Imágenes de páginas
PDF
EPUB

street, north to Evanston 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 Diversey 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 the 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, east on North avenue to Milwaukee avenue, south to Lake street, east to and around the State street loop, returning by the same route.

In

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. 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 SPRINKLING 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.

STREET PAVING.

The company shall at its own expense fill, grade. pave and keep in repair that portion of the streets occupied by it. (Section 15.)

GROOVED RAILS.

All new tracks hereafter laid shall be of the grooved pattern. (Section 15.)

MAINTENANCE, REPAIRS, RENEWALS AND
DEPRECIATION.

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: (1) 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.

PERSONAL-INJURY CLAIMS.

Section 18 provides that the company shall pay as part of the operating expenses all damages 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 such 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 jurisdiction' for final adjustment. (Section

19.)

RIGHT OF CITY TO PURCHASE AT ANY 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, rights 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 pay for the same the aggregate of the following items:

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 in 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 any work provided for in the ordinance and to the extent that such work 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 claims 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 upon which the city has the right under the foregoing provisions of this section to purchase the same. The price to be paid there for 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

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. 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 street-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 zent 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 be paid over to the city.

RIGHTS OF COMPANY IN CASE THE CITY DOES NOT 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 streets 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 April 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 5 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 be divided between the city and the company in the following proportions: Ferty-five per cent to be retained by the company an 55 per 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.

DEPOSITARIES.

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.

DEPOSITS.

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.

ANNUAL REPORTS.

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. 31. Such reports are to be in writing, setting forth in reasonable 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 books), 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 shall fail 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 cach 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 33 relate to the formal waiver of rights by the company and the right of the city to intervene in suits against the company.

the

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, third member of which shall be Bion 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 so 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 chairman 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 shall 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

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). 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, 1907 (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. SPECIAL CONDITIONS.

As this ordinance is practically 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 Raiiways 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 nec essary 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 no 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 corporations 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 Union 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 com. pany 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. 1, 1907.

PRICE TO BE PAID BY THE CITY.

In case the city shall purchase the street railway system of the company it shall pay the sum 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 be added the value of all property acquired and additions made, including tunnel reconstruction, between June 30, 1906, and Feb. 1, 1907, and the cost of reconstruction and extensions at and prior to the time of purchase by the city.

CONSOLIDATED TRACTION.

The company shall at its own cost secure the privilege of using all of the lines of the Chicago

Consolidated Traction company forming part of the through routes established by the ordinance or to be formed in the future. The company also covenants that it will secure to passengers the same right of transfer between the lines of the company and the lines of the Chicago Consolidated Traction company as if the latter were owned and operated by the company under the provisions of this ordinance.

TUNNEL RECONSTRUCTION.

of

The company shall, upon accepting the ordinance. immediately proceed to complete the work lowering and reconstructing the tunnel under the river at Van Buren street according to the plan prepared by Samuel C. Artingstall. It shall also proceed with the work of constructing a false roof in the tunnel under the river at Washington street and with the removal of the crown of the tunnel. Upon its organization the board of supervising engineers shall prepare plans for the complete reconstruction of both the Washington and LaSalle street tunnels and the company shall construct them in accordance with such plans.

The company must construct and equip six miles of double track or twelve miles of single track each year after the period of reconstruction. Within three years the company must have in operation at least 1,200 double-truck cars of the kind specified.

UNION TRACTION LITIGATION.

In accordance with the terms of the street-railway ordinances passed by the council Feb. 4 and 11, 1907, and approved by the referendum vote of April 2 following, efforts were made to reorganize the Union Traction properties and a detailed plan for that purpose was announced by Judge Peter S. Grosscup July 13. Objections were raised and on an appeal to the United States Circuit Court of Appeals the plan was declared illegal. It being impossible to adjust the differences and organize the proposed Chicago Railways company within the time specified in the ordinance, the matter was referred to the city council. That body on Sept. 13 by a vote of 64 to 4 extended the time in which the Chicago Railways company could accept its ordinance to Feb. 1, 1908, but provided that in the interim all the revenues of the Union Traction company outside of the actual operating expenses should be devoted to improving the property.

Oct. 21 the Fidelity Trust company of Philadel

[blocks in formation]

CHICAGO'S STREET-RAILWAY SYSTEM.

Capital (issued) and mileage of the roads operating in Chicago and vicinity.

[blocks in formation]
[subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][graphic][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][merged small][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][ocr errors][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][ocr errors][subsumed][ocr errors][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][subsumed][ocr errors][subsumed][subsumed][subsumed][ocr errors][subsumed][subsumed][ocr errors][subsumed][merged small][subsumed][ocr errors]
« AnteriorContinuar »