The Kansas City sun. (Kansas City, Mo.) 1908-1924, 1914-06-27

chha. Any substantial extension Of the system would necessarily increase
For the reasons above stated we are convinced that q scent fare in
present reduction in the rate o. fare would be unwise and ought not to be
insisted upon.
The proposed franchise provides tsec. zo that the entire net earnings
of the company shall be credited to the city and used by the GO. company Gpo ~ to
used. Thereafter, twothhds of the surplus income belongs to the city and
ed, al provided, which we are informed win be in about seven years 9Th the
interest of the city in the net profits; that is. the rate o. are may be so
reduced that the street car used win get the benefit o "a eduGu cue TO ae
whole or uo sgn par Sno OIL me III ny Is u aIo urovtSeS hat be city may use its
council d may IA. then hen deter oeStm IN nnr IT Is a 70 p stTaet railway ip u system or or turn the
same into the cnys Sire, treasury ~, a. ", we d seressss m Tasa f% " the ae' street railway
property as fixed after reinstatement by the engineers representing both
Of Of the term Of the franchises under which the company is n o wOperating is
s sS@R S eSoI BY ybs the sm SpsR'e OF s S%Sssou9 which %e 'i is allowed al I'll the company n any fOl
capital value in both Missouri and Kansas, seems to is a fair IN reason
1t is of interest to note in this connection that the amount an%d, ALLOW allowed ed. To-
street railways in Chicago was sloOOOOOo, and in Cleveland $4oOGOOS' and
the property, for additions and extensions .n money derived fir from nj the e- profits
tbe Street Railway Companies for the city, and Mr.. Biu j. Arnold, who
eetv Hs tbs. each sSnS Of t these t, geDo s. I NsD iD aFs sSO in stree ' RAILWAY as property q erty
s84,8OOOOO, excluding sums paid for franchises purchased when 0ne company CON tnay
t Tas se t& auast HTSG Dy an''h'f'" mt al 0'nS' Items ''S"'D = 'A'' q NSH
According to computations made by Mr.. Arnold, for the Receivers. who
es operates s the street s rail W property roper y u not n,t the e sz ,a osO t a1 to
he espornDe thereon tn Computations pm alton Sm ma @sf By " Mr. Is' T. R. a Ash, engine engineer for the
city, such net profit will amount to about $1OO0O6OO.
0 BY order of Judge Hook, Bon j. Arnold was engaged to make an inven-
; tory and appraisal for the rec receivers b.m, Of all street tDst, TanT Tsrp Property Syd in M rs
e the basis of al unprotected investment was o June l. 1912, s24454S2Si7.
c property ef o Of the R RPDsssS City Nv w sss saV Belt Railway Comp Company, and ali sis,
Mr.. L. R. Ash and Mr.. p j. Kehy werer requested by the city and the
d receivers tt compare and review their respective appmisals and endeavor
to reconcile their differences. Under date of September 6 1913, they agreed,
d of May 81, 1912 was s225oOOOO. Eghtyfour per cent thereof is in Missouri
e There IAN be \ . question but nut that property cy of Of the char character act axs Of the he
the cost If reproductions less depreciation-that is, the difference between the
y present mt vs siuesS Of material wl and nd the h e G SIytse wSsn n nsE, Of III IKE ero masss5ai franchise
until after $e8OOoOO has been put back tut Of the earnings
what is Known as the Union Station loop, extending from Southwest boule
d Main to Nineteenth street The title to the loop will vest absolutely in the
s md; H that It t~ will II be p paid idG for so ou t Of T. the Is sssoooS 90 net ne profit E'G The Te city it
~ will have the right to permit any railroad company to use the station loor
The franchise does moi attempt to take rom n add to the rights ac
CURED by the terminal company under its franchise contract. The obiga
re lions of the terminal company to the city. and o. the city and street rail
franchises, and the right to enforce them is expressly reserved to the ter
of Section IS in regard to interurnan lines provides that the city MAJ
stadon-a proposition which ought to be developed in a way that viii b
or as well IS the street ST railway company and the th~i inter rmS n" compan 1tuefA"
The franchise (secdon 11 provides for the overhead trolley system
any portion portion Of the street railway lines in contested districts of the city tt
In regard to the disposition Of earnings, the proposed franchise C@e
f%9 paid ID 6 sa0s IS fon ias he gross earnings Of the company in Missouri 'A'
nd First All expenses of maintenance and. operation, including mainter
ance necessary to provide frstclass modern service, shall be first pt
Taxes and public charges of every kind shall also be paid by the compaan
dt Second Six per cent ger annum shall be paid semtannuany IN tn
Third All liabilities for personal injury and property damaged are
= . D Fourth. : The whole e'% Of the gepSaHs Oft the earnings are to be credre
Of the sum of Of ssDsOS 1000 is is Sc s1s us %l and S% therean to t heoa surplus 80 in eeDD@ sS nj 5
d d dt I'd paidmtwothirds to the city and onethird to the company. A
o etys share of the surplus may. by ordinance. approved by the people b
es ty shaIe OF tn surplus viii b. used in payment of extensions and add
borrow money, the amount of which would be added to capital value whe
lis the ctys surplus is Used to pay for additions and extensions CAPITAL valu
M is not increased. In effect, the city by that means will. invest its hare
the surplus at the rate o 6 per cent per annum.
ty In former franchises and contracts provisions have been made 70
lb-I taxing care or the property at the en- of the terms. For that reason NOR
yes cages were made to expire several years beforehand s. that bondholder
Use would AVE a margin of time after the maturity of their bonds in which
eat compel payment of them before the expiration of the franchise. To preyep
a recurrence Of this situation. the proposed franchise provides that at tn
ed, en- OF IN temt the city may take over the property. o. payment of til
,r unpaid portion OF the capital value, Or transfer this right to n other ne
12 son or corporation, or may renew the contract with the company. II reouir
ire the company to continue to operate under this contract, pending other a
by rahgements; Oh tho city may actually take possession of the property
I'M tne cgai Of the company. and operate it by three city directors, IS tu
tees, M pay, out o. earnings, the unpaid portion Of the capital value
rs We consider these provisions fair and just. both to the public and
IWe company
nerl II Is hOt acucan within the limits Of this report to review all til
to provisions of the ordinance. We have read the franchise with great car
nj are satisfied that while it is fair and Just to the companv n Is ais
Just M fair to the public and that the public interest is carefully SAT-
fol guarded and protected.
Dw] mons ouher things, the city has reserved the right. after three YEAR
of % requre IN company to change the overhead system to undergroun
per system IN the congested districts of the city, and the motive power ms
ase be changed by consent of the city.
out by section ~ OF the proposed franchise the total receipts of the ION