The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-10-28
AN INVASION OF RUSSIA
AMERICAN ENTERPRISE PREPARES
TO SEIZE THE CAPITAL.
Mr.. Verner's Proposition to Transform
st. Petersburg's Street Car System
Project Is Well Received.
cf the Associated Press.

Correspondence Of the Associated Press.
ST. PETERSBURG, Oct. 15.-The offer
of hurry A. Werner, of Pittsburg, to buy
all the municipal and private street rail-
ways of St Petersburg, introduce electrical
traction and organize a complete system
of electric tramways has been received
very favorably by the local press. The
Municipal Council has been discussing the
matter for several years, but Mr.. Verner's
offer is the first genuine step toward the
introduction of electricity. The city owns
three lines, and a number of other lines
are owned and operated by two private
companies. The city has begun legal pro-
ceedings against these companies with a
view to unifying all the surface traction
companies and Mr.. Verner's offer stipu-
lates that the city shall turn the private
lines over to him when the matter has
been litigated. Mr.. Verner's offer is re-
garded by the press as straightforward,
business-like and fair. 1t is too early to
predict success, since many cooks help
make broth in this city, but the Municipal
Council was not approached until Mr.. Yer
ner, who>has been in st. Petersburg three
times within four years, had carefully
studied the whole problem from finan-
cial and technical point of view, and,
through his local representative. w. A.
Heydecker, the American vice consul, had
sounded various authorities about the
matter.
Mr.. Verners proposal is. briefly stated. to
organize a company under the laws of Rus
STA, with a capital of 52,O00,000 rubles, and
the right to issue bonds TO the same
amount. He states that he and his friends
can supply the money. He would agree to
complete the transformation of all existing
lines into electrical lines within four years
from the date of the franchise, and would
so arrange the traffic that no needless
change of cars would take place in going TO
and from the center of the city. He would
employ girder rails weighing ninety-SiX
pounds (English) to the lineal yard, except
in the suburbs, where eighty-pOund rails
would be used. Overhead trolley wires
would be employed, but the insulated cop
per feed wire would be carried in conduts.
Double-deck cars would be abolished and
classes. The platforms of the winter cars
will be inclOsed. Bridges will be widened
and Strengthened where necessary at the
companys expense and the company of
stone or steel bridge across the Neva near
the palace, to replace the present wooden
structure, the cost of the bridge to be de-
Quoted from the annual compensation pay
mentS.
This is a point of great Importance to the
city, which is considering the issue of
DOnuS lOr InlS puIpoSe. II is stipulated
that Russian materials and Russian engi-
neers and workmen shall be employed as
far available.
The compensation clause stipulates the
immediate payment by the company of the
actual cash value of the inventory of the
existing lines, the payment to the city
during the four years Of the previous net
revenue of the various lines and the paw
ment annually thereafter of a percentag e
of the gross receipts, to be agreed upon by
mutual consent The municipality shall
enjoy the right of purchase at the end of
twenty-five years, again after the lapse
of an equal period and thereafter every ten
years. Bonds shall be paid for at par.
and the net earning capacity of the shares
shall be capitalized for purposes of pur-
chase
satisfactorily, owing, presumably to in
creased cost of operation under municipal
control. A decrease of about $1,000 rubles
in the net revenues is anticipated for 1902