Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-06-25
CITY TO INSIST
ON ANNUITIES.


CITY TO INSIST
ON ANNUITIES.
The council viii be consulted upon the
measures to be adopted in the near flu
ture, the corporation counsel said. Until
the views of the councilmen are ascer-
tanned, he said, the particular powers
which the city will seek to nave preserved
cannot be mentioned, but from statements
made in the conference 1t is certain that
the right of the city to collect $4,000 per
year for the next five years and $4,000
for the seven years thereafter as a fran
chise tax payment to the BOARD of park
commissioners, as was guaranteed under
the surrendered franchise, will be in
sisted upon. 1t also appeared probable
THAT the city viii insist that the company
continue to pay both for original cost
and maintenance of pavement between it's
tracks.
The traction men insisted that for the
city to continue to require these things
would constitute burdens which would
either break the company's back or neces-
state its appeal to the public service
commission for higher fares. They were
pessimstic about the relief to be OBJ
tanned from rate greater than 3 cents,
because the recent 6-cent charge brought
| In less revenue than the nickel
Besides Mayor Jewett, Mr.. AshLy and
Mr. Miller, the city was represented by
Russell Wilson, president; Jesse E. Mil
Ter, Jacob Z. Brown, William B. Peake,
Gustav G. Schmidt and DR.. Sumner A.
/ Furniss of the city council. With DR.
Jameson were h II. Hornbrook, Ferdi-
nand A. Winter and c. " Thompson. at
tOrneys, and Joseph MCGOWAN. secretary
Of the street railway company.
Mr.. Ashby opened the conference with
a statement that the city hoped new
contract could be agreed upon.
WINTER DIsCLosEs
COMPANY'S ANTAGONIST.
Mr.. Winter disclosed the company's
antagonism to this plan with a long
statement, In which he cited law to the
effect that 1t would be Illegal, and facts
relative to the operation Of the company
to show that it would not be conducive
to good car service. Supporting his con-
tention that a contract, giving the city
! all the rights of the old franchise, ex-
cepting that of regulating rates would
be Illegal, Mr.. Winter argued that the
public service commission law provides
that no franchise or contract shall be
taken into account by the commission
In liking rates; that the only basis for
rate making is a fair return upon the
valuation Of property used and disable.
Any contract which gave the city the
powers il seeks, including that requtr-
ing the company TO pay the $4,000 and
$4,000 annual franchise taxes, wouis
have a direct bearing upon the matter
OF rates because. by adding burdens 1t
would compel the public service commits
sion to take them into account and give
a higher fare IN order that the reason
able return upon the valuation might be
maintained.
Besides this. the utility attorney ar
gued. Section 10 in giving the city the
power to regulate utilities by contract or
ordinance does not apply to corporations
which have surrendered their franchises
but rather to new companies which seek
to come into the field
ASHBY'S VIEWPOINT
ALTOGETHER DIFFERENT.
These contentious We're opposed by Mr.
Ashby. who said he simply did not be-
lieve Mr.. Winter had the right line upon
the matter of the legality of a contract
In the first place, and that his second ar
gument would not hold water for the rea
son that if Section 40 applied only to
new companies, it would be valueless be-
cause all new company would have to
do would be to get a franchise and then
hasten TO the public service commission
TO surrender it so as to get out Of the
city's control.
Celebrating upon the company's be-
lief that it should not pay the fran
chise tax, Mr.. Winter said he regards IT
as being merely form Of indirect taxa
ton Of the people who ride the cars.
he "a ~
could just as we'll tell US to pay a tax OF
5000 a year for the support of the
police department and another $4,000 to
keep up the fire department and then we
would have to go the public service com
mission and say that we want a rate
which will not only give us a reasonable
return upon our valuation but also en-
able US to pay these special taxes
"The public service commission simply
could not do that under the law. In
hearings it frequently has indicated to
US that it does not view the original paw
ing of tracks and the franchise tax as
legitimate expenditures"
ASKS ABOUT SHELBY
STREET BARNS.
Mayor Jewett asked Mr.. Winter what
the company intends to do about the
Shelby street barns. Under the terms of
the surrendered franchise the city was to
have the rental Of this property, located
at 1874 Shelby street, and used for the
housing of city street cleaning and ash
hauling equipment and motive power.
until 1884, at 81 per year, at the end of
which period 1t was to be decided to
the city by the street railway company
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