The Kansas City sun. (Kansas City, Mo.) 1908-1924, 1914-06-27
The Commercial Club Committees
Adopted 333 to SO

Commercial Club at the conferences between the City and the Receivers Of ?
the Metropolitan Street Railway Company On May IS the Board Of DTec
tors appointed the following committee; o V Wilson chairman Franklin c
IS 'T f S herewith en- Vi h g FSas'n in full nh S"""F' "''' =" N'"' '"''"' '~'
Report of the Special Committee Appointed by the Board of Directors OF the
Commercial Club on the New Street Railway Franchise.
To the Directors of The Commercial Club:
In arriving at its conclusion, and in making a recommendation in the
Railways Company, commonly known a. the new metropolitan M IRA franchise
conscious Of the great responsibility IF its duties and moved by an earnest
o t. sure mr uIMd NV question Of importanee arising in YOU daly business.
lecta IS you would any ques.oh u u mp Sa~o. .sm II ~ "nn s Jy straet
railway service let us be governed by the universally reSognzed let that
our comfort and convenience depend on its operation today n tomorrow
not yesterday. 1t is the prime duty of a commercial organization like
Commercial Club Of Kansas City will and must, do this, or it will not have
tss iRansn'' which belongs to It IN a ''"'"s Of the questions being
Your committee urges the members of the club to read the franchise
ordinance 0Tlmnn". carefully ar fhg1 This hi is or aDsGu'S Wy n SSs fSn no RPb 50Ref Thy um mos poTnt sS
read it. We have heard frequently the declaration that the franchise does
not give us all we ought to get from good citizens who have never in
formed themselves as to what in reason W g could ask for o what there
We have accepted the figures Of the engineers in regard to the value of
te proper per LANE au I'M tp e@ na tm anu G T%e cT, % r eT sentative "antpim have ave- varieed
every important calculation and the figures which in the DC ann% ao repre- fs
100000 of which is in MissourD are a reoOncnement and compromise Of the
rules used by the engineers in fixing a value for the property, physical and
engineers in this country and in Europe during the last twenty years. and
certainly n o citizen with a reasonable faith in the growth of Kansas City
~I t aen ars sae l gTTDaOte com HGmrS With G m nc 5 .S%t' f showing "e i"~s ea""S
Whatever may be the views of the individual members in regard to a
franchise, they ought not to reject the n pending before they have
prepared BY the engineers appointed by the United States Court the COM
Bear in. in n, mind R that the the popular S%arr demand man don. m street 1sst,d railways way +! now W. is nd for
power, more trackage and more cars. This simply means lori money, and
the money must in the present case, come from some other source than the
SmSu' TO 81 me et thu U~ demand H foT imDToyements that are re thought or t o be ' imme
1t is hardly necessary for US to point ut that in the process of borrow
ing the lender must be consulted, No matter how much we may object to
that condition, the amount loaned and the rate OF interest will depend on
fairness Of manay communities towards their local traction interests, it is
Io m m ur t tneS stre aasr of oDp uoa te f brgno M oSarter p o a aS nAV or 4 for one ne
1sso S o. another 2 that tn. they ra are n S % longer m found o" ID m an the preferred ot RI Lists IF If
street railway securities based on a franchise with a shorter term than
money which it is agreed we must have and secure it at a reasonable rate
The franchise as drawn contains man. matters of operative detail
which W re leave to the experts, and many sections (ee Section III which
S smnahi speG hS l IN drtersst wm Dmec W. m Pt can ther De , Sae aeot lge as 81 w grot g I'm m1
mamc4ne o " m r,i mtel axar An netseu t. Pt te mere are e% e4 Lures "naE ste +n s genera ad
are, here separately and particularly treated
TIL. street railway companies and the property since that date has been and
A suit is pending in the United States Circuit Court to foreclose the
ed, being. mainly. the lines now n the central portion of the city, to secure
Another suit is also pending in the I'M court to foreclOse the mort
gage given in 1893. covering, chiefly railway lines and property constructed
an ordinance passed during the first year of the second term of Mayor
aortgnge bonds Of the COMPANY amounting in round numbers to 1922,
The total Indebtedness o. existing railway companies, secured by mort
a considerable portion of which is nowrbeartng interest at the rate of 6 per
Judge William C. Hook of the United States Circuit Court, before whom
the recevership and the foreclosure proceedings above mentioned are pend
the holders Of existing and overdue bonds the right and privilege to fore
In 1911 Judge Hook instructed the receivers to ascertain whether or not
the city "a willing to negotiate a new street railway franchise, and if so
M the question Of a nw Franchise with NES r. W. nd duc aen5.tT %On
The only alternative to the making OF a new franchise is for the existing
mortgages to be foreciosed, the property sold and afterwards operated by
the parties who may become the purchasers of it. At any such sale the
property WILL, IN all PROBABILITY, pass into the hands of n or the other of
the severalc classes Of mortgages or bondhoders, and possibly different por
tons of the street railway system may pass into the hands of different
Wners.
We hnu that nor than $S7OOOOOO have been invested in the street
railway property, AM. that there exist mortgage liens amounting in the ag
gregate to s2S7OOOOo. with eleven years remaining of the term of existing
franchises.
We are advised that during the remainder of the term OF existing fran
chises, Which expire June !, 1925, the street railway companies meeting their
obligations under the Peace Agreement" can make a legitimate pro6t of
between 10 million and 10 million dollars.
Under such conditions if a new franchise be nt granted, it is not to be
expected that the owners and operators of the property win make any
extensions or beherments which they will not be compelled by the city t
make, Or render any better service than they will be compelled to render
In other words, it will certainly be ito their interest to make as large a profit
al possible, att the expense of improvements beuerments and of service GU
OF the remaining life of the present franchise Present needed improve
mentsa and extensions would certainly be indefinitely delayed and postponed
During the whole Of such period, until the expiration of the present fran
chises, OF until some other arrangement be made, there will inevitably be
prolonged and bner controversies between the city and the street rapwaJ
company in Teggrd to improvements and the rendering of roper service
Such a condition would be disastrous and ought to be avoided.
In view of these facts and circumstances, our conclusion is that a new
city and its commercial welfare, and for the general benefit Of all ou
citizens.
The proposed new franchise requires that a corporation be organized
nde he Laws If Missnnri IL nroyides- lSacionL AZ lint tho tnI nrnonn