Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1907-04-19
OWNERSHIP DEAD
Illinois Supreme Court Knocks
Out Plans for Purchase of
Car Lines at Chicago.
CITY CANNOT ISSUE BONDS
Increases Debt Beyond Constitutional
Limit-Program Otherwise is
Legal.

Chicago, April 19-The Mueller Law,
through which Chicago was provided
with a way to purchase the surface
street car properties, was yesterday |
held unconstitutional by the supreme !
court of Illinois. to which an appeal
was taken several months ago.
The higher tribunal reversed the |
lower court and knocked ont the main
contentious of the city's counsel.
The net result of the supreme
courts finding is to put off to an in /
definite period the acquisition of the
street car systems for municipal con
troll or operation.
Bonds Seem Necessary.
II some such scheme as issuing
bonds or certificates with which the
properties can be purchased is not en-
ployed in paying for the lines, all
hopes of taking over are regarded as
extremely slight
Under the circumstances the Vi nj
features of the new traction ordinana-
es dealing with municipalization OF the
lines will not be effective. Most of the
sections pertaining TO acquisition We
framed with the belief that the city
would win its case before the supreme
court, as il had in the lower court. Tie
companies themselves had made 10
fight on the Mueller law and were pre-
/ pared 10 face the situation at the prop
er time.
Decide to Contest.
| Various citizens. however. decided :o|
make the test. but no great sigu'i-
cance was attached to the move. Il
was understood all along that the case
( was purely a technical one and most
students Of the situation believed the
/ city would be victorious Consequent
! ly the ordinances were based. so far
as municipal ownership is concerned
on the Mueller law.
The supreme court now removes the
pins from beneath the ordinances anI
, lets the fabric of public control AMI
operation fall with crash. The de
cision was regarded both in Chicago
and Springfield as a hard blow 10 the
men and women who have been fight
ing for municipaization
Ray OF Hope Left.
The single ray of hope to these pe)-
pie was the possible feasibility Of en-
ploying the license plan, and obtaining
possession of the roads under the So
called contract plan. This was tn
scheme suggested by Mayor Dunno
and puts the properties in the hands
of trustees who are responsible to the
city
/, These trustees really would run the
properties as licensees and pay for
them out of the earnings. Adequate
compensation is allowed in this pro
gram for the investors and stockho'd-
ers.
Curiously enough the supreme court
picked out one of the points that was
seriously feared by the legal advocates
of the laws constitutionaIity-t r.
lating to increasing the bonded debt Of
the city through the laws operation.
Was Not Expected.
While the lawyers who opposed the
law declared this was point worth
deliberate thought, the general feeling
in the fraternity was that the hiJh
court would not regard the Mueller
certificate obligation as an additional
burden upon the municipal corpora
tiOn.
That however. is exactly what thc
supreme court did. II held that the
Mueller law in effect increased the
bonded Indebtedness of the city b.
: yond the constitutional limitation and
i consequently must fail.
5 In substance. the court said the pro
5 visions of the law which entitled tbs
5 mortgages or holders of certificates
S to a 20-year franchise grant. in casr
e the street railway properties were solo
/ under foreclosure proceedings. woulj
n in effect be an increased burden upor
a the city itself