« AnteriorContinuar »
CHICAGO STREET-RAILWAY FRANCHISES.
Ordinances passed by city council Feb. 4, 1907; vetoed by mayor and passed over veto Feb 11, 1907; approved by people on referendum vote April A 1907.
Systems to be reconstructed and rehabilitated Within three years.
City to supervise rehabilitation through board of three engineers.
Life of grant not to extend in any event beyond Feb. 1, 1927.
City to receive 55 per cent and companies 45 per cent of the net profits from the operation of the roads.
Twenty-one through routes specified and provision made for others.
Fares for adults to be 5 cents for continuous trips in one general direction within the present or future city limits.
Transfers to be given at all connecting points on and to all lines except in section on south sid,^ between 12th street and the river.
Motive power of cars to be electricity applied by the overhead or underground trolley systems.
Cars to be of the latest and most approved pattern and to be kept clean and warm and well lighted.
Cars to be operated singly after one year.
Companies to pay $5,000,000 toward the construction of subways In the downtown section at the city's option.
City given the right to purchase the property of both the present great systems at any time upon giving six months' notice.
Agreed value of Union Traction company's property June 30. 1906. $29,000,000 and of the Chicago City Railway company's property at same date $21,000,000. The purchase price for the city is to be the aggregate of these two sums, with the value of work done and property acquired between the date named and the date of the passage of the ordinance and the cost of rehabilitation and extensions added.
CHICAGO CITY RAILWAY FRANCHISE.
The preamble recites the fact that the city desires, for the proper accommodation of the public, to provide for the reconstruction, re-equipment and extension of the Chicago City railway system and for Its unification with the Chicago Union Traction system and to determine the conditions upon which the city shall have the right at any time to purchase and take over the company's streetrailway system.
The first section authorizes the company, in consideration of Its accepting the ordinance, to construct, reconstruct and maintain a system of street railways upon certain streets in the city, the streets being specified in a list which is made part of the ordinance. This authority is subject to the rights of the Chicago General Railway company in certain streets until Feb. 8, 1912.
For the purpose of carrying Into effect the plan to unify the street-railway systems It is provided that where this ordinance and the similar ordinance running to the Union Traction company confer grants upon more than one company in the same
Fart of any street the rights so granted shall be or a mutual and joint use of tracks. Wherever tracks are used in common they are to be maintained at the Joint expense of the companies.
Section 2 provides that the company shall proceed at once to reconstruct portions of its track and roadbed and put its entire system, plant and equipment In first-class condition, as specified in an exhibit which is made a part of the ordinance. The exhibit requires among other things that the company shall proceed at once to remove its present tracks, slots and conduits and substitute electric tracks; to rebuild at least sixty miles of its present electric track with track of the character specified in the ordinance; to construct power houses enabling the company to operate its street railways efficiently and continuously; to rebuild
and re-equlp its carhouscs so as to enable It to properly clean and maintain its cars; to increase as rapidly as possible the number of double-truck cars until there shall be at least 800 of them in operation (1.200 In case of Union Traction). All this work must be completed within three years.
In section 3. it is provided that the city shall have the right to require the company to make extensions to the lines enumerated In the list attached to the ordinance, but such extensions shall not be in any street nearer any existing parallel tracks of the company than half a mile, nor shall the company be obliged to build more than four miles of double track in any one year. (Six miles In case of Union Traction.)
In section 4 It Is specified that the power to be used shall be electricity applied by the overheadtrolley system, provided that the city at any time after three years from the date of the acceptance of the ordinance 'may require the company to use electric power transmitted by the underground system.
USE OF POLES AND CONDUITS.
Section 5 gives the company the right to use trolley poles, wires and conduits for all purposes solely connected with the operation of its street railways. The city Is given the right, without the payment of any compensation therefor, to use the poles of the company for its signal, telephone, telegraph and electric-light wires.
Provision is made In section 6 for a future subway system. The company gives the city, and the city reserves, the power to require the company to join with the Chicago Railways company (Union Traction) and the city in defraying the cost of the construction of a system of subways for the joint use of the companies as downtown terminals and for the use of the city, the legal title to be in the city. It is a condition of the company being required to join In defraying the cost that the suitways shall not be used for street-railway purposes except by the two companies named. The companies shall not be required to contribute to the cost any amount In excess of the pro rata cost of that part of the subway system to be devoted to the use of the companies and the total amount which the companies shall be required to contribute shall not exceed $5,000,000, exclusive of the cost of reconstructing the present tunnels under the Chicago river. Provision is made for the future extension of the sabway system in the same manner. The city reserves the right to build subways in any and all streets In which the company is authorized to construct and operate street railways. It Is further provided that the elevated railways may use the subways upon the payment of a reasonable rental In case the capacity of the subways shall permit of such an arrangement.
CITY TO SUPERVISE REHABILITATION.
It Is provided in section 7 that the rehabilitation of the street-railway systems shall be supervised by a board of three engineers, one of whom shall be named by the companies and one by the city, Bion J. Arnold being the third (section 34). The company shall purchase all the material and do all the work subject to the approval of* the supervising engineers, and to the actual amount paid by the company in carrying out the requirements of this section shall be added 10 per cent of such amount as a fair and proper allowance to the company for conducting the work and 5 per cent for its services in procuring funds therefor. During the threeyear period of "immediate rehabilitation" 70 per cent of the gross receipts shall be set apart and used as far as required in defraying the operating expenses, including maintenance and repairs.
REMOVAL OF TRACKS.
The company is required by section 8 to remove all unused tracks at once. Failure to operate cars for the carriage of passengers at least once each way within every hour of each day between tt a. m. and 8 p. m., over any street in which the tracks of the company are laid, shall be treated as a cessation of operation, unless such operation is Interfered with by strikes, unavoidable accidents or litigation.
The right to sell unnecessary property Is given by section 9 to the company, but the written consent of the board of supervising engineers must first be obtained.
In section 10 the company agrees to comply with all reasonable service regulations which may be prescribed from time to time by the city council. the approval of such regulations by the supervising engineers to be binding upon the company, but not upon the city, as to reasonableness.
Style of Cars—All the passenger cars hereafter to be built or purchased shall be of the best finish. style and design; they shall have center aisles and shall be without running footboards. Cross seats facing forward shall be used, but longitudinal seats, each seating not more than four passengers. may be used at the ends of the cars. All closed cars shall be vestibuled.
Push Buttons—All cars shall be provided with electric bells and push buttons.
Fenders—All cars shall be provided with efficient fenders, headlights and sandlwxes.
Brakes—Each double-truck car shall be equipped with two sets of brakes, one of which shall be a hand brake and the other an efficient power brake of modern type.
Cleanliness and Ventilation—The cars shall at all times be kept-clean and In good repair and shall be thoroughly ventilated.
Heating—The cars shall be kept heated at the temperature of 50 degress as nearly as practicable, and each car shall contain a standard thermometer.
Lighting—All cars shall be kept well and sufficiently illuminated bv electric or other lights.
Signs—Each ca>* shall bear appropriate and conspicuous signs upon both its sides and ends so as to Indicate both by day and night the route and destination of the car. At night the signs shall be illuminated.
Advertisements—The company may permit advertisements on the inside of the cars between the tops of the windows and the transoms.
Funeral and Mail Cars—The company is authorized to operate funeral cars and separate ears for the use of the United States postofflee department.
Single Cars Only—Every electric car shall be In control of a motorman and a conductor and after the expiration of one .year shall be operated singly.
FARES AND TRANSFERS.
Section 11 provides that the rates of fare shall be: For a continuous ride in one general direction, within the present or future limits of the city, over its lines 5 cents for each passenger 12 years of age or over and 3 cents for each passenger between 7 and 12 years of age. Children under 7 years are to be permitted to ride free if accompanied by a person paying fare. Every passenger may demand a transfer entitling him to ride upon any other line of the company or any other line operated by any other corporation from which the company is obliged to accept transfers which crosses, connects with or comes within 200 feet of the line upon which the passenger paid his fare. This obligation does not apply to any connecting point in the south division north of I2th street, except that upon the completion and operation of subways transfers shall be elven at such points within the subways where lines of railway connect with each other. In cases of delay passengers are entitled to transfers to the nearest line operated by thie company. The company shall also accept as fares transfers issued to passengers upon any line of the Chicago Railways company and the Chicago General Railway company. It shall also exchange transfers with other companies after their franchises shall have expired and shall have been extended or renewed.
No passes of any kind shall he issued and only employes of the company, policemen and firemen In full uniform shall be permitted to ride free. Mail carriers in uniform may ride without paying
fare in the event that the postofflee department shall pay to the company not less than $10,137.75 per annum, a3 In 1906, with a proportionate Increase for any increase in the number of carriers. (Section 12.)
It is provided In section 13 that the company shall co-operate with the receivers of the Chicago Union Traction company and other corporations in establishing and maintaining through lines of. cars over the lines of the respective companies. , This applies to such streets on the west side as Halsted. Ashland, Western and Kedzie. In the case of lines entering the south division of the" city, north of 12th street, passengers are to be carried from the south division to the other two divisions, or in the reverse direction, for a single fare. Certain routes agreed upon by the parties concerned are particularly described in an exhibit, which Is made a part of the ordinance. These routes are as follows:
No. 1—Beginning at Indiana avenue and 51st street, north on Indiana to 18th street, west to Wabash avenue, north to Lake street, west to State street, north to Division street, west to Clark street, north to Evanston avenue, "north to Devon avenue, west to Clark street; returning by the same route.
No. 2—Beginning at Halsted street and 79th street, east on 79th to Vineennes road, north to Went worth avenue, north on Wentworth avenue to Archer avenue, east to Clark street, north to Division street, west to Clybourn avenue, north to Belmont avenue; returning by the same route.
No. 3—Beginning at Lake avenue and 55th street, west on 55th to Cottage Grove avenue, north to 22d street, west to Wabash avenue, north to Harrison street, west to Dearborn street, north to Washington street, west to LaSalle street, north to Illinois street, west to Wells street, north to Clark street to Howard avenue; returning by the same route.
No. 4— Beginning at 75th street on South Chicago avenue, north on South Chicago avenue to Cottage Grove avenue, north to 22d street, west to Wabash avenue, north to Washington street, west to LaSalle street, n«rth to Illinois street, west to Wells street, north to Chicago avenue, west to Larrabee street, north to' Lincoln avenue, north to Bowmanvllle (Foster avenue); returning by the same route.
No. 5—Beginning at 77th street and Vineennes road; north on Vineennes to State street, north to Van Buren street, west to Kedzie avenue; returning by the same route.
No. 6—Beginning at 77th street and Vineennes road, north on Vineennes to State street, north to Washington street, west to Desplaines street, north to Milwaukee avenue, north to Armitage avenue, west to 44th avenue; returning by the same route.
No. 7—Beginning on State street at 39th street, north on State street to Madison street, west to 60th avenue; returning by the same route.
No. 8—Beginning at Jackson Park avenue and 63d street, west on 63d street to Halsted street, north to Evanston avenue, north to Graceland avenue; returning by the same route.
No. 9—Beginning at 69th street and Ashland avenue, north on Ashland avenue to 12th street, west to Paulina street, north to Lake street, east to Ashland avenue, north to Clybourn place; east to Southport avenue, north to Clybourn avenue; returning by the same route.
No. 10—Beginning at 71st street and Western avenue, north on Western avenue to Belmont avenue; returning by the same route.
No. 11—Beginning at North avenue and Clark street, south on Clark street to Madison street, west to Ogden avenue, southwest to 40th avenue, returning by the same route.
No. 12—Beginning at Clark street and North avenue, west on North avenue to Wells street, south on Wells street and 5th avenue to Adams street, west to Clinton street, south to Harrison street, west to Halsted street and Blue Island avenue, southwest on Blue Island avenue to Western avenue: returning by the same route.
No. 13—Beginning at 48th avenue ane" Archer avenue, northeast on Archer avenue tc Hoisted street, north to Evanaton avenue, north to Graceland avenue; returning by the same route.
No. 14—Beginning at 46th avenue (48th avenue when the steam railroad tracks on 46th avenue are elevated) and 12th street, east on 12th street to Ogden avenue, northeast on Ogden avenue to Randolph street, east to 5th'avenue, north on 5th avenue and Wells street to Clark street, north on Clark to Diviersey boulevard; returning by the same route.
No. 15—Beginning on. 21st street at Douglas park, east on 21st street to Halsted street, north to Canalport avenue, northeast to Canal street, north to Polk street, east to 5th avenue, north on 5th avenue and Wells street to Clark street, north on Clark to Diversey boulevard; returning by the same route.
No. 16—Beginning at State and 39th streets, thence north on State to Lake street, west to Austin avenue; returning by the same route.
No. 17—Beginning at 63d street on Kedzie avenue, north on Kedzie to Chicago avenue, east to California avenue, north to Belmont avenue, returning by ihe same route.
No. 18—Beginning on Evanston avenue at Graceland avenue, south on Evanston avenue and Halsted street to Madison street, west to 60th avenue, returning by the same route.
No. 19—Beginning on Chicago avenue at 60th avenue, east on Chicago avenue to Milwaukee avenue, south to Lake street, -east to State street, south to 63d street, returning by the same route.
No. 20—Beginning on Madison street at 60th avenue, east on Madison street to and around the State street loop, returning by the same route.
No. 21—Beginning on North avenue at 48th avenue, eaat on North avenue to Milwaukee avenue, south to Lake street, east to and around the State street loop, returning by the same route.
These through routes are to be put in operation immediately after the reconstruction of the tracks covered by such routes. Other through routes may be established by the company or be required by the city council to be established. In case the companies interested are unable to agree upon terms for establishing these routes it shall be the duty of the supervising engineers to determine them.
STREET SPBINKI.ING AND CLEANING.
Section 14 requires that the company shall sprinkle, sweep and keep clean from snow that portion of each of the streets occupied by its right of way.
The company shall at its own expense fill, grade, pave and keep In repair that portion of the streets occupied by it. (Section 15.)
All new tracks hereafter laid shall be of the grooved pattern. (Section 15.)
MAINTENANCE, REPAIRS, RENEWALS AND
After the expiration of the three-year period of reconstruction and re-equipment the company shall at all times maintain its street-railway system, plant and equipment in first-class condition. To this end the company shall make the following expenditures: CI) For maintenance and repair each year a sum equal to 6 per cent of the gross receipts for that year, the unexpended portion, if any, to be deposited in a fund to be used when necessary for maintenance and repairs. (2) On or before the fifth day of each month the company shall deposit in a separate fund a sum equal to 8 per cent of the gross receipts, which shall constitute a reserve fund for taking care of renewals and depreciation of the street railways for the preceding month. Payments out of the fund are only to be made on written certificates of the board of supervising engineers. (Section 16.)
INSURANCE. In section 17 it is provided that the company shall at all times keep its property fully insured against loss by fire, the cost of such insurance to be considered as part of the operating expenses.
Section 18 provides that the company shall pay as part of the operating expenses all damage* arising or growing out of injuries to persons or the property of others and for that purpose may set aside such percentage of the gross receipts as the board of engineers shall estimate to be sufficient to protect the company against all suca claims.
REGULATION OF SALARIES.
The company is to pay as part of the operating expenses all the salaries of its directors, officers. agents and attorneys. The city has the right to object if it thinks the salaries are unduly large and the matter is then to be decided by the board of engineers. If either party remains dissatisfied the matter may be laid before any court of competent jurisdiction1 for final adjustment. (Section 19.)
RIGHT OP CITY TO PURCHASE AT ANT TIME.
Section 20 provides that the company by the acceptance of this ordinance shall grant to the city, and the city reserves to itself the right. upon the first day of February or upon the first day of August of each and any year after such acceptance upon giving at least six months* previous notice in writing to purchase and take over (but Only for municipal operation in case of purchase prior to Feb. 1, 1927) the entire streetrailway system of the company within the city. except certain real estate in Hyde Park, with all renewals and repairs and including all the property, franchises, richts and claims described in the appraisal inventory as of June 30, 1906, made by Bion J. Arnold, Mortimer E. Cooley and A. B. du Pont, and filed with the comptroller of the city.
PRICE TO BE PAID BY CITY.
In case the city shall purchase and take over the company's street-railway system then it shall
fiay for the same the aggregate of the following terns:
1. The value of the property as described in the appraisal inventory and the value of all the franchises, rights and claims of every description, to construct, maintain or operate street railways Id the city now belonging to the company. This value Is fixed at the sum of $21,000,000.
2. The value of any and all property acquired by the company between June 30, 1906, and Feb. 1. 1907. This is to be determined by the board of supervising engineers.
3. The cost of reconstruction and re-equipment and of the construction of new lines, extensions and other additions to property actually paid by the company at and prior to the purchase by the city.
4. After notice is given by the city of its intention to purchase and before the date of purchase the board of engineers shall make a written estimate of the probable cost of completing anj work provided for in the ordinance and to the extent that such wdrk has been contracted for the city shall take over such contracts and procure the release of the company from all obligations thereunder.
PAYMENT OR DEPOSIT OF PURCHASE PRICE.
Upon the payment in cash of the amounts called for in paragraphs 1, 2 and 3 and the deposit of the sum, if any, required to complete pending contracts, or the deposit of the aggregate amount with one or more depositaries authorized to act as such, the city shall have full right and legal authority to take over and possess as its own all the property of the company, including plant and equipment of every sort, free of all liens and ciaims of every nature.
The company further grants to the city, and the city reserves to itself, the'right (in addition to the right of purchase hereinbefore granted and reserved) to purchase at any time prior to Feb. 1. 1927, the street-railway system, rights and property of the company at the same times and in the same manner uiwn which the city has the right under the foregoing provisions of this section to purchase the same. The price to be paid therefor by the city under the right of purchase granted and reserved in this paragraph shall be the price at which the city shall then have the right to purchase the property for municipal operation as specified, and in addition to such price a sum, equal to 20 per cent of such price. The property, to the possession of which the city shall then be entitled, shall include all the property then existing which constitutes the street-railway system of the company, all of the property acquired thereafter by the company and all extensions and additions constructed under the provisions of the ordinance.
CITY PURCHASE DURING RECONSTRUCTION PERIOD.
In section 21 it Is provided that in the event that the city shall elect to exercise its right of purchase at any time before the work of rehabilitation is completed it may do so, subject to the right of the company to complete the work of rehabilitation.
RIGHT OF LICENSEE TO PURCHASE.
Section 22 provides that the company shall grant to the city, and the city reserves for itself, the right to designate any person, firm or corporation who or which shall have- the right to purchase the etreet-railway system of the company at the same times and in the same manner as the city has the right to purchase, subject to the condition that the licensee shall purchase the same property which the city has reserved the right to purchase and that the price to be paid shall be the same as that at which the city shall have the right to purchase the property for municipal operation, and in addition a sum equal to 20 per cent of such price. It Is provided, however, that the licensee shall not be required to pay the additional 20 per eent if before the purchase is consummated a contract shall be made between the city and the licensee, which shall limit the beneficial interest of the licensee to a return of the actual money invested therein by the licensee and not exceeding 5 per cent thereof in addition thereto, and Interest upon the money and an additional per cent at a rate not exceeding 5 per, cent per annum, and which shall' provide that all net profits in excess of the beneficial interest of the licensee shall lie paid over to the city.
BIGHTS OF COMPANY IN CASE THE CITY DOES NOf PURCHASE FOR TWENTY YEARS,
It is provided In section 23 that In the event that the street railways are not purchased by the city or Its licensee prior to Feb. 1, 1927, the city shall have the right to designate any person, firm or corporation to purchase the street railways, property and rights of the company upon the same terms that the city could then purchase. In case the city shall grant a right to another company to operate street railways In the street's occupied by the lines of the company, such new company shall be required to purchase the property of the old company at or before Feb. 1, 1927.
INTEREST RETURN UPON CAPITAL INVESTMENT.
Section 24 provides that the company shall on the 10th day of Apr-11 of each year come to' an accounting and settlement with the city as of the 31st of January preceding upon the following basis: From the gross receipts of the street-railway system for the year there shall be deducted:
First—(1) All expenses of operation, including maintenance, repairs and renewals; (2) all amounts contributed during the year and held in reserve; (3) all amounts paid out for taxes and assessments; (4) all salaries and expenses of the board of supervising engineers after the period of Immediate rehabilitation; and
Second—A sum equivalent to a per cent per annum for the year upon the amount of the cash purchase price which the city would then be obliged to pay If it were purchasing the property for municipal operation.
DIVISION OF RECEIPTS.
After the deduction from the gross receipts of these items the amount remaining shall be considered the net receipts for such year from the operation of the street-railway system and shall bs divided between the city and the company in the following proportions: Forty-five per cent to be retained by the company an i 55 p-*r cent to be paid forthwith by the company to the city.
COMMUTATION OF FARES.
It Is understood and agreed that the company's agreement to pay *to the city the 55 per cent of the net receipts Is based upon its right to charge the rates of fare prescribed In section 11 and to retain 45 per cent as its own. The city reserves, however, the right to commute Its share of the net receipts Into a reduction of the fares.
SINKING FUND FOR MUNICIPAL PURCHASE.
It Is further provided that, subject to the action of the city council, the city shall deposit the amount so paid to it to the credit of a separate fund to be kept and used for the purchase and construction of street railways by the city.
CAPITAL INVESTMENT LIMITATION.
Section-25 prescribes that the company shall not be required on account of any subways, underground trolleys and extensions to increase its total capital investment to such an extent that the return thereon over and above the interest charge of 5 per cent would be reduced to an unreasonably small amount.
Under section 26 any state or national bank or trust company In Chicago or New York which has a capital stock and surplus amounting to at least $1,000,000 may be selected and can act as depositary under the ordinance, except that all deposits, exclusive of those of purchase money in the event that the street-railway system Is bought by the city, shall be made with depositaries in Chicago.
In section 27 It is provided that the company shall have the right to select the particular depositary or depositaries with which it shall deposit any of the funds required under the ordinance. The city has the same right of choice and each is responsible for any loss or impairment of the funds so deposited. If. however, the city shall deposit the funds in depositaries named by the company in lieu of those chosen by the city, then the city shall not be responsible for such deposits. Provision is made In section 28 for the payment of proper Interest on deposits.
The company is required by section 29 to make annual reports to the city comptroller on or before April 10 of each year for the preceding year ended Jan. 81. Such reports arc to be in writing, setting forth in treasonable detail the receipts and expenses and other facts relating to the business. The accounts of the company are also to be audited by public accountants selected by the city and company, the expenses to be paid out of the gross receipts as part of the operating expense.
OFFICE IN CHICAGO.
The company shall not remove its principal office or any of Its books (except bond registry and stock transfer booksi). records, accounts, contracts or original vouchers beyond the limits of the city (section 30).
FORFEITURE FOR NONCOMPLIANCE.
The company agrees (section 31) that In the event that It shall make default in the performance of the agreements or conditions of the ordinance, then the city shall be entitled to declare the grant forfeited and at an end. In case of a foreclosure sale the city shall have the right to bid and become the purchaser.
The company further agrees that if it shrill fall to complete the work of rehabilitation within the time specified, and the board of supervising engineers so certifies to the city, the company shall pay for each day of such default or neglect the sum of $10,000 as liquidated damages; and if the company shall fail to comply with the provisions for first-class service the city shall have the right to sue for any sum from $50 to $500 for each and every such failure, and each day that such failure shall continue shall be regarded as a separate offense.
Sections 32 and 3.'t relate to the formal waiver of rights by the company and the right of the city to intervene in suits against the company.
BOARD OF SUPERVISING ENGINEERS.
Section 34 provides that within thirty days after the acceptance of the ordinance the company and city shall each appoint an engineer to be members of a board of three supervising engineers, the third member of which shall be Blon J. Arnold. Provision is made for filling the position of third engineer by the company and city and If they are unable to agree by the judges of the main Appellate court. If these judges refuse to make the appointment, then any Judge of the Circuit court may do Ho upon application by the city or company after written notice of the application has been given.
The board of supervising engineers shall maintain an office in the city and employ necessary assistance. The third member shall be ex officio eha-lrmau of the board and shall be paid $15,000 a year. In addition he shall be paid $15,000 a year for his services as chief engineer during the three-year period of rehabilitation. The other two members of the board shall be paid at the rate of $100 a day each and expenses when away from home and when actually engaged upon this work, it being understood that the total compensation of each will not be less than $3,600 nor more than $10,000 a year. The salaries and expenses of the board during the period of rehabilitation shall be added to and form a part of the cost of such rehabilitation, but thereafter shall be paid out of the gross receipts as an operating expense. The same engineer who represents the Chicago City railway srall represent the Chicago* Railways company (Union Traction).
POLICE POWER RESERVED.
In section 35 the police power of the city is expressly reserved.
UNIFIED OPERATION ASSURED.
Comprehensive rehabilitation and unified operation are assured by section 36, which provides that If the Chicago Railways company (Union Traction) shall fail to accept an ordinance similar to that of the Chicago City Railway company, then the City Railway company shall extend and operate its street-railway system upon the streets covered by the rejected ordinance so far as the rights of the companies now operating the street railways upon such streets have expired by limitation or otherwise. The City Railway company agrees to furnish the funds required in such event. Its obligations under this section may be discharged by itself or by the Chicago City Railroad company, a corporation organized under the laws of Illinois.
The ordinance is binding upon the successors and assigns of the company (section 37) and no lease or assignment shall be made without the consent of the city (section 38). Whenever the city shall purchase the company's property the company shall give a warranty of title (section 39). The company shall also file a bond In the penal sum of $100,000 to indemnify and save the city harmless from all damages, judgments and decrees which it may suffer by reason of granting the ordinance (section 40). All rights and obligations are to date from Feb. 1, 1007 (section 41).
ACCEPTANCE AND REFERENDUM.
Section 42 provides that the ordinance shall not take effect unless and until a majority of the votes cast upon the following question of public policy at the election to be held on the first Tuesday in April, 1907, are in the affirmative:
"For the approval of ordinances substantially in the form of the pending ordinances (reported to the city council of the city of Chicago on Jan. 15, 1907), authorizing the Chicago City Railway company and the Chicago Railways company, respectively, to construct, maintain and operate street railways In said city, and providing for the purchase thereof by the said city or Its licensee."
CHICAGO RAILWAYS COMPANY FRANCHISE.
As this ordinance is prncticallv the same in Its general provisions as that of the City Railway company only the principal differences and special conditions will be noted here. The Chicago Railways company, to which the franchise runs, was
organized to acquire and take over the property now in the hands of the receivers of the Chicago Union Traction company. This includes the property of the various original corporations, such as the Chicago West Division Railroad company, the North Chicago City Railway company and the Chicago Passenger Railway company.
If the property is not acquired by the Chicago Railways company within 120 days after the passage of the ordinance the permission and authority granted shall end, unless within 210 days after the passage of the ordinance a plan of reorganization In accordance with a deposit agreement, described In a later paragraph, shall have been approved. Under this plan an opportunity shall be conferred upon each individual holder of a direct or Indirect interest In the property to participate in the transfer, which opportunity shall not extend beyond Jan. 20. 1908.
Upon the expiration of the period last mentioned the company shall proceed to perfect its title to the entire property, using for that purpose if necessary any and all stocks and securities acquired through the plan of reorganization. The city may In its discretion exercise any and every power with which it may be vested to obtain title to any part of the property to which the company has failed to obtain title. The company shall then be obliged to buy from the city such property at the price paid by the city. The city, however, gives the company the right to be heard upon the question of value, which may be determined by judicial proceeding or appraisement.
Within a period of three years from the passage of this ordinance the company shall perfect its title to the entire system of street railways. The company shall not be deemed to be In default of this obligation so long as the city has given Do notice of its intention to buy the property, unless notice has been given in writing by the city of some particular defect of title, lien or incumbrance and the company shall have failed within sixty days thereafter to remove the same.
DEPOSIT OF STOCKS.
It is further provided that no right or authority shall vest in the company and the company shall not have the right to accept this ordinance unless there shall have been deposited with the Chicago Title and Trust company, under an agreement which is made a part of the ordinance, certificates of stock Indorsed In blank for transfer, representing not less than the following amounts of the capital stock of the corjwrations named: 3.126 shares of the Chicago West Division Railway company; 1,251 shares of the North Chicago City Railway company; 29,601 shares of the North Chicago Street Railroad company; 49,946 shares of the West Chicago Street Railroad company; 80.001 shares of the preferred stock and 133,334 shares of the common stock of the Chicago T'nlon Traction company.
In the event that the company shall accept the ordinance, and if by reason of its failure to comply with its provisions the permission and authority granted by the ordinance shall cease, then all the shares of stock of the companies mentioned in this subdivision of the section, owned by the company or deposited with the trustee as agreed upon, shall become the property of the city.
No right, permission or authority under this ordinance shall vest in the company unless at the time of Its acceptance of the ordinance it shall be in lawful possession of all the lines of street railway operated by the receivers of the Chicago Union Traction company Feb. l, 1907.
PRICE TO BE PAID BY THE CITY.
In case the city shall purchase the street railway system of the company it shall pav the sura of $29,000,000. This Includes the property of all the underlying companies excepting the rights and claims of the Chicago Consolidated Traction company. To the sum named shall he added the value of all property acquired and additions made, including tunnel reconstruction, between .Tune 30, 1906, and Feb. 1, 1907, and the cost of reconstruction and extensions at and prior to the time of purchase by the city.
The company shall at its own cost secure the privilege of using all of the lines of the Chicago