The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-05-20
FOR MUNICIPAL OWNERSHIP OF
STREET RAILWAYS.


BY approving the so-called Mueller bill,
Governor Yates, of Illinois, has ended. tenn
porarily. at least, one of the hottest legisla-
tive fights on record and has given dis
tinct impetus to the principle of municipal
ownership and operation of street rail-
roads. The law was drafted primarily for
Chicago. but it applies to all other cities in
the State. 1t is entitled IAN act to author
ize cities to acquire, construct, own, OPP
crate and lease street railways, and TO pro-
vide the means therefor" 1t provides that
every city in Illinois shall have the power
10 own. construct acquire, purchase. main
tain and operate street railways within its
corporate limits, and to lease the same or
any part of the same to any company in
corporated under the laws of this State for
the purpose of operating street railways
for any period not longer than twenty
years on such terms and conditions as the
City Council shall deem for the best inter-
ests OF the public" This is the most i'm
portant step yet taken by any Legislature
In the direction of authorizing municipal
ownership and control of public utilities.
The grant is, however. subject to some
limitations. A distinction is made between
a city's acquiring street railways and OPP
Grating them. Any city may incorporate in
the charter of a street-railway a provision
giving 1T the option to take over the rail-
way at the expiration of the charter on
such terms and conditions as may be pro-
H. hox
the road. the City Council may lease it for
a period Of i've years, or for longer pc
Rod If a majority of the people shall SO de-
eide at a popular election. But the city
may not operate the road unless the propo-
sition shall have been submitted to the
people and approved by three-ffths of
those voting thereon. Thus the city's right
to operate a road after acquiring 1t Is more
restricted than the right to lease it. In no
case shall any lease of a road be for
longer period than twenty years. Other
sections of the law relate to the issuance
of bonds or railway certificates to enable
city to acquire the property. A section of
the law providing for an account system
reads as follows:
Every such city, owning or owning and
operating street railways. shall keep the
books of account for such street railways
distinct from other city accounts and IN
such manner as to show the true and COM
plete financial results of such city owner
ship, or ownership and operation, as the
case may be. Such accounts shall be so
kept to show the actual cost to such
city of street railways owned, all costs of
maintenance, extension and Improvement,
all operating expenses of every description,
in case of such city operation, the amounts
set aside for sinking fund purposes; II
water or other service shall be furnished
for the use of such street railway without
charge, the accounts shall show, as nearly
as possible. the value of such service and
also the value of such similar service rem
dered by the street railways TO any other
city department without charge; such &C
counts shall also show reasonable allow
ances for interest, depreciation and inSur-
ance, and also estimates of the amount OF
taxes that would be chargeable against
such property If owned by private corpo-
ration.
These accounts must be examined at
least once year by an expert, who shall
report to the Council, and the latter must
| print, at least once year, report show
| ing the financial condition of the business.
From what has been said it will be seen
| that the law is an important new departure
| in the matter of municipal ownership and
| control Of street railways. A tremendous
pressure was brought to bear for it's pas
sage from Chicago, including large num-
| Der of the best men of the city, irrespec-
| tive Of politics. The State press was al
| most unanimous in favor of the measure.
| But it encountered strong opposition and
great pressure was brought to bear on the
| Governor to induce him to veto it. He hest
| tated a long time before signing it, and in
| a statement Of reasons for doing so he adj
mitted that 1t was faulty. He admitted
| that the Chicago Council of 1908 might
affix such conditions to the taking over"
ordinance as would practically nullify it
/ twenty years hence, but he did not think 1t
| would do So ct would veto the BILL" he
| said, "were 1t not that I have great conf
| er confidence in the people. 1 have no
l right to assume that the City Council of
| 1908 will do wrong instead of right" He
also stated that If the Council should pass
an ordinance evidently calculated to render
the law nugatory, he would, within twenty
four hours, call special session of the
Legislature to repeal the law. The Gov
| ernor evidently has misgivings as to the
| practical operation of the law, and felt
that he was taking some risk in approving
| probably work a revolution in street-rail-
| road properties in Illinois.
!