The Providence news. (Providence [R.I.]) 1891-1906, 1896-04-07
DISSENTS.
Continued from Page l.

provisions of an act of the General As
sempIy passed May %, 1898. being an
amendment OF the previous act Of 1929,
which assent was authorized by resolu-
tion of the City Council, constitutes q
contract between the city OF the one part
and the Union Railroad Company and
the Providence Cable Tramway Company
OF the OF er part, which, under the con-
stitution of the United States, cannot be
changed or affected by any subsequent
act of the Legislature. We believe that
legally this claim also has no foundation
and that this assent, II IL be interpreted
as a contract at all, applies only TO the
relations OF the city to the Providence
Cable Tramway Company. II - true, in
deed, that certain resolutions OF the City
Council ana certain acts OF the General
Assembly, worded either bunglingly or
with design TO comm these bodies TO
the theory that there was a contract be-
tween the city and the companies, in
which a contract between the city and the
companies has been referred to, have
been passed, and this fact undoubtedly
renders 1t more difficult for the represen-
tatives of the city now to claim that
there IL no contract, but 1t cannot be
for a moment pretended that they caange
in any way the actual relations between
the city and the companies; ana II is
therefore our opinion while under the
power TO change the present arrange
ments without the company's consent,
nevertheless, the Legislature still pos
sesses he full power to modify the con-
ditions OF the company's franchises and
to grant TO the city additional rights in
the premises.
g. One other point would seem to de-
mand our attention. II has been propos-
ed by some members OF the committee
that il a satisfactory arrangement could be
made with the companies WHEREBY the
city would receive an equitable share Of
the proceeds OF their business upon con-
dition Of extending the franchise for a
long period, even for the term OF fifty (50)
years, IL would he wise for the city to
make contract to that effect. We have
said that IL was proposed that the city
was to get by this arrangement an equit-
able snare of the profits of the company,
and we are willing to put IT upon this
ground, although we believe that the plan
proposed OF allowing the company to pay
interest and dividends upon the capital
inflated to at least three times the value
OF the plant, is by no means equitable,
and even then we believe that no such
proposition as this should be entertained
by the city. SThe present franchise ex-
pires in 1912, only is years distant. No
human foresight can look forward and
say what the conditions governing trans
nicipality will be at that date. Ten years
ago the street railway companies were
operating under system In which their
operating expenses amounted to so per
cent. of their gross receipts. The operat-
ing expenses today, although charged
with large expenditures for what might
properly be regarded as construction, are
acknowledged to be less than 90 per cent.
of the gross receipts. Under the usual
system OF accounting they will probably
not exceed 30 per cent. New inventions
are being constantly made, whereby in
the near future they may be still further
reduced. This is one consideration.
Again, the physical features of electric
transportation are constantly being i'm
proved. The city OF Chicago is about to
construct upward OF 20 miles of electric
traction by an underground system.
This city now has the right to compel the
adoption OF snv better and more conven-
lent system whenever it can be shown to
be commercially practicable. II con-
tract were to be made between the city
and the company by which.the city had a
share OF the profits the company would
certainly wish to retain the right to judge
for themselves as to the time when
changes OF this character should be made.
Again, In any contract between a mu-
nicipality and a railroad company the
advantage Is always on the sine or the
cOU1Dunys ~ uuS n DOhIO VI uiFcclOES anu
managers, few in number, all OF whose
time and energy Is devoted to its interest,
while the city must work through the
cumbersome body constituting its City
Council, In the membership OF which
there are constant changes and the men,
bers OF which at any one time can not be
expected TO be fully Informed upon the
subject. The company keeps the books,
IL makes its accounts OF profits to suit it
self, and any contract Of this character Is
one in which the city must necessarily be
at a disadvantage.
:Another, and the most important, con-
sideration IL that this city, as all other
cities, ought at the earliest possible NOM
cut to be in a position where II will be
able to Judge and to act upon its judg-
ment as to whether or not II Is best for
the city to own and lease, or to own
and operate, its own street railway plant.
The power to do this has been OF the very
greatest advantage to many foreign
cities, and political economists who have
given the most attention to municipal
affairs express the belief that through
municipal ownership of facilities for
furnishing not only transportation, but
water, light, heat, and other necessaries
to the inhabitants OF the municipality,
the city will be enabled to secure large
part or its revenue from sources other
than taxation. We do not mean 10 advo-
cate the present municipal ownership OF
all of these agencies, but we do mean to
state as strongly as possible that in our
judgment due consideration OF the in
terests OF the city forbids US to postpone
the day when the city may acquire them
IL then deemed best.
For this reason we believe that no con
tract OF any character should be made be-
tween the city and these companies,
whatever present adva 1tagcs II may seem
to promise, and that the privilege of
transfer tickets, however desirable, would
be purchased by onr citizens at too high
cost were any such contract to be en-
tered into.
:, In conclusion, therefore, we report that
In our opinion:
1st No satisfactory system of trans
fers can be obtained form the Union
Railroad Company upon any terms.
I'd. Even satisfactory system of
transfers ought not to be obtained upon
the terms suggested by the company; and
3D.. The Legislature has power to se-
cure for our citizens the transfer privilege
and should be asked to exercise II.
Minority Report.
Councilman George j. West, chairman
of the special committee dissents from