The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-12-09
HISTORY OF THE COMPANY.
Control. Has Been Transferred Four
Times Within Fifteen Years.

Times Within Fifteen Years.
Control of the Indianapolis Street Rail-
way has been transferred four times in the
last fifteen years The company was or
ganized as the Citizens Street-railway
Company in 1864 under franchise of an ex-
elusive character for a period of thirty
years. In 1880 its franchise was extended
seven years, or until 1901 The company
was organized and controlled until the
early seventies by Major English. father Of
William II. English, from who II passed
into the possession of the Johnsons. IL
remained in their control until 1881. when 1t
passed into the hands of Cyrus H McCor-
mick. Samuel Allerton and other Chicago
capitalists, who were represented in the
management in this city by ]. {. Shaffer.
who became president.
Under Mr.. Shaffer's administration the
first electric line-IlIinois- s-street-was con-
structed. In 1892 the property passed into
possession of a syndicate headed by III.
Sellers Mckee and Murray A Werner.
Pennsylvanians who had associated with
them much Pittsburg and Philadelphia
capital. John p. Frenzel became president,
serving for two years. He was succeeded
by Augustus l.. Mason. who retired after
managed by William Jay Turner. OF Phil
adelphia, and Miller Elliott, of this city.
representing the directors.
During the years that the Verner-McKee
crowd was in control most of the lines
were changed to electricity, but the ply
sical condition was allowed to deteriorate
and the service TO become inadequate. while
the company was attacked from all sides
sion of franchise under which IL operated.
COMING OF MCGOWAN.
1t was at the climax OF the troubles OF
the street-railway company that Hugh j.
MCGOWAN. representing a majority of the
bondholders of the company undertook 10
straighten out the tangled condition of af-
fairs. He found the Citizens Company
claiming perpetual franchise to the
streets of indianapolis. This was attacked
on one hand by the City Railway Company.
which was granted franchise in 1895 for
all of the streets of the city then occupied
by the Citizens Company. and many others
on the theory that the extension of fran
chise was invalid: and by the city. which
disputed the validity of both the City and
Citizens Company claims.
In December, 1895, Mr.. McGowan began
all franchise interests and their sale to
new corporation known as the Indianap-
oils Street-railway Company. He came into
a community where he was unknown and
succeeded in two months in bringing about
an agreement whereby the bondhoIders
were able TO join in the formation of the
new company and take over all the rights
and franchises of the other two companies,
and by surrendering them In toto secure
from the city of Indianapolis a new fran
chise for period OF thirty-four years. To
carry out this purpose legislation by the
General Assembly required, and this
was secured In an enabling act which re-
peaIed the 3-cent fare law that had been
weapon OF the city In lighting the old
Citizens Company and putting the street.
railway situation in a new and definite
shape. The ordinance ratifying the con-
tract between the Board of Public Works
and the city, the main features OF which
were 4-cent fare with universal transfer
passed the Council the 9Th OF April 1899.
From that time on the development Of
the indianapolis street railway under Mr.
McG0wan's direction has been phenomenal
The franchise required an expenditure OF
at least S.00a.0o0 in reconstructing the roads
, and improving the rolling stock. but the
company spent about twice that much for
all improvement purposes. Its stock. which
was then as low as 81 cents has risen at
the present time 10 80. The service OF the
company has reached condition equal IL
not superior 10 any city I'm the country.
and the traffic which IL has enjoyed has
been proportionately in excess of any city
in the country. largely due, IL Is believed.
to the intelligent and successful efforts TO
meet the public needs
INTERURBAN TRANSPORTATION.
The rapid development OF interurban
transportation by means OF electric trolley
lines added new phase 10 the indianapolis
company's future. Access 10 the citys GEN.
| ter for the interurban cars required
| over it's tracks and under pressure from
| the city administration Mr- MCGOWAN un-
dertook the formation OF the Indianapolis
| Traction and Terminal Company. whose
| purpose was 10 provide a sufacient system
| for the ingress and egress OF interurhan
cars 10 TIE city. This company undertook