New-York tribune., 1905-04-10


ton in Chicago OF municipal ownership OF street
car lines. As regards the certificate issue. the
jurist holds that these will simply be a lien on
the receipts OF the lines. and in nowise become
a tax burden the people. Judge Tuley further
sees no difficulty placing the certificates, being
confident that Wall Street viii readily take them
As sincere and earnest Mayor-elect Dunno
and his friends and advisers undoubtedly are In
their intentions. there some close observers OF
things who do not feel gune in the success
OF the plans outlined for the accomplishment OF
municipal ownership. 1t is not question Of
frendness 10 the traction people or opposition TO
city control of streetcar lines by those persons
holding contrary views-it is merely. and yet it Is
most important-the feasibility non-feasibility
of municipal ownership under the conditions now
offering.
These objectors hold follows:
OBSTACLES IN THE WAY.
FIrst-That no one knows better than Judge
Dunno himself that he cannot hope to secure mu-
car lines by the city within the term for which he
programme OF accomplishing municipal ownership
he clearly shows that he recognizes the impossi6il
ness of his plans is shown in his suggestion 81 Ia
placing at its head expert of great capacity and
wide experience, who may be paid by the volun-
tary subscriptions OF the citizens
1T is well known" declares an objector to
Dunne's plans. that commissions are proverbially
slow in reaching conclusions. and 1t is not only
probable but almost certain that the traction COM
mission will be only the initial step to beginning
the real work for action on its plan cannot start
until that Is known. AS there be no possible
knowledge OF what that plan Is likely TO be, II Is
difficult 10 see how immediate results can follow
Fault is also found with Judge Dunne's manner
of beginning by sending to Glasgow for 'racuoh
expert. His critics hold that in the scheme OF Hu-
nicipal ownership and operation OF street raL"aSS
three classes Of problems present themselves Inc
first necessarily Is the treatment Of the exlsthg
state of affairs-the problem of extinguishlhg inc
old private corporation rights This OF course Is
primarily a legal question. with colaterdu ISSUES
leading TO the vexatous question OF finance HOW
can a manager Of local tramway over IN Scotaho
he supposed 10 be able to wrestle with legd OF
financial problems? That is the question Inc oo
iertors ask pertnently, il must be admitted II
e manifest that the from Glasgow VIII not
be able 10 enlghten Mayor Dunno on those points
PROBLEM OF RAISING MONEY.
7,,. second hard proposition is that of the man
rar of raising money to carry oct the plan ot mu-
toia1 ovrrersbiD and operation. Is it at all posi-
ME that the Glasgow traction expert can ne OF par
tjcular service in solving this question! Lastis' -
the matter Of administrative character altose'Hei
the running of the cars. 1t may De lhaI tIe PIaN
,fcal experience of the Glasgow expert VIII De OF
some value On the other hand, are there nol ca
rable experts in America who could better ADVISE
tho Chicago authorities TIE operation OF sueeI-
car lines? Looking upon this phase OF the Whole
the standpoint OF technlcat engineer
ing il is naturally thought that an American would
ne much better qualified to give advice than for
egner wholly unfamiliar with labor conditions in
America well as other matters closely aiiled 10
The operation of street railroads in this country.
Meantime il would be well to consider the proba-
HE attitude of the traction people under the new
conditions which have come to the surface since
municipal ownership has been made probable II Is
not unlikely that the controlling the rac-
ton lines IN Chicago win meet the city officials
,3E.1.- he after Ia "a
the car lines. There may be resistance by the
traction men at the outset, and they may meet the
Mayor and his advisers more than half way, show
ing not only willingness but an absolute eager
TO sell their properties. But there may be an
almost If not an actually. insurmountable stumbling
blOck-the price. II is stated upon reasonably good
authority that the traction people have a plan
Of campaign--that OF enhancing the value of the
systems by a large expenditure Of money in i'm
pTovements by which they hope to exact large
and profitable price for the roads.
That the syndicate controlling the Chicago City
Railway and the Union Traction lines will en-
deavor TO secure splendidly remunerative figure
for their properties is made practically certain
by the words OF John ]. Mitchell. the banker, who
IS a member Of the syndicate controlled by j. Pier
pont Morgan. Marshall Field. John A Spoor and
others who dominate Chicago traction properties
Leaving Chicago the day after election 60
70 New-York to confer with Mr. Morgan. P. A
Valentine and John Spoor, Mr.. Mitchell said. com
nsenting on the public interview in which Judge
Dunno outlined his municipal ownership policy:
Judging from Judge Dunnes remarks as he is
quoted in the papers to-day take him 10 be SEN
Traction question can De setfled with him in a
gensiblo rational way. we are preparSd and and
get together, ! am sure. The only question will
be the price
The traction companies therefore. instead Of
showing a spirit Of resistance TO TIE advent of
municipal ownership, declare readiness to sell to
to he
the price sad terms IF payment How the
actual Steps toward the realization Of municipal
ownershp will be made will best be determined
by the powers that be when the Glasgow expert
has arrived to advise with them.
II the city authorities and the traction officials
fail to agree and resort 10 legal proceedings, it
will open up endless chain of litigation that
may last for years, with the prospect that during
the pendency Of the cases in the courts improve
menf be made in the present situation. and
that the property in existence will continue to
deteriorate until the litigation is finally finished
ESTIMATED VALUE OF FRANCHISES.
II is stated in quarters, but not officially.
that the owners the present fran chses will
ing 10 turn their property to the city of Chi
cago for municipal ownership and operation a
; uer cent basis. According TO one Of the receivers
of the Union Traction Company, the companies
4 might agree TO accept Mueller law certificates in
payment. provided these securities tested in
court and found TO be legal. Figuring tentatively
on this basis the streetcar lines would cost the
city of Chicago SIS 10000 This sum is arrived at
by capitalzing the earnings Of the City Railway
/ Company for year, which were 1859.
per cent basis. and the same process with the
81 $40 so earnings of the Union Traction line This
gives ity Railway value of $34s0OOOO and Union
Traction S3l 10000 The rest of the total is made
up OF 100000 common stock and $l6O0o0oO pre-
ferred stock of-the Union Traction Company. In
this estimate n consideration is given the value
OF the unexpired portion Of existing franchises
the natural increase IN business 10 be expected BY