New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1906-03-13
CHICAGO WINS VICTORY,
CAN CONTROL TRACTION.
Supreme Court Holds 99-Yedr Act
Doesn't Ertend Privileges.

Chicago. March 12.-By the decision Of tins
United States Supreme Court handed down to-
day the city Of Chicago obtains almost complete
control Of the local traction situation
Contracts ordinances Of the CITY limiting
the use of the streets by the companies are up
held, and the rights OF the companies In the
streets are held to expire according 10 the ex-
pressed terms OF the ordinances. In its effect
the decision leaves the Union Traction Company
without any right whatever other than by
sufsrance in the streets OF the north division Of
the city. 1t leaves the Union Traction Company
IN the west division without rights. excepting
"nere the ordinances contain a purchase clause
The decision leaves the Chicago City Railway
Company. which operates all the streetcar lines
on the south side OF tho city. without right ex-
cepting where their ordinances contain a pur-
chase clause.
The original ordinances granted N the st-.at.
car companies were for nfnety-nine years tpsid,
the city limits they existed In 1855. The
companies have extended their tracks "a ths
CITY boundaries have been enlarged. and havs
maintained that the extended lines, which wer.
oullt under franchises from the cfty were aI-,
operative under the ninety-nins-yea- act rrh.
court has hsld. however. that the ninety-utns-
year act extended only the charter life Of III,
streetcar companies without extending their or
dinances-
The court also denies the contention OF m.
streetcar companies that they have been vested
with the exclusive rights for ninety-nine wears
10 enter into contracts with the city for III.
occupancy of streets. The decision also holds
tnat the strestcar companies could receive only
such grants as the city might give. and on such
terms and such conditions. including the time OF
the grant. as the city might prescribe.
The city has all along admitted that the
ninety-nine ysar act Is valid. but asserted that
It did not extend the ordinances under vhion
tns streetcar companies are operating at pres
ent
1T Is a sweeping victory for the eitvs ssya
Mayor Dunno. There are no nine+y-nins wear
franchises In the city OF Chicago, according to
this decision, and indefinite or perpetual
grants In the outlying territory, We have the
traction companies now In position where Wa
can negotiate for the purchase of the lines IF
they do not want to sell at a fair price, we can
declare our rights under the decision"
The decision was at first misinterpreted and
caused a sharp rise IN all the stocks OF the in
terested companies. Union Traction rose from
12& to 1874. West Chicago from so to go and
North Chicago from so to So As soon as II was
understood that the companies were the losers
the stocks suffered sharp decline.
livered by Justice Day and reversed the decision
OF the United States Circuit Court for the
| Northern District of Illinois. He held thar tn.
act of the nlinois Legislature OF 1856 had ths
effect OF extending the charter OF the railway
companies for ninety-nine years.
The opinion furthermore says. In part:
| The proceedings for the appointment of re-
! ceivers were not shown to be oollusive and
fraudulent and the court had jurisdiction to en-
i rNl in hf1 lie
| put them in possession Of the property of the
railway companies.
! Corporate privileges can only be held to be
granted as against public rights when conferred
in plain and explicit terms The ambiguous
phrase in the act of 1855, during the life here
Of. did not operate to extend existing contracts
/ for the term Of ninety-nine years or limit tbs
\ right Of the city to make future contracts with
the companies covering shorter periods
twenty-five years ''and no longer Ths privilege
conferred upon the Chicago City Railway Com
/ by the act OF 1865, with the effect to continus
/ the right OF the companies to occupy the streets
named in the ordinances OF 1883. May 2S. 1852.
and similar ordinances, for the term OF twenty
five years. and until the city shall elect to pur-
/ chase and pay for the property OF said railway
! companies on the North Side the grants heinz
/ limited to twenty-five years and no longer no
| such right exists to remain IN the OF tha
streets until purchased by the city.
| Whatever rights existed In the streets were
| not lost to the companies by the acceptanee OF
\ the ordinances granting a change from animal
TO cable or electric power IN the operation OF the
/ railways.
| Justices Brewer, Brown and NrcRenna united
! IN a dissenting opinion One OF the attorneys
in the gives the following as his interpreta-
| ton OF the decision:
| 1t holds that the act OF the state OF uIinoiv 4
extending the lives Of the corporations to ninety
nine years was constitutional but did not oper-
ate to extend the respective contracts for ocrl1-
patton OF the streets, which contracts had been
| expressly limited in time by the municipal ordi-
| nances permitting the railways to occupy them