Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1899-01-28

WthCu fCluirtuleuV iS uSSlSueu W pTo-
tect the merge companies in their ille-
gal evasion of contract obligations.
and prevents any competition. through
the organization and operation Of new
companies. now and forever In the fu-
ture. and said ACT Is directly In con-
tlict with the ordinances passed and
franchise contracts mutually entered
into Ivy the city and gas companies.
which latter gained valuable rights
and privileges thereby. and whose du
ties and obligations. as well as the
rights of the city and of its citizens. are
therein specified. reserved and pre-
scrihed.
CAN RAISE THE PRICE. The IN.
FAMOUS GAS CONSOLIDATE
ACT provides that after one year the
GAS TRUST may charge any rate
charged by any company with which
merger or consolidation is made. as.
for instance. with the PEOPLES GAS
LIGHT AND COKE COMPANY.
which has u perpetual franchise from
the State and may charge as much as
S2.I5 per 1000 cubic feet to the city
and 81 per 1000 feet to general con.
sumers. thenceforth and forever.
PREME COURT AGAINST
THEM. The Illinois Supreme Court
has held and decided that an ordinance
granting franchise privileges Is u con-
tract by mutual consent. and the rights
and privileges so granted are consider
ations In the same. and evasion or re-.
pudiation of the spirit and letter of the
contract or any change therefrOm I'M
less by consent constitutes q forfeiture
of rights. AMI. MS II has always been
held u proposition in both English and
American law that ACTS comforting
special privileges upon or granting pub.
lie property to private individuals or
corporations are construed strictly
against the grantees and In favor of
the State" or the municipality.
MENACE TO ALL. Section q of
the GAS CONSOLIDATION ACT
Is retroactive. and provides that
'any corporation purchasing or lens.
ing the property Of any other com.
pany shall be subject to and perform
for each Of the companies NO entering
into said agreement the legal OBLlGA.
TlONS now resting upon each of them
respectively under their charters and
ordinances "in the same man.
ner and to the same extent as II the
companies had remained individual and
distinct" and. providing. however,
that nothing In this net shall bc con-
strued as extinguishing said compan MES
entering Into the agreement or agree.
ments mentioned. or annulling or i'm.
pairing any Of their respective fran.
chises. licenses or privileges. but that
they shall severally be regarded as still
subslsting. NO far as their continuance
for the purpose Of upholdlng any right.
title or interest. power. privilege or i'm.
munity ever exercised or enjoyed by
any OF them. may he necessary for the
protection Of their respective creditors
or mortgages. or any Of thcm''--and
SECTION 10. Of the ACT. which II a
violation OF the letter Of the COnstitu.
tiOn. In that ls attempts to supersede
the rights expressly vested In the City
Council by the Constitution, In relation
| to grant privileges In the streets Of the
city. and would destroy the vested
rights ana property interests Of the
city ana liabilities and obligations to
the city and Its citizens assumed by
the gas companies, under their Ordi.
nances ana franchise contracts, by pro.
vldlng that 'the purchase and sale or
lease, or consolidation ana merger,
shall not he held or construed az a viO.
latlOn Of the provision OF any ordinance
or bond given hereunder" thereby en-
deavOring to protect the evasive ana
dishonest gas companies ut the ex-
pense OF the legal ana equitable rights
Of the city and Its citizens.
READ AND PONDER. This same
CONSOLIDATION ACT, In SECTION
10. provides that ''in case the property
sold. or leased, or acquired through,
consolidation or merger. Is subject to
mortgage OR OTHER LIEN, such
mortgage or other lien shall he and re-.
main u lien upon ALL PROPERTY
so sold. purchased, leased or AC.
| QClRED. so that the same shall be
liable for ana respond Ito the payment
OF such mortgage or other lien exist
ing at the time Of such sale or lease"
and "Any corporation purchasing or
leasing the real estate ana personal
property of any other company or COM
panles 4" " shall PAY AND DIS
CHARGE all debts ana LIABILITIES
of each OF the companies, I" and
actions may be brought ana maintain
ed ana recovery had therefore against
the company so purchasing or leasing.
or against such consolidated corpora
tiOn." "andin SECTION II It Ii provided
that the consolidated corporation, or
GAS TRUST, "shall furnish gas to con.
sumers as good In quality rs 1t fur.
nished previous to such purchase or
lease, and shall not Increase the price
charged by II for gas Of the quality
furnished to consumers during ANY
PART OF THE YEAR IMMEDIATE
IN PRECEDING such purchase or
lease, or such CONSOLIDATION" nm.
der penalty ,section ~ Of Liability IN
DAMAGES THEREFOR to the PER
son AGGRIEVED. ana shall. for each
offensc. forfeit two hundred dollars. In
an action for debt, In the name of the
people of the State Of Illinois, or by
any person who may sue for the same,
and such company shall also be- liable
TO proceedings QUO WARRANTO for
violation Of either of said provisions.