The sun., 1894-09-24
signally failed Of success. think II will not be
dificuit 10 show that they have thus failed.

PROPOSE TO DO.
In determining the effect and validity Of an
act Of the Legislature, the authority granted
must be considered in It's full proportions, and
for that purpose It must be assumed that what
may be done under II will be done.
Briefly stated. the Board OF Rapid Transit
Commissioners have authority to lay lines OF
railroads for rapid transit in one scheme, or
from time 10 time as they shall deem expedient
as 10 character and location. Then they are
clothed with unlimited power and discretion 10
confer on the persons or corporations they select
the exclusive right 10 build these railroads, at
the expense of the city, for such sum as the
Board think proper TO pay them for the work;
and when the railroad is completed. the favored
contractors are TO be vested with the right priv
ilese. and franchise Of operating Il practically,
FOR their own exclusive benefit, the city receiv-
ing 3ls per cent. on the amount expended, being
the amount OF the interest f1ed to be paid on
the bonds TO be issued In the name Of the city
to raise the required amount, and sum OF one
per cent additional. The profits Of operating the
road II there be profits are TO 80 tn the grantees
for the term Of their grant, which may be nifty
years with covenants OF renewal without |
limit II ten per cent, for example, IL realised |
on the city's money thus invested, the grantees |
get nine per cent and the city one per cent. |
after paying interest. But more than this, the
bonds To le issued for the cost of construction.
Il Il ex pressy provided, shall be free from taxa
ton for city and county purposes. And this Is
not all, the contractors or grantees operating
such road are exempted from taxation on
"their interest" under the grant and In re-
spect TO the rolling stock and other equipment
OF said road" II Il naIvely added that this ex-
emption shall not extend to any real property,
owned or employed In connection with the con-
struction and operation. very unnecessary
execution when II is considered that in another
section the city is required to purchase any real
| estate, in the opinion Of the Board. necessary
=" for the purpose OF constructing and operating
| such road"
| But in addition TO all this the Commissioners
| are authorized, for the purpose OF constructing
| such road among other things. 10 acquire all
| franchises" which " in their opinion 1t shall
be necessary TO acquire or extineuish." What
does this meant The franchises must be taken
to be railroad franchises. Where and TO what
| extent are such franchises TO be bought In the
| aid ~ the road or roadsf II there are no profits
| TO the grantees after the expenditure OF the
city's fifty or more millions then. OF course, the
scheme will utterly fail and fall; and as 1t Is to
be an underground railroad the city. or the
bondholders, will have for their Indemnity
hole In the ground. For one will pretend
| that the grantees will 90 on intermlnabiy year
after year losing money. No scheme that
could be devised by human ingenuity would In
demnify against such failure and make II a
continuous going business.
Let us assume that Il will he proftable-the
| city getting one per cent. The title ts to be
nominaly in the city. but the essential incidents
| OF property taken away or rather are never
possessed by the city. The city has neither the
use nor the benefit Of the use, except as stated.
These are all vested in the grantees to be chosen
by the Board in the manner indicated. SO far
ms the city Is concerned It Is the merest shadow
of q shade Of nominal ownership; all the real
and substantial interest and rights Of owner
ship are concentrated and vested in the grantees
of the Board of Commissioners. The CouJnis-
sionsrs are advertise and re-advertise. IL they
desire, for bids to do the work; but the bidders
gain no rights by their competing proposals. 1t
IA expressly declared that the Board shall en-
ter into a contract with any person. Arm. or cor
| poration, which. in the opinion Of said Board.
shall be best qualified to fulhl and carry out
said contract" and for such sum or sums Of
money. to be raised and paid out Of the treasury
Of said city, as said Board shall determine to be
best for public interests" and they are At lib
erty TO reject all bids. The advertising for bids
Is to be extensive. nor only embracing newspa-
pers published in this city, but elsewhere" as
the Board shall determine.
Now. In this extensive gathering In Of con-
tractors and proposals here and " elsewhe " Is
Il not more than probable that there will be two
or more equally qualified proposing for the bid
There may be dozen of such competitors of
equal grade. Upon what principle Of natural or
acquired selection are the Commissioners to
choose the fortunate onei Must not favor turn
the balAnce3 The Commissioners may even &C.
lect q contractor who has not competed. To
publish the proposals for outside bids suggests
that the contractor may be found I" elsewhere "
= than In the community that Is TO pay for the
work. The principle OF awarding the contract
ofconstruction 10 the persons who are TO have the
grant Of the franchise appears TO be based on the
, conviction that the contracting parties who arr
to pay an annual rental In the form Of Interest
I on the cost of construction, will make that cost
) as light as possible TO M the annual pay
| ment at the lowest sum. ls that sound reason
| ing7 Is IL not more probable that shrewd con
tractors will seek TO make the largest prof
| from the contract OF construction an in
demnity and guarantee against any loss on th'
franchise for the railroad eIperimsnt-or a
: least to enable them to pay the rental durini
: the period OF deyelopmentf
0 WHAT MIGHT HAVE BEEN DONE.
! Right here IL may be asked how the Com
missioners could do othsrwisep In the fire
Z | place, there could have been q reservation tina
0 the profits Of the grantees should not exceed
4 certain percentage their expenditures, tn
balance to be paid into the city treasury for tn
E benefit of the Taxpayers. the rate OF fare re
{ duced eorrespohdingly for the advantage OF tn
h general public. Or they could have the rOa'
! constructed by the lowest bidder with adequAt
o security and then let the right 10 operate It .
; public auction TO the highest bidder. Thus tn
q interests of the city would have been promotes
4 in both ways. Then. again. the Commissioner
o could have constituted themselves Board O
Il Directors and supervised the management Q
y the railroads for the public advantage, unde
a the administration of carefully selected sxecu
n tive managers. Of the experience and ability {
y operate the enterprise for the best interests an
, for the benefit and proht Of the city.
h Indeed II Is particularly provided, In the ac
that in the event Of the failure or neglect on th
n part Of the grantees to faithfully keep and fulf
J., the conditions obligations. and requirements G
the grant. the Board of Commissioners ma
:, take possession and maintain and operate th
!, road" or may enter into contract With som
: other person to do 50. Is this operation. BY til