nnel Railway Company in 1883, The Terminal Underground
Railway Company in 1886, The Underground Railroad Company of the City
of New York (a consolidation of the last two companies) in 1896, and
The Rapid Transit Underground Railroad Company in 1897.

All attempts to build a road under the early special charter and later
under the general laws having failed, the city secured in 1891 the
passage of the Rapid Transit Act under which, as amended, the subway
has been built. As originally passed it did not provide for municipal
ownership. It provided that a board of five rapid transit railroad
commissioners might adopt routes and general plans for a railroad,
obtain the consents of the local authorities and abutting property
owners, or in lieu of the consents of the property owners the approval
of the Supreme Court; and then, having adopted detail plans for the
construction and operation, might sell at public sale the right to
build and operate the road to a corporation, whose powers and duties
were defined in the Act, for such period of time and on such terms as
they could. The Commissioners prepared plans and obtained the consents
of the local authorities. The property owners refused their consent;
the Supreme Court gave its approval in lieu thereof, but upon inviting
bids the Board of Rapid Transit Railroad Commissioners found no
responsible bidder.

The late Hon. Abram S. Hewitt, as early as 1884, when legislation for
underground roads was under discussion, had urged municipal ownership.
Speaking in 1901, he said of his efforts in 1884:

"It was evident to me that underground rapid transit could
not be secured by the investment of private capital, but in
some way or other its construction was dependent upon the
use of the credit of the City of New York. It was also
apparent to me that if such credit were used, the property
must belong to the city. Inasmuch as it would not be safe
for the city to undertake the construction itself, the
intervention of a contracting company appeared
indispensable. To secure the city against loss, this company
must necessarily be required to give a sufficient bond for
the completion of the work and be willing to enter into a
contract for its continued operation under a rental which
would pay the interest upon the bonds issued by the city for
the construction, and provide a sinking fund sufficient for
the payment of