Rogue River courier. (Grants Pass, Or.) 1886-1927, 1913-09-26
PUBLIC UTILITIES CON.
APPROVES CONTRACT

4 he ruonN utilities commission
in session Tuesday morning approx
ed the conditions and wording OF a
contract being entered into between
the city OF Grants Pass and Dr.
keddy Tor the exploiting and con-
sIGcdon OF the railroad 10 the coast,
iLcllding the municipal road OF ten
miles to the town OF Wilderyille on
the Applegate river. This contract
is 10 supplant the contracts former
/ ly entered into with Franklin Helm
OF Los Angeles. A special meeting
Of the council is 10 be held this ey-
ening TO consider the contracts, and
- take official action on the rec
cnmendation OF the Public Utilities
commission. The contract as APP
proved by the commission reads as
follows:
That the city in consideration
OF one ($1.OO) dollar to ii in hand
paid by J. F. l,eddy, and services
performed by Reddy. agrees to and
with the said j. f. Reddy that at
any time within three years from
this date it will sell to J. F. Reddy,
the municipal railroad now under
construction by said city at actual
cost thereof and interest on the in
vestment, which the city has paid
or is obligated to pay, for lawful
money.
The city further agrees that If
j. r. Reddy, or any corporation or
ganized by him, or his assigns,
shall extend said projected railroad
by building twenty miles of rail
road of standard guage. rails to be
not less than hfty-six pounds in
weight, and said Reddy builds the
road, bridges and track and the
same be constructed in as good
manner as said municipal railroad,
lncG If said twenty miles OF exten-
sion of road shall be used and oper.
ated in connection with the munich
pal railroad, the city agrees to sell
the municipal railroad TO said j. f.
Reddy and accept in payment there
for second mortgage bonds to the
amount OF the purchase price, which
bonds shall bear interest at the rate
Of six per cent per annum. interest
payable semi-annually, provided ht
total issue of bonds on the road
shall not be more than the actua
cost Of the same and fifteen per cent
additional For the purpose OF car,
wing this out the city agrees tC
make conveyance to said Reddy
or his assigns, OF said property in
connection with said municipal rail
road, and permit the execution OF q
first mortgage on said municipa
railroad contemporaneously there
with, provided that the amount oil
bonds issued in said mortgage shall
not exceed one hundred fifteen pei
cent OF the actual cost OF construc.
tion; and, provided, further, that all
the moneys realized from the sale
OF said bonds shall be used I'm con.
Itruing construction of said railroad
towards Crescent City, California.
ror the security OF the city II IL
mutually agreed tnat the SAID nrsl
mortgage bonds shall be deposited in
lie First National bank IN Grant.
Pass, and when sold that the pro.
ceeds shall remain in the said bank
and be paid out TO j. +. Reddy fol
construction of an extension of said
railroad at the rate OF twenty thous.
and (S2O,0O0) dollars per mile, as
each mile is constructed and the
track is laid
Said J. F. Reddy agrees that he
will build the first ten miles of road
beyond the road constructed by the
city under specifications prepared by
the city, which shall be like unto
the construction Of said municipal
railroad.
"The city does hereby agree that
at any time after completion, 1t will
lease said municipal railroad to j.
F. Reddy, or his assigns. for the
sum Of twelve thousand 12.000l
dollars per annum, and the mainte-
nance and up-keep OF said road and
equipment which may be owned by
the city, and the said J = Reddy
agrees for himself or his assigns
that he will lease said road at said
rental II he or his assigns shall sue
ceed in extending said road a dis
tance OF ten miles from the city's
road, or for such distance as will
make twenty miles Of road from the