Mr. Cassatt, President of the Pennsylvania, New York and Long Island
Railroad Company, made application in its behalf for a franchise to
extend the lines of the Pennsylvania Railroad by tunnels under the North
River to a passenger station to be erected in New York City and thence
under the East River to a connection with the Long Island Railroad, on
May 5th, 1902.

The franchise for that part of the tunnel line which is within the State
of New York, that is, from the boundary line between New York and New
Jersey, in the Hudson River, to the eastern terminus at Sunnyside Yard,
Long Island, is contained in the certificate issued by the Board of
Rapid Transit Railroad Commissioners of the City of New York on October
9th, 1902.

The essential features of the franchise have been summarized
substantially as follows in the report of the Committee of the Board of
Rapid Transit Railroad Commissioners of the City of New York, dated June
14th, 1902:

_First._--A grant by the city in perpetuity of rights, subject, however,
to a periodic readjustment of payments at intervals of twenty-five
years, as follows:

(_a_) To construct and operate a railroad of two tracks from the
boundary between New York and New Jersey under the Hudson River
opposite the westerly foot of Thirty-first Street, Borough of
Manhattan, thence running under the Hudson River and Thirty-first
Street to the East River and under the East River to a terminus in
Queens Borough. The Company is permitted on notice within ten years