The Bridgeport evening farmer., 1909-12-15

In Kansas City, Missouri. they are debating a street railway franchise 4 that vitally affects the future well fare of perhaps a million of people The Metropolitan Street Railway and it's allied companies now have franchises that do not terminate un- til 1925 Under these franchises
 the companies pay eight per cent of their gross receipts to the city and agree to abide by the provisions of their franchise and any lawfuf er- dinance. of Kansas City, under pen alty of the, absolute forfeiture of their rights in the streets If at any time the companies fail to pay their eight per cent gross receipts tax within 30 days after it is due, the city may take possession of the street car lines and run them itself until it has collected double the amount in default. The companies may contest the validity of any additional regulating ordinance enacted by the city and not subject themselves to forfeiture by refusing to obey it pending the final decision of the courts. This privilege does not extend, however. to the provision of the franchise themselves
 I The companies are not satisfied with this arrangement. They wanted to get control of the city instead of being under it's control So they have pro- cured the passage by a complaisant mayor and council of a new franchise ordinance only six years after the last settlement and sixteen years before hte expiration of the franchises now in. force. What do they propose7 A new grant to run for IA years from the present date without possibility of purchase by the city until six years before the expiration of that period. and then only in case the city will take their entire system in Missouri including lines outside the city limits The eight per cent gross receipts tax is eliminated entirely. Tn place of the present stringent forfeiture clause the companies have fixed up a scheme that would make a horse laugh un- less he was a municipal ownership en- thusiast The companies Express ly agree" to abide by the terms and conditions of this franchise ordinance Nothing is said in this new scheme about abiding by other ordinances that may be enacted later by the city. Furthermore, the companies agree that in certain contingencies their franchises shall be forfeited. What are those contingencies? The city must first give them written notice that they are in default After re- ceiving such notice the companies of three months exclusive of all times during which the companies may be delayed or interfered with without their connivance by unavoid-
 
 ders or judgments of any court en- tered in any suit brought without their couriivance." It Is not easy to prove connivance- But let that pass
 If the companies continue in de- fault for the period mentioned with all additions and allowances used up then the city may go into court to get the franchise forfeited After the companies have fought the issue through to the United States Sup ,l the judgment of foreiture is suspend ed for three months more to give them a chance to comply with the provisions of their franchise. If they do comply for a few days. the judg- ment of forfeiture must be annulled- Then they can begin to violate the ordinance again and go through the same procedure But even if the forfeiture decree should by any pos sible mischance be carried into effect which would never happen unless the companies were in bankruptcy, it is stipulated that the forfeiture shall not be effective as against a mort gagee or impair his right to recover 8. .O00. 900 less than the actual value of the property excluding franchise val ue The companies now claim a val nation of s3s.50o. 900. of which s2s,14o.
 In other words the companies could bond up to within the $3.O00.O00 of the value. all their property including the several millions outside of Kan sas City. Missouri and they could not forfeit the franchise, even if they wanted to. under any conditions what ever, as against these bonds.
 In order to get the people of Kan sas City to swallow this unspeakable ordinance the companies have thrown a sop in the shape of alleged four-cent fares, that is to say. cent cash fares and tickets at the rate of six for a quarter or 25 foi one dollar and two-for-fve half-fare tickets for chill dren between and IF years of age. But to take advantage of the half fare or the 25 for dollar tickets, the people must go to the street railway office or to some one of the 25 tick ct stations to be located in the two Kansas Cities. These rates may be changed. however. at any time by the city council if the companies agree to 1t. And even If they remain in the ordinances forfeiture for refusing to live up to them would be next to impossible as already shown.
 This Kansas City fight which Is to be determined by vote of the people on Dec 16 1909, Illustrates the appal- ling need or sgIoer public intelligence on franchises. The Kansas City com panies have millions in inflated secur- ities at stake. They are playing the los F. Wilcox in his chapter on How Franchise Rights are Acquired" "It is one of the tricks of the public ser vice corporation lawyer" says he. ito draft the franchise for his client so