The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-02-25
STREET CAR OUTLOOK
Largely a Blun-Mckee and
the Legislature.

The strange actions OF the men interested
in the Citizens Street-ra.lroad Company. and
the many fluctuations of it's stock, have led
many people to believe that all the talk
about propositions for a new franchise have
been made simply TO bull the stock at
time when the larger holders were ready to
unload a part of their holdings. 1t
IS fact that few stocks have
shown as wide fluctuations as this in
the last year. The change has been nearly
100 per cent. The secret was let out by
Mr.. Mckee in a remark made while here
last Saturday. when asked IL the company
really intended to make a bid for a new
franchise at this time.
What would we do with a new fran
chise%' he queried in reply. 1--WE have con-
troll OF the streets and good for five
years more. Ii Is also settled beyond a
doubt by a recent decision of the Supreme
Court that, IL our charter really expires in
1901. and some other company secures the
rights to the streets, Ii must pay US for our
plant according to its earning capacity, and
not according to the actual value of the tan
gible property"
That remark would seem to indicate that
the policy OF the company will be to simply
mold on as long as IL can under its present
charter, and at the expiration of the five
years, IL ii should be ousted, take the con-
sequences. knowing it will receive full value
of its property, besides being enabled TO
convert a large portion of its stock into
stock of the new company, as payment for
the property.
That the company has been very wary in
ITS dealings Is shown by the fact that il dis
missed part OF its complaint in its suit to
enjoin the City company. The original COM
plant asked for an injunction restraining
the City company from interfering in any
way with the Citizens ,companys rights.
and also restraining it from occupying the
north and south route that was designated
IN the new franchise the line to be built
within six months The latter part of the
complaint was dismissed. The only reason
that can be assigned is that the company did
not want to risk a decision as to its rights
to all streets in the city. whether occupied
by X or not. AS the complaint now stands,
the decision will merely cover the COM
pany's rights to streets occupied by Ii, out
in it's original form the decision would have
covered the question as TO its rights TO all
the city streets.
All these things seem to indicate that
there will be no proposition from the COM
pany, at least not ole that the city will ac-
cept, even though arrangements could be
made to get over the difficulty of the exist
negotiations Of last fall there was a large
sale of stock in the Citizens company, and
at good prices. Then the negotiations sud-
denly ceased, and the stock suddenly be-
gan declining. In few weeks it dropped
from A to n. Then Ii began to be rumored
that. the controlling interest had changed
hands. and that new negotiations for new
franchise would be begun. The stock began
TO so up again. and the climax was reached
when the principal owners reached the city
last week and began holding secret meet
enough %
lead the people here TO believe that new peo-
pie were in control and new proposition
would be made to the city Under this inn
petus the stock began advancing, and, OF
course. those who were into the deal began
selling. The next move will be watched
with interest
At the present time there are three suits
in court which grew out of the effort of the
city to sell a new franchise TO the streets
SUIT was filed by the City company TO secure
control OF the streets 1t Is still pending in
the federal court. any further action it
b bS ba Dy rne ho
company filed the suit for injunction
mentioned above, and 1T is now i'm the Su-
preme Court of the United States on appeal
In that decision Judges Woods and Baker
granted the injunction against the City COM
pany and held that the Citizens company
had right to the use of the streets con-
tinuously until 1901, and, so Judge Woods
held, even longer unless the State Legisla-
ture repealed the act under which the COM
pdny gained Its powers.
In speaking OF this phase of the question.
Mr.. Mckee made another remark that was
very significant.
at seems" said the reporter, that after
1901. when the seven years extension will ex-
pire, the company will have rather slim
ground to stand upon. The matter will then
rest with the Legislature and ii can repeal
the company's charter and send il out of ex-
istence."
Yes, that is true" said Mr.. Mckee 'out
the question is, Will the Legislature do it?
IL did net pass any laws that would hurt us
the last time. nor the time before. 1t would
depend somewhat upon influence" With a
smile he added: II guess you understand"
The other suit is the one filed in the Marion
Circuit Court by the city TO gain possession
OF the streets. 1t was sent to Hamilton
county on change OF venue, and has rested
there since. The delay In prosecuting this
suit was caused at first by the illness OF
John NJ. Butler, who was employed as spe-
cial counsel for the city. His illness con-
tinued for long time. and nothing was
/ done. Then came his death. and since that
time there has been no one selected TO rep
resent the city in this suit as assistant
counsel. the work being too great to intrust
Tn he oh uvffh fha lo~e .