The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-02-12
indianapolis Company to BE Organ
lied and n Proposition to Be
Made the City.
H. P. WATSON THE PRESIDENT
A BILL TO WIPE OUT ALL LEGIsLA-
TION OF THE PAST. n
Hugh J.. MCGOWAN, of Kansas City,
Brought About the Set
Element.

settlement of the street-car situation that
has puzzled city officials, stockholders and
others interested in the Citizens Street.
railroad Company and the City Railway
Company for several years. Since the deci-
sion of the Supreme Court last December,
confirming the rights of the City Company,
Hugh j. MCGOWAN, of Kansas City, who
represented a large portion of the bond
holders in the Citizens Company, has been
quietly at work to bring about an ADJUST
ment. AS a result of his efforts, early this
week a. new corporation is to be organized
by those who have acquired controlling
interest in the Citizens Company and all
the interests of the City Company. The
new corporation will be composed largely of
Indianapolis investors and will be known
as the Indianapolis Street-railway Com
pany. The amount for which it will be cap
italized had not been agreed on last night.
H. P. WATSON, of this city. is to be the presi-
dent and one Of the five directors already
selected The others selected are: DIR.
Henry Jameson and Harold b. Hibben, of
this city; Randall Morgan, of Philadelphia,
and Hugh J. MCGOWAN, of Kansas City.
Two other Indianapolis stockholders are to
be added to the directorate. While some
of the former stock and bondholders of the
Citizens Company will have holdings in the
new company. none will have a hand in its
active management.
A plan for the settlement Of the situation
as between the new company and the city
has been practically agreed on, although it's
details were not ready for publication last
night. 1t can be said on the authority of
Mr.. MCGOWAN, however, that the company
will pave the space between and outside it's
raf lie
satisfaction of the proper authorities This
will also be true with reference to future
street improvements Those representing
the company promise to give a thoroughly
modern and up-to-date service, including
the best rolling stock and time schedules,
arranged in such a way that patrons will not
have to stand on street corners or hang on
the cars by the hand rails. A fair, even a
liberal proposition, will be made to the city,
1t is said, and the opinion is expressed that
when 1t is made public it will meet ap-
proval. While no definite proposition has
been made to the administration, efforts
have been made to learn what might be re-
quired by the municipality so that the COM
pany feels that it has a proposition about
ready to offer which will be acceptable to
the public.
LEGISLATION NECESSARY.
In order to accomplish a full settlement
legislation will be necessary. Laws passed
two years ago are to be repealed. A bill
has been prepared for introduction in both
branches of the General Assembly to-mor-
row morning. 1t is published in full else
where.
The new company will take control of the
street-car system of this city in the next
few days. Those who are to join in the
incorporation now have such complete con-
troll that nothing remains to be done ex-
cept to incorporate the new company and
have transferred to it all the rights of the
two old companies. This will be done some
time this week, and it is possible that the
franchise will be ready for presentation 1T
the meeting of the Board of Public Works
within the same time. if not at the meeting
tomorrow When Mr. MCGOWAN began look
ing over the field he found that the Citi-
Zens' company had what appears to be per-
petual rights in many of the streets of the
city outside Of those covered in the lti-
cation now pending. AS has been heretofore
SAID IN the Journal, the Citizens company
acquired rights in Haughville, West In
dianapolis, Brightwood, the National road to
Irvington, ETC., before those portions Of the
city were annexed. In consideration of a
new franchise to be granted it, the new
company will surrender all those rights ac-
quired from the Citizens company to the
Ir10c6lSG
shall cover those portions of the city, as we'll
as the downtown districts now in litigation
Members of the new company were unwill-
ing TO say anything about the price maid for
the rights Of the City company. 1t is I'M
derstood that the terms by which the new
incorporators acquired the City company S
franchise, however, were considered reason
able and satisfactory. Nothing was said last
night with regard to the basis of adjust
ment Of the bonded debt nor the holdings
of the stockholders of the old Citizens
Street-railroad Company further than that
all rights are to be fully protected Mr. Nc
Gowan said last night that there were many
questions of detail that remain TO be settled
Up to the present he has worked only on
the general outlines. These included the
merging of the interests of the two
old corporations into one new one
the main points OF a franchise that is to be
asked for, and the preparation of a bill re-
peaiing laws that stood as a bar on the part
of granting a new franchise. The company
has hopes that there will be no great diff
Guilty in securing the legislation that is to
be asked. In the event or a failure in that
respect however, the company will go
ahead but of course being so handicapped
Will not make as extensive improvements
and complete settlement is made 81, 900, 600
will be expended in betterments of the sys-
tenn, including street pavement, the extern
sion OF lines where necessary and things of
that character. Mr.. MCGOWAN, in the course
of his efforts, has talked with many promi-
nent business men of Indianapolis. upon
by his evident fair intentions. That he has
succeeded in formulating a plan for unrav-
cling the tangle in such a short time has
been something of a surprise TO those who
have become acquainted with his energetic
methods
Mayor Taggart said last evening that
while he had known for some time that ne
gotiations were on for a settlement of the
street car situation nothing had been said
to him with reference to the kind of plan
that would be presented to the city. Until
he knew what the new company proposed
to ask for he was disinelined to say what
course would be followed. The mayor said
that he would expect the company to make
its proposition, so that ii could be consid-
cred by himself and the Board of Works
Jointly 1t will be the purpose Of the adj
ministration to carefully consider any prop
ositon that is submitted and to have it re-
ceive the fullest public discussion before any
definite action is taken
report that s. Z. Morss would probably
be one Of the directors of the new company
is without foundation. Mr. Morss has not
been and Will not be considered. This state
meY-. is made on the authority of one Of the
directors already selected, who said that
the publication of the report might have
annoyed Mr.. Morss.
THE NEW PRESIDENT.