Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1914-01-06
KELSEY EXPLAINS
TROLLEY SITUATION
Argues for Oranges Rights in
Extension of Central Ave-
nue. Line.

Frederick w. Kelsey, former Essex
County Park commissioner and active
on the special committee on franchises
of the New England Society of Or
ange, has issued formal statement
to the newspapers on the Central ave-
nue. trolley situation in Orange. The
Common Council will probably issue q
franchise at an early date for the i'm
provement.
Mr.. Kelsey ia his statement says;
"In my report for the special com
mittee on franchises at the New Eng
land Society nieetihg, reference to the
terms of the Chicago franchise ordi-
nance was used as an illustration Of
q principle of municipal procedure in
dealing with utility grants. as well
as for indicating the facts. Under the
law in Illinois no street railway fran
chises can be granted for Il longer
term than twenty years, and the new
trolley line construction has for u
year gone on there apace.
early in the nineties the grants
for some of the most important Chi
cago streets began to expire. The
Yerkes syndicate then In control OF
the traction companies convinced (?l
a majority in the Legislature that q
for such franchises. Public opinion in
Chicago and throughout the State
had, under the open discussion of the
subject, become informed as to the
facts and a conception as to the proper
relation between the municipality as
a. party to the franchise concession
contract and the companies. Nearly
or quite every member of the Legis-
lature who had succumbed to the
Yerkes Establishments was defeated at
the next election and the limit on
utility franchises promptly put back
to twenty years by the next Legis-
lature, where it has since remained.
Under this law the settlement be-
tween the city and the companies was
In 1907 effected. Walter l. Fisher,
the recent eX-secretary of the interior,
drew that ordinance. The subject was
carefully gone over in all its phrases
with the view Of arriving at an ad-
justment alike fair to the city and to
the traction companies interests.
1.-THE result was inserted in the
ordinance, viz, allowing the city fifty
five per cent. of the net earnings and
the companies forty-five per cent.
Besides this provision for division of
net earnings, every reasonable condi-
ton was inserted to insure the best
of service-new cars and other equip
ment, extensions as needed for public
convenience. better terminal facili-
ties, five-cent fare with transfers
everywhere throughout the entire
present and future limits OF the city
of Chicago in lieu of the present ten
cent fare in the Calumet district
south of Seventy eighth street.
THE companies also pay to the city
the sum of $3.50 per month for each
mile of double track for cleaning the
right of way etc. The management
of the surface trolley lines is vested
In o board of seven members, four
chosen by the companies and three
members by the Board of Control rep
resenting the city. Provision in the
ordinance is also made for arbitration
in the event of differences that may
arse, for a reserve fund for renewals
and depreciation and other safeguards
In protecting and preserving the city
interests and seven per cent. divi-
dends on the accompanies capital stock.
Nearly Million in Receipts.
THE receipts of the city treasury
under this ordinance the first year.
1915, Were nearly S1,091,000 The in
crease was rapidly augmented, as
with al traction, companies in grow
ing urban or suburban communities.
and for 1912 was $3.50 1922. with a
steady and constant increase in about
the proportion noted
THE New England Society commit
tee obtained copies of this Chicago or
dinance as also the franchise ordi-
nances from Cleveland, where they
now have a three-cent trolley fare.
universal transfers. the best of SER
vice, directly under city contro',
twenty five-year franchise limit, ETC.;
Toronto. where the receipts by the
city from the trollev companies for
1912 were $942,000; although the COM
pan es pay per cent. quarterly on the
stock; and other up-to-date franchises
and data. now readily obtainable for
the asking.
These documents were offered to
the railroad committee of the Orange
Common Council. and they are at the
disposal of the mavor. or mem bers Of
the Council or other CITY officials
charged with the responsibility of de-
termining this important question
here.
1.-THE fundamental basis upon which
such ordinances as those cited rest Is
that city in granting the franchise
and use of the streets. all made and
graded at public expense, contributes
far and away the most valuable asset
toward the Improvement. This. too
is proven by the SIMPLEST facts OF rec
ord in every growing municipal ty
everywhere. Both the earnings and
the interest bearing capitalization es-
tablish beyond preadventure the COR
rections of this view
City's Valuable Assets.
Take, for instance, as mentioned
at the New England Society meeting
the "Crosstown" line in this city
Here is single track 'one-horse' road
with such poor equipment and, to
speak mildly, inadequate service. that
in March, 1907, the Common Council
passed to final reading an ordinance
revoking the franchise for that line
as formerly granted to the Orange
and Passaic Valley Railroad Com
pany. This line, about ten miles of
single track, counting turn sid
ings, VS. etc, In common parlance
begins and ends nowhere; and the
| franchise was granted by our former
city fathers in perpetuity. who, let us
hope, knew no better.
"In December, 1898, more than fifteen
years ago, there was issued and since
outstanding on this road $685., GOO OF
| 8 per cent. bonds; and since 1904. $500
900 of Public Service perpetual in.
terest-bearing 6 per cnt. certificates
I of o present market value of 81 ,064 701
| AS a poorly constructed single track
road with such equipment costs but
from $25, 900 to 100000 per mile, 1t car
be readily seen that in this as in mos
such Instances the city contributes al
east three or four times the mos'
| In h in, tho I1f1dof-f a kinpr