New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-02-12
ABOUT STREET RAILROADS.
REcoMMENDAT1oNs OF THE NIXON IN
yEsTIGATING COMMITTEE.
rvcrss1vr ISSUES OF STOCK FOUND TO BE GEN
rpAI-Mt-NICIPAI Ow9 ERsHIP NOT PRAO-

ryrrscrvr 1ssI-Es OF STOCK FOUND TO BE zen
rpu-Mr-NIcIPAI ow, ERsHIP NOT PRAc-
r1c,pr.E-TuE DISPOSAL OF FRANCHISES.
. r.h The committee authorized by the
Assembly last year to inquire into the queS''o u
mu,,cinal ownership of railroads and the orsahi%'
ton construction and operations OF eleV""u i'''
roads in cities presented Its report TO the l'E'7'
,odav through It's chairman, 5. Fred NMol' Vi
Chautauqua County. H..
,,urinr last summer and autumn the committee
visited the cities Of New-York, Brooklyn buiiaio,
poho.,ar Syracuse Utica Albany and Troy ana
examined witnesses on the subjects referred TO- TAX
inc nearly 1000 pages OF testimony That testimony
the committee says, suggests the need oi ""c'
remedial legislation II Is mainialh"d '''"' W.
r,a1s are uuasi-publc corporations. over whi'h 'i'
Iesislature by wise and prudent legisIitioH S"o"-
exercise dominion and control they are creature
Of statutes and the manner and method OF 'her
rgonzatlon the general scope OF their powers their
method Of issuing stock and the power 10 contract
Indebtedness and to create Obligations sho"'u DC
clearly defined and prescribed by law
The committee found that within Ave years The
surface railroads in most OF the ctlee in the state
had been changed from horse to electric power. re-
ouiring the outlay OF large sums OF money. As
ruIc :ho conpanies greatly Increased their bonded
indebtedness, but this change can by no means be
said 20 be the true cause for the stock and bond
issue Of mos, OF the roads largely in excess Of
the actual cost OF construction ana equipment
I'VE have found says the report. some cases
where tho companies stand charged with capital
stock bonds and other Indebtedness nearly or quite
ten times the actual cash cost of construction and
equipment In one instance thos' charges OK
coed 800 200 per mile OF single horso-car track and
this includes nothing but the tract Itself and street
repairs whereas in truth and in fact, II would cost
less than on.-t"nih that sum t. construct II anew
In almost every instance the charges against The
! company for capital stock issued and bonied and
| Other indebtedness exceed by several times the
actual cash Of the ROAD real estate plant and
! equipment"
Tho committee believes that this system OF over
| capitalization has become 50 prevalent rs 10 cal
upon the Legislature FOR some immediate remedial
| legislation ana recommends limiting the power 10
Issue stocks and bonds 10y street railway companies
To- about 81 per cent above tho actual cost Of the
| PROPERTY consruc,on plant AMI equipment. 1t also
lyocttcs ;he rIssagc % bill which would r'qH'r"
all street railway companies hereafter Incorporated
! 10 obtain the conecnt ~ the Railroad Commission
| .rs Ia the amount of the capitalization stated In
! the articles of Incorporation. ard require every
street railway company now IN existence or her"af
ter to be Incorporated obtain the consent Of the
! Commissioners TO any Increase ~ Us capital stock
| Or issue OF non Is.
| The subject ~ municipal ownership II street rail-
! ways was imputed into thoroughly. The preponl'r-
anc. - testimony and the great majority Of opir-
! Ions expressed against the adoption of the
system In the committees opinion. With the pres
ont system OF the municipal government tho owner
| ship and operation ~ railroads by cities would
! have tendency TO convert those enterprises INTO
| powerful political machines the result Of which
| would be detrimental. to tn" public welfare me
| IDEA OF municipalities owning am operating street
railways - unhesiiatingly dsapproved Of. Their
| may be- says the report circumstances under which
! It t. feasible FOR city to construct and own the
oalhcd ltscl, and permit ia operation los private
| .r,e rria IND. h.
time T. not vet At hand
'rhe question Of how franchises should he dis
posed Of IS treated at length. The committee does
not hclc." that paying either lump sum or per
ccntagc Of tho cross receipts yearly into the city
treasury has proved satisfactory. and the expert
| mont = having companies bid AGAINST each o'her
by Offering pcrc"ntag" OF gross earnings for fran
chlsos Be- termed a nasco. The committee docs nos
believe In making franchises p'rp"tual though IL y
confronted hy the fact that most OF them nav" a.
ready been thus giant'c on ms suhJ's tn. . ,
ihtc" recommends mat hiil h" pas pioNii,,nii
| that all franchises be sold 10y lease for stated
period say thirty years-at public auction TO- m,
company Offering the lowest rate ~ iarr ana 'hs,
the lease provide FOR further reduction in case tho
receipts 'hcrcfrom Justify H.. and that. I'm cas" OF
Disagreement between the municipal authoii,i"s
and the company In respect TO- the rrtepts. rl,a'l
| dctcrninaii ton II the question.
1t is recommended that hiil he passed requiring
sell tickets M low as thirty for ST. good between
| the hours Of a. and n. m. and j. m ana ,
| such road sufficient to pay the operating 'N-
pcnses and fixed charge. with dividend of per
from one road To another belonging 10 the sam"
| company should H." committee believes. he ~
| forced iy siatut" Tho making u a law FOR -
proper heating and lighting Of cars is also recon-
| mcudcd.
The oycrcrowdlug o: cars. OF which much com
plnIni has been made. cannot. the committee ne
iicves. he well remcdied IT, ~ shS%n ina, MINT
| seconds hcadway Their" f. as much oN"rcfo"hihE
"a where on other streets they ar" run furth"r
| nuort The crush ~ travel during certain hours
OF the dnv cannot we'll be obylated. and the practice
in vocw~ in Paris TO permit no passenger on car
unless there is n seat for him. thus compelling delay
| I'm transportation. would not. II r. thought, he
| tolerated in this country. whore the people would
| pr.f.r to submit TO Inconvenience TO save Time IL
il recommended. however. that the statutes be 80
| amended as TO provide that the Mayor or any city
NAV upon the written petition OF nfy citizens. IN
| vcstigate any complaint concerning IN" lack ~
urop.r service or the improper heating or lighting
| OF cars and to require any company to remedy the
| cause OF complaint
| Az 10 tenders tho committee believes their use
should he required all cable and electric cars IN
cities OF the first and second classes ana II also
! urges placing the statute books "A law prohlb-
| Ting one car passing another that has come 10 a