Omaha daily bee., 1917-02-28
CITY VS.. RAILWAY
FIGHT IN COURT
Corporation Counsel Asks Or
der Compelling Street Car
Co. to Quit Property.
TELLS STORY OF CONTRACT


turning over to the city of all the
property, interest and rights OF the
street railway company which it &C
CURED from the old Omaha Horse
Railway company, either directly OF
indirectly, as we'll as all the increases
in the value of the property, is asked
by the city of Omaha in suit just
filed in district court against the
Omaha & Council Bluffs Street Rail
way company.
Providing the court does not see fl
to return such judgment, the peti
ton, filed by Corporation Counse
Lambert, seeks an accounting of the
use of the property since he rever'
sion to the city became effective. The
physical valuation of the city's inter,
ests, as we'll as interest on whatever
judgment may be found, is also
sought.
The petition of thirteen pages was
entered on page thirteen of the file
clerks records.
Reviews History.
1t is set forth that the first charter
of the Omaha Horse Railway COM
pany, by an act of the legislature OF
the territory of Nebraska, dated from
January l, 1867, and lasted fifty years
providing that at the end of this pc
Rod the tracks, depots and other
equipment should revert to the city.
The company continued to develop,
enlarge its system and add to its
equipment, finally consolidating with
the Omaha Cable Tramway company,
according to the city. 1t is alleged
that the development of the Omaha
Horse Railway company was subject
to the reversion as provided by the
charter. On March 4, 1889, the con-
solidation was effected under the name
of the Omaha Street Railway COM
pany. That this consolidation did not
affect the city's interest in the COM
pany-the old horse car part of it
is contended.
Issuance of Stock.
The Omaha Street Railway COM
pany was 100000 stock company,
the petition states, the stock being is
sued in return for surrendered stock
in the other two companies. Accord
ing to the city counsel, it was esti-
mated in the consolidation agreement
that the horse car company had thir-
ty-six miles of track, valued at ST.
100000, and the tramway company
four and half miles of double track
worth 100000.
1t is next pointed out that on No
vember |, 1889, the Omaha Street
Railway company purchased the fran
chise and holdings of the Omaha Mo-
tor Railway company. The petition
alleged that as much of this prop
erty as was purchased as result of
contributions from the horse car COM
pany was effected by the interest of
reversion.
The franchise and holdings of the
Metropolitan Street Railway company
were purchased on November q, 1902,
the petition says, and on November
| of the same year the franchise and
rights of the Metropolitan Cable Rail-
way company.
Another purchase of rights and
franchise was that of the Benson &
Halcyon Heights Street Railway COM
pany on November IS, 1902, the allie
cations of the city being that the
right of reversion followed the prop
erty whenever the old horse car COM
pany figured in the deals. In this part
of the petition it is alleged that the
first grant of the legislature to the
horse car company remained neces-
sary to the authority of the CONSOLE
dated company to use the streets.
The present Omaha & Council
Bluffs Street Railway company was
formed on December d, 1902, the
city alleging that of the property in
volved in the last transfer much of
it came from the old horse railway
line.
Reversion Clause.
The city contends in its petition
that the property coming to the
Omaha & Council Bluffs Street
Railway company from the Omaha
Street Railway company is still sub
ject to the reversion.
From December %, 1902, till Nav
z, 1908, many Improvements, extern
sions, ETC., were made, according to
the city, all obtained from operating
the company or mortgaging it. The
city alleges that the present COM
pany needed the right of the first
grant in order to have the authority
to operate.
Many extensions and other i'm
provements made since May %, 1908,
have been made without authority,
the petition alleges, adding that the
company's right to use the streets
terminated, except the right as pro-
vided in the territorial grant.
Setting forth that the ffty-year
period of the territorial grant has