The Birmingham age-herald., 1905-04-08
DUNNE TELLS HOW HE INTENDS ID ACT Chicago May Yet Resort to
 Condemnation MEANS TO ACQUIRE LINES Next Mayor Thinks They Will Have Real Municipal Ownership In Chi
 cago In Second Year of
 His Term.
MEANS TO ACQUIRE LINES

New York. April 7.-Fresh from his trf- umph in the recent municipal election. Mayor-elect Edward F. Dunne of Chicago came to New York today and tonight ad- dressed a large meeting in Cooper union under the auspices of the Municipal own ership league of this city. He told now he expected to carry out his pledges made in his recent campaign In Chicago to attain municipal ownership, of the ben- efits as he conceived them, of the city control of public utilities. James G. Gra- ham Stokes Phelps. vice president of the league, presided and introduced Chicago mayor-elect in ten-minutes speech Judge Dunne said in part
 Tidines of Great Joy
 ''Men of the east, we bring you tldings of great joy of the men of the west. The exploitation of public property by private capital with It's attendant greed extor- ton and corruption, has had its day in American cities, but that day Is about to end. Next Monday Chicago starts upon her mission of dislodging private capital from the control of our street car sys- tenn. She has succeeded in operation or her water works system in paying some $3S, GOO 900 for it's equipment, has loaned $5, 100000 from that department to the sewer system is today giving the cheap set water of probably any city in America' and has a cash surplus of nearly S,Oo0,O00. She has so managed her electric light plant that she has reduced the cost or arc lamps from $125 to about $o4 per arc lamp per annum She Is operating both departments as well as her police. fire and educational departments without scandal, graft or corruption, besides cheapening the cost of utilities furnished to the public. She will have the same record of success in relation to her street car system"
 After recounting the history of the struggle during the recent campaign Tor municipal control Judge Dunne outlined the plan of his administration as follows;
 Is Valuable Privilege.
 The operation of these utilities whether by public or by private persons is valu- able privilege. We propose to raise all the money necessary to purchase an up to date street car system upon certificates which are special or limited, promised to pay out of the income collected from the system. Under the law of the state or Illinois, these certificates are termed street car certificates and are secured in three ways:
 First, by the pledge of all of the in come of the municipal street railway plant, this income being unlimited as to time; second these certificates are se- cured by mortgage which conveys all or the tangible property in he transportation department of the city, private, personal and mixed, and every kind of property used in the transportation department; third, these certificates are secured by 20-year franchise; in other words, there Is a provision in the law under which if default be made in the payment or street car certificates or of interest there on for the period of one year, then the holders of the certificates may apply to a court of chancery to foreclose all Of the tangible property used by the city in US transportation department, and at the foreclosure sale there shall be knocked down to the bidder the franchise com mencing 10 run upon the date when the purchaser buys the property and running twenty years thereafter,
 Security Is Excellent.
 This security in my judgment is much better security than the private com panies in the past have been able to of fer, either to the stock or bondholders. Private companies in the past have been able to sell stock and bonds aggregating in value $117,000,000, when their tangible property was worth less than s27,00O, 900. If they could raise four times the value of the tangible property upon an expir- ing franchise, can any sensible man Tor a moment hesitate as to what amount Of money the city of Chicago can raise upon the security hereinbefore mentionedY l have no hesitation in predicting that if these street car certificates secured In this manner are offered upon the financial market, the financial syndicates of this nation will be tumblng over each other to get possession of these securities, and if the financial powers that be should combine to discredit them, the savings bank depositors of Chicago. if they are offered these street certificates, secured as I have detailed, will be very glad to take their money from the savings banks where they are obtaining only per cent and invest them in street car certificates secured by mortgage and a 2O-year fran chise. As to the legality of these certifi- cates in my judgment there is no possible doubt Some of the best lawyers of Chicago have already declared in favor of the invalidity and we can have a test case which will reach the supreme court of the state inside of three or four months, which will forever set at rest the question of the legality
 Is No Untried Theory.
 ''The operation of public utilities by municipalities is no untried theory. Wher- ever a municipality has taken over a public utility as to this utility corruption and bribery case. There is no motive for the corruption of an alderman in case of a utility operated by the public.
 '"The movement In favor of municipal ownership of all public utilities has taken deep root among the intelligent people of this country. If is here to stay. Munich pal ownership and operation of public utilities and government ownership of the railways. telegraphs and express transportation is a practical question upon which the people will pass within a very ah hn.-f nd 1,a nd tiao