The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-13
DROP in CHICAGO
TRACTION STOCKS <.
Error in interpreting Decision Of
Supreme Court Gave Vic
tory to Companies.

/. Chicago Union Traction common broke
on the Stock exchange today from TO to
7Aa. There were no sales of West Chi.
(. cago or North Chicago, and few of
Union Traction.
Heavy losses were sustained by a
number of local brokers who acted on
the first information given out regard
ing the decision of the supreme court
yesterday. 1t was generally construed
as being favorable to the streetcar
the first brokers who received the in
formation proceeded to buy stocks.
West Chicago in few minutes rose
from so to so, but later because of sell
ing by a few brokers who realized their
mistake, the price dropped to SIS,
Union Traction advanced from 1924 to
13A and North Chicago from 80 to IS.
The mistake was not realized until the
market had closed. There was very
little doing in the stocks on the local
exchange today.
Effect of the Decision.
By the decision of the United States
supreme court, the city of Chicago OBJ
tains almost complete control of the To-
cal traction situation. The decision
ezte END agts the IT the s@to Of eg the
charters of the street railway
companies to ninety-nine years, but
and here is the vital point-does not
sustain the contention Of the companies
that contract rights which are limited
to fewer years than remain to the char.
ter life of the companies are also ex-
tended Contracts or ordinances Of the
city limiting the use of the streets bv
the companies are upheld and the rights
OF the companies in the streets are held
20 expire according to the expressed
terms of the ordinances. .-E~
The first step that is now expected in
the traction matter is a petition for a
rehear1ng by the traction companies. +
What the Companies Say.
The attorneys for the Chicago Oitv
lines on the south side of the city, and
the lawyers for the Union Traction com
pany, operating on the west side of the
city, claim that under the purchase
clause In the ordinances governing the
franchises which the supreme court has
Z heid are alive until the property is pur.
chased by the city, all of the tangible
property. Of the companies must be
bought in order to extinguish the life
of the franchises. =.
s, The clause is broad. After providing
the manner in which the city council
shall elect to take over the property, il
declares that it must pay within sis
months for the Htracks of said railway
S Sompan1s sss +io cars, earriages station
implements Of every kind used in The
construction Or operation of said rail
way, or any appliances in and about
the same. - .
It is said at the city hall, now that
the question Of ninety-nine-y fran
chiSes has been disposed of, the. city
vii be able to grant permits to the
cable systems. The city has beer
afraid heretofore to grant such permits
believing that it could not get the troll
5. leys down again without long lega
fight if the companies once erected
them.
What Mayor Dunno Says.
Mayer Dunno, in discussing the de
cision Of the supreme court, said to
e day: =,
The decision is complete victor,
for the city Of Chicago. It means tina
there are no niinety-nine-year rights i
pancy Of the streets on the north sid
of the city is without any warran
whatever in law, and that the right o
the companies on the south and ives
sides to use the streets is based on
provision in the ordinance which give
them the right to- occupy for perio
p OF twenty-five years the SCfeets the
are now in and until their tangib]
property is purchased
ttThe decision has placed the city
position where it can tender to til
companies the value Of their tangib!
property under the terms Of the ord
nance. The present companies have tt
right to be paid for their. property, an
that is about all the rights they {
have. The decision, by one giant strid
makes it possible to bring about M
NATURALIZATION just as soon as the cit
can provide the money for the pu
chase Of the lines
The mayor and his friends belle,
that the decision has greatly enhance
the chances Of the proposition to iss1
scrip for $75,000,000 to be used for II
purchase of the lines, which Is to
voted on at the election next month.