The Montgomery advertiser., 1905-07-11
CHICAGO MAYORSHAKEN
HAS STREET RAILWAY PLAN THAT IS NOT FULL-BLOODED
 CITY OWNERSHIP.
For Trusteeship, with Purchase by and by-AdvOcates of Direct POsses- sion fingered by MT. Dunne's
 Change of Front.

, Chicago Special to New York World. Advocates of municipal ownership were amazed and angered today by the announcement that Mayor Dunne had changed his views and favored some
 thing other than direct municipal
 ownership of street railways. The
 Mayor says his position has been mis-
 interpreted.
 T have not abandoned municipal ownership" he continued. T have
 submitted two plans to the City Coun-
 ell. One provides for direct city ownership, and the other for a trustee
 ship for the city. Under existing con-
 ditions I favor the trusteeship, which
 would bring about the same results In
 simple way" This Is the plan favored
 by the Mayor:
 The incorporation of a company managed by five men who command the
 confidence of the people of Chicago for
 their personal integrity, their business
 ability, and their pronounced sympathy
 with the policy of municipal ownership
 To this company Is to be granted
 twenty-year franchise, covering the
 streets in which the rights of the old lcompanies already have expired, or soon will expire. .The company is to be stocked to the amount necessary to establish a car system in these streets, roughly esti-
 mated at 240 miles. No bonds are to be sold The capital stock of the com-
 pany should be issued in trust to a trust comapny to be selected with the approval of the City Council.
 Upon the payment to the trust com pany by the city of Chicago or an amount equal to the cost of the prop | ert ythe trust company should De re- | quired by the preliminary contracts to use the sum SO paid in such way as to | t,,a | to use the said capital stock held by 1t l in trust in such way as to transfer all l the street railroad property immediate ly to the city of Chicago for direct municipal ownership and operation. .sThe salaries of the directors are to l be fixed by the City Council and the limit of dividends on the stock Is to be | $ per cent. .. l The fare is to be 5 cents with trans fers. but If the net earnings go above | 6 per cent the Council can either re-
 duce the fare accordingly or order the surplus expended in betterments. Who the men are whom the Mayor 1 has in mind for the directors of this company the Mayor would not say II was the gossip of the council chamber,
 however. that John c. Fetzer, formerly
 receiver for the Union Traction Com pany, had worked out the plan for him.
 Most of the advantages of municipal l ownership and operation would thus be Immediately secured the Mayor con tinues. There would therefore be no ! delay in realizing that policy in sub stance even while such judicial, finan- cial. legislative and referendum pro cetdings were being taken as might be I necessary to perfect it in form or to | guard 1t by business adjustments
 against encroachments of the spells l system.
 | Having acquired the property, the | citv. under the Mueller law, would
 have to ask for another vote of the | people authorizing 1t to operate 1t. to
 pass which would require three fifths I vote With this majority failing, the
 city could do nothing else but lease the | property it had acquired
 | Tn view of the statutory require
 ments." Mayor Dunne said. 'I am con
 strained to recommend the city plan
 only in the absence of the simpler and more expeditions trusteeship plan,
 which is calculated to produce the same | result.