The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-08-08
HISTORY OF THE FRANCHISE.
How 1t Was Sold on q hid by the City
COmuauy.

Company.
The history Of the present street-car ques-
ton dates back to the early part of 1893,
when the city authorities announced that,
in view of the near approach Of the ter
mination of the Citizens company's fran
chise, negotiations would be entered into
looking to the granting of a franchise on
terms more advantageous to the city. Pur-
suant TO this, the Board of Works secured
copies Of contracts from the leading cities
of this country and Canada. together with
suggestions from the different city officials
in regard TO any defects in them or i'm
provements that might be made. With this
to work on. the Board of Works prepared a
contract setting forth the minimum of all
concessions that would be required from
any company securing a franchise. and con-
tanning also the rights that would be grant
ed to such company. The main provisions
of this contract were as follows:
A tax Of 2ls per cent. on the gross receipts
of the company for the first five years. 5
per cent. for the second five years, 6 per
cent. for the third five years and Z per cent.
for the remainder of the period, was to be
paid into the city treasury.
Cash fares were to be 5 cents, with tickets
on sale by every conductor at six for
~ eli NAt&
fer by tickets to be maintained.
The company was to pave between its
tracks and for eighteen inches outside of
them. and was to sweep and sprinkle a por-
ton of the streets.
Motive power. plats Of tracks, style of
rail and character OF equipment to be sub
ject to the approval of the Board of
Works.
Time between cars not to exceed ten min
utes, unless by the consent of the board.
and the maximum speed not to exceed
twelve miles an hour.
owl cars TO be run once an hour on
all lines from / to 6 o'clock a. m. unless ex-
empted by the board, on which the fare
should be 10 cents
any streets except those specifically granted
Were those then used BY the Citizens com
The city was to have the right to pur-
chase the plant at the expiration of the
period of franchise at a fair valuation. to be
be appointed by the city, one by the COM
pany and one by the Circuit Court.
Such. in general, were the terms Of the
on which II expected competitors TO
bid. The bids were to be based on the
amount OF gross receipts the bidder would
pay to the city and the reduction OF fares.
No contract was TO be let at less than the
figures stated above, and the company Of
fering the greatest advantages In its pay
and in the reduction of fares was II receive
the franchise. This draft of a contract was
completed April Z. 1893, and bids were called
for to be filed by 5 o'clock Wednesday
afternoon, April 10.
At that time there were supposed TO be
They We're the Citizens company. one head
ed by r. T. Mcdonald. of TT. Wayne, and
commonly spoken of as the Mcdonald
company; the unknown" represented by
Byron K. Elliott. which finally proved TO
be the City company, and another. of
which nothing was known. which made a
few Inquiries through the law firm of Herod
& Herod. 1t was thought at that time
that the Citizers' company would bid, and.
being already in the field, would have the
There was considerable speculation as TO
who composed the company represented by
Mr.. Elliott. and not until the day the
their names become known. The McDon-
aid company was supposed TO be backed by
a number OF local capitalists. together with
the Herod company nothing was known,
except that the promoters were New York
When the time came to receive the bids
the Board OF Works was somewhat sur
prised TO find that they had only one
bid TO consider, and that from the "un-
Elliott His bid was as much of a surprise
in itself as was the fact that IL was the
only one submitted. He paid over the
So. 600 required by the board as an earnest.
and made a bid offering the following per
cents. OF the gross receipts: For the first
Ave years. 10 per cent. per annum: for the
second five years. 1874 per cent; for the
third five years. 1914 per cent. and for the
remaining fifteen years. 11z per cent. per
annum. Representatives Of all the other
supposed companies were present, but did
not offer any BIDS. w. III. Latta, private
secretary OF President Mason. OF the Citi-
zens' company. was present and gave the
board a communication from Mr.. Mason,
In which he stated that after examining
| that II was impracticable and did not care
to make a bid on II.
The contract was then written up, en-
bracing the bid OF the unknown company.
and sent to the Council for ratification.
At q special meeting Of the Council on
Monday. April Is, II concurred in the action
OF the Board Of Works and the City COM