The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-04-07
c. +. SMITH AND THE BOARD.
He Receives a Letter Concerning His
Proposition and Replies.

Just before it signed the contract with
the new company yesterday, the Board of
Public Works addressed a letter to Charles
F. Smith, who submitted a proposition to
the city on Wednesday. The board wrote
to Mr.. Smith as follows:
Your proposition for street-railroad
franchise has been received and carefully
considered. You propose that a corporation
will be organized by us under the laws of
Indiana, etc, which will enter into con-
tract with said city upon terms and condi-
tons which are set forth. The words we
and us are used throughout your PROPOSE
ton. and yet no name is appended to the
same other than your own. You are doubt
less aware that a corporation cannot be
organized by one person., and we should
hesitate to consider such a proposition
without knowing something of the personnel
of the proposed company.
THE statute of Indiana, recently enacted.
upon the subject, provides explicitly for
the terms and conditions which must be
embodied in any contract made by us with
street-railway company. Many of these
terms and conditions thus imperatively re-
quired are ignored by your proposition You
do not indicate whether you propose to oper-
ate a street-railroad system on the plant
and lines now occupying the streets OF the
city, or whether you propose to parallel
those lines with new system. Neither do
commence the operation Of your plant and
give to the people the benefit of reduced
fares and an improved service We are
heartily in sympathy with any practical
proposition looking TO reduced rates of fares.
but a proposition which. in effect, says
that at some time in the future a time
that we do not pretend to be able to fix.
propose to give to the people reduced
fares and good system, and in the mean
time the people must pay 5-cent fares and
put up with Wretched service; Is not such
a proposition as VIII commend itself to the
business judgment of the community
You do not indicate how. in what man
ner, or when, the city is TO be relieved of
the perplexing litigation in which it fas
been engaged for years, or how franchise
iChf % mi nv
and the rights of bondholders who hold
mortgages amounting TO $,0o0,DO0 IN every
rail and tie and pole and wire and all the
tangible property of that company, are TO
be disposed Of. In other words, your propo-
sition is that we will give bond CO 100000
to the effect that some time, some how, we
will give to the people cheaper fares and
better system.
There is a proposition row before this
board which viii give 10 the people CT Indi-
annapolis cheaper fares than are enjoyed by
the people Of any other city Of It's size in
the United States-4-cent fares v in uni
versal transfers-that VIII pay into the city
treasury for the Identification OF the city
more than million dollars; that VIII insure
the expenditure OF million dollars On the
betterment of the service: that will give To
the city government the full and complete
control Of the operation of the system, and
put into the contract by the statute under
which we are acting. and the benefits of
which contract the people will at Cnce en-
I'VE are advised that the bond you pro-
pose to give would be without legal force or
vitality. and for all practical purposes would
not be worth the paper upon which Il was
written. But. If il were valid and enforce
able in law, il would be of little benefit 10
the city. Were we TO grant you franchise
of the character you ask. giving you obso-
lutte control of the streets of the city, you
would have no difficulty in disposing Of the
same at a sum far in excess OF the amount
of your bond, which excess would be clean
profit 10 you.
I'm the meantime the people would be
pa wing 5-cent fares and the litigation still in
progress. We think you will agree with US
| In the conclusion that your proposition. even
| If made seriously. could not be entertained
| by any board conscientously seeking to
| promote the public welfare"
MR. SMITHS REPLY.
Immediately after receiving the above
| communication Mr. Smith down and
penned reply. In II he characterized the