The Saint Paul globe., 1904-10-22
STREET RAILWAYS
CASE is PROSECUTED
Judge Lochren Hears Argument
of Counselor Munn-City
viii Reply Today

~
within a reasonable time at the option
of the city," declared M. D. Mum, in
closing his argument yesterday after
noon before Judge Lochren in the
United States district court, in the fa-
nous action to determine the status of
the ST. Paul City Railway company in
| its relations to the city of st. Paul.
| The case in which the arguments
were commenced yesterday, is the 'ac-
ton brought in the federal courts by
the street railway company to restrain
the city from interfering with the reg
ulation of the company in the designa-
ton of streets upon which lines shall
be built. The further principle is in
volved of making the company comply
with the provisions of the home rule
| charter, with the possible imposition of
a per cent gross earnings tax and the
regulation of fares charged by the
company.
Mr.. Mum, in his argument yester-
day, indicated the fear uppermost' in
the minds of the men who own the
street railway. The specter of lower
fares is admitted to have driven theDa
to seek the decree of the courts deter
mining their status
Are our contracts valid, and are we
entitled to have them observed?' MIR.
Mum asked Judge Lochren. 1--WE are
about to extend our lines. But the city
comes in and says We have no rights
and if you want to come in you must
place yourselves subject to all re-
StrietionS, limitations and burdens ina
posed by the new charter, giving the
city council the right to lower fares on
the faith of the permaneney of which
we have borrowed millions and mil
lions of dollars
City's Side to Be Heard Today
The street railway attorney COM
pleted his argument late yesterday
afternoon, and J. G. Michael, corpora
tion attorney, will present his argu-
ment for the city today. Mr.. Michael
will begin his argument at $50 before
Judge Lochren, and upon the compile
tion of the city's presentation of facts
in support of its contention that the
ST. Paul Street Railway company is
without a valid franchise to do busf-
ness in st. Paul, Mr.. Mum will be al
lowed to speak in rebuttal.
Considering the Importance of the
federal court case, directly involving
as it does the validity of a contract
worth millions and millions of dollars
to it's owners, and indirectly the possi-
bic inconvenience to the public, the
the hearing was remarked. Aside from
the court, the attorneys, an official
Stenographer and a group of neWSpa-
per men, the solitary listener to the ar
gument was a Minneapolis man, who
proved to be Judge M. B. Koon, the
Minneapolis general counsel for the
Twin City Rapid Transit company.
Not a city official, not an attorney in
terested in hearing arguments on the
OaS q
heard Mr.. Munn's argument, but when
the popular side of the controversy
comes on to be heard this morning and
Corporation Attorney Michael viii
speak, it is expected that there will be
quite number of persons present
= Old Act Discovered
The morning session of the court was
spent in the reading of the pleadings,
though Mr.. Mum began his argument
before the noon recess. incidentally,
he referred to the recent discovery of a
legislative act of 1858 by which power
was granted to the st. Paul city coun-
ell to give a franchise to the ST. Paul
Street Railway company. The law was
not properly indexed, and question
of it's legality is raised by the fact that
more than one subject is included in its
title.
The existence of the act, the fact Of
which was discovered by chance only
few days since by attorneys for the
street railway people, is admitted by
the corporation attorney but he at
tacheS no particular Importance to It.
1t had been Mr.. Michaers contention
that the city had no authority by leg
islative. enactment to grant the horse
car franchise of 1921 and that the
franchise was therefore imperative.
He contends that the first authority
given the city to grant such a fran
chise came from the legislature in an
act of 1874, and that no matter by
what subsequent municipal or legisla
tive acts it may have been granted the
present franchise, the successor to the
horse car ordinance, is Illegal, for the
city has no right to grant perpetual
and exclusive franchise to the use of
it's streets.
In his argument Mr.. Mum endeay-
,ored to gain the corporation attorneys
consent to the proposition that the
present street car company has a legal
existence, but Mr. Michael refused to
aecede to the proposition without 4inni-
tations. He agreed, however, that the
company has a seeming legal existence
from legislative acts. The original
company the st. Paul & st. Anthony
Railway company had been sold under
foreclosure to the st. Paul Street Rail-
way company, and the present st. Paul
City Railway company succeeds to the
property and franchise of the St. Paul
Street Railway company.
Arguing in defense of the validity
of the newly discovered act of 1868.
Mr.. Mum said that the United States
courts did not necessarily put the same
construction on the constitutionality
of an act as did the state courts.
Contends Civ Is Too Late
Coming down to the act of 1872, un-
der which Ordinance No. 57-the horse
car ordinance-was passed, giving the
horse car company certain vested
rights, he said it was too late for the
city to come in twenty years after the
law was considered and his company
had spent millions of dollars in i'm
proving it's properties. and now say
that the company had nothing to begin
with.
'sYou brought us here; we did not
come on our own motion Mr.. Michael
said across the table, and Mr.. Mum
did not refute the statement.
Counsel for the street railway COM
pany said that the power to purchase
by the city, contained in Ordinance No.
81, had been waived and in lieu the
company had agreed to extend it's
lines in accordance with Ordinance 81,
by the terms of Ordinance 26S. He ar
gued that the ordinance reinyested
in his company the rights contained
under its original contract with the
city. The city, he declared did not
now say that the company has no
rights under the ordinance of 1872, but
everything given is either void or un-
constitutional.