The Cairo bulletin., 1908-09-07
FRANCHISE PUT
Up TO PEOPLE
COUNCIL TAKES ACTION IN Sc
cRET CAUCUS ON TOM
JOHNSON'5 LINE.
SUIT HAS BEEN FILED
ASKING for a Receiver and Denouncirg
The Cleveland Railway Company
as a Fraud Upon the
Citizens.

Tt..,la,1 nLi, c,,,,t,,,,1., r r,l,
Wy 'Nui'e''' ~ """''''i''' '' '0''' "a
special meeting last night authorize.
the Mayor to call a special ciecti0,
October - 10 suhmit 10 refarendup
e.,,. 1t, ~, Nj.
lpai rae'loh COMPANY Is oI'eralliIs
Dec'sloh TO can 'ills eIeclioA' a.'ai'l5'
"hich Mayor Johnson mas iousht fol
months since a petition demanding II
was presented thfough the eHofts oi
the striking street ear employees was
reached last nlght IN a secret caucus
lci Democratic Couhcllmen'
! 10 FISK lhe fruits OF ms seven
years natiie Tor low Iafe8 III one rel
I erence to vote ol the people, was the
/ decision forced on Mayor Johnson by
ihe Night IN Which the Muhclpai
Traction Company hnds itself Ope.
rating FOR nearly Tour months at an
average monthly deficit or $23,00o.
/ the municipal has found Itself com
! PEELED to raise money through a stock
issue Tor various expenses fer nam
tainanco and necessary improve.
monts. The lease under which 1t Is
operating the lines OF the Cleveland
Railway company provides that the
latter corporation, On demand, shall
issue stock for the obtaining OF mon
ey for the lessee. This demand was
made last week state Senator
Schmidt IN charge OF the Munlcipats
stock selling bureau
invalidates Franchise.
The author OF the Schmidt law, ua
der which It IS provided that trac,
tion franchise must be submitted to
a referendum, has admitted that be
cause OF the filing OF the petition for
a referendum the franchise under
which the Municipal has leased ope
ration franchises from The Cleveland
Railway Company Is invalid. The
Cleveland Railway Company has
shown disposition to refuse to is
sue stock aud the Municipal, through
Mayor Johnson has been compelled
TO submit to Il special vote IN an e'
fort to legaIize the Cleveland Rail
way franchise and its lease from the
Cleveland railway
Suit was flied IN common pleas
court yesterday by James X, Farnsey
taxpayer asking that the security
grant OF the Cleveland Railway Com
pany be declared null and void, and
the lease Of the property to the Mn
nlclpal traction company be SET
aside Fraud and financial inler'si
ny clly oHiciaIs are hamed as basis
Tor the SUIT. Ihe petition declare
that the Municipal traction Company |
is a iraud on the cry anu IT'S iaNpay |
ers' without Iesdi or hhalcial respoi
slblIlty' ana Wholly ana solely con
troHed ana dominated by Tom j.
Johnson Mayor OF cleveland
II Is iurther declared lhat the iran
chise grant Is "a fraud because II pro
vided a higher rate OF fare than had
been offered by the Cleveland Elec-
trio Railway Company Of seven tick
cts for - cents, with universal trans
iers. II is alleged that the public
funds Of the city were used 10 pro
mote the interest Of the threecent
fare lines.
Says it's Half Million.
Five hundred thousand dollars is
named as the sum SO used lt is
charged that the West Side Pumping
station. valued at Sl5l9010. was
leased 10 the Forest City Company At
an inadequate rental and that lanI
adjoining was purchased at a cost 1f
sGS.o0o out of The waterworks funds.
and is uowe being used by the rail.
way company.
CT the organization Of the Munici
pal Traction Company if is charged /
hat the original directors Of the com