The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-11-05
Representatives of the Other Interur-
ban Companies, However. OBJ
ject to the Contract.
A SPECIAL COUNCIL MEETING
1T WILL BE HELD TONIGHT TO
CONSIDER FRANCHISE.
Conference Held i'm the Afternoon
with the Companies Larger
COmpensatiOn-City Affairs.

Contrary to general expectation. single
copy of the interurban contract went before
the Council last night. 1t bore the sigma
ture of George F. McCuloch, president of
the Union Traction Company. 1t included
one section radically different from the
corresponding section of the earlier drafts
a section which was so disPleasing to the
other interurban officials concerned that
they absolutely refused to sign the instru-
ment The section referred to the tax
which the city of Indianapolis is to receive
for the use of the streets and the privilege
of permitting the interurban lines TO do
business in the city The section. agreed to
by Mr.. CuIloch. thoroughly distasteful to
Messrs. Irwin, Smith, Mcdonald. Harding,
BinfOrd and other proprietors of interur-
ban lines now operating and proposing to
operate within the city. heavily increases
the city's compensation. 1t provides that
during the next seven years the interurban
companies shall pay into the city treasury
5 cents for every round trip made by their
cars; for the next ten years they shall pay
Is cents, and for the remaining time until
the expiration of the contract. about fifteen
years. they shall pay 25 cents round trip
In the draft of the contract prepared at
very recent meeting of the Board of Works
and the interurban officials. the tax was
fixed at cents for the first seven years.
5 cents for the next ten years and 10 cents
for the remainder of the time. 1t was be-
Iieved then that the matter of cOmpensa-
ton had been settled, but the Council COM
mittee on contracts and franchises got their
heads together and came to the conclusion
that the compensation fixed was far too
low The members of the committee told
the Board of Works that they would never
consent to a tax of less than 5, Is and %
cents for the period of time mentioned.
The board recOnSidered the matter, came to
the conclusion that the committee was
right and called the interurban officials into
conference, declaring IL was not ready to
sign under old terms.
VIGOROUSLY PROTESTED.
The meeting took place yesterday after
noon. The interurban officials were present
and protested with vigor and figures. They
told the board and the Council committee
that the amount asked for was exorbi-
tant; that it was out of the question for
them to accept such terms; that it would
be ruinous to their business; that it would
establish a bad precedent in their dealings
with other cities; that il would injure
their credit in bonding. They said that
since they had already built their roads
they seemed to be at the mercy of the city
and that il looked great deal like a case
of hold up on the citys part.
The interurban officials having had their
say, they withdrew and the board in private
meeting ratified the figures fixed by the
committee on contracts and franchises.
The decision was announced to the inter
urban men waiting in the anteroom, and,
with the exception of McCulloch, they in
turn went into private conference. When
they came out they told the board that they
were not ready to sign, and said further
that they could not say when they would
be ready. Several of the interurban Off
Gals were Outspoken in their condemnation
of the action of the board and declared
that they were the victims of injustice. Mr..
McCullOch, who had been talking the ques-
ton over with his associates. returned and
affixed his signature to the contract
At the Council meeting last night the
contract with the Union Traction Com
pany referred to the committee on
railroads; and President Haldeman called
special meeting for tonight TO consider
the interurban question. 1t is probable that
the Council will act at once and that ii
will approve the contract at tO-night's
meeting. Mr.. McCullOOch, of the Union
Traction Company, was present at the
Council meeting. He said. speaking of the
In affixing his signature to ii. he said, he
went on the principle that the members
of the Board of Works and the Council
committee are acting in good faith and
are sincerely anxious to do injustice to no
one. While in his opinion the tax de-
manded by the city is high, yet he con-
siders il better business sense to assent
to il than to waste valuable time and
energy in fruitless opposition. He said
with a smile that he thought the Union
Traction Company would by herculean
effort be able to stand the drain of 500
Whereabouts annually for the next seven
years. The main thing with him and his
company he said, was to get the matter
settled and 10 get the franchise without
any more parleying or wasting of time. In
regard to the assertion which has been
made that his company is closely affiliated
4.
pany, he said that there is absolutely no
financial bond of any sort.
BOARD MEMBERS PRESENT.
The members of the Board of Works
attended the Council meeting in anticipa-
ton of action on the franchise matter
They are of the opinion that the tax
they ask of the interurban people is not at
all excessive. They say the present re-
turns of the companies and the sure in
crease of returns which they will have
in the future, justifies the action of the
board. The interurban people must accept
their decision, they say, or stay out of
the city of Indianapolis. The board has
the power to order the interurban roads
not agreeing TO the contract to get out
of town any hour. but that power will
not be used. they say. unless necessity
compels its use The action of the smaller
interurban roads in refusing to comply
with the terms of the contract is a sur
prise To them, and a mistake. they think.
Messrs. Irwin. Smith. Mcdonald, Binford
and Harding, who refused to sign, say that
they cannot bring themselves To bind their
companies TO the contract yet. AS TO their
future course they cannot now predict
without more thought. They are driven
they say, either To submit TO the demands
of the city or else subject their passengers
TO the discomfort of getting city cars out
side city limits. They say that if they
have TO pay the tax il will give every city
into which they may in future extend
their lines. the right 10 hold them up"
and that the end OF such course for them
would be receiverships Tor their roads
or else being sold out by their stockholders
They offered little comment on the action
of Mr.. McCulloch in signing the contract
saying that IL simply IL possible his larger
interests permit him 10 submit TO "A tax
which would be ruinous to them.
Members of the Board of Works and the
Council are OF opinion that when the inter-
urban people still outside the franchise
think the matter over they will sign