Chicago eagle. [volume] (Chicago, Ill.) 1889-19??, 1899-10-21

10TH ASSEMBLY, tnat no gas com
pany In future shall be granted privi.
leges of building or extension of mains
and pipes, except they secure petitions
signed by owners of more than one
half the frontage of each mile and frac-
ton of mile Of any street OF alley,
which requirement is designed to pro.
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.
hict with the ordinances passed and
franchise contracts mutually entered
into by the city and gas companies.
which latter gained valuable rights
ana 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-.
scribed.
CAN RAISE TIE PRICE. The IN
FAMOUS "GAS CONSOLIDATION"
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 perpetual franchise from
the State and may charge as much as
1915 per 1000 cubic feet to the city
and $3 per 1000 feet to general con-
sumers, thenceforth and forever.
SU p II Il NJ L G o U Il r AGAINST
THEM. The Illinois Supreme Court
has held and decided that an ordinance
granting franchise privileges is 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 un-
less by consent constitutes forfeiture
of rights, and. as II has always been
held n 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 0 OF
the GAS CONSOLIDATION ACT
is retroactive, and provides that
"any corporation purchasing or leas-
ing the property Of any other com.
pany shall be subject to and perform
for each Of the companies so entering
into said agreement the legal OBLIGA-
T1ONS now resting upon each Of them
respectively under their charters and
ordinances" "ln the same man.
ner and to the same extent rs II the
companies hsH remained individual and
distinct" and, providing, however.
that nothing In this act shall be con.
strued rs extingulshing said companies
entering into the agreement or agree
ments mentioned, or annulllng or i'm.
pairing any Of their respective fran
chises. licenses or privileges, but that
they shall severally be regarded rs still
subslsting, SO far as their continuance
for the purpose of upholding any right.
title or interest, power, privilege or I'm
munity ever exercised or enjoyed by
any Of them, may be necessary for the
protection Of their respective creditors
or mortgages, or any Of them"-and
SECTION 10, Of the ACT. which Is n
violation Of the letter of the Constitu-
tlon. In that is 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 and property interests Of the
city and liabilities and obligations to
the city and its citizens assumed by
the gas companies, under their ordl.
nances ana franchise contracts, by pro-
viding that "the purchase and sale or
lease, or consolidation and merger,
shall not be held or construed as a vlO-
lation Of the provision Of any ordinance
or bond given hereunder" thereby en-
deavorlng to protect the evasive and
dishonest gas companies at the eX-
pense Of the legal and equitable rights
Of the city and Its citizens.
READ AND PONDER. This same
CONSOLIDATION ACT. In SECTION
10, provides that "iT Sase the property
sold, or leased, or acquired through
consolidation or merger. Is subject to
mortgage OR OTHER LIEN, such
mortgage or other lien shall be ana re-
main n lien upon ALL PROPERTY
SO sold. purchased, leased or AC.
QUIRED, so that the same shall be
liable for and 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 and personal
property of any other company or com.
panies - shall PAY AND DIS
CHARGE all debts and LIABILITIES
Of each OF the companies, 80 and
actions may be brought and maintain.
ed and recovery had therefore against
the company so purchasing or leasing,
or against such consolidated corpora.
tion." ."andin SECTION II It 10 provided
that the consolidated corporation. or
GAS TRUST, shall furnish gas to con.
sumers as good In quality 40 It fur
nished previous to such purchase or
lease, and shall not increase the price
charged by it for gas Of the quality
furnished TO consumers during ANY
PART OF THE YEAR IMMEDIATE
LY PRECEDING such purchase or
lease. or such CONSOLIDATION" un.'
der penalty tsectl0n 12) Of Liability IN
DAMAGES THEREFOR to the PER-
SON AGGRIEvED. and shall. for each
Offense. forfeit two hundred dollars. In
10 I.l Ia l,. he