Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-10-05
CITY DEMANDS
$5OO,OOO FROM
STREETCARC co.
Request Made Only to
Bring About
Trade

Corporation Counsel Samuel Ash
by today carried out his intention,
announced some time ago, OF formal
ly demanding payment of the $780,
600 franchis etax from the Indian
apohs Street Railway Company. The
tax, Mr.. Ashby held in a letter to
the company is collecuble because
it fell due before the utility sur
rendered its franchise.
1t was understood by those with
knowledge OF the inner dealings in the
controversy between the city and the
street railway company growing out of
the surrender OF the franchise. that Mr.
Ashby's move was for the purpose of
further trading and that the city admin
istratlon made the demand with fun
knowledge that 1t could not be carried
out
The demand followed a conference be-
tween Mayor Charles W. JeWett and DR.
Henry jameson, chairman of the board
Of directors Of the street railway com
pany, late Tuesday after which it ap-
peared that settlement Of the controversy
along lines predicted by the Daily Times
several weeks ago may be effected.
Ii was predicted that the city would
relieve the company Of the burdens set
out above in return for title to the barns
at 1874 Shelby street and part of Fair,
view Park. Mayor Jewett announced,
following the conference with DR.. Jane
son, that the company may be relieved of
the tax and paving costs in return for
the barn, the land at Fa.rvew and re-
moval Of car tracks from Riverside park
Mr.. AShbys letter called attention TO
Section - Of the surrendered franchise,
guaranteeing the payment by the com
pany OF $4,000 year TO the board Of
park commi Ssioners for twenty seven
years from 1899 aud $4,000 n year for
seven years thereafter and providing that
whenever payment was defaulted all of
the remaining payments automatically
fell due in lump sum. The company
defuulted its payment on May l. This,
Mr.. Ashby contends, brought the $J00.000
Of future payments due. He said that
surrender Of the franchise did not affect
the company's liability because the
amount fell due on May and the fran
chise was surrendered later.
DR.. Jameson said that since the jituey
elimination ordinance has been passed
and the loss of 81 POO a day from jitncy
competition soon will be stopped the
company may be in position next spring
to float bond issue of $1000,000 with
which to make some improvements in the
system.
The results of the conference bore out
the assertion made some time ago that
all the city ever intended to do was to
give the stret railway company protec-
tion from the jitney In return for the
barn and part of Fairview park, while
the million dollar Improvement program
mentioned by Dr. Jameson depends en-
tirely upon the financial conditions of
next spring and constitutes only what
the company has intended doing all along
as soon as it got able.
The street railway company owns Fair
view park and the barns. The city could
use part of the park in a scheme to es-
tablish n municipal lake in the bottom
land northwest Of the park. The barns
have been used to store city equipment
and animals for more than twenty years.
Under the franchise surrendered by the
company in June title to the barns would
have gone to the city in 1889 when the
franchise would have expired.