Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1916-10-05
DEPARTMENT OF LAW OF THE
CITY OF PHILADELPHIA

DEPARTMENT OF LAW OF THE
CITY OF PHILADELPHIA
May II. 1915.
In re building OF subway on Broad
street and. elevated on Frankford
avenue.
A. Merritt Taylor, Esq, Director, Depart
ment Of CITY Transit. Bourse Building.
Philadelphia.
Dear Sir--I have received your letter
OF the 10th instant In reference to an
ordinance which has been introduced in
Councils TO authorize an increase OF the
Indebtedness Of the city OF six million
5000. .O0o) dollars for the construction Of
a subway in Broad street and an elevated
railway from Front and Arch streets to
Rhawn street. and asking three questions
with reference TO the general subject con.
nected with such ordinance.
You ask:
/. "Is the city obliged TO offer the
Philadelphia Rapid Transit Company
4 the right to build the F'rankford ele.
waited line. as provided in Article III
OF the contract of 1907. before under
taking the construction thereof as
municipality"
I answer: When the ordinance and
contract OF 1907 were passed and exc.
cuted the city was without the power to
build subways, elevated railways or other
lines OF transportation, and such ordi-
nance and contract were drawn with that
fact necessarily in view. BY Section z
thereof the Philadelphia Rapid Transit
Company surrendered it's right TO build a
subway in Broad street and its right TO
construct the Frankford elevated railway
was confirmed. the time for the building
thereof being extended 20 three years
from June 1, 1907. That period has ex.
pired and the independent right OF the
transit company 20 build the Franlkford
elevated line has therefore lapsed.
Section 3 OF the contract and ordinance
OF July ], 1907, provided that II in the
future Councils should. either of its own
initiative or upon petition. determine that
new lines OF surface. elevated or under
ground railway should be constructed, II
should by ordinance determine the route
OF such line and the terms and conditions
under which 1t shou,d be built, financed
and operated. and the transit company
should thereupon have ninety days within
which 10 accept the plan so defined. and
certain terms and conditions governing
the construction and operation OF such
new lines are there set forth. For In
stance, Il Is provided that any rights &C
quired by the company under the third
section should be subject TO all the terms
and conditions OF the contract with re
spect 10 a voice In the management. su
pervision Of accounts. division OF profits
and the ultimate requirement OF the
roads by the city. and provision Is made
for the raising OF capital for building
these new lines By means OF bond issues
or by increase OF the capital stock Of the
company. but II the said Rapid Transit
company did not accept the plan 50 de
fined within the said ninety days. ther
and In that event the proposition might
be made 20 any other company.
Thase provisions cicariy indicate that
tho right 10 construct new lines. which
it WAS intended by the 1897 agreemcal
/ ths cty was 10 barter away. b mAnifestIs
only the right which the city ~ that tins
possessed. namely. ti,e right 70 have line.
Of railway built by companies possessing
the charter powers % construct then
and of course could not relate 10 line
which the city might Itself build. for =
that time u had No loyal authority =
- =.
~ later legislation. ll.at q 70 ssy n.
act Of Juno II. lsIs o. L 20. pl.na<3