Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1893-10-21
CHICAGO, sATURDAY, OCTOBER q. ls9s-rwEIvE PAGES

geheTdlly UNDERSTOOD th9t ne con- /
trolled il at all times, and he did
Powers of the City to Own stock.
Concerning the point made by At
torney Kraus and others that the
city could not legally own the stock
of the City and County Gas Company,
and that if it could 1t could not af-
ford to assume the liability that
might arise therefrom, Mr.. Cooper
said; Without taking time to go in
to the decisions on the question,
will give you my conclusion from GER
tain unQueStioned principles applica-
bic to municipal corporations. These
are ]. That every municipal corpO-
ration can receive and hold bequeSts
or donations of land, money or prop
erty TO be used in connection with
the exercise of its granted powers.
The city Of Chicago is expressly
given authority to provide for light
ing its streets Therefore, the owner
ship by the city of plant for fur
nishing gas in the city or a part
ownership therein, or the whole or
part of an electric light plant must
be admitted to be connected with the
exercise of its granted powers.
-. The city has express authority
to grant the use of its streets for gas
pipes with or without conditions. If
such right should be granted upon
condition that the gas company
should furnish to the city at not TO
exceed certain price, no lawyer
would question the validity of such
condition after the ordinance should
have been accepted by the company,
and thereby have become a contract
between the city and the company.
Again, if such right be granted upon
condition that the company pay every
year to the city such percentage Of
the annual gross or net receipts Of
the former, or a stated sum, then af-
ter the company had accepted such
license or grant it would be bound
thereby.
stock Fully Paid and Non-Assessable.
Now, what difference can it make
in law when the city grants the use
of its streets for such purposes to a
gas company on condition that the
city shall receive as its own property
an ownership Of one-third, or any
other proportion Of the company's
property, | fail to understand You
say that an objection is made that
the city might become liable as a
stockhOlder, and that this objection
is urged by those who claim that the
city has no power to hold stock in a
gas company. Well, if the city has
no power to own stock, it could not
become liable as a stakeholder. But
no trouble can arise from this source,
because the gas company proposes to
deliver to the city one-third of its
stock, which shall be fully paid and
non-assessable."
Prof. Bemis, of the University Of
Chicago, who is a well-informed ga,
man." and who has personally nyes.
tigated large number Of municipal
plants in the United States, sale
recently:
THE proposition Of the City anC
County Gas Company, just submitted
10 the City Council, provides that tht
city shall own One-third Of the stocE
and that the price shall not exceed
80 cents, but 1t gives no securitl
! whatever against the ultimate alb
T. sOrptiOn of the other two-thirds in
terest by the present gas trust. Tn,
city of Chicago, am sure, wants II
run no risks on this question. 1t ha.
t had quite enough OF the trust con
solidation idea, and proposition tC
/, gain the hearty support Of the people
+, must necessarily he explicit on that
point. The proposition may provide
for forfeiture OF franchise in case OI
= consolidation, but even IL 10 does If
y would hardly be worth the paper on
, which it is written, as is proved by
the failure 10 give protection to the
3 city by similar provisions In the for
I mer franchises granted 20 the Con
3 sumers and Equitable gas companies
"a majority OF the stock could b'
, controlled In quiet way by the same
interests that control the present ga
combine. The city should not ALLOW
p another gas company tOu,e it- street
= without providing for the perm8nen
control of q majority OF the stock b
tho city and hy trustees chosen b
the cIty tar example. by che MAYO
3 and Iu part possibly. by some uthg
f. public body lt would not be aerc-
sary lor @ majority of the stock q
Ie1 t1 tre rItN hut the right a. y0t
p .u majority of the stock should Gee
aIuy Ue vested Iu tha eltf aul d
trustees representing tHe public lu