The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-11-30
VALUE OF sTREET-RAILROAD
FRANCHISES.

The Municipal Association of Cleveland
o.. has rendered cities which are seeking
a solution of the street-railway problem a
valuable service by publishing the terms
of the more recent franchises granted by
cities and accepted by companies. The in
vestigation was melted by a proposition to
sell the franchises of that city for twenty
five years after the expiration of the pres
ent contracts in 1905. The committee of
the association investigating the proposed
franchise considered it as q great conces-
sion to the company. The committee has
found that one line in Detroit sells eight
tickets for % cents and that in the small
city of Reading Pa, thirty tickets are sold
for 81. 1t presents the details of two Cana
dian franchises which are instructive. To-
ronto is city of about 10000 inhabitants
The charter was granted in 1891 for twenty
years only. The tax paid is $500 for each
mile Of single and 600 for each mile of
double track The company does no paw
ing. In addition thereto the company pays
s per cent. year on gross receipts up to
$1,oOO,O0o 10 per cent. when the receipts are
between $l,OOO;OOO and 81 100000; IL per cent.
when the gross receipts shall be between
$1,5OO,COO and s2.OOo,COO, Is per cent. when be-
tween $2,C00OOO and $3,O)0,OOO, and 20 per cent.
when over 100000, which is an
addition to all local taxes for school pur-
poses. A single cash fare is ) cents, six
tickets for % cents and twenty-five for 81.
Tickets to be used before s o'clock in the
morning and between and $50 in the even
irg are sold eight for % cents. Children
under nine years of age pay half fare, and
receive ten tickets for % cents. Montreal
is a city somewhat larger than Toronto. The
charter. which was granted in 1892, fixes
the same rates as those of Toronto but
the percentage of gross earnings to be paid
the city is somewhat smaller Baltimore
street-ralroad companies pay per cent. of
gross earnings for the support of parks,
direct tax OFF, per cent. to the city on the
market value of their stocks and pave be-
tween and two feet outside their tracks.
In addition there is car tax. In New York
the franchise of the Third-avenue Railroad
extension (cable) was sold by the city in
November. 1895, for 411a per cent. of the
gross receipts per annum. The line is but
twenty miles long.
In view of the foregoing and other con-
tracts so much more favorable than that
presented in the Council of Cleveland, the
committee of the Municipal Association
protests against the passage of the pro-
posed franchise, expressing the opinion
that. 1.-The increase in population and de-
crease in operating expenses in twenty-five
years will probably render it possible for
the city to secure enough from the street.
railroad privileges, if properly managed,
to pay large proportion of the city's ex-
penses" Speaking of the progressive value
of the franchises of Cleveland the commit
tee says that lit is no extravagant esti-
mate TO place the value of these franchises
in twenty-five years at $5O,OC0OO0, and it
may exceed that sum-
What is true of Cleveland is true of In
dianapolis and all growing cities. Street.
railroad franchises are positive and increas-
ing values, which should be made available
as assets in meeting the rapidly increasing
expenditures of cities. To dispose of these
valuable properties so as to realize the
most out of them is one of the most inn
portant features of municipal government.