The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1930-12-23
BREAKS PATH
FOR MEDIATING
insult, OFFER
Utility Aid Hints Franchise
Bid Compromise May
Be Arranged.
ALUATI0k IS DEFENDED
New Appraisal Proposed;
City Ownership Plan Will
Be Heard.

Be Heard.
A path leading towards a COM
promise on the proposed street car
franchise with the city was broken
by Charles w. Chase, president of
the Gary Street Railway Company
and chief spokesman for the utility
operator, at the hearing conducted
Monday night by the city hall
street car committee.
Frequently, and as if anxious to
drive home the fact, Chase de-
clared: I'VE are not presenting this
franchise with a take it or leave it
attitude.
I'VE did not expect the city to &C
cept every provision of the
franchise. We believe that we can
convince the city that in general
the franchise fundamentally is
reasonable and fair. 1t is not sub
mitted in an arbitrary sense"
Answered Questions
Chase at one time made a re-
covery and said: I'VE did not sub
NIT the franchise, above everything.
as a basis for trades and deals"
Taking two and one-half hours,
Chase in carefully planned and
delivered dissertation on the fran
chise, answered the hundreds of
questions that had been poured in
from opponents of the proposal.
Arthur l.. Gilliom. former Indiana
encouragement, who represented
several bondholders, gave an ex-
haustive explanation of the how
the indeterminate franchise came
into existence as a part of state
utility policy. He explained, with
one eye cooked toward the Demo-
cratic city committee that it had
been a cardinal policy of Democratic
Governors, Marshall and Ralston.
New Meeting Is Set
At the close of the hearing.
Z. Kirk Mckinney, committee chair
man, announced a meeting would
be held next Monday night when
proposals for municipal ownership
of the street car company would be
heard.
The meeting will be started with
submission of plan devised by the
Federation Of Civic Clubs and pre-
sented by John F. White, former
city councilman and state repre-
sentative ELECT.
Some in the audience, feeling that
this would close all discussion on
the problem, expostulated with
Mckinney, who assured them that
several other hearings would be
held before the committee reaches
any decision.
Referred to Decision
In answer to various questions
regarding the per cent return
feature, Chase declared this rate
lis necessary to secure the vast
amount of capital required for the
rehabilitation OF the street rail-
way.
The supreme court in the Bal
timore rate case a few months ago
recognized that after providing for
all operation costs, taxes and de-
probation reserve it was necessary
to have at least an 8 per cent re-
turn in order to attract capital to
this type of business"
THE $11,000,0O0 valuation is based
upon inventories and appraisals
made by Harry Garman and Earl
Carter, former chief engineers of
the public service commission, for
the Marion circuit court and CO.
incides in the main with the valu-
alton made by our own engineers"
Chase said.
Challenged by Chase
IF the city is willing to stand by
the valuation made by competent
engineers, we would be willing to
abide by their valuation, providing
the city is willing to accept higher
figure, should that be established, :"
Chase challenged.
This franchise agreement is just
like any other contract or proposal
rendered by one party to the other
he declared. If there is a desire
to have the indianapolis street rail-
way rehabilitated, there at least
should be a discussion by the par
ties together over the table as to
what, if anything, is wrong with the
individual sections and paragraphs
and an effort made to agree upon
the provisions, with such limitations
as will make them effective and fair
to both parties"
Gilliom said there is no prospect
for a cheap sale of the system. nor
can 1t be sold free from indie
terminate contract feature.
City Ownership Asked
The state supreme court has held
that when a franchise is surren-
dered and an indeterminate permit
issued by the state, a new contract
consisting of the indeterminate
permit and the terms and provisions
Of the state utility act arises be-
tween the state and the company
The national and state Constitu-
tons protect the new contract
against impairment by the state.
Thus there exists today an invio-
liable contract between the state and
the street railway company"
Herman Lieber. former council
man, declared that both the Mer-
chants Association and the Clear
ing House Association are anxious
for an early solution of the prob
lem. while a resolution was re-