall pay to the City the amount of the 
 cost of such repairs, with legal interest thereon, all of which sums may be deducted 
 from the fund hereinafter provided for. 
 
 Twenty-eighth — The Company shall assume all liability to persons or property 
 by reason of the construction or operation of the railroad authorized by this contract, 
 and it is a condition of this contract that the City shall assume no liability what- 
 soever to either persons or property on account of the same, and the Company hereby 
 agrees to repay to the City any damage which the City shall be compelled to pay by 
 reason of any acts or defaults of the Company. 
 
 Twenty-ninth — 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 ten thousand dollars ($10,000), 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 reasonable rates, the repairs of the street pavement, the 
 removal of snow and ice, the quality of construction of the railroad, and the main- 
 tenance of the property in good condition throughout the whole term of this con- 
 tract; and in case of default in the performance 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 he done and the materials to be furnished for 
 the performance thereof after due notice, and shall collect the reasonable cost 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 Company; or in case of failure to observe the said terms and 
 conditions of this contract and orders of the Board acting hereunder relating to 
 the obstruction of traffic and the maintenance of gates and flagmen, the Company 
 shall pay a penalty of fifty dollars per day for each day of violation, all of which 
 sums may be deducted from said fund. 
 
 The procedure for the imposition and collection of the penalties 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 be penalized in accordance with the foregoing provisions. If the Com- 
 pany 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 penalty, or 
 where the amount of the penalty 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 penalty 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 ten thousand dollars ($10,000), and in default thereof this contract shall
 
 18 
 
 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 afifcct any 
 other legal rights, remedies or causes of action belonging to the City. 
 
 Thirtieth — The grant of this privilege is subject to whatever right, title or interest 
 the owners of abutting property or others may have in and to the streets and avenues 
 in which the Company is hereby authorized to operate. 
 
 Thirty-lirst — The Company hereby agrees that it will not institute any proceed- 
 ings to acquire by condemnation any land, property, appurtenances or rights pursuant 
 to any law, unless and until permitted to do so by resolution of the Board, otherwise 
 this grant shall cease and determine. 
 
 Thirty-second — The words "notice" or "direction," wherever used in this contract, 
 .shall be deemed to mean a written notice or direction. Every such notice or direc- 
 tion 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 des- 
 ignated, 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 or direction as and when above provided shall be equivalent 
 to direct personal notice or direction, and shall be deemed to have been given at the 
 time of delivery or mailing. 
 
 Thirty-third— If at any time the powers of the Board or any other of the authori- 
 ties herein mentioned or intended to be mentioned, shall be transferred by law to any 
 other board, authority, offcer or officers, then and in such ca.se such other board, au- 
 thority, officer or officers, shall have all the powers, rights and duties herein reserved 
 to or prescribed for the Board or other authorities, officer or officers. 
 
 Sec, 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. 
 
 Sec. 4. The Company promises, covenants and agrees on its part and behalf to 
 conform to and abide by and perform all tiie terms, conditions and requirements in 
 this contract fixed and contained. 
 
 In- witness whereof, the party of the first part, by its Mayor, thereunto duly 
 authorized 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 he hereunto affixed ; and the parly 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 or NEW YORK. 
 
 ( Corporate Seal.") By Mayor. 
 
 Attest : City Clerk. 
 
 DEGNON TERMIN.AL R.MLROAD CORPORATION. 
 
 ( Seal.) By President. 
 
 Attest : Secretary. 
 
 (Here add acknowledgments.)
 
 J 
 
 Dec^non Terminal Rm 
 
 'RACK S 
 
 il is hereby certified thai ihis i 
 rect represent a1 ion of the propo p\ ^ >^ ip o /^ D A "T" 
 tracks of this CorporatiU/ ^ U \^^J\}r^r^r\ \ 
 
 Date J.-. 
 Dccembit 
 
 
 n the +erritory bound- 
 nttrs Point Avenue, 
 on the north by 
 December lo, i9i3, 
 
 8.1913 
 
 3
 
 1? 
 
 o 
 
 J 
 
 1 
 
 SHOWI NG 
 
 It IS herebij certified that this map is a cor- 
 rect reprasatital ion of the proposed railroad 
 tracks of ihia Corporation, 
 
 Dec^non Terminal Rmlroko Corporation. 
 
 ^i^^^X^i^^C^^^^SV^', President 
 D«cc»iDir a, 1913 C^ 
 
 DEQNON TERM 
 
 MAP 
 PROPOSED TRACKS 
 
 or 
 
 NAL RAILROAD 
 
 CORPORATION 
 
 Rad 
 
 J.* of 
 
 Cur^fe' .. 
 
 2lO 
 
 ["■•" 
 
 
 Tracks «o py 
 
 Vft.te property 
 
 sKo 
 
 •vn 
 
 in 
 
 black 
 
 " 
 
 p.t;t 
 
 oned ^oY- 
 
 
 
 ■■ 
 
 red. 
 
 To be locot«d in First Ward, Borough of Queens, in the +errirory bound- 
 ad on the east by School Street, on the sooth by Hunters ^o\y\*( Avenue, 
 on the west and north-west bu Meadow Street and. on the north btj 
 Thomson Avenue. To accompany petitLon tferi^ied. Dece»nber lo. i9ii, 
 ta the Board of £.3tinnote and A|>po»tionmant, 
 
 ^ 
 
 c
 
 D 000 529 211 5