The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-08
Mr.. Winter Satisfies the Committee
that the Terminal COmpany's
Franchise Is so Drawn.
TWO OBJECTIONS ARE RAISED
COUNCILMEN COOPER AND HOLLI-
DAY DEMAND CHANGES.
The Former Says Car Tax Is Too Low,
and the Latter Makes Suggestion
About the Loop.

The Council committee on contracts and
franchises took up it's consideration of the
interurban franchises last night. After
over three hours discussion between the
committee and Mr.. MCGOWAN. Mr.. Nc
Culloch and Ferdinand Winter, adjourn
ment was taken without agreement to
report Some members of the committee
did not show much previous information
the subject.
The interest Of all seemed to be in the
explanation of Mr.. Winter of the assertions
Of r. w. Mcbride, former judge Of the
Supreme Court as to the character of the
franchise for the Indianapolis Traction and
Terminal Company Mr.. Mcbride in speak
ing Of this document said:
1T will place it in the power of two COM
panies to evade entirely the annual pay
ments now made by the Indianapolis Street
Railway Company, under its existing con-
tract with the city, and the traction COM
pany will be able to operate without any
restriction upon rates of fare or any obhga-
ton to grant transfers"
The particular phraseology questioned by
Mr.. Mcbride occurs in paragraph No. 8.
and, after setting out how the Traction and
Terminal Company may consolidate with
the Indianapolis Street-railway Company,
says. but subject, as in the contract other
wise provided, to all the obligations and
conditions of said contract under which
the said Indianapolis Street-railway Com
pany is operating"
Mr.. Mcbride held that paragraph No. 80
of the contract was so phrased that 1t
would permit the Terminal Company, by
absorbing the Indianapolis Street-railway
Company, to evade its annual tax of $50, 900
and that paragraph No. 10 so modified the
present contract that the consolidated COM
pany could escape the regulation with
regard to fares and transfers.
FERDINAND WINTER EXPLAINS
A considerable portion of last nights ses-
sion was devoted to an investigation of the
questions raised Mr.. Winter explained that
there were two great obstacles to Mr.. Nc
Brides conclusions. One was the personal
integrity of the men concerned which
would not admit of any such treacherous
programme as was implied. The other was
the fact that a contract is a contract and
its obligations follow wherever it may be
transferred.
IF lease you store" said Mr.. Winter
land then 1 sell the property that lease is
a contract which follows to it's termination
with all its rights and privileges. This case
is analogous, for there is nothing in the
terminal franchise that abridges or modi-
fies the Indianapolis Street-railway Com
panyS franchise
In discussing the phrase of Section
questioned by Mr.. Mcbride Mr.. Winter said
the exceptions could be found by a COM
parison of the two documents He said Mr..
Mcbride had doubtless formed his con-
cluSionS without making a comparison. One
of the exceptions was where the terminal
franchise provided that a single track need
not be In the exact center of a street, but
should extend from one track Of double
system. This was because the Indianapolis
Company's franchise required all single
track to be in the center of the street, and
the Terminal Company wanted to put ii on
one-half of a doube-track center to save
the expense of shifting in case of recon-
struction. The Brightwood track, which is
now to be rebuilt, is an illustration of the
necessity for the new provision.
The other exception related TO transfers.
The Indianapolis Company Is required TO
carry a passenger to the point of divergence
If he so elects instead of the first junction.
The Terminal CompanyS franchise provides
that transfer shall be at the first point of
intersection, and was inserted so that a
man might not ride parallel with the car
he wanted TO transfer to and then ride back
the whole distance.
But the question raised by Mr.. Nc
Bride" continued Mr.. Winter lis COM
pletely set at rest by the very paragraph
No. 30-that he quoted to support himself.
This paragraph as originally drawn did
not possess the last sentence. 1t seemed
to me that this might be open to the ac-
cusation that there was an intent to evade
the obligations specified in the Indianapo-
lis company's contract. / called Mr.. Nc
Gowan's attention to this discrepancy and
together we framed the last sentence"
READING OF SECTION 80.
Mr.. Winter then read Section 80:
I'm consideration of the aforesaid under
taking and agreement of the traction COM
pany 10 make such payment. and of such
payments, said city undertakes and agrees
that ii will not at any time impose upon or
exact from said traction company its sue
cessors or assigns. or its or their property
or require to be paid by it or them, any
other sum or sums as or for a franchise or
car tax or charge, or any other special tax
or charge. than those above provided to be
paid. But nothing contained in this con-
tract shall affect the liability of said COM
pany TO general taxation or the obligations
of the indianapolis Street-railway Com
pany under Section II of the contract OF
April 9, 1899 between said company and
said city to make the payments therein
provided 10 be made to said city"
He then read Section u of the Indianapo-
lis companys franchise. which not only
required the payment Of the $4,000 an
nual tax, but provided that the failure or
refusal so to do after thirty days after
the installments were due, brought not only
the forfeiture of the franchise. but the
obligation OF the company to peacefully
surrender the streets.
II do not know" said Mr.. Winter. 'how
stronger language could be used TO thor
oughly protect the city
In explaining the paragraph fixing the
rate OF fare. he said the act OF 1899 re-
quired the city 10 specify the rate OF fare
and transfer in all contracts. In this para
graph there was added ramification for the
protection of the city because II made the
Terminal company's right TO charge any
fare dependent on the making and continu-
ance OF an arrangement between the two
companies by which passengers should
have full transfer privileges from one line
10 a other In other words IL the