New-York tribune., 1906-07-12
A TIRTUoUs CORPORATION.

Chicago has become SO calm over traction as
TO be engaged now in the discussion of the
unessentiaI question Of the relative desirable
ity Of immediate ugly trolley poles or ulti-
mate artistic ones. After some misadventures
in the courts the railway corporations have
decided to be good. They will give the peO-
pie the service needed and will not demand
either the ownership or operation of Chicago in
payment. In return it is possible that the citi-
zens may never demand either the ownership
or operation of the railways. The public mind
is filled with serenity at the thought of the
beauty of the coming poles, which will be the
outward and visible sign of a subdued and re-
generate corporation. Cleveland, too, which has
warred for a decade with it's street railway
trust is compromising: at least, though winning
much, it falls short of its ideal of municipal
ownership. Here again corporate virtue is
notably exhibited. The street railway
panies maintained a disposition to insist upon
their own terms in performing public services.
Mayor Johnson has created a new and exception
ally virtuOus corporation to rival displace
them.
The last legal trammels in the shape of in
functions having been removed from the Forest
City Street Railway Company, it is now in a
position to sell its stock and build lines to carry
passengers for a tbree-cent fare. Now. this com
pany is just ordinary group of capitalists
will buy their stock, in carrying people for three
cents head. It is not enough Mayor Johnson
believes in municipal ownership much as In
three-cent fares, and he has created holding
company, which shall act as-hOw shall we say?
trustees for the people until they come into
their own. This holding company, known as the
Municipal Railway Company. is to issue no
STOCK own no property and profit in no wise from
anything. It's natural virtue is thus buttressed
by the want of opportunity. The directors are
all TO be OF the true faith advocates of municipal
ownership. The holding company, taking leaf
from the practices of some of our pyramidaI
street railway concerns, is to lease the Forest
City company's lines. guaranteeing 6 per cent
on the stock All surplus earnings are to go to
extensions and Improvements. "The Cleveland
Press" advises the public TO buy the stock OF
the Forest City company, and offers to take
over at the purchase price any such stock, bought
through "The Press" If dividends are defaulted
or the holder becomes dissatisfied. Mayor
johnson promises TO do all he can TO aid the
new company TO extend its franchises. Here
lies the threat against the existing mOnopOlv
No franchises have been granted in six or eight
years OF war. and there is ample room in the
enlarged city for building up new system. The
old company was invited to lease its lines to
the holding company on a valuation Of SIS per
cent OF the par value, but refused. Since then
Its stock has fallen of in the market TO 20
The monopoly shows Its alarm, for It has just
sent g letter to the Common Council declaring
the intention TO apply for additional franchises
with greatly reduced fares.
Mayor JohnsOn's company OF true believers
is a novel way OF dealing with Obdurate
but it seems somewhat effective. OF
course, these gentlemen, whose chief qualiaca-