ture therefor in which they would participate, therefore a
composite scheme, which is the plan as carried out, was agreed upon,
being in part subway and part elevated. This scheme reached a focus
early in 1897, and the law constituting the Board for the Atlantic
Avenue Improvement was passed, with a provision in the last paragraph of
the Act, for the construction of a tunnel from Flatbush Avenue Terminal
under Flatbush Avenue and Fulton Street to Pineapple Street, crossing
the river to Broadway and Maiden Lane (Cortlandt Street), New York City,
and with the understanding that it would be extended beyond the New York
State Line to the Pennsylvania Railroad Station in New Jersey. This gave
the legal right for the construction of this tunnel, and, on June 20th,
1899, the New York and Long Island Terminal Railroad Company was
incorporated for the purpose, Mr. Baldwin being President and J. V.
Davies, M. Am. Soc. C. E., Chief Engineer. Application was immediately
made to the Boards of Aldermen of Brooklyn and of New York City. The
latter acted favorably on the application, but the Board of Aldermen of
Brooklyn held the matter up, while the Rapid Transit Commission laid out
and promulgated the plan for Contract No. 2 of the Rapid Transit Subway.
With the understanding that the Rapid Transit Brooklyn extension would
be constructed to the Flatbush Avenue Terminal, Mr. Baldwin withdrew the
application for the independent franchise, and agreed to proceed with
the Atlantic Avenue Improvement, on the basis of the City proceeding
with the Brooklyn extension of the Rapid Transit Subway. This provided
for the Long Island Railroad entry down town.

[Illustration: PLATE V.--NEW YORK UNDERGROUND RAILWAY COMPANY Section
Through Surface and Underground Stations]

Subsequently, however, it was proved that Mr. Baldwin had not been fully
satisfied that this was the proper solution of the matter, for on April
12th, 1901, and upon his recommendation, the Board of Directors of the
Long Island Railroad Company took over from the Pennsylvania Railroad
Company its entire interests in the old Brooklyn, New York, and Jersey
City Terminal Railway Company, thus giving him control of the route from
Flatbush Avenue _via_ Maiden Lane and Cortlandt Street to underneath the
Jersey City station.

In the early part of 1900 active consideration was being given by the
Pennsylvania Railroad and other railroads terminating in New Jersey to
the proposed North Ri