The labor world. [volume] (Duluth, Minn.) 1896-current, 1912-06-22
"AMUSlNG" JUDICIAL VAGARIES

C.. P. Connolly has exposed an ap-
palffng amount of judicial corruption
In his articles on Everyhody's maya
zine on Big Business and The
Bench The limits of a magazine
probably have prevented Mr.. Con-
nelly from telling one-tenth of what
nc might reveal. This may be why
ne told nothing in his account of the
Pennsylvania judiciary. how the
courts Of that state once reversed
even Jaw. Of mathematics to help
q Philadelphia monopoly out of a
hole.
In 1901 the city councils Of Phila-
delphia gave group of monopolies
perpetual street railway franchise
covering every important street.
Nothing was paid for this privilege
to the city. There is no legal proof
that anything was paid to any one
else. But the councilman who voted
for the grant and the mayor who
approved It were far from being
mentally deficient, so tina by a pro-
cess Of elimination it is not diff
cult even for one who does not pos
sess the ability Of a Sherlock Holmes
to deducs what kind Of Influence
was brought to bear upon them.
Before this deal was consnm-
mated John Wanamaker made cash
offer of $2,5OO,0oO to the city for
the franchise about to be given away
gratis. His offer was contemptuously
ignored. Later the courts ignored
just as contemptuously the claim that
the law clearly declares all fran
chises void that have been secured
through the use Of such arguments
as had evidently been applied in this
case. But Philadelphia did not have
the initiative referendum, or recall
i'm fact she still lacks these safe
guards, and SO the citizens had to
quietly submit. to the robbery.
But the franchise grabbers had
been careless and had overlooked
something very important IN their
hasty raid. Back in 1857 an ordi-
nance had been passed providing that
all franchises given out in future
must be understood to be subject to
a reversed right of the city to pur-
chase at any time at the appraised
value of the company's physical
property. This was a serious men,
ace, for in a legal sense the fran
chise grabbers had no physical prop
erty whatever. TO get the franchise
they had Of course organized them
selves into a corporation. Then as
soon as they got it they capitalized
their loot at an exceedingly inflated
figure, organized themselves into a
second corporation, ironically called
"Philadelphia Rapid Transit Co." and
leased the franchise at an enOr-
nous rental to this corporation to
operate. Consequently all of the ply
steal property was in the name OF
the tenant corporation, which,
though composed of practically the
same individuals as the landlord
concern. was legally a separate en-
tity. Since the city, if it saw fit to
take over the franchise, was under
no obligation to pay a tenant any,
thing, the situation was not alto
gether pleasing, even though for the
time being mayor and council were
sufficiently under control to do MOTH
ing disagreeable. BY taking lover
the property the city need not have
paid the raiders anything and could
also have compelled the tenant COM
pany to pay the inflated rental into
the public treasury.
For while the raiders did MOTH
ing to mend matters but waited un-
over the theft of the franchise had
quieted down. Finally in the year
1907 they decided to come back for
what they had previously overlooked.
In the name Of the tenant corpora
ton they offered that if the ordi-
nance Of 1857 would be repealed
they would give the city half of all
the net profits made by the Phila-
delphia Rapid Transit Company
over and above per cent dividend
on capital stock, and furtherm ore
agreed not to raise the rate of fare
without consent Of the city. The Of
fer to divide profits was clearly a
fake. for the underlying corporation
had made the rental so high that
the Philadelphia Rapid Transit COM
pany cannot even pay expenses. The
offer not to raise fares would not
have been a great concession even
had it been made in good faith, since
fares would be tolerated as were
then and are now charged in Phila-
delphia. For a five-cent cash fare
free transfers are given at only a
few points. At all other intersec-
tons points an additional charge of
three cents was and still is made for
transfers or "exchanges'' as locally
called. The company also sold strip
tickets at the rate of six for "a
cents. For these tickets no transfers
were given nor even three-cent lex
changes"
Although the fraudulent nature of