The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1899-02-16
In Lieu of Percentage of Receipts win
Pay S1,5OO,OOO, Distributed over
Thirty-Four Years.
INSISTS ON FIVE-CENT FARES
SHELBY-STREET AND FAIRVIEW
PROPERTIES OFFERED THE CITY.
Street Paving on Streets to BE I'M
proved Hereafter-Mr. Mellow
an Questioned.


oils from both the House and Senate met
last night to give hearings to the support
| ers Of two bills. The first party to be heard
was the one representing the new street.
railroad company, which, according to the
statement Of Hugh ]. MCGOWAN, it's prime
mover, all the rights Of the City
Street-railroad Company and 30 per cent. OF
the stock of the Citizens Company
1t had been the arrangement that Hiram
2. WATSON, president of the new company,
should make the first address to the COM
mittees, but instead S, n. Chambers, who,
with his partner S. o. Pickens, was pres
ent, presented the propositions for the COM
pany As preface to his remarks he said
that there was probably little doubt but
that the attitude assumed by the Citizens
Street-railroad Company with regard to the
question of a perpetual franchise was dis
tasteful to the people of the city, and that
the company he represented proposed to
surrender all franchise rights, not only in
the old city limits, but also those fran
chises acquired from portions of the city
which at the time were not incorporated
in it. In order to set the matter before the
committees properly he read the following
agreement:
TO the committees of the Senate and
Assembly of Indiana on the affairs of the
city OF indianapolis:
we, the undersigned, representing the
purchasers of the Citizens Street-railroad
Company, and of the rights and franchises
OF the City Railway Company of Indianap-
Oils, respectfully submit in connection with
the consideration by your honorable bodies
Of the Senate and House bills for an act
concerning street-railway companies in
cities, the population of which exceeds 100,-
OO people.
THAT upon the enactment of said bills,
the company which will be organized by
the persons whom we represent, will submit
TO the city of Indianapolis in connection
with the granting Of the contract and fran
chise to such company the following prop
ositions:
Tristan absolute and complete surren-
der of all franchises granted by the city of
Indianapolis to street-railroad companies
and all franchises which were granted by
the County Commissioners in territory
which at the time of granting such fran
chlseS was outside of the corporate limits
of the city, but which is now in the city,
ana all suburban franchises which have
been granted in Haughville, West Indianap-
Oils, Mount Jackson and Brightwood, which
suburbs have been annexed to the city.
Second-The company will pay to the
city in lieu of franchise tax $1,500,00O in
cash during the period of the contract Of
franchises granted. $4,000 of which shall
be paid at the option of the city within four
years after the granting of such franchise
provided that not more than $4,000 of said
100000 shall be required to be paid within
the first two years after the granting of
the franchise, the remainder of the said
sum of A,5OO,OO0 to be paid to the city in
installments of not more than 500, Coz each
in hve-year periods.
''Third-The company will. lease to the city
the park known as Fairview Park, consist
ing of $50 acres during the existence of such
franchise, for the sum of 81, to be used by
the city for park purposes and will agree
during such period to protect the title to
said park, and at the end Of said period
will donate and transfer to the city the
said tract of land without further consid-
orr iOV1 nd mill oil 70 fhn offx fho
property known as the Shelby-street barn,
consisting of tract of land fronting on
Shelby street of $50 feet and a depth of
1876 feet, with the buildings thereon, dur
ing the existence of said franchise, for the
sum of 81, to be used for market or other
purposes, as the city may determine, and
will agree to protect the title to said prop
erty during said period, and at the end of
said period will transfer and convey the said
property absolutely to the city without fur
Their consideration.
''E'ourth-The company will agree to pave
the streets hereafter to be improved be-
tween the tracks and rails and eighteen
inches outside of the outer rail of each set
OF tracks, and also to pave a like space be-
tween the tracks and rails on the outside of
the tracks on all streets that have hereto
fore been improved, where such space was
left unpaved.
"Fifth-The company will agree to spend
not less than 100000 as rapidly as possible
in the betterment and improvement of the
SYSTEM which shall include improvements
in extension Of service, betterment of rails
and tracks, modern cars of the latest and
most improved pattern, proper heating of all
cars In cold weather, and most essential Of
all, provide a sufficient number of cars to
meet the requirements Of the public, so as
to make the service Of the company equal
to all and any demands that may be neces-
sary for the care and comfort Of the patrons
of the company.
"Sixth-The company will agree to release
and hold the city harmless from the fran
chises and rights granted to the City Rail-
way Company and to see that the same are
annulled.
"Seventh-The company will agree to as
sumo all legal liabilities of the Citizens
Street-railroad Company and the City Rail
way Company and also will assume LA
ties incurred by the city to third persons
for which said city would have had rights
of action for. against or recourse upon any
company operating street railways under
contracts or ordinances heretofore granted.
"Eighth-The company to have the right
to charge and receive a five-cent fare for
each passenger, with the right to a universal
transfer
'Ninth-The term of the franchise to be
granted to the company TO be for period
of thirty-four years from the date Of said
''Tenth-The city shall have the option, at
two years prior to the expiration Of the
franchise, TO purchase the holdings of the
company at the expiration of the franchise,
such option to be exercised by the city
within six months after said option be-
gins"
In conclusion. Mr.. Chambers said that no
other company had ever made such propo-
sition to a city for the use of it's streets
John w. Kern asked Attorney Pickens if it
was the intention of the bill TO limit the
power Of the Board of Public Works to
make contracts with street railroads, and
was told that it did not.
MR.. MCGOWAN QUESTIONED.
Senator New asked Mr.. MCGOWAN, repre-
senting the moneyed interest of the compa-
ny, If the company would be willing to exc
cute a bond TO comply with the provisions of
the propositions made by Attorney Cham
bers, whereat Mr.. MCGOWAN replied that the
company would be glad to do so and was
prepared to furnish bond to any amount, or,
if necessary, put up a sdecent amount of
cash." Referring TO the sum of money
which, In the agreement, the company pro-
posed to turn over to the city as proper
ton of the earnings OF the company, Sena-
tor Hugg asked Mr.. MCGOWAN il the COM
pany would agree to allow some plan to be
adopted by which this amount might be
distributed in the way of reduction OF fares
to the people who used the cars, making,
practically an inquiry as TO how the COM
pany would meet the city on a proposition
20 reduce the rates of fare in lieu of paying
anything into the city treasury. Mr.. Nc
Gowan replied by saying that ne was not
empowered to speak for the company on
that point but that he thought. as a meas
ure 70 benefit the people, the money could
attempting 20 distribute by any plan the
money among the people who paid II to the
company
Frank b. Burke said that. as citizen Of