The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1930-06-19
BY BACkALL.

THE 10Th of May the City Council of Chicago
accepted all conditions of the franchise that
the street car and elevated companies sug-
gested. The franchise was drawn up by a
group of engineers that represented the insult
bank and industrial interests of the city. The
franchise was also endorsed by the so-called
"Citizen's Committee" which consists of men,
bers who are in many ways associated with
the same bank, industrial, department store,
finance interests that are parties to the fran
chise.
The City Councils acceptance of this fran
chise is an additional proof of the merger of
the Thompson administration of Chicago with
the finance industrial capital
The franchise states that the present COM
pany of the city transportation that consists
of the owners of the gas, electric, telephone
and all other public utilities, who are also the
most important officers of the banking bust
ness, that they can own the streets of Chi
cago and all the transportation facilities until
the city gives them six months notice that
they are ready to buy the street car and ele-
waited facilities. or when a different company
is willing to buy them out with ten per
cent increase of their capital value.
But it is a known fact that the city of Chi
cago after it will accept this franchise will
POSiSAOij
company.
The franchise allows the street car and ele-
waited company to value its property at $780,,
100000. year ago group of very reliable
engineers after investigating the present
transportation facilities of the city of Chicago
valued it's property in more than $130,000,000,
minus the depreciation. This means that the
franchise allows the street and elevated com
panies to overvalue its property in more than
S130000000. They value a single line per
mile 1851, when Detroit values it only $50 and
some cities $73.
In the franchise of 1907 the companies in
cluded an item of $4,000 for horses that
were dead 25 years ago, and $4,000 for We
hicles that were not in use for over genera
ton. The present franchise includes tens of
millions of dollars of property that is already
out of existence, that decayed many, many
years ago. But of course, they do not fail
to charge for property that is erected instead
of the old ones, which are out of existence.
1t is there very clear that the franchise is a
perpetual franchise, which the transportation
interests are seeking for the last seventy years
since the first day that street car was ever
built in our city.
The supreme court in the case of Baltimore
declared that the transportation company may
charge seven and one-half to eight per cent
on it's capital value. 1t is very evident that
we may expect in the near future another
raise in fares on the street car and elevated
lines. In the franchise is also stated that the
transportation companies will seek to improve
and enlarge their lines. both surface and ele-
waited, and invest the fantastic sum of $780,
100000. It is understood that when the trans
portation facilities will carry the value $780,
100000 they will seek to raise the fares on
both lines.
1t is clear now that finance capital, the gas,
electric, telephone magnates, the owners of
the department stores. merge together with
the City Council and Thompson administration
to create monopoly of the transportation
system of Chicago with capital valuation of
S46O000,0O0 including the improvements of
the future in order to be able once for all to
own the streets of Chicago forever, without
being bothered about conditions and have the