The star. (Reynoldsville, Pa.) 1892-1946, 1907-07-24
How Chicago is Solving Municipal Ownership
of transportation Facilities.
BY A. FREDERICK COLLINS.

vide for the utilization of the present
river tunnels as parts of the future
subway system. At the time these
plans were submitted cable power
was employed, but on his recommen-
| dation the cable systems were
changed to overhead electric systems
which are now in service. He stated
that the electric underground con-
duit system, such as is installed in
New York City, Is practicable and
feasible from an engineering point of
view and that the overhead trolley
construction should eventually be
prohibited In congested districts, but
that outside Of these districts the OBJ
1ections are entirely of an aesthetic
nature, and 1t is for the city authori-
ties to say--after balancing the finan-
cial against the aesthetic considera-
tions - how much, If any, under
ground conduit construction should
be required.
Although at first hostile to the
proposed improvement, the traction
companies have since admitted the
correctness Of the conclusions, and
these have been adopted and form
the basis of the principal physical ell
ements entering into the ordinances
recently passed in Chicago. The
principles above laid down were rati-
fled by $4,000 majority of the citi-
zens OF Chicago on referendum vote
of the entire city.
The financial provisions of these
ordinances are precisely the same as
they would be II the city of Chicago
should purchase the entire property
OF the companies, undertake its re-
construction and rehabilitation, and
then lease the lines for private oper-
alton, upon division of the net re-
ceipts with the lessee company.
These ordinances, in fact, give the
people of Chicago to-day, in all the
essential principles, municipal own
ership of the city's street railways,
and their operation by lessee COM
pany, without saddling the burden
upon the city or raising the money
necessary for the purchase, and with
out the possibility of any effect upon
the financial credit of the city.
To protect the city's share of the
net receipts under its agreements
with the companies, and to absolute
ly assure the maintenance of the
properties at the highest point of ef-
ficiency, the ordinances contain GER
tain provisions never before included
In any public utility grant, which are
amply sufficient toprotect to the full.
est extent the city's interest.
For instance, commission has
been appointed in which three engi,
neers are appointed, one by the city,
one by the railway companies and
the third being Mr.. Arnold, who is
the chairman, and represents the city
and the companies jointly. This
commission has general supervision
OF all the principal street railway
lines in the city of Chicago.
Other provisions of the ordinances
are. that the city should have fifty
five per cent. of the net profits of the
companies; that there must be daily
deposits of the gross receipts to be
used for the payment of mainten-
ance and repairs, and a separate spe-
cial fund of eight per cent. of the
gross receipts for renewals and de-
probation, and that the companies
must supply whatever additional
money may be required for these
purposes. Any surplus remaining in
either of these funds can, under no
circumstances, revert to the compa-
MES, bat becomes instead the prop
terty of the city should it eventually
purchase the lines
In turn the companies get forty.
five per cent. of the net profits, five
per cent. for brokerage and ten per
cent. as a construction profit upon
the new money actually advanced by
them under the provisions OF the or.
dinances. The city is given the right
upon six months previous notice to
the company to take over the entire
properties upon payment of the
agreed value of the present property
and the additional capital invested.
By this ingenious plan The resi-
dents of Chicago will have all the
advantages of municipal ownership.
secure fifty-five per cent, of the net
profits of the companies, and, at the
same time, the operation of the lines
will be under the management of
practical street railway men.-Scien-
tific American.