The Kansas City sun. (Kansas City, Mo.) 1908-1924, 1914-07-04

fixed charges and make necessary an increase in the rate Of fare.
Kansas City at this time is no more than is reasonable and Just and that a
insisted UPON S%pA - ~ ''' . '"' "'~l . HNS 'p' ''SH' - = =
The proposed franchise provides Csec. 2) that the entire net earnings
pay for extensions and additions to PROPERTY property until the s. sum y y sS ,SO yOy rs sn s.
onethrd to the company AS on a the $6SooooO shall have been invest
city may, by ordinance, reduce the fare to the full amount Of the twothirds
interest of the city in the net profits; that is, the rate of fare may be so
reduced that the street car used will get the benefit of a reduction to the
whole Or ITO to such UGH part %dtoo OF the ci i :. interest," inter nro n n e p tSa c tS m mae ua~ it's
share Of the net profits to purchase the street railway system or turn the
When it is considered that the deprecated value of the street railway
te company as a aH tns'r o@s 'G is ;ssSoOoCS S and an the sI value Of the I remainder
OIL te term 1 Oh TN. ue nanemses m unosont IT. en- 10 or pff ~ ooo6 oo . totai ~
estimated mat ED BY IT. the en engineer eF .s0T SnHn n v TN c 70 a al St%Ot ~ com a sOai for OF
able basis for a new franchise.
1t is of interest to note in this connection that the amount allowed for
intangible values u 6@m fra franchises his ec S st' in fixing kin gi the capital g, TS ! @S IF dd
there is n o provision in the franchises of those cities for putting back into
the property, for additions and extensions, money derived from the profits
without a increase of capital value, which is provided in the proposed
Kansas City franchise. (sec 2)
the street Railway Companies for the city, and Mr.. Blon J. Arnold, who
made a similar examination under the order of Judge Hook for the Re
Of ff THIS report e%1 's show VI that there has been invested in street railway property
$3I3OOO OO, excluding sums paid for franchises purchased when one company
was taken over by another and all other items deemed by either of them
According to computations made by Mr.. Arnold, for the Receivers. who
ever operates the street railway property under the existing franchises to
According to computations made by Mr. 1 R, Ash, engineer for the
city, such net profit will amount to about $1OoOoOOo.
tory and appraisal for the rec receivers, Of all street stree raj railway .p property yin in Mis-
the basis of an unprotected investment, was, o. June 1, 1912, $24454y32S17
property @t Of Of D the Kansas E%as City y" w Vest ntGB Belt Rally Company, and md ali e es
ments of value in Missouri and Kansas in round numbers, at $s7,4O5 COS, as
Mr.. L. r. Ash and Mr.. F. !. Kealy were requested by the city and the
receivers to compare and review their respective appraisals and endeavor
to reconcile their differences. Under date of September c. 1913, they agreed
Of May 81, 1912. was s225oOOOO' Eightyfour per cent thereof is in Missouri
There "a be n Q question but that property Of the character of the
se cost et' of repr PFEDsIeg I In a d Smg ahs mantss G Mt The has a e yaus in Set 1nesss tS Of
present mt value of material ala and the cost when new, Of like material
until after $6SoooOO has been put back out Of the earnings.
what is Known IS the Union Station loop, extending from Southwest bouie
yard, IN Broadway, to Twentyfourth street, thence to Main street, thence on
eSy. It is il t to be pid i4 fer BY the he e aue to n u t9 sba viii . vest St absolutely nst ueond in t the
understand that it will be paid for III Of the Sc 300 Nm not roft Nh cHv
VIII have the right to permit any railroad company to use the station loor
ou,,1 The s1 franchise an d@ does not attempt to take from Q add to the rights ac
lions of the terminal company to the city, and of the city and street rail
franchises N the right to enforce them is expressly reserved to the ter
Section 1s in regard to interurban lines provides that the city may
s6nsnuct or ra authG%oze thee the construction antsa tic of a central interurban passenger
very beneficial to interurban passengers, merchants and citizens generally
The franchise Gsection 11 S' provides sn for 'n the ne oHerhsad companies trnns1 sx.ton
a ps p porBd @I0 " Is t stret n ,a G%y may ~ at "a any time after three years require
be operated IP rated by underground nde instead Of overhead system,
b bn 40 ~ d provides man that the gross earnings of the company in Missouri shall
First. All expenses of maintenance and operation, including mainten
ance necessary to provide frstclass modern service, shall be FIRST paid
laAes M public charges OF every kind shall also be paid by the company
Second. Six per cent per annum shall be paid semtannuauv on tho
Third All liabilities for personal injury and property damaged are TIC
Oe p Four Is a p nhS operating % ng expense;
the sum Of Sc 1900 1000 600 is So py ys eT * 0masa and additions to property until
m he m paid-twothirds to the city and onethird to the company. Al
c Rat n Ihsrs as "a above o." stated stated. fares may be reduced or the full amount Of the
applied applied, to any municipal purpose. Unless the city ordains cs pTIpee tS be
49, sn"e :" IN surplus Will e used in payment Of extensions I'M adi
Hms % properly, 10 which the company would otherwise he ranuired 20
oorrow money, the amount of which would be added to carital vaua WIZ
me cHys surplus is used to pay for additions and extensions canita1 vaIuo
Is lot increased. In effect, the city by that means will invost az - 80
the surplus at the rate of 6 per cent per Ae y"
In former franchises and contracts nc provisions have been made for
saeea ware Oh n. M property at the end of the terms. For that reason, mort.
sases were mad to expire several years beforehand so that naboId -.
"oNu nav a margin o. tin after the maturity Of their bonds in utias -
o"mp payment Of them before the expiration Of the franchise 10 nrnnopt
md u ~ 'ho Oh TINS situation the proposed franchise provides that at the
eu OF TN term the city may take over the property N avrnan az t me
unpaid portion of the capital value. o transfer this right to 5we ~ OF n me
tn OF Orn Orporaton or may renew the contract with the company. or reontra
me upanS % continue to operate under this contract. nending othar 49,
tSa ss, OF o., ne city may actually take possession of the propertv .
toes os Va 1e company, N operate it by three city directors &c trs
9"e anu pay! ot OF earnings, the unpaid portion Of he canito1 UaIne "S
the company. ~" u1 Dth &c TIT public and to
1t is not practicable within the limits Of this report ., n.m
"a 80 Pun " We ordnance. We have read the franchise WITH rect 60
inst Inst a md s tnN nal whle it is fair and just to the company II "a aso
guarded and protected. 1919 interest IS carefully safe
10 raon,rs e t pmer umgs' the city has reserved the right after three vear.
~ ieqm tne company to change the overhead svstan - unse"eyeaiH,
De changed by consent of the ciy ~ 'e moNe power may
papv are een 0dao - Of the proposed franchise the total receipts Of the com.
and NV 49, O. An oe "Ht instance, to payment for street car seryics
amu Sy secton - 16 per cent of the gross is required To 20 h es ss service VICE