The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1861-04-10
cry INTELLIGENCE.
REPORT on TIE CITY PAGSENGER
RAILWAY

REPORT on THE CITY PASSENGER
RAILWAY.
Last evening in the First Branch of the City
Council, MIR. Blanchard, Chairman of the Joint
Select Committee the City Passenger Railway
Association, presented the following report which
was read and laid on the table:
r, liz. Sanding Committee to whom was referred
co much of the Mayors Message as 10 he CITY
Passenger Railway be EXTENT Of The intsrass
Any o i the determination at which the City Council
may will h ,g ia sr
hif sketch OF the history of the City Passenger Rail
wav Association is proper introduction to the action
,nrcnosed by the committee
Ry ordinance No A. approved March 2s 1852 VIM H.
Trayers and Others and those who are here
after associated with them and their assigns re-
ceiyed authority to construct system of railways
tain streets in city To this grant were attached
tain obligations to be performed the part of the asso
ciation;" chief these we find the duty imposed by
the 7h section which requires that books shall be opened
lions to the capital stock of said City Railwaysn
The grantees named in the ordinance assigned all their
and their assigns became and continue the owners
of the grant and of the Road 1t appears from the evil
dence taken before committee Of the Legislature of
Maryland during the session Of 1880 that the parties
whom this assignment made, and who, by the
Segment certainly became the association within the
meaning OF the seventh section of the ordinance, OBJ
tanned the opinion of counsel that they not bound
and would not be compelled comply with the provisions
OF the seventh section. Your committee not having be-
fore them the opinions referred cannot state the
which they founded. There is doubt, how
that seventh section could not have been executed
accordance with its terms The Mayor and City
Council did incorporate the association had the
ordinance fixed the capital stock the number of shares
given any authority whatever to issue stock.
The purpose and intent of the section could
however been carried out good faith demand ed
though its provisions could not have been strictly com
pIied with The course pursued by the Association
lizards proo of his assertion To obyiate some of tbe
diaiculties incident to being partners as dis.
tingused from stockholders, in incorporated compa-
the Of the road have entered into articles of
areement which vest their whole property in the enter
mise in Trustees, and represent it by fixed number of
of stock The interest of each partner is
cd by certain amount stock and he is entitled to an in
ouence the management, proportionate to the num-
her of shares owned by him.
Whv could not this contract have been drawn nm
ben first the grant purchased and parties esirous
engage in the enterprise invited to join association
m the terms deemed necessary for the protection of all
interested in road We cannot but that the
ASSOCIATION having become possessed of the franchise
from the first determined to enjoy it their own terms
and in entire disregard OF the true intent of the ordi
nance. 49,, .ho oo,s.. r ,,.
their interests here to-day mere franchise was the
case when they commenced to build their road every
legal should be used to prevent this violation Of
But the authorities of the city who were in Office at the
time when the actual work began opposed only feeble
its progress and there exists to-day not
n mere franchise, but system of railways constructed
and equipped at great cost
In dealing with this subject in position imposed on
the city and the association by the our pree
cessors in office have to deal with several interests
which have arisen in consequence of the acouiesence
the city authorities in the the association First
in Importance is the public cenvenience-our people is
anendent for facilities of travel on the continued
tion the railroad, which has become public necessity
Again the city has been deriving large revenue from
the for consderableperiod This revenue is pedg-
ed for of the interest park stock and
what after payment of interest is of great i'm.
portance for the development and Improvement of our
parks So far the Association is concerned it is to be
remembered that it has made very large investment
money here and that the authorities of the city, who
should have inerfered at the of the ex-
pendure have stood by and acquesced in act if not in
word in the violation of their own ordinances.
may be urged that the original wrong is unchanged
by the assent of the late city government but cannot
but think that this large pecunary interest has under
circumstances, equitable claim protection and
be considered in determining the action City
Council.
The manner in which these various interests will be
affected to be gravey considered We have it in our
power select of the lines of conduct; may re-
pudate altogether, recognize the ordinance a CON
tract and see that it be executed
1t is extremely doubtful whether the city has the pow
to make valid grant of the privileges conferred by
the ordinance.
Looking to the circumstances under which the grant
obtained, to the conduct of the association since
and the grave doubts of its validity might be jus
titled in repudatng it altogether, and repeal the ord
The objections this course are manifest Apart from
the justice done the association by their putting at risk
their investment, the city would be powerless if assum
ing this to confer any other parties the power
to carry the road if successful in the effort to dis
possess the present owners If the grant of 1859 in
valid for want of power grant in 1861 would be open
to the same objection. This might result in
polling the association abandon the enterprise and
their equipment elsewhere, to the great detrment
of people 1t would certainly deprive the city of the
derived from the road and now pledged to the
holders of the park stock for the payment of their inter
est
We think that to repudiate the grant would be injuri
Gus to the interests of the city, and would probably lead
only to harassing litigation resulting in no practical
benefit either to our people or to the association
The other course and which is suggested by
the Mayor is to make arrangement with
ton which shall be equitable in its character tend
TO secure the various interests already referred to- In
adopting this the City Council will accept the ex
listing position in which the city placed and
as cam will remedy what has been wrongly done alrea
dy, and provide additional securities for the future
Your committee hope that the City Council will agree
with them in thinking this the only wise and just
to be adopted and suggest the following propositions
the basis OF a new arrangement.
In order to approximate to an execution OF the sew
enth section with due regard to the risk incurred
the time and energy bestowed by the association in thu
construction and working of the road, propose tina
they be required offer for sale at cost, with due al
lowance for interest, one-half of the whole number
shares of stock by which the property now represented
under their articles of agreement That for this
books shall be opened in this city, within limit of time
and after due notice by advertisements that persons de
string to take stock shall be required to subscribe and
pay for the within limited time and shall sign
agreement under which the road is held and
This is but incomplete observance of the ordinance
but its literal execution is impossible.
For the greater security Of the city against delay
lnqueucy in the payment of the park tax We propose
the following plan The association shall make weekly
deposits of onefh of their receipts to the join
credit City Register and the Treasurer
citation separate bank account of the money payable
to the city has been kept since February 1st but th
always subject the draft of the Treasurer pecuniary
difficulties may again induce association to apply th
fund in payment of other obligations By the plan pro
posed the fund is set apart as it is received and the
ent delay in payment can occur again. The &C
counts of the association should from time to time, b
open to inspection by the Comptroller a proper and
security to the CITY, The quarterly settlemen
of accounts at present adopted need not be changed but
time should be limited within which the account should
Any difficulty obstruction to travel resulting from
improper laying of the track or the necessity for repair
may be remedied by the City Commissioners under the
provisions of existing ordinances, and do think
any further legislation necessary
Some the lines of road have not been completed anG
others have not been cor The association should
berequred to complete the Baltimore street line, which
has never been finished to the city limits West
more street. and is not worked even to its erm
nus.
The road from the city limits through Charles and other
streets Canton has been partly built at the
We do not think that the public convenience would
route from Baltimore through South street. Exchange
place. Lombard and other streets to Alice Anna street
The Baltimore street line now accommodates the travel
street. and in the crowded thoroughfares OF our
business centre the road would be serious obstruction
rather than convenience to the public.
We recommend that the road should be constructed
from the city limits along Charles and the other
named in the ordinance to Baltimore street, and there
end. In arrangement is made with the assoca-
ton we propose that the time limited for its consruc-
ton be extended one year, to March IS, Is 60.
The Mayor has called attention to the ordinance by
virtue Of which grant nominay to expire in fifteen
fact that privilege renewable and can only be ex
ngushed by the purchase of the entire "sock and in
terest' of the association.
In purchasing under this provision the city would buy
back its own grant, and require its payers purchase
not only certain amount of tangible property but the
privilege OF using the streets. In view Of the grave
doubts OF the power Of the corporation thus permanently
to ALLEVIATE the of its streets think that change
should be required We propose that instead of buyinp
the stock and Interest," of the association the city should
be at liberty at the end of the fifteen years of the grant to
buy the railroad track equitable valuation looking
to the cost of material and construction as well as its
then condition; AS the ordinance stands, have the
routes of travel and the rates of
or to be changed on terms which never be complied
with.
Fifteen years hence it may be very desirable TO change
of the lines TO other Streets which can easy be ac
complished if this modification is made For another
reason consider important that the city should be-
the of the track If our city should extend
during the coming it has during the past ten years
the increase of population and Of travel may enable
Railroad Company to carry passengers lower than
those providedby the ordinance.
Should the city buy the track, proposals should he in
vited, and contract made with those who would work
the road for another term of fifteen years on the terms
most favorable to the city and people.
In making this modification the grant it will be ne
cessay to provide for the protection of the property
those who may to be the propetors road
OF Fd haTe pets &C.
contractors with the city, before entering upon
of the road should be compelled purchase at fair
valuation the whole equipment of the former propre.
tors.
buy the track at the end of the present fifteen
years. the association will continue in possession under
the ordinance the terms at present. and
same rates of fare.
Your committee have presented three proposed
changes for your consideration the basis
for settlement of existing difficulties 1t is obvi.
that the most efecual mode of carrying out the
suggestions of your committee is to embody them in a
carefully prepared contract executed by the Assoc
alton and such be designated by the City
Council to act for the city. In this mode alone can all
interests be eectuay guarded and secured Such
tract should contain stipulation the part of the Asso
citation regulating two be applied for by them when