The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1893-04-20
sTREET-RAILwAY DEVELOPMENTS.

The developments regarding street
railways in this city during the past
twenty-four hours are of character to
create general surprise. The Citizens
Street-railway Company has notified
the Board of Public Works that it will
not make a bid for a contract under the
terms the board has presented, and
which, 1t may be added, seem TO have
been specially prepared for its accept
ance, intimatinR, at the same time. that
the company will seek to enforce the
charter it now holds for period of
seven years. Following this notice of
the Citizens company Judge Elliott,
acting for syndicate, whose members
are not named. has deposited the earn
est demanded by the board and has
offered the city 10 per cent. of the gross
earnings of the company's lines for five
years where the board required but gle
per cent. 12l2 per cent. where the board
asked per cent. for the next five years,
1919 per cent. for the third five years.
where the board required 6 per cent,
and 14l2 per cent. for the remaining fif-
teen years, where the boards demand
was per cent, These are certainly
puzzling figures.
The fact that the Citizens company
proposes to go into the courts to estab-
lish it's claim that it's charter continues
IN force seven years longer leads to the
inference that the board may have been
misinformed regarding the force of that
company's claim and has offered for sale
franchise to which the city possibly has
not O clear title. When all reasonable
doubts could have been removed by
consulting able lawyers, it does not
seem possible that the board could have
made such a gigantic blunder as selling
a franchise belonging to the Citizens
company. If the board has made such
mistake, it has plunged the city into
quagmire of costly litigation and has
delayed the development of rapid
transit. so essential just now to the
prosperity Of the city, until all doubt
shall be removed by the courts.
But would the Citizens company,
whose president is an able lawyer. and
who can command the best legal talent,
take the chances of practically running
its investment, il it was not almost alb
solutely certain that the courts will sus-
tain its claimf If new company can
afford to contract to pay 10 per cent. OF
its gross earnings the first five years,
without yard of track, could the Citi-
zens' company safely refuse to pay 2l2
per cent, with a valuable plant already
established. and take the risk of an even
chance in tho courts to sustain its char
ter seven years7
The board has reserved the right to
reject oil proposals, but when q man of
the character of Judge Elliott, acting
for a syndicate. complies with every re-
quirement of the board and offers the
city from twice to four times as much
for the franchise as that official body
has asked, it cannot consistently reject
such proposition unless ii is prepared
to demonstrate beyond doubt that it
is too prepOsterOus to DO made in good
faith. Having made its proposals with
great care and invited bidders, the
board cannot refuse to accept more
favorable offers than it demanded, I'M
less it shall, at the eleventh hour. make
the humiliating discovery that it has
invited bids for property which it can
not legally offer for sale.
The only certainty the people of In
dianapolis possess in the midst Of these
complications is the aRRravating one
that the expected and much desired ex-
tension of rapid transit over the South
Side and to the suburbs is indefinitely
postponed. The Citizens company will
not extend it's electric system rod I'M
til the question of it's franchise Ia set
tied by the courts. and il the Elliott
syndicate should take the risk to go
forward the Citizens company would
enjoin it until it's claims should be
passed upon by the courts. 1t is not
probable that such question would be
disposed of by the United States Appel
late Court within year, and it is more
probable that two years would elapse
before the seemingly unnecessary con-
troversy could be settled. This is the
grievance of the people.