[HE A3kBf UC-NRLF I'llll III III II Ml III Mil lllll $B 3fl SSb LIBRARY University of California. GIFT OF .\Jir.C5<^A>-OiLX>.. C ...w.....^.........k..£jjL^^\-^.. Class ranchise Facts 0^ -^ A • ^u * Of THE UNIVERSITY Of £4L1F0RH^ COLLECTED BY JAMES W. 5. PETER5 A DEMOCRAT ) December 10th, 1909 »£ •- OF THE UNIVERSITY Of Address Before City Club December lOth, 1909 by James W. S. Peters. The Metropolitan Street Railway Company is claiming that the reason it desires an extension of its franchises at this time is in order to re-fund its obligations, in amount about $'26,000,000. It also states that unless this proposed ordinance is agreed to by our people on December 16th it will probably be compelled to go into receivership. It seems to me, from a survey of the situation and from a careful study of the "peace agreement" under which contract the Metropolitan Company is now acting in our city, and of the substitute ordinance proposed by it, that stronger reasons even than these alleged are In the mind of the Metropolitan Street Railway Company: In the first place, the proposed ordinance extension absolutely nullifies and makes of no effect the provisions of our Kansas City charter of 1908 in reference to the referendum of franchise matters to vote of the people. The charter of 1908 provides that all grants and extensions of fran- chises to public utilities for over thirty years are to be submitted to the people, and that grants of less than thirty years may be submitted to the people on 20 per cent petition. The Metropolitan, in. the contract submitted has assuredly avoided any further vote on rapid transit matters after Decem- ber 16, 1909, until 1951. Under the terms of the proposed ordinance the franchise rights expire in 1951. Every possible question in reference to fares, extensions, service, etc., not absolutely fixed in this proposed ordinance is by contract itself vested in the Common Council. Not only has the com- pany, in this contract, taken away from the people the right to vote on rapid transit matters and vested in the Common Council all control of street railways, but it has also incorporated in the rapid transit ordinance provi- sions in Section 9 which give to the street railway companies definite power to carry "dairy products, vegetables and farm products" through the streets Of our city. The only restriction on this permission for carrying intercity freight, which practically amounts to a franchise gront, is that this service shall be uniform and reasonable and that the city shall, by ordinance, regu- late the privilege. It is impossible at this time to conjecture what value this exclusive franchise for carrying freight through the streets of our city may amount to in the next forty-two years. It is my personal opinion that the value of this grant is liable to be eventually extended, by construction, in such manner that it will approximate in money value the franchise to carry passengers. Under Sections 19 and 21 of the proposed ordinance there are similarly concealed franchise grants in favor of the Metropolitan Street Railway Company which give it the right to furnish power, light and heat to any other individual or corporations, and permission is also given to use its trolley poles, wires, feed wires and conduits for this purpose. The terms and conditions under which these franchises shall be conducted is, under Section 21, left to ordinance passed by our City Council. It is impossible to conceive any wording that would more completely embrace all future developments and possibilities of using electrical force than the permission to furnish power, light, heat and telephonic or other 206474 2 Argument — J. W. S. Peters. signals from its wires to individuals or corporations within our city limits. By^ inserting these sections in this ordinance the Metropolitan Street Railway may have franchise rights to furnish power, heat and light, provided only that the terms under which it shall operate and contract with these Indi- viduals and corporations be set out by city ordinance. From these observations it seems clear that the Metropolitan Street Railway Company is asking this proposed ordinance in order to have con- ferred upon it the right to carry freight through the streets of our city and to maintain a monopoly of every sort of device or invention, or business that can be included in the terms for furnishing power, light or heat or telephonic or other signals to our citizens, and if this ordinance does carry, it will have accomplished this result, and acquired franchise grants for forty-two years, worth millions of dollars, without the necessity of any further referendum vote after December 16th. No wonder it can afford to carry passengers at a fraction less than at present if we grant these additional privileges and extend in addition H a rapid transsit monopoly. At?*- ^^ oj^tcuLd, But this acquirement 6f franchises is not the only valuable concession that it expects to derive from this ordinance. There is deliberately omitted from this proposed ordinance an obligation now resting upon the Metropoli- tan Street Railway Company under the Peace Agreement, which omission would more than amply compensate it for the insignificant reduction of fares now proposed. In Section 8 of the peace agreement not only is it expressly provided that the Metropolitan Street Railway Company shall pave between its tracks and between the rails of its tracks, and eighteen inches outside of the rails of the tracks with the same material as the rest of the street is paved, and keep this space in good repair; but it is also expressly provided that it "shall repave said spaces at the same time the rest of the street is repaved." This last provision puts upon the Metropolitan Street Railway Company a definite obligation to repave which has been purposely omitted from the proposed ordinance, in Section 3. This is a very important matter when you take into consideration the fact that repaving would cost the Metro- politan Company over $20,000 a mile for its double trackage. The total trackage of the Metropolitan Street Railway Company in Kansas City is at present about 250 miles of single track, and before the end of forty-two years is likely to be several times that mileage. A great deal of the paving in our city, especially the asphalt, must be repaved in the near future. It is my understanding that the contracts entered into by the Barber Asphalt Company for keeping in repair the asphalt pavements put down by them will expire in a short time, and when this obligation to repair has expired it is possible that all this asphalt space must be repaved. By omitting this clause from the proposed ordinance requiring the street railway company to repave when the rest of the street is repaved and in the same material, the city will, for the future, during the whole of the forty-two years of the proposed ordinance, be powerless to do otherwise than compel the street railway company to keep in some sort of repair the kind of pavement now between its tracks. In case at a later date our city desires to pave its streets with Belgian blocks or other expensive material and wishes the part within the tracks of the street railway com- pany and eighteen inches outside of the tracks to be paved with the same material, it will be powerless to insist that the street railway company do this paving, but will be compelled, if it desires to have its streets paved with any uniformity, to do the paving on the street car tracks at its own expense, or at the expense of abutting property owners. It has been Argument — J. W. S. Peters. 3 expressly decided by tlie courts of our states that the terms "paving and repairing" do not include "repaying," and it is hard to conceive that a street railway company would be satisfied continuously to keep up the paving adjacent to its tracks without contention under an obligation to "keep in repair." It is possible that long before the expiration of forty-two years it will claim that such work required of it by the city authorities is not embraced in the word "repairing," but is reconstruction and repaving for which it did not obligate itself. On December 16th we are asked to decide whether we shall extend the franchise of the Metropolitan Street Railway System on the terms and conditions incorporated in a proposed ordinance submitted for our vote on that date. Since the submission of the ordinance to the people, by criti- cisms made thereof in the newspapers and by public speakers opposed to the ordinance, so many uncertainties of construction have been pointed out that the directors of the Metropolitan Street Railway Company have thought it necessary to issue a statement declaring what, in their judgment, the whole ordinance really means. In addition to this the Metropolitan Street Railway Company, in its public placards, has declared that all we must do in order to receive the manifold benefits of four cent fares and incidental loaves of bread for poor children is to vote for this ordinance, and against "The Star." On study of the ordinance, however, we find a five cent fare definitely mentioned and provided for and also certain tickets to be sold six for a quarter on the cars and twenty-five for a dollar at twenty-five places hereafter to be designated by the street rail- way company. Scarcely two lawyers in the city have been able to agree exactly when, how, and under what circumstances these strip tickets are to be sold, if at all. Although the statement in the car placards providing that we may vote for these four cent fares only occupies one short definite line of print; the provisions, conditions, and sub-conditions and sub-provi- sions in the ordinance describing how these tickets are to be had and when, occupies over two pages of cloudy English, that can be construed a different way every time you try to rea them, and one of many Construction of sections 1 b and 1 c, endorsed by some of our able lawyers, is that unless the citizens of Kansas City pass an ordinance providing for a bond! issue of $875,000 to help pay for the traffic way the city will have no right to require the companies to put into effect any rates of fare whatever mentioned in section 1 c, but, in such case we will continue paying the five cent fare provided by the peace agreement and expressly reserved in section lb. Abraham Lincoln has said that before we can judge what best to do we must first know where we are, and whither we are tending. Kansas City now has a contract with the street railway company that does not expire until 1925. This contract was entered into in the year 1903 and was called the "peace agreement" as being a supposedly satisfactory settlement of all our street railway contentions, good until the year 1925. Under this contract we have had more than fair street car service, ample extensions, and comparative freedom from attempts on the part of the street railway company to dominate our council, but now the company insists that it must have a new deal in order to raise money to re-fund bonds, and is asking us to enter into a contract binding ourselves for forty-ewo years to a fixed fare for that time without any investigation whatever being made as to what sort of a fixed fare is reasonable. There has never been any demand except by the street railway company for a new arrangement and all the present hubbub stirred up In our community is caused by the street railway company insisting on a new contract sixteen years before the present 4 . Argument — J. W. S. Peters. francliise expires. There are two provisions in the proposed ordinance upon which the company is relying to obtain a majority of our votes. These inducements are in the alternative. The first is an apparent reduction in fares. The second an agreement to build, at its own expense, a traffic way for its joint use with the city to the West Bottoms over Twelfth Street. This traffic way is an absolute necessity to the Street Railway Company for the electrification of its Twelfth Street line from Washington Street to the West Bottoms. If the Street Railway Company, at its own expense, builds this traffic way the cost will be chargeable against the citizens in case we ever decide to buy the property, as we may 'do after 1945. In the meantime the Street Railway Company will be able to negotiate bonds to an increased amount equal to the cost of construction of the traffic way upon which increased amount of bonds our citizens will, in one way or another, find themselves obligated to pay interest. This being true, it would be as well for the city to issue its own bonds to pay for this traffic way, and charge the Railway Companies rental for its use. It certainly should be the settled policy of every municipality to own and control at least such part of the street railway system as constitutes the roadbed upon which the street car tracks are laid. This is now the policy of Massachusetts and New York in reference to their subways and tunnels. To this extent all experts agree that municipal ownership is advisable. There is one point, however, in connection with these promises that the Company fails to impress upon the voter. Under no possible interpretation of the proposed ordinance will we obtain both of these benefits before 1913. It has shrewdly submitted these two propositions in the alternative in order to obtain not only the votes in the West Bottoms for a traffic way, but votes of those in the South and East part of the city who desire cheap fares at once but care little for the traffic way. The body of citizenship of our city demand above everything else that we shall not hand over for an unconsconcionable time to this corporation the temptation, and the power and the means to rule our city and control by money its citizenship in the future. Such advantages as accrue to car riders on account of the difference between five cent fare and the six tickets for a quarter may be dearly bought if we give up our capacity to govern ourselves and leave an open doorway for a power that may take away all our independence in our future city administration. This has been largely the case in other cities when emerg- ing from the condition of large towns into that of metropolitan cities. The street car companies' cars have been full of pathetic appeals to the members of our community asking their suffrages. They have called attention to the fact that the saving in fares by buying tickets from them at wholesale rather than retail rates will save a loaf of bread a day to their children under 12 travelling on the cars. (A married lady with a large family has told me this is a joke as such children, as a matter of general practice, pay no fare now.) This appeal smacks so much of hypocrisy that we cannot help calling attention to the fact that the same power which is now promising these loaves of bread is the power that keeps up the price of meat, eggs, butter and grain, so high that only the well to do can afford to have them. The reader of this will perhaps say this sort of an argument is demagogy. I admit it, but so, also, is this penny loaf appeal used solely for the purpose of diverting the unthinking from the effort that this railroad company is making to obtain something of immense value from our people, which they can immediately pawn for $25,000,000, and then several million more for general distribution among promoters. Argument — J. W. S. Peters. 5 Kansas City's present contract with the Metropolitan is exceedingly well drawn and a complete document. Its legal machinery provided for enforcing its agreement and for insuring good service and extensions and the maintenance of fares established Is well adapted to accomplish results. It certainly must be admitted that it is better to pay five cents fare and obtain your money's worth than pay four and a fraction cents for service which you cannot enforce. While the peace agreement provides for five cent fare, on the other hand there is an agreement in that contract that the company shall pay an amount equal to eight percent of its gross earnings to the city, less an amount equal to the state, county and municipal taxes, which must be paid by the street railway company and deducted therefrom. This leaves to the city an amount calculated on last years' reported earnings equal to about $175,000, which goes the city's general revenue. If we do not adopt the proposed ordinance this sum will increase each year with the city's growth and in 1925 will aggregate several times that amount for the city's revenue. In the proposed ordinance in lieu of this eight percent clause the company is obligated to pay $50 a car on the average number of cars used, and also its taxes. As the number of cars used at present is about 600 the city's revenue will be decreased by the proposed ordinance about $145,000 annually. If you are requested by a tenant to extend a lease, would you not desire to be assured that you could compel him to comply with the terms of his agreement before granting the extension if he should threaten in case you refuse to ignore stipulations in the lease he already has? Would such a threat Inspire your confidence? In other words, does it not suggest that you deal with the street railway company at arms length when its placards in its cars threaten that if you do not sixteen years before you need consider the matter, grant its supplication for an extension on its own terms a refusal will mean "Poor car service and the terrible condition of Detroit, Chicago and Cleveland." Before the street railway company determines to carry out this threat it should read the forfeiture and penalty clauses of the present peace agreement. Before this company goes into the threatened receivership wherein bondholders for their own benefit will freeze out stockholders it should call to mind that courts of equity are tribunals into which men must come with clean hands and that all its books of receipts and expenditures, including those of this present campaign, will be laid open for examination and cross-examination. It should also remember that the legislature of this state and tax assessors have the right and power to re-adjust taxation and that it has solemnly proclaimed and admitted that its present assets, subject to the tax laws of this state are worth over $33,000,000. There are several different methods under which public utilities are managed and controled in different parts of these United States. The Chicago plan is designated as "A partnership arrangement," wherein the city shares profits with the corporation. Municipal ownership of rapid transit system at present is more of a hope than a reality in our American cities, although it exists in France, Germany and England, and may come in vogue with us before many years. Indeterminate franchises or franchises granted on good behavior with right of the city to purchase practically at any time, are current in Massachusetts. In New York State a method of regulation by Commission, to which Governor Hughes has contributed his influence, is being worked out. All of these different plans are attracting the thought and attention of experts. Although our form of contract upon which we are to vote December 16th resembles more the form of contract in vogue in 6 Argument — J. W. S. Peters. the city of Philadelphia, where graft, pure and simple, is rampant, the gnius that constructed the plan put before us deserves that it should have a name of its own. I would suggest the "By-ordinance Plan," for it is constructed on its obvious intention to restrict all future action from now until 1951 In reference to rapid transit control, to action "by ordinance," without giving the people any possible chance of ever having any more vote in reference to rapid transit, freight transportation over our city streets or furnishing power, light and heat and telephonic and other signals to persons and cor- porations. It is plain that the company felt sure that such matters would always slide more easily through a city council than if the terms and condi- tions were laid open to be discussed and voted upon by citizens of an educated and newspaper-reading community. The street railway company is willing to let us vote this one time on all these important matters, just when we are busy about Christmas and when 25 percent of us are dis- franchised, provided we agree to be satisfied with this one exercise of our right of referendum and promise not to demand another vote for forty-two years, during which long time we stipulate that all essential matters not definitely arranged may be further regulated to the company's satisfaction by ordinance. The company seems to be content to leave all future discretionary powers to future councils. If the proposed ordinance goes through, the Met- ropolitan doubtless is of the opinion that It will be In such powerful position in the future and so imbedded into our financial systems as to elect our councils. But then some one objects that if we turn this thing down we will have five cent fares until 1925, for under our contract we can not compel them to reduce these. Don't you believe that. The people have had this low fare held out to them now by the company as a bait. And that they will continue to demand it. The Metropolitan will not be in any more independent condition six months or a year from now than it is at present. If we discover after investigation that we made an error in not extending to them at present on their own terms they will be glad to negotiate with us in the future on the same or better terms. But if, we vote in favor of this ordinance now and in one or two or a dozen years hence find that we have made an error, we cannot rescind our contract. A Serious Argument to Democrats. y This proposed ordinance has been passed by our Democratic council and approved by our Democratic mayor, but I. as a Democrat, believe that it is fundamentally wrong. First. The grant which we now have has sixteen years yet to run an for as long as forty-two years, which contract will be irrevocable, whatever may be the changes of opinion in the future as to the treatment of these public utility corporations. Second. It ties us down for an indefinite time to a delusive fare proposi- tion aggregating to the company only a fraction of a cent less than five cents, notwithstanding the fact that in Cleveland, Detroit and elsewhere it is estimated that a reasonable charge for car service is three cents or less. And the platform on which our Democratic mayor was elected made the same declaration. The Republican City Committee and Governor Hadley have come out in open opposition to this grant. The Democratic City Committee, doubtless fearful of the results to the party, if they take a stand either for or against an ordinance passed by the Democratic administration, have, for the present at least, determined that the matter is not a party issue but that each Democrat must, as an individual, handle the matter to his own satisfaction. A bi-partisan committee of one hundred citizens, made up of both Democrats and Republicans, has been appointed at the instigation of our City Club to oppose the ordinance and is making an active campaign. This question of franchise grants by the city is a most momentous one now to the public morals of our city governments, especially in light of the probability that all of these public utilities' grants in the larger cities will some day be permitted by Republican administration to combine into one controlling company, if the Republican idea of fostering holding companies is allowed to go to its logical conclusion. This proposed ordinance not only does not increase our city's revenue, but actually decreases it about one hundred and forty thousand dollars a year. For a longer time than the probable remainder of our lives it also precludes us from the possibility of adopting any of the modern methods of handling these franchise matters. 1. It precludes us from adopting a partnership plan like that adopted by Chicago after twenty years fighting, developed into its present form with the advice and assistance of the best scientific thought and expert investigation. 2. Precludes us until 1945 from any opportunity, of municipal ownership. 3. It precludes us from owning our tracks and leasing them to private companies as prevails in Massachusetts and New York. Under this method of management the large tunnels and subway system and some of their surface lines are operated. 4. In case we hereafter discover that the rates fixed in this ordinance, which amount in practical working to about four and one-half cents for each passenger is exhorbitant, we have precluded ourselves from reducing this cost of service either by city ordinance or through regulation of locally appointed or State Public Service Commission. It would certainly seem to beilladvised to tie ousel veg down.aQw without any scientific investigation 8 Argument — J. W. S. Peters. into the question of reasonable rates to a long time franchise fixing fares at more than fifty percent greater than a three-cent charge. 5. This proposed ordinance precludes us from adopting one of the most valuable features of the Public Service Commission as exist- ing in New York, which is the supervising and controlling of issuance of stocks and bonds by public utilities corporations. It is evident that this is the fact when we consider that the ordinance, by its terms, as a matter of contract, restricts the city, in section 24, to such rights and powers of regulations and control as exist at the time of the making of this contract. And furthermore restricts the city to make such regulations only by ordi- nance, and confines its administration of such regulations to a bureau of local transportation or some employee of the city. Just what further rights and powers, vested in the New Yorkk Public Service Commission, are con- tacted away by this^ proposed franchise extension ordinance can only be determined by taking the Public Utilities Act of New York, section by sec- tion, and interpreting it in connection with our proposed ordinance taking for granted that such regulations as exist in New York cannot be used by us hereafter if there is anything in this proposed ordinance conflicting there- with. Just which of these suggested methods we as citizens of Kansas City and individuals may later choose is not an issue to be fought out until after December 16. It behooves all who favor any of these plans to unite for the one purpose of defeating this proposed ordinance. The advocates of the ordinance, in answer to all the above objections, raise the point that under the contracts now existing between the city and the street railway company there is a fare fixed until 1925, at five cents, and that we cannot, even if we desire, reduce this fare except by consent of the street railway company. The opponents of the proposed extension must admit that this is a true construction of the law, but, the street railway company insists that under the present contract it is absolutely impossible for them to finance themselves and to refund their indebtedness coming due, aggregating $25,000,000, but state that if we give them the contract right contained in the' proposed ordinance, extending their privileges twenty- five more years on altered terms they will immediately be able to raise this large sum of money to conduct their business. It therefore comes to us as suppliants asking for an entirely new deal beginning now and ending forty-two years from now, giving them practically exclusive control of our city transportation for that time. In common fairness to both parties then. when asking for these concessions which it admits are of immense value, it should on its part ask of us only such fare, beginning now and continuing during the life of our grant, as is certainly reasonable, and under such terms and conditions as experts all over the country advise to be incorpor- ated in the contract in order that the city and its citizens shall have reason- able control over the corporation exercising the public utility in their city limits. It seems to me that the political issue in this case has boiled down to the following question: Whether the Democratic administration is acting in good faith and in accordance with its solemnly pronounced party pledges. or whether for the benefit of the monied corporation regardless of the recognized restrictions that should hedge about a grant of this character. If it is not a party question then it had no business being incorporated in all our recent Democratic platforms upon which our representatives were carried into official positions, unless we write platforms for the mere purpose of catching votes and -^ith no intention of meaning anything therpby. Sor»<=^ of us Democrats think that the Democrats as a party ou^ht to . repudiate* thlB ordinance and not permit the Reji^ubUoana to pre-empt thi© evident moralities of the situation. ARGUMENT-— J. W. S. Peters. A Question of Fair Dealing. It does not seem to me that the Metropolitan Street Railway Company has treated the citizens of our community with such good faith as should ob- tain between a public utility corporation rendering us service in an Important matter like rapid transit and the citizens of our city who are its patrons and upon whose good will it must subsist. It will be remembered by all of our citizens that during the campaign following which our present Mayor Crit- tenden and the present city council were elected the Metropolitan Street Railway Company gave active assistance to the Democratic members of our administration. The Street Railway Company did not at time time in any way intimate that it would be necessary for it to ask for any extension of its franchises during this administration, notwithstanding the fact* that it must then have known what it does now, that it would be necessary for it in the near future to refund its bonds, which they state aggregate some- thing like $26,000,000. The Democrats at whose election they actively as- sisted were elected on a platform distinctly stating that three cent fare was ample for a street railway company to charge, and such a fare that the street railway company could not only pay running expenses, but good in- terest on a reasonable amount of bonds issued by it. In fact upon its actual investment. The Street Railway, shortly after the present administration came into office, began actively to obtain an extension of its present fran- chises, and there was drawn up, after consultation covering several months, between the Street Railway Company officials and our city officials an ordin- ance based upon the Chicago plan, offering to share profits on the terms therein stated, between the Street Railway Company and our City. This or- dinance received the approval of both our Mayor and ihe Street Railway Company and was printed and published and spread abroad among the citi- zenship as being a contract that would be of great advantage to our City. This contract was placed in the cars of the Railway Company and furnished to our citizens for their study and approval. Suddenly, und without any apparent good reason this contract was withdrawn and lieu thereof the present contract was hurriedly put into shape and rushed through the Com- mon Council without giving the citizens a chance to catch their breath or investigate or complain, before the thing was actually appoved by the .Mayor. It is now being submitted to only a fraction of those of our citizens who would be entitled to vote thereon if it had been set for some time when they might have opportunity to register for this important matter involving method of management of our rapid transit system until 1951. The date set for the election is only a week before Christmas at a time when the majority of our citizens are engaged in either preparing for social festivities or In getting together their books and accounts for report at the end of their current business year. No more inopportune time or one less likely to bring out votes of any save those financially interested in putting this mat- ter through could possibly have been advised by the shrewdest legal experts of Chicago or Philadelphia. The fact that twenty-five per cent of our citi- zens are disfranchised from the opportunity of voting upon this proposition by our city administration acting in conjunction with the Metropolitan Street Railway Company should be enough reason for deferring this matter until we can give our whole citizenship opportunity to express themselves in reference thereto, 10 Argument — J. W. S. Peters. Public Service Regulation. There is another very strong motive that doubtless had a great part in impelling the Metropolitan Street Railway Company to ask for readjustment of their contract rights at this time, and the definite fixing of its rates im- mediately, thus giving it opportunity to negotiate bonds at once. At the last session of the Legislature Governor Hadley and some of the State Legislators were actively urging for adoption by the Legislature a bill pro- viding for a state commission something similar to the commissions now existing in New York, Massachusetts and Wisconsin, which states have state supervision not only over railroads proper but also steet rail- ways and public utilities generally. It is also probable that this same bill will be actively urged at the next session of the Legislature not only by Re- publicans but also by a large contingency of Democrats of our State. In the New York Public Service Commission Act which became a law June 6th, 1907, and was, in a great part, the work of Governor Hughes of Fearing that such legislation now in vogue in these progressive States and gaining favor all over the United States, the Street Railway Company wishes to forestall the possibility of such a commission by obtaining its extension and issuing its bonds before it can be compelled to submit its q prospective bond issue to approval of such a commission, ^-z^i^ttju -St^AX. Tdtnanc^ is 22 Argument — E. L. Scarritt. adopted it will be our ordinance — our contract. If it is defeated we will be responsible for its defeat. We should therefore weigh it well before we act, and in so doing give the city the benefit of every substantial . doubt — for the very strong reason that if it is defeated and we find that we have made a mistake in defeating it, we can remedy the mistake by adopting it, or a better one, at any time in the future. While if we adopt it now and find we have made a mistake in so doing we cannot remedy that mistake fw forty-two years — in other words, as the old saying goes, it would be a life- time mistake. SHOULD GIVE CITY BENEFIT OF DOUBT. Another reason why we should give ourselves the benefit of every doubt is that the terms of the ordinance require that it shall be submitted to a vote at a special election on the 16th day of December. 1909. at which tirrtp a large number of our fellow citizens — fellow stockholders we might catl them in the great corporation of Kansas City — will be disfranchised and unable to vote by reason of having moved from former locations, and the lack of any recent registration. These fellow citizens may hold the balance of votes. We should not take the responsibility — while in doubt — to vote for them. On a proposition so momentous as this we should have the ex- pression of the largest number possible. This can be obtained only at a general election. There everyone has an 'equal opportunity and cannot complain. What becomes of our boasted referendum provision in our new city charter if every question of this kind and importance is submitted to the comparatively few who usually vote at special elections. The general elec- tion is but a few months off and in plenty of time to suit the avowed pur- poses of the Company. Does not the requirement that the ordinance be submitted at a special election add to your doubt? It does to mine. Another reason why we should give ourselves the benefit of every doubt that arises in our minds as to the propriety of voting to adopt this contract at this time is that, on the part of the city, there is no good or valid reason to hurry — there is no pressing need for such a contract, on the part of the city, at this immediate time. We already have a very good contract which our former g6od mayor — Mr. James A. Reed — worked for months and months to obtain from the unwilling hands of the Company, and which cured some glaring defects and repealed oppressive provisions in former ordinances, and we are entitled to enjoy the beneficial provisions of the contract thus obtained for 16 years yet to come. Why should we be in a hurry to give up a good contract and one that is certain and explicit in its terms — and which all of us can understand — for one which is so doubtful and ambiguous in its provisions that it requires, on the part of those seeking it, an "interpretation" and "construction" and "amendment" of almost every section in It. Did you ever hear of anybody writing letters or passing resolutions to "Interpret" or "construe" the present ordinance, which is commonly known as the "Peace Agreement." Not while Mayor Reed was in office. I dare say he would have scorned such a suggestion, if any one had had the temerity to make it. He doubtless would have said, "If the ordinance is uncertain or ambiguous, we will make it certain and plain before we adopt it." And even if it had .passed the council and his scrutinizing eye had de- tected faults or doubtful provisions in it he would have vetoed it, and had rtne- prepared eliminating the faults and dotibts;' .'■' Why then should we at this day ■accept and adopt -aii' ordinance whicti -l*' confessedly so honeycomb*»d with fmults and dmiW'-a, and uncertaiiiti^g-'^a;iiid Argument — E. L. Scarritt. 23 ambiguities as to bewilder the ordinary mind and put one's brain in a whirl in the attempt to follow its verbal contoritions and acrobatic syntax. Espe- cially when we have plenty of time to think about it and arrange a contract that will be plain and acceptable to all and protect both the interests of the city and the Railroad Company. POVERTY PLEA. The only reason given by the Company for action at this time is that it must have a 42-vear franchise in order to float its bonds. This does not appeal to me with very much force, because it is contrary to our common observation and experience. What has been the common practice of finan- ciers and money lenders for ages past is not going to abruptly cease just because the Metropolitan Street Railway Company of Kansas City. Missouri, fails to obtain on December 16, 1909. a forty-two-year franchise from the citizens of Kansas" City. Missouri. No! No! The money lenders are going to continue to loan their money where they can get their interest, without regard to the fate of this or any other franchise, and as long as the good people of Kansas City continue to pour their contributions into the coffers of the Company it will have sufficient to pay the interest (and then some) on its indebtedness, and as lone as interest is paid loans will be forthcoming and there will be no danger of foreclosure cr receiverships. What has been done before can be done again, and it is common knowledge with most of us that net only this company, but many others, have floated short-time bonds on much less attractive propositions than this company has to offer under its present sixteen-year franchise. Of course, it may be admitted that the Company might have to pay a little larger rate of interest on short time loans, than on long time loans — we all have to do that — but that is no overwhelming reason why we. as citi- zens of Kansas City, should give up our birth-right for the next forty-two years. After reading the ordinance over time and time again T have really come to doubt the sincerity of this '^want to pay our debts" plea. I can find no evidence therein of such a desire on the part of the Company. On the other hand. I am somewhat impressed with the notion that it rather wants to make more debts — float more bonds and stocks (on water) and increase the value of the stocks now on hand; and for my part I have no objection to its doing so if it does not do so at too great an expense to the city. Give us a fair contract, I say. and then proceed with "the cutting of the melon." COMPARISON OF PRESENT AND PROPOSED ORDINANCES. Now, as to the contracts. I say contracts because we must consider the one we have and the one that is pror>osedwhat are we giving up and what are we getting? If anv one of us as business men had a fair and reasonable contract with any one of our business associates and he wanted to cancel, change or extend it, it would be but the part of business wisdom to weigh carefully the advantages we held under the existing contract as against those of the proposed contract. We certainly would not relinquish valuable rights already secured unless we received some raluable consideration for so doing. EXTENSION OF LINES. The present existing contract which we have with the Company re- quires, in Section 7 rhereof extension? of its lines for two miles per y Par— 24 Argument — E. L. Scarritt. and it also provides in Section 37 thereof that if the extensions are not made as required the city may take possession of the railroad and operate it until it has collected the net sum of $250,000 anj also 16 per cent of its gross earnings as provided in Section 22. It further provides in said Section 37 that, "If any of the Railway Companies shall at any time fail, neglect, or refuse to obey and comply with any of the provisions of this ordinance or any lawful ordinance of Kansas City, then in addition to the rights and remedies of the city now possessed by general law or otherwise, the said Companiee shall forfeit all rights, powers and privileges by this ordinance granted and conferred and this ordinance shall be null and void." Why w'as this im- portant and essential provision left out of the proposed contract? On this subject of extensions the proposed ordinance provides in Section 2 thereof "that the aggregate of extensions on all lines shall not exceed on the average two and one-half miles per ?;ear of double track or five miles of single track." There is no provision that upon the failure of the railroad company to perform this important duty that the city may punish it in any way whatever. We have now under the existing ordinance the right to com- pel the company to extend its lines at the rate of two miles per year for the next sixteen years. Undr the proposed ordinance we have nothing but a promise that they will extend them at the rate of 2^^ miles per year for the next forty-two years. This, to my mind, is not sufficiently liberal to the city. The total mileage of extensions under the proposed ordinance which the Company promises is 105 miles. There are about twenty lines in the city, probably more, on each of which the city might require, if the Company deemed it profitable to respond to such requirements, five miles of extensions for each road during the next forty-two years. That would amount to one- eighth of a mile each year on each line, or 660 feet, about two ordinary city blocks. With the rapid growth and development of the city, whose popula- tion will probably be more than doubled in the next sixteen years, it if plain to be seen that the entire 100 miles of extensions would more than probably be constructed within the next sixteen years, leaving the city power- less to even suggest other extensions for the balance of the forty-two years, or more than a quarter of a century. By reference to Sections 2 and 1 of the proposed ordinance It will be seen that the average mileage of extensions includes not only the roads nov» Involved but also all that the Companies may hereafter operate, thus includ- mg in such average mileage in extensions any lines that the Company may hereafter construct or operate under traffic arrangements with other roads, making it more certain that the city's right to require the extensions will expire that much sooner. It makes one who has had some observation and experience along this line somewhat uneasy to contemplate the powerful club the Company will have over the city after the city's authority to require extensions of lines has been exhausted. It, therefore, requires no argument to show that the contract we have a? to extensions in the present ordinance is infinitely better than that proposed in the ordinance we have under discussion. NO CONSIDERATION FOR USE OF STREETS. In Section 2 of the ordinance under which we are now operating the Companies are required to pay annually to the city a sum equalling 8 per cent of the gross earnings of all their lines fn Kansas City, Missouri, in- cluding the Swope Park line, the electric lin« to Independence and such additional lines as may be hereafter constructed, out of which there shall be paid the taxes' of the Compwiy on its property; tk© net result anid profit to Argument — E. L. Scarritt. 25 the city to be not less than $234,000 per year; and it is further provided that If the Companies fail to pay the 8 per cent as required the city may Im- mediately take possession, control and management of the roads aua operate ^he same and collect therefrom double ihe 8 per cent, or IG per cent of the entire gross revenues of the Companies. Under the proposed ordinance this valuable income to the city is specific- ally eliminated by Section 32 thereof, and as far as I am able to ascertain from a careful study of the proposed ordinance there is nothing in its terms which presents an equivalent .for this loss. Why was it left out? TROLLEY POLES AND OVERHEAD WIRES CONTINUED FOR FORTY- TWO YEARS. The proposed ordinance in Section 13 thereof retains the right and power of the Company to maintain its poles and overhead wires as they now exist for the ixext forty-two years. That this is the intent and purpose of the ordinance and contract propoaed to be entered into by the city and the Railway Companies is fully shown by reference to Section la of the pro' posed ordinance, which provides that: "In consideration of the acceptance by 'The Companies' of all the pro- visions, conditions, requirements and limitations hereof, consent, permission and authority are hereby renewed and are hereby granted to 'The Com- panies.' their lessees, successors and assigns to own, construct, reconstruct, maintain and operate the street railways now being operated by 'The Com- panies' or any of th^m in, upon, over and along the streets and public places in the city of Kansas City, Missouri." The authority being "renewed" and the Companies given the right to operate their railways "now being operated" Is a plain contract that they shall continue to operate the same as heretofore until the end of the frar^- chise, which is .Tune 1, 1951. This right of the Companies is made more plain, if possible, by the language of Section 19 of the proposed ordinance, which reads as follows: " 'The Companies' may use their trolley poles, feeder poles, trolley wires feeder wires and conduits for all purposes solely connected with the operation of their street railways such as power, light, heat, telephonic and other sig- nals. For such purposes the Companies may connect such conduits, poles and wires with other transmission and feeder wires, power plants, sub- stations, car houses, repair shops, or other nroperty of 'The Corananies' and with any transmission, feeder or other wires of any other ir.diviJuals or corporations." This is an exceedingly important provifion. I venture to say that there Is not a scintilla of doubt in the mind cf anyone here that in the progress of a very few years the unsicjhtlv. cumbersome and exceedingly, dangerous electric trolley poles and wires will be generally eliminated from surface use and placed underground or otherwise disposed of by more modern inventions. To my mind it is absolutely essential that the city retain the right to require such wires to be placed underground as soon as it can be demon- strated that their use there will be practically effectual. In the so-called resolutions, Interpretations and constructions which the Companies have caused to be issued and published an attempt is made to lead the public to believe that the city has retained the right to require underground wires ir the proposed ordinance. It Is hardly possible that this attempt can mislead anyone who will ^are- fully read- the provisions of the ordinance and the attempted ooastruotlbn 26 Argument — E. L. Scarritt. thereof by the Board of Directors as set out in their resolutions. The resolu- tions say: "Sec. 13. This Company recognizes the right of the city to locate carry- ing poles and wires, and that the manner in which the wires shall be placed underground or overhead is a police regulation and cannot be waived or bartered away by the city, and this power is unimpaired and unaffected by the above or any other section in the ordinance, and nothing exists in the ordinance on which this Company could or would base a claim against the exercise of such power on the part of the city." The authority of the city to locate the poles and wires hereafter con- structed above ground is properly reserved in the ordinance as stated. That much of the resolution is correct. But it proceeds, "And that the manner in which the wires shall be placed underground or overhead is a police regu- lation." This would be a police regulation if it was agreed in the ordinance that the wires should be placed underground, but it is nowhere so agreed. On the other hand, it is specifically agreed that they shall remain and be maintained as they now exist. Consequently the city will never have an opportunity to regulate the manner in which they shall be placed under ground. The manner in which the wires shall be laid either under or above ground is, we concede, a police regulation, but the contract that they may remain above ground as they now exist for the whole term of this franchise is not a police regulation and is binding upon the city. It will be noted that neither in the ordinance nor the resolution does the Company agree that the wires shall be put under ground, but, as above stated, they require the city to agree that they shall remain above ground. The "resolutlng," therefore, in this regard does not affect the plain provisions of the ordinance. RESOLUTIONS OUTSIDE OF CONTRACT OF NO AVAIL. Before I forget it. I would like to say a word or two about these inter- preting and construing resolutions which to my mind neither interpret nor construe. I noticed in one of the morning papers under scare head lines quite a lengthy brief discussing an elementary principle of law and quoting decisions from eminent courts to the effect that where the language of an executory contract is ambiguous or so doubtful that Its meaning cannot be determined from the language Itself the court will resort to the construction put upon the language by the acts and conduct of the parties thereto. This is an elementary principle of the law of contracts which is hoary with age and undoubted by anyone who has ever studied a primer on the law of contracts. It Is equally elementary law, however, that all negotiations, statements, promises and memoranda of the parties to a contract made before its execntion are prpsnmed to be embodied in the ey^cuted instni- ment itself, and it is a well-known rule of evidence that such statements, promises and memoranda had or made before the execution of a contract are inadmissible in evidence in any suit upon the contract to in any wise construe, vary or modify any of the terms of the contract. The ordinance or contract which we are considering has not been exe- cuted by the parties and will not be until approved by the voters on Decem- ber 16 and accepted by the Railway Companies at some time within 60 days after the election. Therefore, the attempted resolution of the Board of Directors of the Company will be and must be absolutely ineffectual to change or modify any of Its provisions. •Any future city counselor would cut a sorry plight before any court which might hereafter, have the consitmction of this contract before It, in -a Argument — E. L. Scarritt. 27 •uit between the city and the Railway Company, if he should attempt to Influence the court's construction of the contract itself by the presentation of these resolutions. He would doubtless be met by the judicial suggestion that Inasmuch as both parties signed the contract after the suggestions were made and without embodying them therein, that they constituted no part of the agreement; that it was the duty of one or the other of the parties to refuse its ratification until all the terms and conditions agreed upon were Incorporated in the contract itself. It does not require the announcement of a lawyer or a judge to convince one's mind of the justice of such a principle. It is common sense. And few men in their right minds will ratify or execute a contract involving their rights or property which they know at the time will involve them in a law suit for its construction and interpretation. This is peculiarly true of the contract in question. The law does not provide the same liberties ol the part of the contracting parties in an instrument like this as it does in a contract between individuals, for the reason that the city on its part can only act in a specified manner through Its legislative and executive departments, and all the interpretations and constructions in the world prepared by the Railway Company and cast abroad over the city would not be of any binding effect whatever unless and until the common council and mayor of the city should properly pass and approve the terms thereof in the manner specified in the city charter. But the resolutions, however, while amounting to nothing as a binding contract on the part of the Companies afford convincing proof that the construction put upon the contract by those who oppose it has been and Is the proper one. which I think will be presently demonstrated. AS TO FARES. Now recurring to and continuing the discussion of the defects in th© proposed ordinance: Omitting many minor defects, I want to call your attention to the two main objects for the attainment of which the contract seems to have been drawn. First, it does not adequately afford to the public the reduction of car fares. Second, it does not provide for any forfeiture in the event the Company fails to comply with any or all of its provisions. As to the first: the only substantial merit which the Compa«y claims the ordinance has, Is that it reduces the fares to 4 cents. If this is true it is entitled to some consideration, but before we udmlt that It Is true we want to see that it Is embodied in the ordinance in plain and unmistakable Eng- lish language. Upon almost every street car upon which we ride daily we find an alluring placard to the effect that if the voters will adopt the ordi- nance they will obtain 4-cent fares. It must have occurred to you, as it has to me, that that statement would look much better in the ordinance than it does in the cars. If all this language means that the Companies are going to permit the people of Kansas City to ride upon the cars for a charge of 4 cents each, and means only that, then why waste so much printer's ink and space? If they really intended to give the people 4-cent fares, why didn't they say so in so many words? There is some reason for this confused, obscured and apparently Indefinite language, and the bug under the chip is found ta move when we begin to analyze it. Sections lb and Ic in the proposed ordinance, relating to the "Reduc tlon" and "Rates of Fares." comprise two pages of printed matter, or 727 word*. These "The Companies" insistently contend spell "4 cents." If so. 28 Argument — E. L. Scarritt. why use so many words ? It cannot be said that they don't know any other way to spell "4 cents," because they have demonstrated to the contrary by spelling it right on their placards in the cars. "Vote for the franchise and you ride for 4 cents," thus saith the car bulletin in big black letters. "Pro- vided." and "Provided, however," and "Provided" again, pnd "whereas," and "on condition," and "hereafter," and "hereinafter," "aforesaid." thus saith the ordinance. How easy it would have been to have put the ' car oulletin" in the ordinance, and the ordinance in the cars — as a soft foot- rest for the "strap-hangers." It is inconceivable that any intelligent person can be "hoodwinked" by such palpable deception. But why discuss further the different methods of spelling "4 cents" when "The Companies" have provided a much simpler and easier way of disposing of the "ticket business" and of maintaining a full 5-cent fare for the entire life of the ordinance in Section Ic, wherein it is written that upon the failure of the voters to carry the bond issue at the next general election, or the failure to construct the Twelfth street viaduct, the city will b'? power- less to enforce the "sale of tickets" at any price or in any amount. The Hght of the city "to require 'The Companies' to put into effect * * ♦ the rates of fare in this section provided" is "conditioned" upon the happening of both of these events — that is, (1) the carrying of the bond issue, and (2) the construction of the viaduct. If the proposed ordinance is adopted, the same elements that are working so industriously for its passage now will be found voting against the bond issue next April. It will be to their inter- ests to do so, and they will be looking out for their interests then as they are now. The Street Railway Company is not going to vote for the "happen- ing of an event" which will take out of its pocket $1,000,000 a year, accord- ing to its own statement. And I don't blame them. If the people of this city are so unwise as to adopt this ordinance, "The Companies" cannot be o.amed for taking all that is coming to them under its liberal terms. The way to avoid such dire consequences is to vote it down and wait until we can get a decent one. FORFEITURE SECTION. In studying a contract of this kind and in determining the effect of its provisions and the importance of its restrictions upon the Company it must be remembered that the Street Railway Company practically exercises a monopoly. The city cannot afford under the present arrangements to permit the streets to be burdened with more tracks than are necessary for one ralrroad company. Therefore tk^ Railroad Company has it within its power to do as little as possible and get as much as possible. It is the natural and universal instinct of monopolies to get all they can with the least service and expense. It is a business corporation, organized, maintained and oper- ated for the purpose of making as large profits on its investments as the limitations on its powers will permit. Competition, if it were possible to have competition, would remedy many of the defects of this ordinance. But we have no competition and can have none. A good illustration of this idea is found in the difference between the operation and service of the steam railways and street railways. Steam railways have more or less competition. How long would a steam railway ^(3^6t w6r© it to hitch onto the rfear 6nd of its fine passengei' trains a freight caboose for the purpose of carrying its passengers. It wouldn't take long t^T It to lr»s0 al! Of its patronag'e. A street railway, however, in order" to makp fnoreepacfe for the collection of fares from its passengers can hitch onto 'Ch« hlnd^ftd of its regular. coaches. ja: dilapidated -And :.rlckety>. trailer: that Argument — E. L. Scarritt. 29 we a€e almost every day and compel the people to ride therein, and they havtt and can have no redress unless th right of Buch redress as to this and other things are expressly retained in the contract which the city makes with tho Company. The best method of obLaining this redress and com- nelling the Company to comply with the terms of itp contract is to emlody m the ordinance a strict forfeiture clause. There is no power of ultimate forfeiture in tnis ordinance whatever. Section la. which is the "Granting" section, provides that the authority of the "Companies" to maintain and operate the roads shall wholly cease and determine on the 1st day of June, 1951, "anything else in this ordinance to the contrary notwithstanding." This means that the contract runs until June 1st, 1951, irrespective of any other provision in the ordinance. Now, turning to Section 33, which is the sc-called forfeiture section, we find nothing therein which conflicts with Section la, but on the contrary great care Is taken to preserve the existence of the contract by providing that some "friendly Indian" shall always be on hand to take care of the franchise in case "The Companies" might be inadvertently and temporarily unseated by a furious and disgusted public sentiment. The franchise is absolutely non-forfeitable. It cannot be taken away from "The Companies" or their "friends," for forty-two years, no matter what their sins of omission or commission may be. This is enough for me. I will not vote for a franchise that is so unfair to the city in which I was born and reared, especially when its legal effect is so outrageously misrepresented by some of those who are attempting to force it upon the people of this citv. We can afford to wait and get a better one, and at the same time do the Companies no other harm than to defer their opportunity to profit immensely, as they will, by whatever franchise the city may finally give them. In order that the voter may have before him for com- parison and study the proposed ordinance and also the Peace Agreement, which is our present contract with the Metropolitan, I have had these contracts reprinted herein, and have put into italics such parts of each of these con- tracts as are identical in both. This I hope will assist our citizenship to determine the more easily what new matter the Metropolitan is offering us, and also what we are giv- ing up that we now possess under the Peace Agreement. The side references in each contract refer to sections of the other contract. The following is the ordinance proposed to us for our vote Dec. 16. — The annotations are by Jas. W. S. Peters. AN ORDINANCE PROVIDING FOR A CONTRACT WITH THE VARIOUS STREET RAILWAY COMPANIES RE- LATING TO A RENEWAL AND EXTENSION OF THEIR FRANCHISES, THE RIGHT OF THE CITY TO PURCHASE, REDUCING CAR FARES AND PROVID- ING FOR EXTENSION OF LINES, IMPROVEMENTS IN EQUIPMENT AND SERVICE, AND MAKING REG- ULATIONS WITH RESPECT TO THE ABOVE AND OTHER MATTERS. PREAMBLE. (a) WHEREAS, the Metropolitan Street Railway Com- party, the Central Electric Raihvay Company, the Kansas City Elevated Raihvay Company, and the Kansas City and Westport Belt Railway Company (hereinafter called "the Companies") now own and operate all lines of street raihvay in Kansas City, Missouri; Independence, Missouri; Kansas City, Kansas; Ar- gentine and Rosedale, Kansas, except the following — Kansas City and Western Railway, Missouri and Kansas Interurban Railway Company, Kansas City & Olathe Electric Railway and Blue Valley Railway Companies. (b) WHEREAS, said Metropolitan Street Railway Com- pany, the Central Electric Railway Company, and the Kansas City Elevated Railway Company, now own and are operating lines of street railway within the limits of Kansas City, Mis- souri, under and by virtue of existing contracts with said city expiring June 1st, 1925; and (c) WHEREAS, said Kansas City and Westport Belt Railway Company is a corporation organized under and by vir- tue of Article No. 2, Chapter 42, Revised Statutes of 1889 of the State of Missouri, and as such is the owner of and now operates two lines of railway commonly known as the Dodson and Marlborough lines, partly within and partly without the present corporate limits of said City; and (d) WHEREAS, some of "The Companies" are asking of 32 The PRorosED Ordinance with Notes. the City the renewal and extension of franchises, which are hereby given them, which will hereinafter more fully appear; therefore BE IT ORDAINED by the Common Council of Kansas City, Missouri: COMPANIES JOINTLY AND SEVERALLY LIABLE. Section 1. By the acceptance of this ordinance "The Com- panies" and each of them, do make a contract with the City, which contract is embodied in this ordinance and when accepted by "The Companies" shall become a fixed and binding contract between the City and ''the Companies" and their successors and assigns; and by their acceptance of this ordinance "The Companies" do agree to become jointly and severally liable for the performance by them of all the terms and provisions of this ordinance; and do each for itself represent to the City that "The Companies" have adjusted among themselves their propor- tionate share of any moneys, rights, duties and obligations which may under the provisions hereof at any time during the life or at the termination of this contract become payable, due or owing to them, or to any or either of them, by the City, or by them, or any or either of them, to the City; and do agree that they are jointly and severally liable for all sums of money, and jointly and severally bound to perform all duties and obli- gations which may by the terms hereof become due or owing to the City by them or any or either of them, and that payment or tender by the City to any one of "The Companies," its suc- cessors or assigns of any amount which may in pursuance of the terms and provisions of this ordinance be at the time due or payable to "The Companies" or to any or either of them, shall have the effect of payment or tender .by the City to each of "The Companies" separately, and the City is not to be re- sponsible for the application or proper division of such sums among "The Companies." And any notice served on or by any one of "The Companies" shall be considered as though served on or by all "The Companies." It is intended by this ordinance to cover all the lines of street railway now m Kansas City, Missouri, Independence, Missouri, for purchasing purposes only, Kansas City, Kansas, Argentine, Kansas, and Rosedale, Kansas, as their limits now exist or may be hereafter extended, as '**ielX as those lines of road or extensions of existing lines which may be constructed pursuant to this ordinance. And when a street railway "System" is referred to in this ordinance it shall be construed to mean and embrace all the lines of railway and The Proposed Ordinancje with Notes. 33 extensions and additions thereto now or hereafter operated by 'The Companies" or any of them: Provided, that within one (1) year after this ordinance takes effect "The Companies" shall become merged in one corporation organized under the laws of the State of Missouri, and shall within such time do all things legally necessary to effect such merger ; and thereupon all the rights and privileges by this ordinance granted to "The Companies" shall inure to such Company, and all of the duties and obligations by this ordinance imposed upon "The Com- panies" shall be binding upon such Company. Should "The Companies" fail to effect such merger, and fully consummate the same within said one year period they shall forfeit to the City as liquidated damages for such failure, the sum of Five Hundred Thousand ($500,000.00) Dollars, which may be sued for and recovered by the City in any court of competent juris- diction. The City hereby gives its consent to such consolida- tion. After such consolidation, all rights herein granted shall be assigned and transferred to said Missouri corporation, and thereafter there shall be no assignment of the rights herein granted without the consent of Kansas City. NOTE, Although this section makes party to the agreement all the subordinate street railway companies and compels their merger into one Missouri company, it does not make party to the agree- ment the Kansas City Railway and Light Company, that owns and controls all the stock of these subordinate companies, nor does it stipulate that this New Jersey corporation shall have oflaces in our jurisdiction and agree to accept service of legal notices in our state. The New Jersey company is the only one whose stock is owned by individuals. There is no provision whatever forbidding the stock of the merger company from being owned and controlled by this foreign, intangible power. Neither does this section in any way provide that outstand- ing bonds shall be bound by this agreement or arrange in any way to prevent the possibility of our going back at once to five- cent straight fare in case the present bonds should he merely extended and* later foreclosed. GRANT TO COMPANIES. AUTHORITY. Section la. In consideration of the acceptance by "The Companies" of all the provisions, conditions, requirements, and limitations hereof, consent, permission and authority are re- newed and are hereby granted to "The Companies," their lessees, successors and assigns, to own, construct, reconstruct, maintain and operate the street railways now being operated 34 The Proposed Ordinance with Notes. by "The Companies" or any of them in, upon, over and along the streets and public places in the City of Kansas City, Mis- souri, for identification of which reference is made to a plat hereto attached and made a part hereof, marked "Exhibit A" (which also shows all the lines of street railway owned or operated by "The Companies" or any of them, outside of the present limits of Kansas City, Missouri). The consent, permission and authority hereby granted to "The Companies" shall wholly cease and determine on the 1st day of June, in the year One Thousand Nine Hundred and Fifty-one (1951), anything else in this ordinance to the con- trary notwithstanding. NOTE. In a recent article on "Securities of Public Utilities Corpora- tions," published in the last copy of Harper's Weekly, Edward B. Lee opens his discussion as follows: "Public Utility corporations serve every one of every class in every community of size in the country. They come closer to the people than any other corporations and are more depend- ent on their will, operating as they do by the public's consent. That some of them now operate in defiance to public wishes, having in the past been granted perpetual or long-time fran- chises by the people, does not alter this general proposition. Fewer franchises of the kind just mentioned will be given in the future than in the past and greater public control will necessarily follow." Delos P. W^ilcox, in a report on a standard form of fran- chises for street railway companies states: "The exigencies of a great city requires that the public authorities should have control of the laying out and unifi- cation of transit routes, so as to bring about the highest degree of operation and efficiency of service. This cannot be done where franchises are granted either in perpetuity or for specific and unrelated periods. Only the reserved right of the city to terminate any particular grant whenever it seems necessary to make the road covered by such grant a part of a more general system can guarantee the development •of city transit along rational lines." Mr. Maltbie, rnrnm a rit i ng upon theses e Api 'e asiun& b y — Pro* fiiiTinr T?flTi'n, says: 'There is nothing more vital to a com- munity than transportation. If transit facilities are poor, not only are commerce and industry seriously handicapped but the moral and physical wellbeing of a large population is menaced and the happiness of all is seriously affected. No city should so part with its effective control over the transit situation that under changed conditions it will be helpless to secure the most efficient transit system." The Proposed Ordinance with Notes. 35 "In a recent report by the investigating committee to the National Civic Federation Commission on Public Ownership involving two years work on the part of a committee of the leading municipal experts in this country, this committee said "We are of the opinion that all future grants to private com- panies for the construction and operation of public utility ' should be terminable after a certain fixed period and thftt? *iitauviLily Lilita ahould iiaiL a LtiUin fijiod period and that meanwhile cities should have the right to purchase the prop- erty for operation, use or sale paying its fair value." "And the National Municipal League, has pronounced its opinion after an investigation made by the following commit- tee: Horace E. Demming, New York, chairman; Hon. Geo. W. Guthrie, now mayor of Pittsburg; Professor Frank Good- now, Columbia University; Chas. Richardson, Philadelphia; Professor L. S. Rowe, University of Pennsylvania; Dr. Shaw, editor of the Review of Reviews, and Clinton Rogers Wood- ruff, of ^ Philadelphia, as follows : "The committee is also convinced that it has been de- monstrated by abundant experience, that in the interest of the public when a city grants a franchise to a private corpor- ation, association or individual, the term of such grant should be limited to a definite period not exceeding twenty-one years." REDUCTION OF FARES, Section lb. (1) Nothing in this ordinance contained shaU have the effect of taking away, impairing or in any wise affect- ing the right of the City, if any such it has under existing laws and ordinances, to reduce car fares during the period expiring June 1st, 1925, but all existing rights, both of the City and of "The Companies" are, in this regard, hereby ex- pressly reserved and remains unaffected by this contract. (2) The City expressly reserves to itself all rights which it may have by contract or by law to fix by ordinance the rates of fare to be charged by 'The Companies" or either of them within the corporate limits of the City, during the entire period of this franchise, nor shall anything herein contained be construed as a waiver on the part of "The Companies" of their right under previous contracts, or by law, to dispute the City's power to fix such charges, prior to June 1st, 1925, but from and after the first day of June, 1925, the City shall have and is hereby expressly given the right, power and authority to fix, by ordinance, rates of fare to be charged by "The Com- panies" within the then corporate limits of the City, and to change such rates by ordinance from time to time as often as it may elect provided, however, that such rates must be reason- able and shall not be changed oftener than once every two years. 36 The Proposed Ordinance with Notes. RATES OF FARE. Section Ic. Subject to the provisions of Section lb, "The Companies" shall charge passengers the following rates of fare, to-wit : For a continuous trip in one general direction within the present or future limits of said cities over their street rail- ways covered by this ordinance and all extensions thereof, whether owned, leased or operated by them, the sum of five cents (5c) for each passenger twelve (12) years of age or over, and one-half fare for each passenger under twelve years of age, provided that children under seven (7) years of age accompanied by a person paying fare shall be permitted to ride free. And no fare in excess of those in this Section mentioned shall be charged by "The Companies" at any time during the life of this ordinance, provided that at all times during the life of this franchise, after January 1st, 1913, "The Companies" shall f)irnish all conductors with tickets providing for a con- tinuous trip in one general direction, which shall be sold to the public, six tickets for twenty-five cents. And sell at "The Companies* " office and at least twenty-five other convenient points in the city twenty-five tickets for One Dollar, provided that five of said places of sale shall be in Kansas City, Kansas, and commencing with the accepting of this ordinance one-half fare tickets which shall be sold at the rate of two tickets for five cents. "The Companies" shall carry passengers over the extension and the main lines for the fare charged on said main lines, with full transfer privileges. Provided, however, that the City has the right to require "The Companies" (and "The Companies" hereby agree) to put into effect at the time hereinafter mentioned the rates of fare in this section provided upon condition that the City Council on or before the 1st day of December, 1909, pass a regular and necessary ordinance providing for a bond issue of Eight Hundred and Seventy-five Thousand ($875,000) Dollars, and the people of the City, upon a regular vote thereon, approve said bond issue; said issue of bonds to be devoted and applied to the payment of two-thirds of the cost of construction of what is commonly known as "Twelfth Street Trafficway Viaduct" mentioned in Section 22 of this ordinance; that said rate of fare will go into effect imme- diately upon the approval of said bond issue by the vote of the people, and the appropriation of the money to the payment of the said "Twelfth Street Trafficway Viaduct" in which event the City shall pay two-thirds of the cost of construction of said Viaduct, including grading and land damages, and "The The Proposed Ordinance with Notes. 37 Companies" shall paj' one-third of the construction of said Viaduct including grading and land damages, said Viaduct to cost not more than One Million Three Hundred and Fifteen Thousand ($1,315,000) Dollars, including grading and land damages. NOTE. For uncertainty of meaning of terms used in this section, •em Philadelphia Rate Decision in back of this pamphlet. There is no question but that in entering into this contract we bind ourselves to the definite fare and ticket arrangement therein described whatever the courts in the future may decide it to mean, and that too irrevocably for the next 42 years. It is not within the power of a city council to reduce the rates of fare on street railways whose franchises have been extended in duration on conditions involving large expense to the corporation and substantial benefits to the public. Cleveland vs. Cleveland Ey. Co., 194 U. S. 517. Perhops this is one reason why they inserted the Traffic Way provision in a rapid transit ordinance. A state legislature may authorize a municipal corporation to contract with a street railway company as to rates of fare and so to bind during a specified period any future common council from altering or in any way interfering with such a contract. Detroit vs. Detroit Citizens St. Ry. Co., 184 U. S. 368. The regulation price of gas by the state or municipalities is not the exercise of police power which cannot be embraced by contract. State ex. rel. St. Louis vs. Laclede Gas Co., 102 Mo. 472. The charter received by a street railway company from a city provided that the latter should not reduce fares below five centa. A later contract between the company and the city provided that 'in the construction, maintenance and operation" of its lines the company should be subject to the present and future ordinances of the city. Held that this did not enable the city to reduce fares below five cents. Minneapolis St. R. R. Co. vs. City of Minneapolis, 15.5 Fed. Rep. 989. A city ordinance providing that the rate of fare for one pas- senger shall not be more than five cents is a contract which gives the company the right to charge a rate of fare up to five cents and the city cannot reduce the five cent rate established by the company without its consent. Detroit vs. Detroit Citizens' St. Ry. Co., 184 U. S. 368. It is also beyond question that the officials of our city have never made any such investigation as is proper in order to de- termine whether we are justified in fixing this fare and relieving the company of its obligation under the Peace Agreement, such as its paying eight percent of the gross profits, repaving out* streets, and proper forfeiture clauses and extending its franchises to 1951. The basis of all calculations as to the reasonableness of rates to be charged by corporations maintaining a public high- way under legislative sanction must be the fair value of the 38 The Proposed Ordinance with Notes. property being used by it fo^ the convenience of the public. In order to ascertain that value the original cost of construction, the amount expended in permanent improvement, the amount and market value of its bonds and stock, the present as com- pared with the orginal cost of construction, the probable earning capacity of the property under particular rates prescribed by statute, the sum required to meet operating expenses, are all' matters for consideration to be given such weight as may be just and right in each case. Smythe vs. Ames, 169 U. S. 466. The basis of all calculations as to the reasonableness of rates charged must be the fair value of the property being used by it for the convenience of the public. Seaboard Air Line R. R. Co. vs. R. R. Commissioners, 155 Fed. Rep. 792. In estimating the value of a railroad the estimate must not be dated on what its value in the past, nor what it cost, nor what it would cost to duplicate it, nor its probable value, but must be based on its present value. Matthews vs. Board of Corporation Commissioners, 106 Fed. 7. The basis of all calculation as to the reasonableness of rates to be charged by public service corporations is the fair value of the property used by it for the convenience of the public. Kennebec Water Dist. vs. Waterville, 97 Me. 185. 60 L. R. A. 856. Those who have conceived and executed a railroad enter- prise have no right to exact a return upon an extravagant capi- talization. Danville vs. Southern Ry. Co. 8 Interstate Commerce Report 409. To make the capital account of a railroad the measure of its legitimate earnings would place as a rule the corporation which has been honestly managed from the outset under enor- mous disadvantages. Grain Shipers Assn. vs. Ills. Central R. R. Co., 8th Intrs. Com. Rep. 158. If a railroad corporation has bonded its property for an amount that exceeds its par vafue or if its capitalization is largely fictitious it may not impose upon the public the burden of such increased rates as may be required for the purpose of realizing profits upon such excessive valuation or fictitious capitalization; and the apparent value of the property and . franchises used by the corporation as represented by its stock, bonds and obligations, is not alone to be considered when de- termining the rate that may be reasonably charged. Smythe vs. Ames, 169 U. S. 466. UNIVERSAL TRANSFERS— RESERVATION OF CONTROL BY CITY. Section Id. All transfer privileges heretofore given and granted by **The Companies" shall he continued, and, in addi- §^ tion thereto, universal transfers without extra charge, shall be granted over all parts of the system in Karisas City, Mis- souri, and also over all the system in Kansas, as the same now exists or may be hereafter extended within the then limits of Kansas City, Missouri, Kansas City, Kansas; Rosedale, Kan- sas; Argentine, Kansas, and intermediate points, so long as The Proposed Ordinance with Notes. 39 ""The Companies'' their representatives, successors or assigns, shall direjctly or indirectly control, be interested in, operate or have operating, traffic or carrying arrangements with the com- pany or companies oivning, operating or controlling the said lines of street railway in Kansas City, Missouri; Kansas City, Kansas; Rosedale, Kansas, o?- Argentine, Kansas, and also so long as any of the cars of the Kansas City, Missouri, lines shall operate over any of the tracks of the said Kansas lines, or the cars of any of the said Kansas lines shall operate over any of the tracks of the, Kansas City, Missouri, lines. It being the intention that the provisions as to transfers shall extend to all street raihvay lines in Kansas City, Missoun; Kansas City, Kansas; Rosedale, Kansas; Argentine, Kansas, and all svch lines ivithin any extension of the corporate limits of said city, or any of them, which shall receive or deliver to the said Companies in Missouri any of their passengers or cars. Ajnd "The Companies" shall make no traffic or transfer arrangements tvith any companies operating lines hereafter built in to Kansas City, Missouri; Kansas City, Kansas; Rose- dale, Kansas, or Argentine, Kansas, unless "The Companies*' shall give like transfers over their lines, as above provided. The foregoing provisions as to transfers shall not be so construed as to enable passengers to make ivhat is commonly known as a "loop." By a "loop" is meant such a system of transfers as will enable a passenger to return substantially to the initial point for a single fare. It being the intention of this contract that transfers shall be furnished that will enable a passenger to go by a reasonably direct route to his destination at any point on "The Companies' " lines for a single fare, and the provision as to "loops" shall not be construed as to inter- fere theretvith, but it shall not be so construed that a transfer shall be given so as to enable a passenger to go to one point and stop there and then return by some other route to the point from which he started.. But the City specially reserves to itself the right and power by reasonable ordinances to regu- late the matter of transfers so as to carry out the spirit of this section. A passenger upon any car delayed through the fault, neg- ligence or inability of "The Companies" shall be entitled to re- ceive a transfer to a car upon the nearest line of "The Com- panies'* going in the same general direction as the delayed car. Provided, however, that nothing in this section contained shall deprive the City of Kansas City, Missouri, of the right, which is hereby reserved if it so elect at any time, to confine to the then limits of Kansas City, Missouri, or to the then limits of 40 The Proposed Ordinance with Notes. any one or more of all the cities herein mentioned, said trans- fer privileges, or right to a continuous passage over "The Com- panies' *' lines, for the aforesaid rates of fare. Provided, also, that in the event "The Companies" shall be unable to agree with any of the Cities hereinbefore named for a renewal of f!heir franchise with such City or Cities, then they shall not be obligated to extend such transfer privileges to such City or Cities refusing to agree with "The Companies." Provided, however, that "The Companies" shall accept any reasonable franchise that may be offered by such City or Cities. Provided, further, that in the event the City elects to purchase the prop- erty in Missouri only, "The Companies" shall not be obligated to continue the transfer privileges. Provided, further, that "The Companies" may make reasonable regulations as to the time in which such transfers shall be used, not, however, less than thirty minutes after arrival of car at the transfer point. NOTE. Under this section the Metropolitan can withdraw inter-city transfers. 1. Whenever it can persuade one of our City Councils to pass an ordinance giving it permission so to do. 2. At any time it asks the City of Kansas City, Kansas, to give it a new contract and it does not immediately obtain a contract to its liking. Read it for yourself. COMPENSATIONS AND RESERVATIONS AS TO CITY EXTENSIONS. Section 2. The said City shall have the right within the ^7 limits of the City as now established or hereafter enlarged at any time to require "The Companies*' to make extensions and connections of and with any line or lines of their roads where reasonably necessary for the convenience of the inhabitants of the City, provided that the aggregate of such extensions on all said roads so required by the City shall not exceed on the aver- age more than two and one-half (21/2) miles of double track or five (5) miles of single track per year. All such etxensions shall be operated as a part of one "System" in conformity with the provisions of this ordinance. Provided, further, "The Com- panies" shall, upon the order of the City Council, construct, equip and operate such extensions of its street railway system in addition to those hereinbefore provided for as may be re- quired by the City Council; provided, "The Companies" shall not be required on account of any extensions of their street §3 The Proposed Ordinance with Notes. 4i railways other than the extensions of two and one-half (214) miles of double track or five (5) miles of single track per annum to increase their total capital investment to such an extent that the return thereon would not be reasonable. Before any extensions of lines are made as herein pro- vided for, the necessary consents of the property owners along the route of the propose^ extension shall he obtained; the right being reserved to any citizen to secure said consents if "The Companies*' do not obtain them. Upon the passage of an or- dinance by Kansas City authorizing or requiring any such ex- tension, said right to construct and operate said road shall be subject: (a) To all the provisions of this ordinance. (b) *'The Companies/* their successors and assigns, shall }iave the right and authority to go upon the streets and parts of streets, as may be designated, and make such excavations therein as may be necessary for the construction and comple- ^23 tion of said street railway extensions and electrifications; pro- "" vided, however, that "The Companies*' shall first procure from the Superintendent of Streets, or such other officer as the City may authorize to issue the same, a permit to do so before en- tering upon and making any excavation in said streets. And shall have the further right and authority to make track con- nections ivith the car barns, poiver houses, track with track, at points of intersection, and shall also have the right to con- duct their electrical power over feeder vnres from the power stations to said lines of street railway; provided, however, that the route thereof and location of carrying poles and ducts therefor, and all lateral and stvitch tracks, shall first be ap- proved by the Board of Public Works; and the Council may by reasonable ordinance regulate said matters; and provided, further, that in conducting and repaiHng said lines, "The Com- panies," their successors and assigns, shall restore and leave the streets which they may disturb by the constriiction in as good condition as they were at the time of commencing said work. Any pavement outside of the rails of said track that may be disturbed or taken up by "The Companies" in the construc- tion, reconstruction or repair of their railways shall be re- newed and reconstructed and put in as good condition as it was formerly. All paving, repaving, construction, reconstruction and re- pairing shall be done to the satisfaction and approval of the City. (c) All pavements shall join up to the rails as closely as 42 The Proposed Ordinance with Notes. practicable, and be so kept that the wheels of ordinary vehicles will not in running along the rails unreasonably drop betiueen the pavement and the rails, and the upper surface of the pave- ment at its juncture with each rail shall be as nearly as prac- ticable on the same level as the upper 'surface of the rail. The general surface of the pavement between the rails to be as high as the pavement which is outside of the track, except that there may be next to the surface of the flange of the rails such bevel or curve as may be necessary to have a proper juncture of the pavement with the upper surface of the flange of the rail. (d) Provided, that "The Companies" shall not be obli- gated hereby to construct and operate in the territory south of 48th street or east of Cleveland avenue any such additional extensions in any street or public way nearer any then exist- ing parallel street railway tracks of "The Companies" than s-x average city blocks, not to exceed twenty-two hundred (2200) feet; provided, that this paragraph shall not be applied so as to prevent the City from requiring an extension of the East Twelfth Street line. And provided further, that within one year after the necessary consents of property owners shall be secured for the construction of a street railway line from 15th Street to a connection with the existing line of double track on Guinotte Avenue, a double track street railway line shall be constructed and operated commencing at the intersection of Guinotte Avenue and Montgall Avenue, thence East and South on Guinotte Avenue to the intersection of Chestnut Ave- nue; thence south over the Chestnut Avenue Viaduct hereafter to be constructed and on Chestnut Avenue to Independence Avenue; thence south on either Chestnut Avenue or Prospect Avenue, or part way on each, as Kansas City may elect, to 15th Street. Before the extension of said line is made through the North Terrace Park, the consent of the Board of Park Com- missioners shall be obtained. When said line is constructed on Chestnut Avenue, "The Companies" shall build and there- after maintain suitable stairs from the surface of the street to the top of the Viaduct over Ches^tnut Avenue at Lexington Avenue, so as to afford the public easy access from said Via- duct to the surface of said Chestnut Avenue. The plans of said stairs shall be subject to the approval of the Board of Park Commissioners, and the work of building said stairs and con- structing said track through North Terrace Park shall be done in a manner satisfactory to the Board of Park Commissioners, and under its supervision. "The Companies" agree that they will pay all that part The Proposed Ordinance with Notes. 43 of the construction and future maintenance of the Chestnut Avenue Viaduct provided for by the provision of Section 19, Paragraph (a), of Ordinance No. 2336, approved July 7th, 1909, or secure from the Kansas City Terminal Railway Company the consent to the use of said Viaduct. Said line, when completed, shall be operated as a north and south line in extension of the Prospect Avenue line south of 15th Street. If "The Companies" shall fail, neglect or re- fuse to secure said consents, then any citizen shall have the right to secure the same, and "The Companies" agree that when said consents have been secured, they will build and thereafter operate said line. Provided, however, that "The Companies" shall not be required to construct said track until said Chestnut Avenue Viaduct is completed, and all streets on which said street railway line is to be constructed shall have been opened and graded. This, however, is to be construed as being in part, as a compliance with the provisions of Section 2 of this ordinance on the part of "The Companies." COMPANIES TO PAVE BETWEEN AND OUTSIDE OF TRACKS. Section 3. "The Companies" shall pave their tracks and bettveen the rails of the tracks and for eighteen (18) inches outside of the outside rails of their tracks with such material a^ the Board of Public Works may direct, and shall keep the space above indicated constantly in good repair, and on the §8 failure of "The Companies" to keep the same in repair the Board of Public Works may cause the same to be done and charged against the operating expenses of "The Companies." Where a cable line now exists rvhich is to be replaced "'ith an electric road as herein provided, the present paving, if in good repair, may remain until said road is electrified. All of the foregoing to be done in a manner satisfactory to the Board of Public Works and under its supervision. If at the time any extension herein provided for is made the streets are either macadamized or not paved, **The Com- panies** are required to pave bettveen their tracks and the rails of their tracks and for eighteen (18) inches outside of the outside rails of their tracks, tvith such materials as may be designated by the Board of Public Works at the time of the construction of such extension. NOTE. This section omits a clause which Is in the Peace Agreement obligating the Street Railway Company to repave streets with the same material whenever the rest of the street is repaved. This is very important, as it costs the Railway Company about $20,000 a mile to repave its double trackage. 44 The Proposed Ordinance with Notes. WATCHMEN TO BE PROVIDED BY "THE COMPANIES'' AT CROSSINGS AND DANGEROUS CURVES. Section 4. At all points where said street railway tracks cross the tracks of any steam railway company, ivatchmen ^^^ shall be constantly stationed and kept to perform such dutief< as may he prescribed by ordinance; but the City shall pass necessary ordinances reuqiring the steam railway companies to join in the performance of this duty, and in- the payment for the service; but if said railway companies fail to comply with the terms of such ordinances, then ''The Companies*' shall station such watchmen as aforesaid. Watchman shall be placed by ''The Companies*' at all points where their lines of track intersect, cross or form a junction and at dangerous curves between the Missouri River and Thirteenth Street and between McGee Street and Wyandotte Street, and at such other points within the city as may be required by a reasonable ordinance. It is understood by this that the conductors or gripmen can not act as flagmen or watchmen without the consent of the City. "The Companies" shall stop their cars for the purpose of taking on and letting off passengers before they shall cross a street or intersecting lines. The City reserves the Hght to control and regulate by reasonable ordinance all the matters mentioned in this section. "THE COMPANIES" TO PROVIDE ELECTRIC ARC LIGHTS. §12 Section 5. Electric Arc Lights shall be maintained by "The Companies'* at all points where their lines cross the line^ of any steam railway company, but the City shall pass neces- sary ordinances requiring the steam railway companies to bear their share of the expenses of said lights, but failure of said steam railway companies to comply with this ordinance shall not relieve "The Companies" of the duty aforesaid. And at all points where the lines of "The Companies" intersect, cross, or make a junction ivith each other, and at dangerous curves, they shall maintain arc lights. STEAM RAILWAYS TO PAY PART OF COSTS OF WATCHMEN AND LIGHTS. Section 6. Where a line of street railway crosses the ,.^ tracks of a steam railivay company, the City shall, by ordi- §-*-^ nance, direct the payment by the steam railway company of at least one-half of the expense of watchmen and lights, as provided in Sections U arid 5 hereof, and where there are .The Proposed Ordinance with Notes. 45 crossed more than two tracks of one or more steam raihvays, then the City shall, by ordinance, direct that the steam rail- way companies shall pay as much over one-half of such ex- pense as is, in the opinion of the law-making power of the City, reasonable and just When "The Companies," in any in- stance, pay the whole expense, as provided in said sections, then they may, in the name of the City, but at their expense, maintain such legal proceedings against the steam railway companies as may be necessary, to require them to perform their duties and refund to the street railway companies the amount due them, ELECTRIC POWER FOR POLICE AND FIRE ALARM SYSTEM TO BE FURNISHED BY "THE COMPANIES" FREE. Section 7. '*The Companies" shall furnish free of charge §14 electric power to charge the storage batteries of the police and fire alarm system of the City. SUBURBAN CARS OPERATED IN THE THE CITY- CONDITION. Section 8. "The Companies" shall make arrangements with the managements of all suburban lines not entering the City, which are now or may hereafter construct their lines §15 to connect at the City limits (upon request by the manage- ment of the suburban lines), by which "The Companies" will place their crews in charge of the cars of said suburban com- panies at the point of connection and carry the cars as their own, with the passengers, through to substantially the center of the business portion of Kansas City, Missouri, All passen- gers shall pay the same fare and be entitled to the same trans- fer privileges as though they had taken regular passage on the cars of the street railway companies. "The Companies" shall have the right to collect all fares for passage on their roads. "The Companies" shall pay to the suburban companies for the use of their cars one cent for each passenger turned over to them by the suburban companies, and one cent for each outgoing passenger turned over to the suburban companies by "The Companies"; and "The Companies" shall in a prompt and businesslike way return said cars to the place tvhere said cars were turned 'over to them. Cars of suburban lines must be so constructed as to be suitable for use on the street railway tracks with convenience and safety. If said suburban cars carry United States mail, or light 46 The Proposed Ordinance with Notes. • packages, of the character described in Section 9 hereof, then the same shall he carried and delivered at the nearest point on the lines of "The Companies" to their destination, and the compensation of *'The Companies" for said services shall be governed by the rules and regulations set forth in Section 9 of this ordinance. But the City reserves the right to prescribe by ordinance the kind of packages which shall be carried on said suburban cars within the City, or to prohibit the same if it so desires. If suburban lines cannot connect with the lines of ''The Companies" at the City limits, then they shall have the right to connect with their tracks within and as near the city limits as practicable, and any Company operating a suburban line, the tracks of which do not reach or extend to and therefore cannot be connected with any line of "The Companies'* at or within the City limits, but which tracks intersect or may be connected at the terminus of such suburban line with any line of "The Companies" outside of the City limits, when such con- nection can be made, shall have such right; but no such sub- urban cars shall be permitted to run over any street within the corporate limits of Kansas City without the consent of the City expressed by ordinance. Provided, such ordinance shall not be necessary as to any suburban line whose cars are now being operated over any of the streets of the city under existing con- tracts between such suburban line and the Company. NOTE. The first two paragraphs of section 8 are copied verbatim and aparently without due consideration ^ from the same parar . graphs in section 15 of the Peace Agreement. It provides in the first paragraph that all passengers shall pay the same fare and be entitled to the same transfer privileges as though they had taken regular passage on the cars of the Street Railway Com- pany. I believe that the courts will construe this mean that €very passenger thus hauled shall pay the full cash fare of five «ents. In copying this clause if the Company Intended that such passengers should have strip-ticket privileges or the right to use such tickets purchasable twenty-five for a dollar or six for a quarter, it should have made this clear in the above section 8 by so stating, as the term "fares" does not include strip tickets — See Philadelphia decision. RtGHT AND DUTY OF COMPANY TO CARRY COMMODI- TIES, LIGHT PARCELS AND PACKAGES.— RESERVA- TIONS BY CITY TO CONTROL CHARGES. Section 9. ''The Companies" may carry on their lines §16 light packages or parcels not in the possession of a passenger, but this shall not be done to the interference with the passen- The Proposed Ordinance with Notes. 47 ger traffic. Provided, further, "The Companies'' are required (except between the hours of 6:30 a. m. and 9:00 a. m., and 4:30 p. m. and 7:00 p. m.) to receive any and all cars carry- ing dairy products, vegetables, or fruit, or farm products, and convey the same to public market places, that are now estab- lished, or that may be hereafter established, or to distributing points that may be hereafter designated by ordinance, and ''The Companies" are required to receive said cars from sub- urban lines which connect with their lines, or use the lines of **The Companies" by running their cars over them, or exchang- ing passengers, and the said "Companies" can only charge the actual cost of transportation, plus ten per cent of said cost,, for hauling and transporting said cars. And "The Companies" are prohibited from entering into any contracts for transporting the suburban cars of other lines or companies, unless said sub- urban lines or companies enter into a contract with Kansas City to make the same terms and rates for the transportation of dairy products, vegetables, fruits and farm produce, with persons, corpoiations or individuals situated along and con- tiguous to their lines, and agree to transport the cars, whether owned by companies or individuals, according to the above terms. This contract is made for the benefit of persons and cor- porations that may hereafter desire to transport dairy prod- ucts, vegetables, and farm produce into the limits of Kansas City, and any one injured thereby shall have a right of action against the Companies, or against said suburban lines for re- fusing to carry out the above terms, and any person or per- sons believing that they are discriminated against by "The Companies" or any suburban lines may go into the courts and have a full investigation of charges of transportation and the court may enter judgment regulating charges in pursuance to this section. The rates fixed by "The Companies" and by said suburban lines for such service must be uniform and reasonable and the City reserves to itself the right by ordinance to regulate this privilege. Nothing in this section shall be so construed, how^ ever, as affecting the right of the Kansas City and WestportP^ Belt Railway Company to continue to carry any and all classes! of freight and generally to do a freight business. The purpose and spirit of this section is to give the inhab- itants of Kansas City the benefit of rapid transportation and 48 The Proposed Ordinance with Notes. to enable dairy products, fruits, vegetables and farm produce to be brought in the least possible time, and at the least pos- sible cost, into their midst, for sale and distribution. Under this provision it will be necessary for the^ suburban lines now or hereafter desiring to makea contract for the hauling of its passengers over the Metropolitan's tracks also to equip itself with freight cars as feeders for the Metropolitan Street Railway freight monopoly. The actual cost of transportation that the suburban lines will be compelled to pay for the carrying of such freight over the streets will be whatever the Metropolitan sees fit to charge for such transportation. Under this section 9 there is provision that all suburban com- panies can be required to assist the Metropolitan Street Railway Company in building up this freight and produce commission monopoly or else the Metropolitan Street Railway Company can refuse to permit such suburban companies to carry their passen- ger cars oved the Campanies' tracks as provided under section 8. Read these sections over carefully and see if this is not a correct interpretation. Is it possible under this section that the Street Railway, may hereafter, under consent given by the Common Council by ordinance, establish their own distributing points or sub-markets all over the City and carry dairy products, vegetables, fruit or farm products over their own lines for such rates as the Com- mon Council may designate to such distributing points and sell in open competition with our merchants engaged in selling such products to the people of Kansas City? We submit thi^ for consideration of our produce commission merchants and market men. It can clearly be read between the lines that the Company is preparing a plan to provide for us its own monopolistic sales places and distributing points. These distributing points under the terms of the proposed ordinance can at any time in the future be legally designated by such future Common Council as the Company may be able to pursuade to grant them the favor. "THE COMPANIES" TO JOIN IN CONSTRUCTION OF VIADUCTS AND BRIDGES. Section 10. Wherever the City shall by ordinance require »1^ the building of a viaduct where "The Companies* " lines cross at grade a line of steam railroad, *'The Companies*' shall join in said construction, and in the future maintenance thereof, and pay their reasonable proportion of the cost thereof. Such viaduct shall be without cost to the City, but the »team roads shall be required to pay their fair share of the cost thereof. Provided, also, that where a bridge shall be re- .quired for a crossing over any water course or ravine "The UNIVERSITY Of The Proposed Ordinance with Notes. 49 Companies" shall bear such proportion of the cost and mainte- nance as the floor space used by them shall bear to the whole of such floor space. GRADING AND REGRADING STREETS— WAIVER OF DAMAGE BY COMPANIES. Section 11. Whenever pursuant to the authority of Kan- sas City, Missouri, any part of the route upon which "The ^25 Companies'' or their successors or assigns shall construct or may have constructed their lines shall be graded or re-graded, ''The Companies," their successors or assigns, agree for them- selves, their successors or assigns, to construct and lay their tracks upon the street as regraded, and shall waive all claims for damages for such regrading or change of grq.de. NOTE. Straws sometimes show the way the wind is blowing, and sometimes from little things we can gather the real intent of the parties to a contract when we consider the form of the con- tract presented to us for our approval. In the matter of grading and regrading streets it appears in ■ectlon 25 of the Peace Agreement whenever any part of the rout^ upon which the company has constructed its lines shall be ^aded or regraded the grantees of the ordinance agree to construct and lay their tracks upon the street as graded or regraded, and that they will waive all damages for all such regrading. This Section 25 is copied verbatim in the proposed agreement in section 11 of this ordinance, with this exception, that section 25 of the Peace Agreement, provides that the company shall do this work "at their own expense," and in the proposed ordinance, section 11, the words "at their own expense" are deliberately left out, leaving the company the opportunity, if it so desires and can so have the matter construed, to put the expense on either the property owner or the city, unless the company has some such idea in mind it is difficult to imagine why these words "at their own expense" should have been omitted. Exactly the same thing occurs in the matter of the removal of tracks, building sewers, and other public works in the Peace Agreement. At section 35 it is provided in the Peace Agreement that whenever it shall be necessary to remove the tracks of the railway company for the purpose of repairing water pipes, constructing sewers, or any other public purposes whatever, the said company shall, upon notice from the city remove its tracks and replace the same. This provision is copied in section 16 of this proposed ordinancs, but it is interesting to note that whereas the Peace Agreement provides that this work shall be done at the expense of the street railway company the words "at their own expense" are deliberately left out in said section 16 of the proposed ordinance. 50 The Proposed Ordinance with Notes. INDEMNITY CLAUSE. Section 12. In constructing, repairing and operating their §26 street railways, ''The Companies'' shall use every reasonable and proper precaution to avoid damage to person or property, and shall at all times respond to the City of Kansas City for, and save it harmless from, all and every damage, injury or; loss, cost or expense, caused or occasioned by reason of any act or omission of ''The Companies'' iri constructing, recon- structing, repairing or operating of said railways, or in pav- ing, repaving or repairing said streets, or by reason of any and every act done under this ordinance, LOCATION OF CARRYING POLES AND WIRES AP- PROVED BY BOARD OF PUBLIC WORKS. §27 Section 13. Hereafter the location of all carrying poles and wires and the kind and character of same shall be first approved by the Board of Public Works. "The Companies,*' > their successors or assigns, after having excavated or incum- bered any street or part thereof, shall at once restore and leave the same in as good condition as it wa^ at the time of commencing such work, and shall pave as aforesaid. The cen- tral line of the spaces between the tracks shall coincide, as nearly as practicable, with the central line of the streets on which same is located; and the space between the inside rails of the two tracks shall be as directed by the City Engineer and the Board of Public Works, on streets; and on boulevards, by the Board of Park Commissioners. LIABILITY OF "THE COMPANIES" FOR INJURY TO WATER PIPES, TREES OR OTHER PROPERTY. Section 14. "The Companies" shall not in the construc- §28 tion, maintenance or operation of any of their roads or power plants do or permit anything to be done whereby the water pipes or conduits or other property of the City or the trees along the streets of the City shall be damaged, and "The Com- panies*' shall respond for such damages, if any, to the City, RESERVATION BY CITY OF RIGHT TO PERMIT OTHER COMPANIES TO USE THREE BLOCKS OF "THE COMPANIES" TRACKS. §30 Section 15. The City of Kansas City expressly reserves the right to allow and permit any other street railway com- pany, or suburban railway company, to run cars operated solely The Proposed Ordinance with Notes. 51 by it over and along the tracks of "The Companies" for the distance of three consecutive blocks,^ or less, on such terms and with and for such compensation to *'The Companies** as may he prescribed and determined by a reasonable ordinance. Nothing in this ordinance contained is intended to or shall he held or construed in any ivay to abridge any right which may exist under existing ordinance of other companies to use the track of any of ''The Companies" parties to this agree- ment, for three (3) consecutive blocks of the lines of any said compariies, nor to run over and use the tracks of the so-called Delaware and Main Street loop; or to take away or abridge any right which the city has acquired to allow any other street railway company to use the tracks on Main Street, or any part of the same, constructed under the franchise granted to the Metropolitan Street Railway Company by the provisions of ordinance of Kansas City, No. 37969, approved October 7, 1907. The City expressly reserves all rights that it has to permit other railroads to use the tracks, poles, wires and electrical currents of **The Companies" and to enforce all such rights without unreasonable delay, but the right to use the tracks under this section, shall not be construed to add anything to the present rights of the City, under existing ordinance and all limitations in existing ordinances shall continue in force, both as to the City and "The Companies." REMOVAL OF TRACKS FOR BUILDING SEWERS, OR OTHER PUBLIC WORKS.— "THE COMPANIES" TO BEAR EXPENSE THEREOF. Section 16. Whenever it shall be necessary to remove the tracks or the rails of the tracks of any of ''The Companies' " lines for the purpose of laying or repairing water pipes, con- W^^ structing sewers, or for any public purpose wliatever, "The Companies'* shall promptly, upon notice from the City, remove said tracks and replace the same, provided, however, that the City in doing said work shall use all reasonable expedition so as to interrupt travel upon said roads as little as is reasonably possible. TRACKS TO BE LAID ON ESTABLISHED GRADES. Section 17. It is understood that all street railway tracks constructed under the privileges granted by this ordinance, §36 shall be laid upon the established grades of the respective 52 The Proposed Ordinance with Notes. streets and "The Companies" shall not be required to lay their tracks until the street is graded to the established grade. The City shall establish such grades where none have been estab- lished when requestd by ''The Companies" MOTIVE POWER . Section 18. The motive power to be used in the operation of said street railways by "The Companies" and each and all of them, shall be electricity or any improved power or method of using the same that may hereafter come in general use, that may be prescribed by the City (with the single and temporary exception of what is known as the Twelfth Street Cable Line, now in operation from Twelfth and Washington Streets to Sixteenth and Genesee, the conversion of which to electricity is provided for in this ordinance). USE OF POLES, CONDUITS, ETC. Section 19. "The Companies" may use their trolley poles, feeder poles, trolley wires, feeder wires and conduits for all purposes solely connected with the operation of thir street rail- ways, such as power, light, heat, telephonic and other signals. For such purposes "The Companies" may connect such con- duits, poles and wires with their transmission and feeder wires, power plants, substations, car houses, repair shops, or other property of "The Companies" and with any transmission, feeder or other wires of any other individuals or corporations. JOINT USE WITH THE CITY. The said City shall have the right without the payment of any compensation therefor, during the life of this grant, to use the poles of "The Companies" to carry the signal, telephone, telegraph and electric light wires and lamps then the property of the City, for its own use. The Transmission wires of the said City for such purposes shall be placed on the poles of "The Companies" on that side of each street or public way (where poles are located on both sides thereof) designated by the said Board of Public Works without cost or expense to "The Companies" but "The Companies" shall repair and main- tain their poles as one of the operating expenses of their street railway system under this ordinance; provided, that the City shall indemnify and save harmless "The Companies" against and from all damages, judgments, costs or expenses which "The Companies" may suffer by reason of any negligence of the said City in installing, maintaining or using their said wires and lamps upon said poles. The Proposed Ordinance with Notes. 53 COMPANIES TO MAINTAIN OFFICE IN CITY. Section 20. ''The Companies" shall not remove their prin- cipal office or any of their books (except bond registry and stock transfer books, of which duplicate copies shall be kept at its office in Kansas City), records, accounts, contracts or original vouchers of receipts and expenditures beyond the limits of said City, and shall maintain an office within said City so long as "The Companies" continue to operate any part of the street railways maintained and provided for in this ordinance, under the provisions hereof. LEASE, ASSIGNMENTS OR CONTRACTS. Section 21. No lease or operating agreement or traffic arangement contract for the purchase or sale of power, light or heat, or contract of any nature whatsoever, and no assign- ment (except by the one company to the other, or by way of mortgage or trust deed under the foregoing provisions and limitations of this ordinance) shall be made by "The Com- panies" without the consent of Kansas City expressed by ordi- nance, provided, that th^'s section shall not be construed as impairing or in any manner interferirg with any contract now ex^* sting between The Kansas CHv Western Railway Com- pany, or anv other comoany and "The Companies" under or by which "The Companies" have promised to operate or fur- nish power to operate any of the cars of such other companies. COMPANIES TO PAY COST OF TWELFTH STREET VIADUCT. Section 22. Twelfth Street, between Broadway and Lin- coln Strets, shall by the City be improved for its full width, as it sees fit, provided that such improvements shall include a viaduct from a point at or near Lincoln Street to a point at or near Mulberry, Hickory, Liberty or Wyoming Street, as may be finally determined by the City, with poles, lamps and wires for lighting and proper space for the construction of a double track street railway thereon. Such viaduct may, if the City so determine, have an upper and lower level and shall be constructed according to plans and specifications to be approved by the Board of Public Works, "The Companies" may, however, have joint supervision with the City, of the street railway part of the work, under such reasonable arrangements between them and the City, as may be agreed upon. 54 The Proposed Ordinance with Notes. The entire way when thus improved, shall become and be a public street upon which there shall exist the same rights of "The Companies," to reconstruct, maintain and operate their lines of railway as they have upon other streets and public places of the City, except that "The Companies" shall be con- fined to twenty (20) feet in width of said roadway on the one side or the other thereof, as may be determined by the Board of Public Works. When said viaduct is completed the roadway between the street railway tracks and for eighteen (18) inches outside thereof, shall be maintained by "The Companies," and the bal- ance of the roadway by the city. The viaduct structure exclu- sive of the roadway shall be maintained by the City and "The Companies" jointly and at an equal expense. The entire enterprise of which the building of said viaduct forms a part involves the changing the present grade of Twelfth Street substantially as provided in Ordinance Number 37058 and condemning ground at or near the West end of said viaduct to afford proper approaches thereto, so that said viaduct when completed, shall conform to the new grade, and constitute a continuation of Twelfth Street. And "The Companies" do agree that of the cost of such entire enterprise, they will pay all; that is to say, all of the following items: (a) Damages to property by changing grade of Twelfth Street and of intersecting streets to conform thereto. (b) The cost of grading Twelfth "Street and intersecting streets. (c) Viaducts at intersecting streets across Twelfth Street, made necessary by changing grade of Twelfth Street, (d) Condemnation of ground for approaches to viaduct, (e) Dam- age to property by reason of building said viaduct structure. (f ) The cost of said viaduct structure, including all piers, abut- ments and approaches thereto, all as the plans for said enter- prise have been or may hereafter be finally approved, either as a whole or separately, by the Board of Public Works. Pro- vided, that the total amount so paid by "The Companies" shall not exceed one million three hundred and fifteen thousand ($1,315,000) Dollars. Subject, however, to the provisions of Section Number Ic of this Ordinance. TWELFTH STREET LINE TO BE ELECTRIFIED. Section 23. "The Companies" agree to electrify that por- tion of Twelfth Street over which cable cars are now being operated by the time the viaduct referred to in the foregoing The Proposed Ordinance with Notes. 5S section is completed ; after which time "The Companies' " cars shall be operated in continuous passage over the entire length of said Twelfth Street line. CITY TO RESERVE POLICE POWER AND RIGHT OF REGULATION AND CONTROL. Section 24. Nothing in this contract shall take away from §24 the City any right or power o^ to regulation and control of any lines of ''The Companies'' reserved in the charter of the City and which now exists, but any such right or power shall co7itinue as it existed at the time of making this contract. Neither is it intended to take away any of the rights of ''The Companies" as heretofore existing, except as they are herein expressly or by acts done hereunder changed, modified, quali- fied, affected or abrogated, but except as aforesaid, rights shall continue as they existed at the time of making this contract. Nothing in this ordinance contained shall be construed as depriving the said City of the right of exercising any police power which it would have possessed or enjoyed had this ordi- nance not been granted. The enumeration herein of special requirements and spe- cific regulations shall not be taken or held to imply the relin- quishment by the City of its power to make other require- ments or regulations and the said City hereby expressly re- serves the right to make all regulations which may be necessary to secure in the most ample manner the safety, health and accommodation of the public, including, among other things, the right to pass and enforce ordinances to protect the public from danger and inconvenience in the management and opera- tion of street railways throughout the said City and the right to make and enforce all such regulations as shall be reasonably necessary to secure adequate and sufficient street railway ac- commodations for the people and secure their comfort and convenience. The City Council may vest any and all matters of admin- istration under this ordinance in a department or bureau of local transportation or in its City Engineer or in any official or employee of said City. REM OVAL O F TRACKS. Section 25. If "The Companies" shall hereafter cease to operate over any of their tracks or any portion thereof, they §22 shall remove such unused tracks upon the order of the City Council. Failure to operate cars for the carriage of passengers 56 The Proposed Ordinance with Notes. at least once each way within every hour of each day between the hours of 6 a. m. and 8 p. m. over any part of a street or public place or right of way in which the tracks of "The Com- panies" are laid shall be treated as a cessation of operation of its tracks in such part of street or public place or right of way within the meaning of this section u^nless such operation is interfered with by unavoidable accidents, labor strikes, or litigation brought without connivance of "The Companies"; provided, however, that the foregoing provisions of this section shall not be construed to require or authorize the removal of curves or turnouts or connecting tracks specifically authorized by this ordinance to be construed and maintained for use dur- ing rush hours or for emergency use in case of fire or accident or such tracks as may be necessary for a. connection with "The Companies' " property used for street railway purposes. The City shall have the right by ordinance to require "The Companies" to remove any tracks or portions thereof, the further maintenance of which is at any time no longer war- ranted by the trafl[ic or reasonably required in the operation of the street railway system, provided that "The Companies" shall not be required to remove such tracks, but may maintain or reconstruct and operate the same during the life of this grant so long as or whenever the City shall permit the con- struction or operation of any street railways upon the streets or parts of streets respectively from which such tracks have been so required to be removed; and in every case of removal of tracks as aforsaid the company shall restore the street or public way to the condition of the other portions thereof, all at their own cost. If "The Companies" shall fail within a reasonable time to remove any such tracks on order of the Board of Public Works the said City may remove them, charging the expense thereof to "The Companies"; provided, however, that nothing in this section 'contained shall relieve "The Companies" from their obligations at all times to render adequate service on their street railways. SERVICE REGULATIONS. Section 26. "The Companies" hereby agree to comply with all regulations of the service of the said street railway system which may be prescribed from time to time by the City Council of the City. STYLE OF CARS. All passenger cars operated by "The Companies" shall be used for the carriage of passengers only. All such cars here- The Proposed Ordinance with Notes. 57 after built or purchased shall be of the best and most approved style, finish and design to be approved by the Board of Public Works; at least fifty (50) cars shall be acquired by and placed in operation upon the tracks of "The Companies" in addition to those now in use within one year from the passage of this ordinance, exclusive of delays occasioned by strikes or other delays beyond the control of 'The Companies." Said CGmpanies agree to maintain upon all their ^^^wbgi(\ and to at all times run and operate upon their roads good and^ convenient cars to accommodate public travel, and shall keep the same clean, road ivorthy, in good repair, thoroughly venti- lated, properly heated and lighted, and in good and safe order and condition, and shall at all times keep their roadbed and tracks in good order and condition so as to afford safe and con venient travel thereon, and the said cars shall at all times he equal iii pattern, style, finish and condition to cars in ordi- nary use on the best managed and equipped lines of street railway in the United States, and said cars and machinery for operating the same shall at all times be provided with the best improved appliances for protecting the lives and persons of passengers on said road and of the public traveling on and across the streets over which said roads may be operated. All cars hereafter built or purchased and placed in operation on the lines of "The Companies" shall have center aisles. They shall be without running footboards along the sides, and 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 single truck cars now in use shall be provided, as soon as reasonably possible, with cross seats facing forward, but longitudinal seats, not seating more than two passengers, may be used at the ends of the cars. (But this shall not require 'The Companies" to dispense with the cable cars now being operated on Twelfth Street before said Twelfth Street Line has been electrified as herein provided), and all cars shall be run at all times and places at a reasonable rate of speed under the particular circumstances, and in no event shall any street car be run or operated at a greater rate of speed than fifteen (15) miles per hour within that territory of the City between Troost Avenue on the East and Nineteenth Street on the south, inclusive of State Line and the Missouri River; provided, that this shall not apply to any elevated road and underground road. Outside of said City limits said street cars shall not be run at any greater rate of speed than twenty (20) miles per hour. Every train shall be in charge and under the control of at least two competent men, a motorman and conductor. 58 The Proposed Ordinance with Notes. SCHEDULES ON WHICH CARS SHALL RUN. The cars shall be run on such schedules as Kansas City, by ordinance, may from time to time prescribe, and until such time as it may prescribe such schedules, the same shall be run at least as frequently as is prescribed by the ordinances of Kansas City, Missouri, in existence at this time, and at all times with sufficient frequency to accommodate the public. Owl cars shall he run in accordance with the schedule and regulation in what is commonly known as the *'Owl Car Ordi- nance'* viz., Ordinance No. 17081. Until changed by ordinance of the City, in addition to the present requirements, cars shall be operated between the hours of 6:30 a. m. and 8:30 a. m. and 5 p. m and 7 p. m., Sundays excepted, on the following lines at the following schedules: Rockhill and Northeast lines at no longer intervals apart than three minutes. Independence Avenue lines at no longer intervals apart than two and one-half minutes. Twelfth Street lines at no longer intervals apart than two and one-half minutes. Prospect Avenue line at no longer intervals apart than two and one-half minutes. Indiana Avenue line at no longer intervals apart than three minutes. Brooklyn Avenue line at no longer intervals apart than three minutes. Woodland, Vine ^nd Holmes lines at no loner intervals apart than three minutes. Roanoke line at no longer intervals * apart than three minutes. East Eighth and East Ninth Street lines at no longer inter- vals apart than three minutes. Troost Avenue line at no longer intervals apart than two and one-half minutes. Eighteenth Street and Main Street lines at no longer intervals apart than two minutes. Fifteenth Street line at no longer intervals apart than three and one-half minutes. GENERAL ROUTING. It is expressly understood that the City reserves the right to regulate and prescribe the number of hours in each day and night the cars on said street railways shall run, the speed and frequency with which the cars shall be run, and to con- The Proposed Ordinance with Notes. 59 trol and regulate within the City the matter of the routing of the cars on all of the lines ''herein referred to," and all en- largements of the same, ivhether made by construction, pur- chase, lease or otherwise, it being the agreement and inten- tion that the City shall have the right to control the routing of all street cars within the limits of the city as the said limits are noio established or may hereafter be enlarged, in such manner as the best interests of the traveling public may demand. Any routing herein provided for shall in no event be held irrevocable or unchangeable, but the same shall always be subject to reasonable alterations and reasonable changes by the law-making authorities of Kansas City, subject, how- ever, to the rights, if any, which abutting property owners now have under the franchise for said lines as originally built. TENTH STREET LOOP.— COMPENSATION TO CITY. RIGHT OF OTHER COMPANIES TO USE. Section 27. It is understood that the cars of any street railway company, or any suburban railway company, not a party to this agreement may run over and upon the tracks constituting the loop or any portion thereof described as fol- lows : On Tenth Street from Main Street to Wyandotte Street; thence North on Wyandotte Street to Ninth Street; thence East on Ninth Street to Main Street; thence South on Main Street to place of beginning, upon such terms and conditions as the Common Council shall hereafter specify by reasonable ordi- nance, and the right to use said loop shall be in addition to the rights othertvise reserved by what is known as the three block and loop clauses, as set forth in Sections 26 and 26a of Ordinance Number 1^188, approved April IJf, 1900, and in Sec- tions 6 and 7 of Ordinance Number 4^5113, approved February 5, 1889, said provisions being expressly continued in force. And the right to use said loop shall be in addition to the other rights reserved to permit other street railway companies to use a portion of the tracks, poles, wires and' electrical currents on Main Street under the provisions of Ordinance No. 37969, ap- proved October 7, 1907. In the event the street railivay companies, or any of them, shall contest or dispute the reasonableness of any ordinance passed by Kansas City permitting other roads to use their tracks, under the provisions of this ordinance, the company desiring to use such tracks shall, pending said dispute and con- test, have the right to use the tracks and poles and wires and electrical currents of said companies, but this section in itself 60 The Proposed Ordinance with Notes. shall in no wise be held to be a grant from Kansas City to any company to use said tracks; but before such company shall ^2Lhave such right, it shall be necessary for the law-making ^ZT authorities of Kansas City, in proper manner, to pass the nec- essary ordinances therefor; and provided, further, if ''The Companies" dispute the reasonableness of said rates fixed by the Council, that before any company shall have the right to use said tracks, poles, wires and currents, it shall execute to "The Companies" owning or operating such tracks a bond in form and amount and with sureties approved by the Circuit Court of Jackson County, Missouri,, or by one of the judges of said Court, to pay the compensation due for such use, and to hold "The Companies" owning the tracks harmless from damages caused by the new company. "The Companies" shall operate around said loop a number of cars equal to the number which were being run upon the West Ninth Street line just prior to the building of said loop. As compensation therefor, "The Companies" shall pay to Kansas City the sum of Twelve Hundred Dollars ($1200.00) per annum, payable annually, on or before the 1st day of March of each year for the year ending December 31st last preceding, the amount so paid to be treated as an operating expense, and shall permit the City to use their tracks free and shall furnish the necessary power free for such street sprink- ling cars or apparatus as the City may see fit to use in sprink- ling the streets over which the tracks of "The Companies" shall run within the City limits. The City shall run said cars at its own cost and at its own risk and shall hold said Com- panies harmless from any damage resulting therefrom. RIGHT OF THE CITY TO PURCHASE. Section 28. "The Companies" by the acceptance of this ordinance, shall and do grant to the said City, and the said City hereby reserves to itself the right upon the 1st day of June or upon the 1st day of December of each and every year after January 1st, one thousand nine hundred and forty-five (1945), upon giving at least six (6) months' notice in writ- ing of its intention so to do, to purchase and take over the entire street railway system and properties of 'The Companies" then existing. PRICE TO BE PAID BY THE CITY. In case the City shall purchase and take over the street railway system of "The Companies" as in this ordinance pro- The Proposed Ordinance with Notes. - 61 vided, then it shall pay for the same the actual value thereof as the same may be agreed upon by the City and "The Com- panies" at the time of the purchase, and in the event of dis- agreement, then for such price as the Circuit Court of Jack- son County may adjudge to be the just and fair valuation thereof (excluding franchise value) after a fair judicial exam- ination of the question as in ordinary and usual procedure in said Court, saving to both parties hereto the right of appeal from such finding and vesting said Circuit Court and Appel- late Courts with full authority to hear and determine the same, and authorizing and empowering said Court to enter such judgment as will effectuate the purpose of this agreement. In the event that it shall be determined that the City is at the time this ordinance is passed or at the time this ordi- nance takes effect without lawful power or authority to acquire, own or operate street railways under the provisions of this ordinance or otherwise in any one or more of the cities in this ordinance referred to, and the City of Kansas City, Missouri, shall thereafter acquire such power or authority, thereupon and after such acquirement the City shall have the right to purchase, acquire and operate said street railways, rights and property under the provisions of this ordinance to the same extent and in the same measure as if said City had full right and law^ful authority so to purchase, acquire and operate said street railways, rights and property at the date of the passage of this ordinance and on the date when this ordinance takes effect. The City shall have the right to elect whether it will take the entire street railway system, including the property located in Missouri, as well as the property located in the State of Kansas, or in lieu thereof, it may elect to purchase only the lines and property located in the State of Missouri. Any appraisement shall only include the lines and properties which the City so elects that it shall purchase, but it is stipulated and agreed that the Missouri lines and properties if purchased must be taken as a whole, if at all, and that the Kansas lines and properties, if included, must be taken as a whole, if at all. CITY'S RIGHT TO INTERVENE. Section 29. "The Companies" by the acceptance of this ordinance shall and do grant to said City and the said City hereby reserves to itself the right to intervene in any suit or proceeding brought by any person, firm or corporation seeking to enjoin, restrain or in any manner interfere with "The Com- panies'* in the doing of any work called for by this ordinance 62 The Proposed Ordinance with Notes. or involving the observance or performance of any of the agreements or conditions herein provided to be kept or per- formed by "The Companies" or in any suit to foreclose or en- force any lien, mortgage or trust deed against them and to move for a dissolution of such injunction or restraining order in such suit and take any other proper steps to protect the rights of such city in case it shall deem such action necessary and proper to protect the interests of said City. ORDINANCE BINDING UPON SUCCESSORS AND ASSIGNS. Section 30. This ordinance shall inure to the benefit of and be binding upon the successors and assigns of "The Com- panies" and they, and each of them, shall be bound by all and every one of its provisions by "The Companies" to be kept and performed precisely as if in every case they had re- spectively been named herein with "The Companies." WARRANTY OF TITLE. * Section 31. Whenever the City shall desire to purchase and take over the street railway system and property of "The Companies" as in this ordinance provided, and shall comply with the provisions of this ordinance with respect to making such purchase and payment therefor, "The Companies" shall by good and sufficient written instruments to that end transfer to the City all of its said street railway system and properties free from all claims and liens whatsoever, and "The Com- panies" shall warrant the title to all of the properties so trans- ferred to the City to be free from all claims and liens what- soever, and also that there are no outstanding rights in the streets or parts of streets occupied by their street railways in any person or corporation derived through or under "The Companies," and if at the date of said purchase there shall exist any defect in or incumbrance upon "The Companies' " title to any of the real estate now owned by "The Companies" an amount of the purchase price equal to the value of said real estate (to be arrived at by appraisers, one of them selected by "The Companies," one by the City, and the two thus chosen to select a third) the title to which shall be encumbered or de- fective, the City shall deposit such portion of the purchase money for said street railway properties until such defects and encumbrances shall be cured or removed as security to the pur- chaser for the loss from such defects or encumbrances. The Proposed Ordinance with Notes. 63 REPEALING CLAUSE. Section 32. All ordinances, or parts of ordinances, in con- flict herewith are, only in so far as they conflict, hereby re- pealed, but all obligations of every kind and character in favor §l-|-l of the City or ''The Companies" noiv existing, except in so far as they are hereby modified or repealed, shall continue in full force and effect; provided, however, that in repealing the provisions of existing ordinances fixing a percentage of the gross earnings of "The Companies" in lieu of taxes. Nothing herein shall be so construed as limiting the power of taxation of the State, County and City, nor to iirevent the City from charging an annual license of fifty dollars per car on the aver- age number of cars operated by ''The Companies," which said license "The Companies" agree to pay. FORFEITURE FOR NON-COMPLIANCE. Section 33. "The Companies" by the acceptance of this ordinance expressly agree with said City and obligate them- selves fully to comply with all the terms and conditions of this ordinance throughout the period of time covered hereby and so long as "The Companies" continue to operate any street rail- ways under or by virtue of the authority hereof. "The Companies" further agree that in the event that they shall make default in the observance or performance of any of the agreements, or conditions herein required to be kept and performed by them, and if any such default shall continue for a period of three (3) months (exclusive of all times during which "The Companies" may be delayed or interfered with without their connivance by unavoidable accidents, labor strikes or the orders or judgments of any court entered in any suit brought without their connivance) after written notice thereof to them from said City, then and in each and every such case the said City by the judgment of a court of competent jurisdiction shall be entitled to declare this grant and all of the rights and priv- ileges of "The Companies" to maintain and operate street rail- ways in any of the streets or public ways of the said City to be forfeited and at an end; provided, however, "The Companies" shall have ninety days to do and perform the act or acts caus- ing such forfeiture, and if "The Companies" shall within such time do and perform such acts, such judgment shall, on mo- tion, be annulled, set aside and avoided, and if "The Com- panies" within said time shall not do and perform such acts then the said judgment shall be final and binding. Should "The Companies" for their corporate purpose pledge or mort- 64 The PROPoeED Ordinance with Notes. gSLge their railway property or any of the rights secured to them by this ordinance for the payment of their notes, bonds or other evidence of indebtedness, such right of forfeiture of this grant by reason of any violation by "The Companies" of the provisions of this ordinance shall not be asserted or exist against such pledgee or pledgees, mortgagee or mortgagees, or any of them, and shall not impair or affect the right of such pledgee or pledgees, mortgagee or mortgagees to recover by foreclosure, or other legal process, all the property of "The Companies," including the rights and privileges hereby granted, the face value of said notes, bonds or other evidence of in- debtedness, to an amount, however, not in excess of $3,000,000 less than the actual value of the property, such value to be determined as provided for in the purchasing section of this ordinance; and it is hereby stipulated that any notice of de- fault by "The Companies" upon which a forfeiture shall be claimed shall also be given by the said City to the trustee or mortgagee of record in any trust deed or mortgage securinjg guch indebtedness. The purchaser on any foreclosure or other sale shall acquire no other or greater rights or privileges than are hereby conferred, and such purchaser shall hold said prop- erty so purchased at such foreclosure or other sale subject to the rights of purchase at any time thereafter as herein pro- vided by the said City, and also subject to the continuing terms, conditions and limitations of this ordinance, including the forfeiture provisions to the same extent as if the said pur- chaser had been the original grantee hereunder except that such purchaser shall have no right to execute or deliver any mortgage, trust deed or other incumbrance on said street rail- ways, rights and properties or any part thereof without the consent of said City. The City shall have the right to bid and become the pur- chaser at any such foreclosure or other sale. If "The Companies" shall at any time after the acceptance of this ordinance by them fail to comply with the provisions hereof with regard to the maintenance of first-class street rail- way service over and upon its said lines of street railway, the said City shall have the right to sue for and recover in any court of competent jurisdiction the sum of not less than Fifty ($50.00) Dollars and not more than Five Hundred ($500.00) Dollars for each and every such failure, and each and every day that such failure shall continue shall be taken and held to be a separate offense; but the payment of such penalty shall not in any manner release the liabilities of such Com- The Proposed Ordinance with Notes, 6S panics to incur a forfeiture of all their rights and privilegres under this ordinance, as hereinabove provided. Whenever "The Companies" fail or refuse to comply with any of their obligations hereunder, the City shall have the right in addition to the other rights and remedies expressly or by law reserved to it to do or cause to be done the things re- quired to be done by the street railway companies, and the City shall have the right to collect from *'The Companies" and ''The Companies" shall be liable to the City for all the cost and ex- pense thereof, including cost of suit. ''The Companies" shall deposit with the City Treasurer the sum of Fifteen Hundred (1500) Dollars for the faithful compliance with this section, and as often as any portion of said sum is used by the Board of Public Works in fulfillment of the obligations of "The Com- panies" the said Companies shall on notice from the said Board of Public Works deposit a corresponding sum with the City Treasurer, §^v?/ NOTE. The Metropolitan Street Railway Company in this ordinance, has taken great pains to leave out all the substantial penalty clauses and forfeiture clauses incorporated in the Peace Agree- ment and to insert in lieu thereof forfeiture clauses that are absolutely worthless. Section 37 of the Peace Agreement simply provides that if the railway companies neglect to comply with any of the pro- visions of their ordinance or any lawful ordinance of Kansas City it shall forfeit all its rights, powers and franchises con- ferred by the ordinance, and the ordinance be null and void. It is interesting to note that this section 37 is not incorporatedj in the ordinance submitted to our vote. It is also provided inj ^ section 37 of the Peace Agreement that in case Ui u' Lumpaiu ^j .T '^vJ^ ordinance, the city shall have the right to take possession of the companies' poperty until $250,000 liquidated damages are collected by the city for such default. It Is interesting to note that this provision is also omitted from the proposed ordinance. In lieu of these provisions the ordinance submitted to, our vote has the above forfeiture clause in most part copied from the forfeiture clause of Chicago, but all the force of the Chicaeo forfeiture pix)visions is eliminated in the contract submitted to us by a provision which is interpolated and a Kansas City invention. This provision gives the company the power and license to refuse to carry out any stipulation required under the proposed ordinance without fear that its franchise shall be taken away; for the reason that even after this default has continued during all the time necessary to bring the matter to a final conclusion in the upper courts the company may avoid a forfeiture Imposed upon it for such default by them within 90 days by then making showing of performance. 66 'I'HE Proposed Ordinance with Notes. The following is a copy of the forfeiture clause of the Chi- cago ordinance of February 11, 1907, section 32: "The company further agrees that in the event that it shall make default in the observance or performance of any of the agreements or conditions herein required to be kept and performed by it (other than the obligations stated in subdivision 'd' of Section 1 of this ordinance, as to which special provision has been made in Section 25 of this ordinance, which obligations, however, are to be excepted only in case the company has fully complied with the provisions of said Cection 25), and if any such default shall continue for a period of three (3) months (exclusive of all times during which the company may be delayed or interfered with, without its connivance, by unavoidable accidents, labor strikes or the orders or judgments of any court entered in any suit brought without its connivance), after written notice thereof to it from the said city, then and in each and every such case the said city, by its City Council, shall be entitled to declare this grant and all of the rights and privileges of the company to maintain and operate street railways in any of the streets or public ways of the said city to be forfeited and at an end; provided, however, that should the company, for its corporate purposes, pledge or mortgage its street railway property or any of the rights secured to it by this ordinance, or any security representing the said prop- erty or rights, for the security of the payment of its notes, bonds, or other evidences of indebtedness maturing not later than February 1, A. D. 1927, the amount thereof not being excess of the value of all the property and rights of the company, as defined in ection 20 hereof, such right of forfeiture of this grant by reason of any violation by the company of the provisions of this ordinance shall not be asserted or exist against such pledgee or pledgees, mortgagee or mortgagees, or any of them, and shall not impair or affect the right of said pledgee or pledgees, mortgagee or mortgagees, to recover by foreclosure or other legal process against all the property of the company, including the rights and privileges hereby granted, the face value of said notes, bonds or other evidences of indebtedness, or any security representing the said property or rights to an amount, however, not in excess of the sum, for which the city would then have the right, under the terms of this ordinance, to purchase the said street railway property for municipal operation; and it is hereby stipulated that any notice of default by the company, upon which a forfeiture shall be claimed, shall also be given by the said city to the trustee or mortgagee of record in any trust deed or mortgage securing such indebtedness. The purchaser at any foreclosure or other sale shall acquire no other or greater rights or privileges than are hereby conferred, and such purchaser shall hold said property, so purchased at such foreclosure or other sale, subject to the right of purchase at any time thereafter, as herein provided, by the said city, and also subject to the right of purchase by any licensee of the said city, upon the same terms as the said city might purchase and acquire said property, but without payment in either case of the additional twenty per cent provided for in Sections 20 and 22 of this ordinance; and also subject to the continuing terms, conditions and limitations of this ordinance, including the forefiture provisions, to the same extent as if the said purchaser had been the original grantee here- under, except that such purchaser shall have no right to execute or deliver any mortgage, trust deed or other encumbrance on said street railways, rights and property or any part thereof without the consent of said city." The Proposed Ordinance with Notes. 67 ORDINANCE TO BE SUBMITTED TO THE PEOPLE, Section 34. Not less than thirty days after its enactment, this ordinance shall be submitted to the qualified voters of the City at an election to be held for that purpose, and in no event shall this ordinance take effect or be valid until and unless it is ratified by a majority of the qualified voters of the City voting at said election. Providing, that if **The Companies" shall not pay to the City Treasurer said sum of money, referred to in section hereof within the time herein provided, or if "The Companies" shall not file their formal acceptance of this ordinance and of all its terms and conditions, within sixty days after said election, then in either or any such event all rights and privileges hereby granted shall be wholly null and void and of no effect, the acceptance of this ordinance by *The Companies" being hereby made a condition of this ordinance taking effect. Passed Oct. 25th, 1909, R. L. GREGORY, President, Upper House of the Common Council. Passed Nov. 1st, 1909, F. J. Shinnick, Speaker, Lower House of the Common Council. Approved Nov. 1st, 1909, Thomas T. Crittenden, Jr., Mayor. Attest: M. A. Flynn, (Seal.) City Clerk. •Trirrngni iN almost every car is an alluring placard prom- ising 4-cent fares. It oc- curs to me that that state- ment would look much better in the ordinance than it does in the cars. — From Edward L. Scarritt's franchise address before the commercial club. Mllo R. Maltbie, Public Service Commissioner of New York, in an article recently read before the National Municipal League entitled, "A Rapid Transit Policy for Greater New York," said: "The principle for which the public service com- mission stands, means that the city shall always be in position to control transit development. Nothing is more vital to a city than adequate transportation, and it is no more important that a city should control its streets than that it should control the special arteries of traffic, its rapid transit lines. Under an irrevocable franchise or operating contract which gives a company the exclusive right to operate a line for thirty, forty, fifty or a hundred years, the city loses complete control and there is no way by which it can be regained before the ex- piration of the time except at enormous expense and under such difficulties as make it impracticable. The same gentle- man on a "Report on Indeterminate Franchise of Public Utilities," says: "The pendulum has swung from perpetual franchises with no restrictions to short term franchises with every restriction it is possible to devise. It is easier to re- lease a captive than to bind a fugitive; and a city which has too severely restricted a public service corporation can more easily increase the latitude allowed than can the city which has bargained away its power to control, recover such power." The Outlook of December 4, 1909, makes the following objections to this ordiancc proposed to us for our vote on December 16th: "Cri'ics of this ordinance point out that the city is going into the trade blindfolded; that it h^^s no way of knowing what the property is worth, and what a reasonable rate of fare would be; that six tickets for a quarter, while an advantage to the city, is a good business proposition for the com- pany — though it might evade the concession later if it cared lo, as was done in Philadelphia — and that It is to have the immensely valuable right to the use of the streets for forty-two years virtually free; that the fran- chise fails to regulate the amount of indebtedness 'hat the company may assume, so that after 1925, '.he right to regulate fares might prove useless, since the courts might hold— as they have held — that a reduced fare would be insufficient to pay returns on heavily watered securities; and that the franchi&e makes municipal ownership impossible until 1945. It is urged further that other citiee, such as Columbus and Cleveland, have obtained much better terms in the way of fares, and that in these days of competition between cities for industries, no city can- afford to hamper hereelf and tie its hands to its street'tniilway contract.!' This following ordinance, called the "Peace Agree- ment/' constitutes the contract under which the Street Railway Companies are now operating in the streets of our city. — It does not expire until 1925. PEACE AGREEMENT OF 1903. Be it Ordained by the Common Council of Kansas City, Missouri: CONTRACT FOR CHANGES IN TRACKS AND EQUIPMENT. Section 1. The Metropolitan Street Railway Company, the Central Electric Railway Company and Kansas City Elevated Railway Company, now owning and operating all lines of street railway in Kansas City, Missouri, shall make the changes in their tracks, equipment and lines, which they now and may hereafter operate in the city, as hereinafter specified, including the conversion of the lines operated by cable into electric lines, as hereinafter set forth. The terms and conditions upon which such work shall be done are herein expressed, which things the companies must and do consent to, and by an acceptance hereof they contract with the city, which contract is embodied in this ordinance, and when accepted by said companies shall become a fixed and binding contract upon the City and all said railway companies, their successors and assigns, the parties intending by this contract to cover all the lines of street rail- way now in Kansas City, Missouri, as its limits now are or may be hereafter extended, as well as those lines of road which may be constructed pursuant to this ordinance. EIGHT PER CENT CLAUSE. Section 2. On and from the first day of June, 1902, there shall, so long as said companies operate their railways under existing franchises, be paid annually to the City by the Metropolitan Street Railway Company, the Kansas City Ele- vated Railway Company and the Central Electric Railway -Cdtti- pany, their successors and assigns, a sum equaling eight per ^ent (B per cent) of the gross car and track ei^mings of all The Peace Agreement. 71 their lines in Kansas City, Missouri, as they now exist, or as the system or systems may be extended or enlarged pursuant to the terms of this contract, including the Swope Park line and the electric line to Independence, Missouri, under the fol- lowing terms and conditions: ALL CITY LINES AND SUBURBAN LINES INCLUDED — ' CARRYING PARCELS. (a) The present Roanoke extension, the extension of the Westport line from Westport Avenue south and east to Forty- seventh Street, the Twenty-seventh, Thirty-first and Indiana Avenue lines and the extension of the Brooklyn Avenue line from Twenty-seventh to Thirty-first Streets, as they are now or may be constructed, altered or extended and in operation, are included in Section two (2) of this ordinance; and there shall be included in the earnings of the said companies as if earned in- Kansas City, Missouri, the entire system of the Met- ropolitan Street Railway Company between Kansas City and Independence, Missouri, including branches and extensions thereof, and the Swope Park line and the other extensions men- tioned herein. Provided, further, that there shall be included in said gross earnings one full fare for each passenger taken from or to suburban lines within the State of Missouri, less such sum as may be paid to suburban lines, not exceeding one cent per passenger one way, as set forth in Section 15; and pro- vided, further, that there shall be included in the gross earn- ings such proportion of the charges for carrying parcels or other things referred to in this contract to or from points out- side of the City over the lines within the City as the distance carried within the City bears to the whole distance carried; and there shall be included all collections for track earnings on the tracks now in Jackson County, Missouri, or tracks to be constructed pursuant to the provisions hereof. Upon all suburban lines operated partly within the State of Missouri and partly within some other state, there shall be included all fares or collections of the character aforesaid orig- inating in Kansas City, Missouri. TAXES TO BE PAID.— RESIDUE PAID TO CITY (b) Out of said sum so equaling eight per cent (8 per cent), there shall each year be first paid by said Companies all the itate, county, city, school and municipal taxes of every Jcind or character upon thair property in Missouri of the char* 72 The Peace Agreement. acter now assessable by the State Board of Equalization, which is actually used by such Companies in operating the lines from which the gross earnings shall be received, upon which the eight per cent (8 per cent) shall be computed as aforesaid, and all license and occupation taxes, and taxes upon earnings, if any, assessed and levied by the State or City upon the prop- erty last aforesaid in lieu of or in addition to taxes levied as at present and all license fees exacted by the City, excepting taxes levied upon real estate, personal or mixed property not assessable as aforsaid and legal special taxes and assessments for public improvements and for parks and boulevards and the maintenance thereof; but this exception shall not include bonds, stocks of or debts due from any of the Companies or lines of any of said Companies now owned or hereafter con- structed and covered by this contract. After making such de- ductions the balance of such sum so equaling said eight per cent (8 per cent) shall be paid to the City. PERCENTAGE OF EARNINGS UNDER OTHER ORDI- NANCES, INCLUDED IN 8 PER CENT. (c) The sum of eight per cent (8 per cent), so paid as aforesaid, shall also be in full of any claim of the City for per- centage of earnings required to be paid under other ordinances heretofore passed. SWORN REPORT BY COMPANIES TO CITY COMPTROLLER. —RIGHT OF CITY TO INSPECT BOOKS, ETC. (d) Said Companies shall once each week report to the City Comptroller the amount of their daily gross earnings for the preceding week. Said report shall be sworn to as correct by the auditor or treasurer of said Companies, and the right is hereby given to the City at any time, by its officers and agents, to examine the books, trip sheets, vouchers and papers of said Companies so far as to enable said City to determine the gross earnings of said Companies. DATE OF PAYMENT OF 8 PER CENT.— GUARANTY OF AMOUNT OF SAME. (e) On the first day of June, 1903, the total of the said eight per cent (8 per cent) for the twelve months preceding shall be ascertained and there shall be deducted therefrom seven-twelfths C7-12) of the amount of taxes and charges of charaetiei' gboy^ 4^;ifcl accruing agaifi&t wd Companies, The Peace Agreement. 73 during the twelve months ending the 31st day of December, 1902, and the difference between the said seven-twelfths (7-12) of said taxes so accruing during said period, and the total of said eight per cent (8 per cent), shall be paid to the City on the first day of June, 1903, and thereafter, on the first day of June of each year, the total of said eight per cent (8 per cent) for the preceding twelve months shall be ascertained, and there shall be deducted therefrom all the taxes and charges of the character above mentioned to be deducted accruing during the twelve months ending the 31st day of December, last preced- incr; provided, however, that the amount of sa^d eight per cent (8 per cent) for the year ending June 1st, 1903, shall not be less than two hundred and twenty-four thousand dollars ($224,- 000.00), and thereafter shall not be less than two hundred and thirty-four thousand dollars ($234,000.00) for any one year, and if less the said Companies shall pay the difference. The said eight per cent shall be ascertained each year set)aratelv. so that if in any one year it exceeds the sum of $234,000.00 the Company shall not have any credit for the excess on any other year's earnings. Nothing in this ordinance shall prevent or interfere with the collection by the City of any and all general taxes in its favor, whether greater or less than eight per cent, no matter how they may be from time to time assessed, nor shall it pre- vent or interfere with the collection of any and all special taxes or assessments for public improvements, but the City shall not collect percentages, license fees or occupation or earn- ing charges so as to make the total to be paid by the Com- panies as aforesaid more than said eight per cent. Should the residue of the eight per cent (8 per cent) , after dednctino- fhe taxes aforesaid, be less than a sum enual to fift>^ dollars ^$^0) r>er car per yea"r on the average nnmbe^ of ca^s ODerated by the Companies, then in that event the City shall have the rierht to levy and collect from the Companies, as a license on ca^s, an amount sufficient to make said residue equal to a license fee of $50 per car per annum on the average num- ber of cars operated by the Companies. ONE COMPANY OPERATING LINES OF OTHER TO RETAIN 8 PER CENT OF EARNINGS AND PAY SAME TO CITY. (f ) And in the event that one of said Companies does or shall manage, control or operate any line or lines of said road belonging to another company, the company so operating said VQa4 ^Wl retain eight per cent (8 per eent) of the gross earn- 74 The Peace Agreement. ings of said line or lines of road and pay the same to the City as above stated, but this provision shall not operate to release any of the corporations herein named from their primary lia- bility to pay said -eight per cent (8 per cent) as to their re- spective lines as hereinbefore specified. CONSENTS OF PROPERTY OWNERS. Section 3. Whenever extensions of roads are hereinafter provided for, before any such extension is made, the necessary consents of the property owners along the proposed extensions shall be obtained, the right being reserved to any citizen to secure said consents, if the Company does not obtain them. The City hereby grants the right for such extensions to take effect upon the necessary legal consents of the property own- ers, and if it is by the Company or the City deemed necessary this grant shall be re-passed. The right to make such extensions shall cease if the same are not made within the times herein- after specified for their completion. EXTENSIONS AND ELECTRIFICATIONS.— DATE OF COMPLETION. Section 4. Extensions and electrifications of lines shall be made by the Companies owning them as follows: (a) The Troost Avenue line shall be extended to Fortieth Street by the first day of December, 1902, and is to be operated as an elec- tric road throughout its entire length by that date, and it is to be further extended as an electric road and in operation as such, from Fortieth to approximately Forty-seventh or Forty- eighth Street, by the first day of December, 1903. Provided, however, the cars of the Troost Avenue line, after the elec- trification of that line, shall be brought to the business center of the city via the Tenth Street line until the Eighth Street line shall be electrified as herein provided. NINTH STREET LINE. (b) The Ninth Street line shall be electrified and in op- eration as an electric road from Woodland Avenue each by the first day of December, 1903, but the Company shall have the right to lay a temporary line on Woodland Avenue from Ninth Street to Tenth Street, and at that point to connect with the Tenth Street line, so that cars from said Ninth Street line shall be -brought to the business part of the Qity ov^r the Tenth §ti?eet line, temporarily,: The Peace Agreement. 75 EIGHTH STREET LINE. (c) The Eighth Street line from Woodland Avenue to Grand Avenue shall be electrified and in operation as an elec- tric road so that the cars of said Ninth Street line may run over it, as soon as the machinery and appliances can reasonably be obtained, and in no event later than the first day of Decem- ber, 1903. As soon as the Eighth Street line is electrified said temporary line on Woodland Avenue from Ninth to Tenth shall be taken up and the street restored to its original con- dition at the expense of the Company, unless the right is granted at that time for a permanent track. INDEPENDENCE AVENUE LINE. (d) The Independence Avenue line, i. e., the line on Woodland Avenue north from Eighth Street to Independence Avenue, thence east, shall be electrified and in operation as an electric road by the first day of December, 1903, said line to be extended by the last said date as far as Hardesty Avenue. On Independence Avenue from Woodland Avenue to Hardesty Avenue the poles shall be, if required by the Park Board, placed between the tracks, said poles to be ornamental in char- acter and satisfactory to the Park Board, and the right shall be given to the City to place lights upon said line of poles for the purpose of lighting said street and boulevard. (e-a) On or before December first, 1904, the Metropoli- tan Street Railway Company shall electrify the Holmes Street line from a southern terminus at Thirty-third (33rd) Street to Twenty-second (22nd) Street, at which point it shall aban- don the rest of its line of road on Holmes Street (viz., from Twenty-second Street to Fifteenth Street), and shall construct a line of double track electric road on Twenty-second (22nd) Street to Charlotte Street; and thence on Charlotte Street to Nineteenth (19th) Street; and a line of single track road from Nineteenth (19th) Street to Eighteenth (18th) Street on Char- lotte Street, so as to connect the present Holmes Street line with the present Eighteenth and Nineteenth (18th and 19th) Street lines, viz., that portion of Charlotte Street above de- scribed. The cars of said Holmes Street line shall be run north of Thirteenth (13th) Street, as provided in Subdivision "R" of Section four (4) of this Ordinance. Wlien said Company shall have constructed its said line on Charlotte Street, it shall, within six (6) months, remove its tracks, poles, wires, cables, conduits and other property from 76 The Peace Agreement. the portion of Holmes Street between Twenty-second (22nd) Street and Fifteenth (15th) Street, and shall restore the por- tion of said street disturbed and the paving thereof to a con- dition satisfactory to the City Engineer, failing in which the City may make such removal of tracks and other properties and restoration of the street at the cost and expense of the Street Railway Company. When said Company shall have constructed its line on Charlotte Street, all of its right to that portion of Holmes Street between Twenty-second (22nd) Street and Fifteenth (15th) Street shall cease and determine. The right to occupy the portion of Twenty-second (22nd) Street and Charlotte Street above referred to shall exist for such time as said Com- pany has the right to occupy that portion of Holmes Street be- tween Twenty-second (22nd) Street and Thirty-first (31st) Street. CHARLOTTE STREET VIADUCT. (e-b) Said Company shall, prior to December fourth (4th), 1904, construct, erect and maintain, without cost or ex- pense or damage to the City, a viaduct and the necessary ap- proaches thereto, on Charlotte Street, the full width of said street, over the railroad tracks on Twentieth (20th) Street. Said viaduct shall be built in accordance with plans and speci- fications satisfactory to and approved by the City Engineer of Kansas City, Missouri, and the work of construction shall be subject to his inspection and approval. If the Kansas City Belt Railway Company, the tracks of which are to be crossed by said viaduct, shall fail, neglect or refuse to arrange with said Street Railway Company to pay its fair share of the cost of said viaduct and approaches, and of the maintenance thereof, and the damages, if any, caused by the erection thereof, then the Street Railway Company shall have the right, within sixty (60) days from the date this or- dinance becomes a law, to give notice to Kansas City of said refusal; and, within a reasonable time thereafter, the City shall pass the necessary reasonable ordinances requested by said Street Railway Company to compel said Railway Company to co-operate in the construction of said viaduct and approaches, and to pay two-thirds (2-3) of the expenses thereof, including two-thirds (2-3) of the expense of maintenance. And the Street Railway Company sh air have the right to bring and prosecute, in the name of the City, such proceedings as are l^eoe^^ry to compel aaid Iteilway Company to pay its sharf The Peace Agreement. 77 of the expenses aforesaid, and to do its legal duty in the prem- ises. But said proceeding or proceedings shall be conducted without cost or expense to the City; .and said Street Railway Company shall hold the City harmless by reason of any such cost, damage or expense. But the failure of said Railway Company to join in the construction and maintenance of said viaduct, as above provided, shall not relieve the Street Rail- way Company from its duty to cause the same to be constructed by December fourth (4th), 1904, and to thereafter maintain the same, so long as said Street Railway Company's right to occupy the portion of Holmes Street between Thirty-first (31st) Street and Twenty-second (22nd) Street and the portion of Charlotte Street and Twenty-second Street above described shall continue to exist. Said viaduct and approaches shall, as soon as erected and completed, become the property of Kansas City, subject to the right of occupancy for its tracks by said Street Railway Com- pany, but said Street Railway Company shall maintain the same as aforesaid, and shall hold Kansas City harmless from any damages which may arise by reason of the construction or existence of said viaduct. SOUTH BROADWAY LINE. (f ) The South Broadway line shall be extended south to the intersection of Broadway with Westport Avenue by the first day of December, 1902, and operated as an electric road; provided, that if Broadway is not opened to Westport Avenue in time to make said extension, then in that case the Company shall have a reasonable extension of time, and the Company shall also extend and operate as an electric road said line from Westport Avenue in a southerly, westerly or southwesterly di- rection, a distance of one-half mile, within one year from De- cember first, 1902. VINE STREET LINE. (g) The Vine Street line shall be extended and operated as an electric road from the present terminus south to about Forty-fourth street by the first day of December, 1903. WALNUT AND FIFTEENTH STREET LINES. (h) The present Walnut Street and Fifteenth Street lines shall be electrified by the first day of December, 1903. 78 The Peace Agreement. EIGHTH STREET TUNNEL.— LOWER GRADE OF.— DAMAGES. (i) The Company shall have the right to lower the pres- ent grade of the Eighth Street tunnel and to make a practicable connection therewith by cutting and tunneling under Eighth Street to connect with it ; provided,^ that the new portion of the tunnel so constructed shall, from the point where it can be reasonably done, be covered over so as to leave that portion of Eighth Street at its present grade. The City shall take the necessary steps to widen Eighth Street from Broadway to the east line of the alley between Washington and Bank Streets not less than 22 feet on each side, and the Company shall pay all damages in whatsoever form assessed in said widening pro- ceedings, as well as all other legal damages of whatsoever na-. ture caused by the doing of said work, and shall hold and save the city harmless from all liability, damages and costs arising from said work and plan of said work, the purpose being to provide a roadway on each side of the portion of the tunnel where it is an open cut in the street. An underground station shall be placed in the tunnel at Eighth and Washington Streets. All the work shall be done to the satisfaction of the City En- gineer. The Company shall place the east portal of the tunnel as extended approximately five feet east of the east line of the alley between Washington Street and Bank Streets and shall roof over the present east entrance of the tunnel and make a workmanlike connection to the new extension of the tunnel. The present street after the construction of the aforesaid work shall be paved and restored to its present condition. ABANDONMENT OF 39TH STREET LINE FROM BROAD- WAY TO SUMMIT STREETS.— RESTORATION OF STREET. (j) On or before the first day of September, 1902, the Metropolitan Street Railway Company shall abandon Thirty- ninth Street from Broadway to Summit Street, and shall re- move therefrom its tracks, poles and wires and shall restore said street to a condition satisfactory to the City Engineer. And on or before the first day of December, 1902, the Met- ropolitan Street Railway Company shall construct a double line of track from the end of the present double line on Sum- mit Street between Randolph Street and Thirty-eighth Street; thence across Thirty-eighth street to its private right of way between Thirty-eighth Street and Thirty-ninth Street. It shall promptly cause that portion of its tracks lying upon Summit The Peace Agreement. 79 Street and Thirty-eighth Street to be paved in accordance with the general provisions of this ordinance. If at any time hereafter the City desires said private right of way lying between Thirty-eighth Street and Thirty-ninth Street, or any part thereof, for use as a street, the Company agrees to waive all claims for damages by reason of the taking of the same, and when so taken or otherwise acquired from the Company, the general provisions of this contract, as to paving and all other matters, shall apply. WALNUT STREET FROM 13TH STREET TO 19TH STREET. —CARS TO BE OPERATED THEREON. (k) On or before the first day of December, 1904, the Metropolitan Street Railway Company shall construct and operate a double track railway on Walnut Street from Thir- teenth Street to Nineteenth Street. DISMISSAL OF MANDAMUS SUIT IN RE WALNUT STREET. The pending mandamus proceedings brought by the Met- ropolitan Street Railway Company against Thomas J. Pender- gast. Superintendent of Streets, to compel him to issue permits for the construction of tracks on Walnut Street, shall be dis- missed by the Company at its costs. TRACKS ON SIXTH STREET FROM GRAND AVENUE TO WALNUT STREET. (1) The Metropolitan Street Railway Company shall, on or before the first day of December, 1903, construct and oper- ate a line of double track on Sixth Street from Grand Avenue to Walnut Street. TRACK ON THIRD STREET FROM MAIN TO WALNUT. (m) The Metropolitan Street Railway Company shall, on or before the first day of December, 1903, construct and operate a line of single track on Third Street from Main Street to Walnut Street and an additional track on Third Street from Walnut Street to Grand Avenue. RIGHT OF COMPANY TO LAY WATER PIPES FROM POWER HOUSE TO MISSOURI RIVER.— CONDITIONS. The said Company is also granted the right to lay neces- sary water pipes, not exceeding four in number, from its pro- posed new power house at First Street and Grand Avenue to 80 The Peace Agreement. the Missouri River, providing that ordinary permits shall be first obtained and that the work shall be done to the satisfac- tion of the City Engineer, and that the pavement shall be re- stored to as good condition as that in which it was found at the time said pipes were laid. EXTENSION OF 18TH STREET LINE TO 24TH AND JACKSON. (n) The Eighteenth Street line shall be extended and operated east from Cleveland Avenue with double track to Jackson Avenue, thence south on Jackson Avenue to Twenty- fourth Street, by the first day of December, 1903, and a double track shall be built on Jackson Avenue from Twelfth Street to Eighteenth Street and on Hardesty Avenue from Ninth Street to St. John Ayenue, and in operation by the first day of December, 1904. ABANDONMENT OF TRACKS ON CLEVELAND AVENUE FROM 12TH TO 15TH STREETS AFTER ELECTRIFICA- TION AND EXTENSION OF 12TH STREET LINE TO JACKSON AVENUE. When the Twelfth Street line is electrified it shall be ex- tended to Jackson Avenue, at which time the Company shall abandon the operation of its existing tracks on Cleveland Ave- nue from Twelfth Street to Fifteenth Street, and shall remove the same, together with poles and wires, and restore the street to a condition satisfactory to the City Engineer. Provided, that if the work of constructing said road upon Eighteenth Street is delayed by reason of said street not having been graded to the established grade, then the time of such delay shall be allowed beyond the period named herein for the completion of said road. (o) Within six (6) months after Chestnut Street shall be opened and grades from Independence Avenue and Fif- teenth (15th) Street, the Prospect Avenue line shall be ex- tended and operated as a double track railway from present northerly terminus of said line at Fifteenth (15th) Street, thence east upon and along Fifteenth (15th) Street to Chest- nut Street, thence north on Chestnut Street to a connection with the existing line of double track on Guinotte Avenue to connect with the Bast Side Electric Railway. Before the ex- tension of said line is made through the North Terrace Park the consent of the Board of Park Commissioners shall be ob- tained. When said line is constructed on Chestnut Street the The Peace Agreement. ^81 Company shall build and maintain suitable stairs from the sur- face of the street to the top of the viaduct over Chestnut Street at Lexington Avenue, so as to afford the public easy access from said viaduct to the surface of said Chestnut Street; the plans of said stairs shall be subject to the approval ot the Board of Park Commissioners, and the work ol building said stairs and constructing said track through North lerrace Park shall be done in a manner satisfactory to the said Park Board. Before the line shall be built on that part of Chestnut street lying south of Independence Boulevard the necessary consents of property holders shall be secured by said Company; pro- vided, that if the Company shall fail, neglect or refuse to se- cure said consents, then any citizen shall have the right to se- cure the same, and upon such consents being secured the Com- pany shall be bound to build said road. If said Chestnut Street is not opened and graded, and said consents of property holders secured within three (3) years from the date this ordinance becomes a law, then the obliga- tion and right of the Company to build said extension shall cease. CHANGES IN SUMMIT STREET LINE.— ABANDONMENT OF NlNln SiRLEl LllNE FKUM MAIN TO GRAND AVENUE. (p) The Company shall construct a line of double track on Broadway from Fourteenth Street to Sixteenth Street, and on Sixteenth Street from Broadway to Washington Street, and on Washington Street from Sixteenth Street to Twentieth Street, and on Twentieth Street from Washington Street to Jef- ferson Street, and on Jefferson Street from Twentieth Street to the Southwest Boulevard, and also shall construct double tracks on Washington Street from Thirteenth Street to Four- teenth Street. The above work to be done on or before the first day of December, 1904. Upon completion of the above construction, the Company shall abandon the operation of double tracks upon Fourteenth Street from Broadway to Wash- ington Street, on Thirteenth Street from Washington Street to Summit Street, and on Summit Street from Thirteenth Street to Fourteenth Street, and from Seventeenth Street to the Southwest Boulevard, and on Ninth Street from Grand Avenue to Main Street, making necessary track connections at the in- tersections of Ninth, Main and Delaware Streets, when the elec- trifications of Ninth Street is completed, and immediately there- after shall take up the tracks so abandoned and restore the street to as good condition as it would have been had this line of track been reconstructed. §26 82 The Peace Agreement. TWELFTH STREET TUNNEL.— ELECTRIFICATION OF TWELFTH STREET LINE. (q) Whereas, the location of the Union Depot is not yet definitely known, and said location may materially affect the interests of the City and also of the Company with reference to the proper location of the tunnel for the use of the Twelfth Street line through the west bluff*, and also the location of the viaduct from the westerly end of said tunnel; therefore, any provision as to the electrification of Twelfth Street at this time is omitted, except that it is agreed that in any event the road on said street shall be electrified from approximately Broad- way to the easterly end of said road on or before the first day of December, 1905. It is further agreed that. Until said line is electrified, the pavement between the tracks and between the rails of the tracks may be of vitrified brick, and the spaces of eighteen inches along the outside of the outside rails of said track shall be so laid as to conform to the pavement of said street as it now exists, or may be hereafter changed, and the pavement of the spaces aforesaid shall be at once placed in a good condition of repair in a manner satisfactory to the City Engineer and subject to his approval. When said road has been electrified as aforesaid, then the pavement between the tracks and between the rails of the tracks and for the space of eighteen inches outside of the outside rails shall be made to conform to the then existing pavement on the rest of said street and the general paving clause hereof shall govern. It is expressly agreed and understood that no authority is hereby granted to said Company to build said tunnel or via- duct. GENERAL ROUTING. (r) It is expressly agreed and understood that the City reserves any right it may have to control and regulate the matter of the routing of the cars on all of the lines herein referred to, and all enlargements of the same, whether made by construction, purchase, lease or otherwise, it being the agreement and intention that the City shall retain any right it has to control the routing of all street cars within the limits of the City, as the said limits are now established or may be hereafter enlarged When the Holmes Street, Fifteenth Street and Westport lines are electrified, the cars on said lines shall be brought as far north as Thirteenth Street on Grand Avenue. From that point all of the cars on said lines shall be operated north over The Peace Agreement. 83 such routes as will best serve the public, it being the intention to provide for bringing the traffic from said Holmes Street, Fifteenth Street and Westport lines after the electrification of said lines, with reasonable looping, in as nearly as practicable and so far as to best accommodate the travel along said route, as said traffic was carried when said lines were operated as cable lines. Subject, however, to the right of the City to rea- sonably regulate same as the best interest of the traveling pub- lic may demand. But the cars on said South Broadway line shall be operated as part of the Westport line, directly through, by the way of Broadway and Thirty-third Street and South Main Street and Grand Avenue as far north as Nineteenth Street, and then on Nineteenth and Walnut Streets to sub- stantially the business portion of the City, without transfer of passengers as herefore at Thirty-third and Main Streets. The aforesaid routing shall in no event be held irrevocable or unchangeable, but the same shall always be subject to reason- able alternations and reasonable changes by the law-making authorities of Kansas City; subject, however, to the rights, if any, which abutting property ow7iers now have under the franchise for said lines as originally built. FIFTEENTH STREET LINE EXTENSION. (r-2) On or before December 1, 1904, the Fifteenth Street line shall be extended to Crystal Avenue; provided, if before that date any suburban line at least ten miles in length shall be built to Fifteenth Street and Crystal Avenue, said ex- tension shall be made by the time said suburban line is built and in operation. (s-e) The Metropolitan Street Railway Company shall, until the termination of its franchise rights on Walnut Street, have the right, and it shall be its duty, prior to December 1st, 1903, to construct, maintain and operate a single track railway upon and along Tenth Street from Main Street to Grand Ave- nue, upon the following terms and conditions, viz : Said single track shall be constructed as nearly as practicable in the cen- ter of Tenth Street, but the City reserves the right at any time to order said Company to move said track toward either the northerly or southerly side of Tenth Street, as directed by the City, a distance of not to exceed twelve (12) feet. And if said Company shall fail, neglect or refuse to move said track, and to restore the street to a condition satisfactory to the City within ninety (90) days, upon notice by the City so to do, then the City may cause said tracks to be moved, and §27 84 The Peace Agreement. the street restored, and the Company shall be liable to the City for all expense it shall incur in the doing of said work. The Company jcnay operate a single track on Tenth Street and Ninth Street, between Main and Wyandotte Streets, until the City shall direct that it shall lay a double track. And, if the City shall so direct, it shall be the duty of said road, within ninety (90) days, to lay said track. And if the road shall fail, neglect or refuse to so lay said double track, then the City may remove, or cause to be removed, the said single track, not to exceed twelve (12) feet to either the northerly or southerly side of said streets, and shall have the right to lay, or cause to be laid, another track paralleling the same. Said single track shall be located as near the center of Tenth Street and Ninth Street as practicable, and shall be sub- ject to the same provisions and regulations as to the right of use of the same by other street car companies, as govern in case a double track is built, as provided in Sections S, S-a, S-b, S-c and S-d of Section Four of this Ordinance. TENTH STREET LOOP-COMPENSATION TO CITY.— RIGHT Of OTHER COMPANIES TO USE . (s) The right is hereby granted to the Metropolitan Street Railway Company to construct on West Tenth Street a line of double track from Main Street to Wyandotte Street to form with the lines now on the streets hereinafter named, a loop described as follows: On Tenth Street from Main Street to Wyandotte Street, thence north on Wyandotte Street to Ninth Street, thence east on Ninth Street to Main Street, thence south on Main Street to place of beginning. And it is agreed : (s-a) That the cars of any other street raihvay may run over and upon the tracks constituting said loop or any portion thereof upon such terms and conditions as the Common Coun- cil shall hereafter specify by reasonable ordinance, and the right to use said loop shall, in addition to the rights otherwise reserved by what is known as the three block and loop clauses, as set forth in Sections 26 and 26-a of Ordinance Number 14188, approved April 14th, 1900, and in Sections 6 and 7 of Ordinance Number 45113, approved February 5th, 1889, said provisions being expressly continued in force. In the event the Street Railway Companies, or either of them, shall contest or dispute the reasonableness of any or- dinance passed by Kansas City permitting other roads to use its tracks, under the provisions of this ordinance, the com- pany desiring to use such tracks shall, pending said dispute The Peace Agreement. 85 and contest, have the right to use the tracks and poles arid wires and electrical currents of said Companies, but this sec- tion in itself shall in no wise he held to be a grant from Kan- sas City to any company to use said tracks; but before such company shall have such right, it shall be necessary for the laiv making authorities of Kansas City, in proper manner, to pass the necessary ordinance or ordinances therefor; and pro- vided, further, if said Companies dispute the reasonableness of said rates fixed by the Council, that before any company shall have the right to so use said trax^ks, poles, wires and cur- rents it shall execute to the Company owning or operating such tracks a bond in form and amount and with sureties ap- proved by the Circuit Court of Jackson County, Missouri, or by one of the judges of said court, to pay the compensation due for such use and to hold the Companies owning the tracks harmless from damages caused by the new company. (s-b) Said Metropolitan Street Railway Company shall operate around said loop a number of cars equal to the num- ber now running upon the West Ninth Street line. All of the provisions of this ordinance relative to the other tracks, etc.. authoHzed herein, shall apply to said line on Tenth Street. (s-c) As compensation therefor '{V Metropolitan Street Railway Company shall pay to Kansas City during the period of this grant the sum of $1,200 per annum, payable annually on the first day of June of each year, and shall permit the City to use its tracks free, and shall furnish the necessary power free for such stropt sprinkling cc^ or apparatus as the City may see fit to use in sprinkling the, streets over which the tracks of the said MetrovoUtan Street^JRailway Company, or the tracks of any of the Railway Comvitiies which are parties to this agreement, shall run, within the city limits, including, however, the Swope Park line. The city shall run said cars as its own and at its own risk, and shall hold the company harm- less for any damasres resulting therefrom/ (s-d) The street railway companies ^hereby agree that as soon as, and as often as they shall construct or relay any of their tracks upon Gr?^nd Avenue between Nineteenth Street and Third Street, upon Walnut Street, between Thirteenth Street and the present northerly terminus, at or near Second Street, and on Main Street between Nineteenth Street and Third and on Delaware Street between Ninth Street and Third Street, and on Wyandotte Street between its Dresent northerlv terminus at or near Second Street and Southwest Boulevard, or any of the tracks running in an easterly and westerly direc- tion between Grand Avenue and Wyandotte Streets, north of 86 The Peace Agreement. Twentieth Street they will lay said tracks with what is com- monly known as the "Trilby" rail. TIME FOR COMPLETION OF WORK. Section 5. Whenever in this ordinance a time is fixed within which the Company shall extend, build, cause to be con- structed or electrify a line or viaduct it is understood that if the Company is in any instance prevented from doing any such work by reason of unforseen circumstances or conditions which reasonable diligence could not have guarded against, or by the act of the city, then the time of such delay shall not be counted. Whenever the word "electrify" is used in this ordinance it shall be construed to mean that the road shall be put in operation and so maintained and operated as an electric road. SUMMIT STREET AND 39TH STREET LINES. Section 6. The Summit Street electric cars are to oe oper- ated as far as Bell street as soon as the connection can be made at Thirty-ninth and Summit Streets. RIGHT OF CITY TO/d^EQUIRE BUILDING OF OTHER EXTENSIONS. Section 7. The city is given the right within the limits of ^2 the city as now established or hereafter enlarged to require the Companies to make other ^additional extensions and connections of and tvith any line 07^~^knes of their roads where reasonably necessary for the convenience of the inhabitants of the city; provided, that the aggregate of such extensions on all said rodds so required by the city shall not exceed on the average more than one mile of double track per year until December, 1905, after which the city may so require the building of not to exceed on the average of two miles per year. PAVING BETWEEN AND OUTSIDE TRACKS. Section 8. Said Railway Companies shall pave between their tracks and between the rails of the tracks, and for eight- ^^ een inches outside of the outside rails of their tracks with the S"^ same material as the rest of the street is paved, and shall keep the spaces above indicated constantly in good repair, and shall repave said spaces at the same time the rest of the street is re- paved. Where cable lines now exist, rohich are to be replaced with electric roads, as herein provided, the present paving of granite blocks or brick may remain, except a^ otherwise herein The Peace Agreement. 87 provided, until said roads are electrified, but said paving shall at once be placed in a good condition of repair; and on Inde- pendence Avenue from Cleveland Avenue to the present eastern terminus of the road the spaces between the tracks and between the rails of the tracks, and for eighteen inches outside, shall be at once paved with vitrified brick; and on any other tracks in the city, where there is no pavement between the tracks the same shall at once be paved with the material with which the rest of the street is paved. All of the foregoing to be done in a manner satisfactory to the City Engineer. Paving on Independ- ence Avenue and the above streets, shall be completed within sixty days. The Company may use a toothing of a kind ap- proved by the Board of Public Works and the City Engineer; it is, however, agreed that if at the time the extensions herein provided for are made the streets are either macadamized or not paved, the Street Railway Company is required to pave between its tracks and the rails of its tracks with such mate- rials as may be designated by the Board of Public Works af the time of the construction of said extensions. But if there- after the rest of the street should be paved with a different material, the Company shall not be required to change such paving so as to correspond with the paving of the rest of the street, until the space to be paved by the Railway Company shall need repaving, but it shall pave the eighteen inches on either side as and when the rest of the street is paved. UNIVERSAL TRANSFERS— PRESERVATION OF CONTROL BY CITY. Section 9. All transfer privileges heretofore given and granted by the Company shall be continued, unless circum- stances shall render the same unreasonable, and, in addition §ld thereto, universal transfers shall be granted, over all parts of the system in Kansas City, Missouri, and also over the system in Kansas, as the same now exists, or may be hereafter ex- tended ivithin the then limits of Kansas City, Kansas, Rosedale, Argentine, and intermediate points, so long as the Companies, their representatives, successors or assigns shall directly or in- directly control, be interested in, operate or have operating, traffic or carrying arrangements with the Company or Cork- panies owning, operating or controlling the said lines of street railway in Kansas City, Kansas, Rosedale, or Argentine, and also so long as any of the cars of the Kansas City, Missouri, lines shall operate over any of the tracks of the said Kansas lines, or the cars of any of the said Kansas lines shall operate over any of the tracks of the Kansas City, Missouri lines. It 88 The Peace Agreement. being the intention that the provisions as to transfers shall ex- tend to all street railway lines in Kansas City, Kansas, Rose- dale, Argentine, and all such lines within any extension of the corporate limits of said cities or any of them, which shall re- ceive from or deliver to, the said Companies in Missouri any of their passengers or cars. And the Companies shall make no traffic or transfer ar- rangements with any companies operating lines hereafter built into Kansas City, Kansas, Rosedale or Argentine, unless the companies shall give like transfers over their lines, as above provided. The foregoing provisions as to transfers shall not be so construed as to enable passengers to make what is commonly known as a *'loop** By a *'loop" is meant such a system of transfers as tvill enable a passenger to return substantially to the initial point for a single fare. It being the intention of this contract that transfers shall be furnished that will enable a passenger to go by a reasonably direct route to his destina- tion at any point on the company's lines for a single fare, and the provision as to **loops** shall not be so construed as to interfere therewith, but it shall not be so construed that a transfer shall be given so as to enable a passenger to go to one point and stop there and then return by some other route to the point from which he started. But the city specially reserves to itself the right and power by reasonable ordinances to regulate the matter of transfers so as to carry out the spirit of this section. The Company may require a passenger who requests a transfer upon a transfer to then declare his destina- tion. - ^'*-. EQUIPMENTS, HEATING, LIGHTING, AND SPEED OF CARS. ^2c Section 10. Said Street Railway Company agrees to at once place upon all their roads and to at all times run and operate upon their roads good and convenient cars to accom- modate public travel, and shall keep the same clean, road- worthy, properly heated and lighted, and in good and safe order and condition, and shall at all times keep its road bed and tracks in good order and condition so as to afford safe and convenient travel thereon, and the said cars shall at all times be equal in pattern, style, finish and condition to cars in ordinary use on the best managed and equipped lines of street railway in the United States, and said cars and machin- ery for operating the same shall at all times be provided with The Peace Agreement. 89 the best improved appliances for protecting the lives and persons of passengers on said road and of the public traveling on and across the streets over ivhich said roads may be oper- ated, but this shall not require the companies to dispense! av (j with their cable cars on cable lines before said lines are elecj>W^ trifled as herein provided, and all cars shall be run at all times and places at a reasonable rate of speed under the particular circumstances and in no event shall any street car be run or operated at a greater rate of speed than fifteen miles per hour within that territory of the city between Troost avenue on the east, Nineteenth Street on the south inclusive^ the State Line and Missouri River; provided, that this shall not apply to any elevated road. Outside of said limits said street cars shall* not be run at a greater rate of speed than twenty miles per hour; provided, that said limitations shall not apply to the Swope Park Line or the Independence Line. SCHEDULES ON WHICH CARS SHALL BE RUN. In addition to the present requirements as to schedules on which cars shall be run, said Companies shall run their cars on the following lines daily (except Swope Park Line) at least as often as hereinafter set forth. Between the hours of 6 a. m. and 8:30 a. m. and 5 p. m. and 7 p. m. at no longer intervals apart than three and one- half minutes on the following lines, i. e., the Independence Avenue, East Ninth Street, Twelfth Street, Fifteenth Street, and Westport lines, and on that part of Eighteenth Street and Nineteenth Street west of Vine Street, and on the follow- ing lines at no longer intervals apart than four and one-half minutes, i. e,, on the Troost Avenue, Holmes Street and North- east lines. When the north and south lines, i. e., Prospect and Chest- nut Street lines and Jackson Avenue and Hardesty Avenue lines are completed and in operation the city may prescribe by reasonable ordinance schedules on which cars on said lines shall be run. And on the East Side Electric Railway cars shall be run as often as follows: From 6 a. m. to 8:30 a. m. and 5 p. m. to 7 p. m., six and one-half minutes, from 8 :30 a. m. to 5 p. m. and from 7 p. m. to 10 p. m. eight and one-half minutes, and from 10 p. m. to 12 o'clock midnight ten minutes, and there- after the regular owl car service. Cars shall be run on the following Kansas City, Kansas, lines from Kansas City, Missouri, on the following schedule: Armourdale line between 6 a. m. and 8:30 a. m. and 5 p. % The Peace Agreement. m. and 7 p. m. at no longer intervals apart than five and one- half minutes, and between 8:30 a. m. and 5 p. m. and 7 p. m. and 10 p. m. at no longer intervals apart than seven and one- half minutes, and between 10 p. m. to 12 o'clock midnight at no longer intervals apart than ten minutes, with regular owl car service. On the Quindaro line between the hours of 6 a. m. and 8:30 a. m. and 5 p. m. and 7 p. m. at no longer intervals apart than six and one-half minutes; between 8:30 a. m. and 5 p. m. and 7 p. m. to 12 o'clock midnight, at no longer intervals apart than ten minutes, with regular owl car service. On the Chelsea Park line from 6 a. m. to 8:30 a. m. and from 5 p. m. to 7 p. m. at no longer intervals apart than six and one-half minutes, and from 8:30 a. m. to 5 p. m. and from 7 p. m. to 12 o'clock midnight at no longer intervals apart than ten minutes, with regular owl car service. On the Grandview and Edgerton lines, between the hours of 6 a. m. and 12 o'clock midnight, at no longer intervals apart than ten minutes, wHh regular owl car serv^'ce. On the Independence city line between 6 a. m. and 8:30 a. m. and 5 p. m. and 7 p. m. at no longer intervals anart than ten minutes, and between 8:30 a. m. and 5 p. m. and 7 p. m. and 10 p. m. at no longer intervals anart than fifteen minutes, and between 10 p. m. and 12 o'clock midnight, at no longer intervals apart than twenty minutes, and between 12 o'clock midnight and 1 a. m. at no longer intervals apart than thirty minutes; and thereafter at no longer intervals apart than sixty minutes. As soon as, and often as any of said roads are electrified then owl cars shall he run on the same in accordance with the schedule and regulation in what is cow/monly knotvn as the "Owl Car Ordinance/' namely, Ordinance No, 17081. And the city reserves the ripht to at any time regulate and pre- scribe by reasonable ordinance the number of hours in each day and night the cars on said street railway shall run, and the sveed and frequency with tvhich cars shall be run. Provided that the foregoing schedules may be varied on Sundays so as to best accommodate the church, park and recreation travel. WATCHMEN TO BE PROVIDED BY COMPANIES AT CROSSINGS AND DANGEROUS CURVES. §4 Section 11. At all points where said street railway tracks cross the tracks of any steam railway company, watch- men shall be constantly stationed and kept to perform such The Peace Agreement. M duties as may be prescribed by ordinance; but the city shall pass necessary ordinances requiring the steam raihvay com- panies to join in the performance of this duty, and in the pay- ment for the service; but if said Railway Companies fail to comply tvith the terms of such ordinances, then the Street Railway Company shall station such watchman as aforesaid. Watchmen shall be placed by the Street Railway Companies at all points ivhere their lines of track intersect, cross or form a junction and at dangerous curves between the Missouri River and Thirteenth Street and between McGee Street and Wyan- dotte Street, and at such other points within the city as may be required by a reasonable ordinance. It is understood by this that the Company recedes from its position that the con- ductors or gripmen can act as a flagman or watchman. The Street Raihvay Company shall stop its cars for the purpose of taking on and letting off passengers before it shall cross a street or intersecting line. The city reserves the right to con- trol and regulate by reasonable ordinance all the matters men- tioned in this section. COMPANIES TO PROVIDE ELECTRIC ARC LIGHTS. Section 12. Electric arc lights shall be maintained by said companies at all points where their lines cross the lines of any steam railway company, but the city shall pass neces- sary ordinances requiring the steam railway companies to bear their share of the expenses of said lights, but failure of said steam railway companies to comply with such ordinance shall not relieve the Street Railway Companies of the duty aforesaid. And at all points where the lines of said Street Railway Companies intersect, cross, or make a junction vrith each other, and at dangerous curves, it shall maintain arc lights. STEAM RAILWAYS TO PAY PART OF COST OF WATCH- MEN AND LIGHTS. Section 13. Where a line of street railway crosses the tracks of a steam raihvay company, the city shall, by ordi- nance, direct the payment by the steam raihvay company of at least one-half of the expense of watchmen and lights, as pro- vided in Sections 11 and 12, hereof, and where there are crossed more than two tracks of one or more steam railways, then the city shall, by ordinance, direct that the steam railway companies shall pay as much over one-half of such expense as is, in the opinion of the law-making power of the city, reason- §§ §6 92 The Peace Agreement. able and just. When the Street Railway Companies in any in- stance pay the ivhole expense, as provided for in said sections y then they may, in the name of the city, hut at their expense, maintain such legal proceedings against the steam railway com- panies as may he necessary to require them to perform their duties and refund to the Street Railway Companies the amount due them, ELECTRIC POWER FOR POLICE AND FIRE ALARM SYS- TEM TO BE FURNISHED BY COMPANIES FREE. Section 14. The Metropolitan Street Railway Company shall furnish free of charge electric power to charge the stor- age hatteries of the police and fire alarm system of the city, SUBURBAN CARS OPERATED IN CITY.— CONDITIONS. Section 15. Said Companies shall make arrangement with the managements of all suburban lines not entering the city, which are now or may hereafter construct their lines to connect at the city limits (upon request by the management of said suburban lines), by which the Street Railway Compa- nies will place their crews in charge of the cars of said sub- urban companies at the point of connection and carry the cars as their own, with the passeyigers, through to substantially the center of the business portion of Kansas City, Missouri. All passengers shall pay the same fare and be entitled to the same transfer privileges as though they had taken regidar pass- age on the cars of the Street Railway Companies. The Street Railway Companies shall have the right to collect all fares for passage on their roads. The Street Railway Companies shall pay to the suburban companies for the use of their cars one cent for each passenger turned over to them by the suburban companies, and the Street Railway Companies shall, in a prompt and business-like way, return said cars to the place where said cars were turned over to them. Cars of suburban lines must be so constructed as to be suitable for use on the street rail- way tracks with convenience and safety. If said suburban cars carry United States mail, or light packages of the character described in Section 16 hereof, then the same shall be carried and delivered at the nearest point on the lines of said company to their destination, and. the com- pensation of the Street Raihuay Company for said services shall be governed by the rules and regulations set forth in Section 16 of this ordinance. But the city reserves the right to prescribe by ordinance the kind of packages which shall be The Peace Agreement. 93 carried on said suburban cars within the city, or to prohibit the same if it so desires. If suburban lines cannot connect with the lines of the street railway at the City limits, then they shall have the right to connect with their tracks within and as near the City limits as practicable. But provisions of this shall not be construed as any waiver of the right of the City to in any instance determine whether or not it will permit such suburban cars to so enter the City. RIGHT OF COMPANY TO CARRY LIGHT PARCELS AND PACKAGES.— RESERVATION BY CITY TO CONTROL CHARGES. Section 16. Each Street Railway Company may carry on its lines light packages or parcels not in possession of the passenger, but this shall not be done to the interference with the passenger traffic. Rates fixed by the Company for su^h service must be uniform and reasonable, and the City reserves to itself the right by reasonable ordinance to regulate this privilege, SWOPE PARK LINE. Section 17. On or before June 1, 1904, the Metropolitan Street Railway Company shall construct or cause to be con- structed a double line of track from Kansas City to Swope Park, connecting with one or more of its north or south lines. The construction of said road shall be first-class construction for suburban lines of railway, and saM Company shall run upon said road from the fifteenth day f^^^ay to the first day of November of each year sufficient cars to accommodate the travel of the public to said park and intermediate points, and carry the people with comfort and convenience. SCHEDULE FOR CARS. Said cars during the period aforesaid shall, between the hours of 8 a. m. and 8 p. m., run at least as often as once in every thirty minutes each way during the first five years of the operation of the road, which said schedule is fixed as the minimum, and thereafter at least as often as once in every fifteen minutes during the hours and period of each year as aforesaid, which said schedule is fixed as the minimum; but in any event during the period and hour aforesaid said cars shall run often enough to carry the public with convenience and 94 '^HE Peace Agreement. comfort, providing, however, that the Common Council shall have the right to provide that cars shall be run during the entire year and during all hours of the day from 6 o'clock a. m. to 1 o'clock a. m. or during any other hours between the hours last above named, but said right of the Common Council can only be exercised by reasonable ordinance, and by "reasonable ordinance" is meant such an ordinance as shall not provide a schedule which shall cause said company to expend more money in the operation of the road than the amount of fares or other compensation received by it through operating said road. Provided, further, that if the limits of the City are hereafter extended so as inchide the whole or a portion of said Swope Park line, then excepting as to the provisions hereof, giving said Company an exclusive right of way, the rights and obligations of the parties hereto as to that portion of the line within the City limits as extended shall be the same as those governing the ordinary lines of the Metropolitan Street Railway Company, its successors and assigns, within the limits of the City limits. EQUIPMENT. The equipment of said road shall be equal to that used upon first-class suburban roads or that specified in this ordi- nance for use upon the streets of the City, and said cars shall be properly operated, heated and lighted, when heat and light are necessary, which the City may have the right to regulate by reasonable ordinance. SELECTION AND LOCATION 'OF ROUTE. The northerly end (or the connection of the Swope Park line with the Street Railway system of the City) shall be approximately at Forty-seventh Street or Forty-eighth Street and Troost Avenue, and shall be constructed to Swope Park over a practicable route within the territories bounded as fol- lows : On the west by the line of Troost Avenue extended south, and said road shall at no point run further south than one hundred (100) feet south of the south line of Sixty-ninth Street extended. All of said streets are shown on Plate 39 of Tuttle & Pike's map of Kansas City for the year 1900. Wherever the said road shall run along or across any street of Kansas City, it is understood that the road shall procure any necessary consents of the property owners, and this ordi- nance shall be taken as the permission and authority of said The Peace Agreement. 95 City to go upon such streets when the foregoing necessary prerequisite has been complied with. SWOPE HIGHWAY.— CHARACTER OF ROUTE. The route pursued by said railroad shall be at least one hundred and fiity (150) feet in width throughout its entire length from the point of intersection with Forty-seventh Street or Forty-eighth Street, and said route shall be known as "Swope Highway." If any part of said route shall be upon a street as now laid out, the portion of said street so occupied shall be counted as a portion of the said one hundred and fifty (150) feet. LOCATION OF TRACKS.— CONTROL BY PARK BOARD. The tracks on said railway shall be located upon a strip of said highway, but shall not be nearer than a distance of thirty (30) feet from the side of said highway, and either on the right hand or left hand side of said highway, unless with the consent of the Board of Park Commissioners of Kansas City another location is selected by the Company, and said road shall not occupy to exceed thirty (30) feet in width of said highway. On said thirty (30) feet the Railway Company shall have the exclusive right of way; subject, however, to reasonable regulations as aforesaid, and as to public cross- ings as established by the County Court or the Board of Park Commissioners. Said route shall be at least one hundred and fifty (150) feet in width; provided, however, that the Park Board shall have the right to reduce the width of the route selected by it or by said Company to less than one hundred and fifty (150) feet for a portion of said route in order to avoid legal com- plications, should they arise, but in no event shall said route be reduced to less than thirty (30) feet. DATE OF SELECTION OF ROUTE. The said Company shall have six months from the date this ordinance becomes a law in which to select, subject to the foregoing provisions, said route; and if within said time said Company shall not have selected the right of way for itself, including said highway, then the Board of Park Commission- ers of Kansas City shall have the right to select and secure said route; but if the Board of Park Commissioners of Kan- sas City shall not so select said route within twelve months 96 The Peace Agreement. after this ordinance takes effect, then said Company shall con- struct said road to Swope Park over a route within the limits aforesaid to be selected by it, but shall be under no obliga- tion to do more than secure a thirty (30) foot right of way; but in any event said road shall be in operation as aforesaid on or before June first, 1904. The route selected by either the Company or Park Board shall be equally as practicable and as good a route for said highway to said park as that which has been heretofore tendered by Homer Reed and associates, and known as the "Homer Reed Route." By the term "practicable route" is meant a right of way, the cost of grading, construction, operation and maintenance of which shall be substantially as favorable as the proposition made by the proprietors of the so-called "Homer Reed Route," which is hereby referred to only in order to fix a visible stand- ard of comparison. TITLE TO PORTION OF ROUTE NOT IN CITY. The title to the portions of said route which are not now public highways shall, subject to the right of way of the Street Railway Company, be conveyed to such grantee or grantees as the Board of Park Commissioners of Kansas City shall designate. FARE ON SWOPE PARK LINE. Said Company shall at all times carry passengers to and from said park and intermediate points for a single fare of 5 cents each way, with full transfer privileges to and from all lines of the Companies as hereinbefore specified, it being the intention that such privilege as to transfers shall be extended to passengers upon said Swope Park line as are reserved in this ordinance to persons traveling upon the street car lines referred to in this ordinance. REPORT BY COMPANY OF FARES COLLECTED ON SWOPE PARK ROUTE. The Company shall, upon request of the Mayor or Com- mon Council, report the fares collected on the Swope Park line and the cost of operation of same. SUMMIT STREET VIADUCT. Section 18. The Street Railway Company shall build and maintain a viaduct across the tracks of the Kansas City Belt ' The Peace Agreement. 97 Railway Company at Summit Street the full width of said Summit Street as now established, excepting that the ap- proaches to said viaduct may be built a width not less than thirty-six feet for a length approximately one hundred and seventy-five feet on the north end of said viaduct and approxi- mately two hundred and twenty-five feet on the south end of said viaduct; and, provided, further, that should the city desire the said viaduct along said Summit Street to be built the full width of Summit Street as now established for the entire length of said viaduct, including the approaches, then the Company shall build said viaduct such full width, provided that the damages to property owners when ascertained by private agreement or by legal proceedings shall not exceed thirty thousand dollars, in which event the viaduct is to be built as last aforesaid, and damages not to exceed thirty thousand dollars shall be paid by said Companies, whether said damages may in said legal proceedings be assessed against said Company of the Kansas City Belt Railway Company, or both companies, direct or assessed as benefits against the property holders within any benefit district which may be estabhshed; provided, further, that in the event said damages exceed thirty thousand dollars, then the City may, at its op- tion, pay or cause to be paid without further costs to the Com- panies the excess over thirty thousand dollars, in which event it shall have the right to direct that said viaduct shall be built the full width as aforesaid. Said viaduct to be completed by the 31st day of December, 1903, unless delayed by legal proceedings, and in case legal proceedings are brought, then the City Counselor shall have the right to appear in said cause for the purpose of procuring a speedy disposition of the same, and the road shall in all rea- sonable ways seek to secure the completion of said viaduct within the time limited, and to this end shall endeavor to secure a speedy determination of any litigation which may be brought as possible. If the railway company, the tracks of which are to be crossed by said viaduct, shall fail, neglect or refuse to arrange with said Street Railway Company to pay its fair share of the costs of said viaduct, and the damages caused thereby, then the Street Railway Company shall, within thirty days, give notice to Kansas City of that fact, and within a reason- able time thereafter the City shall pass the necessary reason- able ordinance requested by the Street Railway Company to compel said Belt Railway Company to co-operate in the con- struction of said viaduct and to pay two-thirds of the expense 98 The Peace Agreement. thereof, and the Street Railway Company shall have the right to bring and prosecute in the name of the City such proceed- ings as are necessary to compel said Belt Railway Company to pay its share of the expense as aforesaid, and to do its legal duty in the premises, but said proceedings shall be con- ducted without cost or expense to the City, and the said Street Railway Company shall hold the city harmless by reason of any such cost or expense. Whenever the City shall, by ordinance, require the build- ing of a viaduct where the street car lines cross at grade the §20 ^^^^^ ^f si^f^'^ railroad on Lydia Avenue, the street railroad companies shall join in such construction and pay their rea- sonable proportion of the cost thereof. But nothing herein shall prevent the City from exercising by other ordinances any power it may have to fix other terms and conditions on, or the time within which said viaduct shall be built. The said via- duct shall be built without cost to the city. Nothing in this ordinance shall be so construed as any limitation whatever upon the right of the City, if any it has or shall have, to require the construction of other viaducts. By the execution of this instrument neither of the parties hereto make any admission whatsoever as to the extent of the damages, if any, which may be caused by the building of said viaduct. The City shall have the right within a reasonable time to pass ordinances and take proceedings to ascertain the amount of damages to the property owners, if any, occasioned by the building of said viaduct the full width of the street, and if said damages are thirty thousand dollars or less, the same shall be paid by the Street Railway Company; if more, the City can then exercise its option to pay or cause to be paid the excess over thirty thousand dollars, or it may require the viaduct to be built as in this ordinance first described, to-wit, the approaches thirty-six feet wide. The said viaduct to be built in accordance with plans and specifications approved by the Board of Public Works and the City Engineer of Kansas City, Missouri, the plans to be such as to cut off crossing at grade with tracks of the Kansas City Belt Railway Company. The construction of said viaduct to be satisfactory to the City Engineer of Kansas City, Missouri. ABANDONMENT OF LINE ON GENESEE STREET.— CON- STRUCTION ON WYOMING. Section 19. On or before July 1st, 1903, the Company shall abandon the operation of its line on Genessee Street from The Peace Agreement. 99 Sixteenth Street to Nineteenth Street, and build and maintain its road on Wyoming Street between Sixteenth and Nineteenth Streets, provided the necessary consents of property owners are obtained. DISMISSAL OF CASES NOW PENDING BETWEEN CITY AND COMPANY. Section 20. All cases, civil or criminal, between any of said Street Railway Companies and the City growing out of the contention about watchmen and paving between the tracks of its roads, shall be dismissed at the cost of the Companies, upon the acceptance of the terms of this ordinance. EXISTING RIGHTS AND OBLIGATIONS OF COMPANIES NOT ALTERED HEREBY.— RIGHTS OF CITY PRESERVED. iSECTiON 21. Nothing in this ordinance shall limit the rights or obligations of either of said companies, under exist- ing franchises, or the rights of the city, except as herein speci- fied, and except so far as the doing of the acts provided for herein may affect the same. FAILURE OF COMPANIES TO PAY 8 PER CENT.— RIGHT OF CITY TO COLLECT 16 PER CENT AND TAKE POS- SESSION OF ALL PROPERTY OF COMPANIES. iSECTiON 22. If said Company or Companies at any time or times during the life of this ordinance shall fail to pay the City the sums due it of said eight per cent, or any part thereof, within thirty days after it shall become due, then the City shall have the right from time to time by its officers to take possession of all the property of said companies in Jackson County, Missouri, and to run, manage and operate said road or roads until said City shall collect the sum which may be due it; in the event said Company or Companies shall so neg- lect to pay, then it or they shall for the period of time in which it or they may be in default pay sixteen per cent less twice the deductions hereinbefore provided, instead of said eight per cent as hereinbefore provided, and it is herein also provided that said per cent so to be paid from time to time shall hold and bind all the property of said Company or Com- panies with like force and effect as a general tax. RIGHT OF COMPANY TO BUILD NEW LINES.— ^ONDI- TIONS OF GRANT. Section 23. The right is hereby granted to the Metro- politan Street Railway Company to go upon the streets of the 100 The Peace Agreement. City for the purpose of making the extensions heretofore re- ferred to and to construct its tracks and operate its road upon said streets as above set forth, said right to construct and operate said road shall be subject: (a) To all the provisions of this ordinance. (b) The Metropolitan Street Railway Company, its sue- cessors and assigns, shall have the right and authority to go ry^ upon the streets and parts of streets designated herein and ^S make such excavations therein as may be necessary for the construction and completion of said street raihvay extensions and electrifications; provided, however, that said Company shall first procure from the Superintendent of Streets or such other officer as the City may autho7ize to issue the same, a permit to do so hefo7^e entering upon and making any excava- tion in said streets. And shall have the further right and authority to make track connections with the car barns, power houses, track with track, at points of intersection, and shall also have the right to conduct their electrical power over feeder wires from the power stations to said lines of street railway; provided, however, that the route thereof and loca- tion of carrying poles and ducts therefor, and all lateral and switch tracks shall first be approved by the Board of Public Works; and the Council may by reasonable ordinance regulate said matters, and provided, further, that in conducting and repairing said lines said Street Railway Company, its success- ors and assigns, shall restore and leave the streets which it may disturb by the construction in as good condition as they were at the time of commencing such work. Any pavement outside of the rails of said track that may be disturbed or taken up by the said Company in the con- struction, reconstruction or repair of its railway shall be re- newed and reconstructed and put in as good condition as it was formerly. All paving, repaying, construction, reconstruction and re- pairing shall be done to the satisfaction and approval of the City. (c) All pavements shall join up to the rails as closely as possible, and be so kept that the wheels of ordinary vehicles will not in running along the rails drop between the pavement and the rails; and the upper surface of the pavement at yts juncture ivith each rail shall be as nearly as practicable on the same lever as the upper surface of the rail. The general ^surface of the pavement between the rails to be as high as^the pavement ust outside the tracjk, except that there may be next to the surface of the flange of the rails such bevel or 'THE Peace Agreement. lOi curve as may be necessary to have a proper juncture of the pavement with the upper surface of the flange of the rail. EXPRESS RESERVATION BY THE CITY OF RIGHTS OF REGULATION AND CONTROL FIXED BY THE CITY CHARTER. Section 24. Nothing in this contract shall take away from the City any right or potver as to regulation and control of any line of said companies reserved in the charter of the §24 City and which now exists, hut any such right or potver shall continue as it existed at the time of making this contract. Neither is it intended to take away the rights of the Company as heretofore existing, except as they are herein expressly or by acts done hereunder changed, modified, qualified, affected or abrogated, but except as aforesaid such rights shall con- tinue as they existed at the time of making this contract; pro- vided, however, that the City shall make no regulation as to any extension which it does not have the right to make as to the main line which has been so extended under the provisions hereof. The Company shall carry passengers over the exten- sions and the main line for the fare charged on said main lines, with full transfer privileges. GRADING AND RE-GRADING STREETS.— WAIVER OF DAMAGES BY COMPANIES. Section 25. Whenever pursuant to the authority of Kan- sas City, Missouri, any part of the route, upon which said Company or their successors or assigns shall construct or may §11 have constructed, their lines shall he graded or re-graded, the said grantees of this ordinance, their successors or assigns, at their own expense, agree for themselves, their successors or assigns, to construct and lay their tracks upon the street as re-graded, and shall waive all claims for damages for such re- grading or change of grade. INDEMNITY CLAUSE.— COMPANIES TO HOLD CITY HARMLESS FROM DAMAGES. Section 26. In constructing, repairing and operating said street railways, said Companies shall use every reasonable and ^]^2 ■proper precaution to avoid darriage to person of property, and shall at all times respund to the City of. Kansas City for and save 'it .harmless:: from all- and every damage, injury or loss, cost or expense, caused or occasioned by reason of any act or omission of said companies in the constructing, reconstruct- 102 The Peace Agreement. repairing or operating of said railways, or in paving, re-paving or repairing said streets, or by reason of any and every act done under this ordinance. . LOCATION OF CARRYING POLES AND WIRES.— AP- PROVAL BY BOARD OF PUBLIC WORKS. Section 27. The location of carrying poles and wires and the kind and character of same upon the extensions and §1 a electrifications referred to shall he first approved by the Board of Public Works. The Railway Companies herein named, their successors or assigns, after having excavated or incumbered any street or part thereof, shall at once restore and leave the same in as good condition as it was at the time of commencing such work, and shall pave as aforesaid. The central line of the spaces between the tracks of said railways shall coincide, as nearly as practicable, ivith the central line of the streets on which same is located; and the space between the inside rails of the tioo tracks shall be as directed by the City Engi- neer and the Board of Public Works, on streets, and on boule- vards, by the Park Board. LIABILITY OF COMPANIES FOR INJURY TO WATER PIPES, TREES OR OTHEI^ PROPERTY. Section 28. Said Companies shall not in the construc- tion, maintenance or operation of any of its roads or power o-iA plants do or permit anything to be done whereby the ivater ^ pipes or conduits or other property of the City or the trees along the streets of the City shall be damaged, and the Com- panies shall respond for such damages to the city. PROVISIONS OF THIS CONTRACT— WHAT LINES COV- ERED BY— DURATION OF PRIVILEGES HEREIN GRANTED. Section 29. The provisions of this contract shall apply to all lines of street railway in Kansas City, Missouri, as the limits of said City are now established or may hereafter be enlarged, which are owned, operated or controlled directly or indirectly by the corporations herein named, their successors or assigns. It being the understanding on the representation of the three Companies named herein that they control, own and operate all of the lines of street railway now in operation in Kansas City, Missouri, excepting a dummy railroad run- ning in a southerly direction from Westport to Dodson, and Qommonly known as the "Winner** or "Blair" road, it being The Peace Agreement. 103 the intention to specially contract with reference to and bind all the properties above referred to. The time for which the privilege is granted to which said extensions and new lines of the systems shall run shall be to June first, 1925, subject to the provisions of this ordinance. RESERVATION BY CITY OF RIGHT TO PERMIT OTHER COMPANIES TO USE THREE BLOCKS OF COMPANIES' TRACKS. Section 30. The City of Kansas City expressly reserves the right as to the extensions herein provided for to allow and permit any other street railway company to run cars oper-gl5 ated solely by it over and along the tracks of such extensions for the distance of three consecutive blocks, or less, on such terms and with and for such compensation to said Company as may be prescribed and determined by a reasonable ordi- nance. ' ^W.W ORIGINAL THREE BLOCK CLAUSE PRESERVED. Sec. 30a. Nothing in this ordinance contained is intended to or shall be held or construed in any ivay to abndge any right which may exist under existing ordinances of other com- panies to use the tracks of each of the Companies, parties to this agreement, for three (3) consecutive blocks of the lines of any said companies, nor to run over and use the tracks of the so-called Delaware and Main Street loop. FURTHER SECURITY AND INDEMNITY TO CITY.— CASH DEPOSIT BY COMPANIES. Section 31. Whenever the Railway Companies fail or refuse to comply ivith any of their obligations hereunder, the City shall have the right in addition to the other rights and remedies expressly or by law reserved to it, to do, or cause ^o§33 be done, the things required hereby to be done by the Street Raihvay Companies and the City shall have the right to collect from the Companies and the Companies shall be liable to the City for all the cost ami expense thereof, including cost of suit The Companies shall deposit tvith the City Treasurer the sum of fifteen hundred dollars ($1,500.00) for the faithful compliance with this section. And as often as any portion of said sum is used by the Board of Public Works in fulfilling the obligations of the Companies, the said Companies shall, on 104 The Peace Agreement. notice from said Board of Public Works, deposit a correspond- ing sum with the City Treasurer. Amend Section Thirty-two (32), so that it shall read as follows : Section. 32. Whenever, in this ordinance, it is provided that the Company or Companies shall remove tracks from any ^-- street, it is understood that as soon as said tracks are re- §^^ moved, as herein provided, that all of the rights of the Com- pany upon the parts of the streets so abandoned shall immedi- ately cease. And it is further agreed that, whenever the Companies have heretofore removed their tracks from any street and abandoned the same, that said companies no longer possess any right in the parts of the streets so abandoned. And it is further agreed that, whenever any of the Street Railway Companies shall cease to regularly operate its cars over any track, .or portion thereof, in good faith, and as in this ordinance provided, it shall be deemed to have abandoned the same, and shall remove its tracks, poles, wires, cables, conduits, and other property therefrom; and shall restore the portion of the street disturbed and the paving thereof to a condition satisfactory to the City Engineer, failing in which, the City may make such removal of the tracks and restoration of the streets, at the cost and expense of the Street Railway Conipany. ACCEPTANCE OF THIS ORDINANCE BY COMPANIES. §24 Section 33. Said Companies, and each of them, shall, within seventy-two hours after the passage of this ordinance, cause a resolution of its Board of Directors to be passed ac- cepting the provisions of this ordinance and agreeing to abide and comply with the requirements thereof. And each shall file with the City Clerk a copy of said resolution, attested by the hand of its Secretary, with the seal of the Company affixed thereto, within seventy-two hours after its passage. EXTENSION Ot TIME FOR COMPLETION OF WORK. Section 34. Whereas, the negotiations with reference to this contract were begun the first day of June, 1902, it is agreed that the Company shall be entitled to extensions of time equal to the number of practicable working days lost between the first day of June, 1902, and the date this ordi- nance becomes a law within which to complete the improve- ments aforesaid. The Peace Agreement. 105 REMOVAL OF TRACKS FOR BUILDING SEWERS, OR OTHER PUBLIC WORK.— COMPANY TO BEAR EX- PENSE THEREOF. Section 35, Whenever it shall he necessai-y to remove the tracks or the rails of the tracks of any of said street rail- way lines for the purpose of laying or repairing tvater pipes, constructing seivers, or for any public purpose whatever, the ejg said Company shall promptly, iipon notice from the City, re- move said tracks and replace the same at their own expense; provided, hoivever, that the city in doing said work shall use all reasonable expedition so as to interrupt travel upon said roads as little as is reasonably possible. TRACKS TO BE LAID ON ESTABLISHED GRADES. Section 36. It is understood tlmt all street railway tracks constructed under the privileges granted by this ordinance g^y shall be laid upon the established grades of the respective ^ streets. The city shall establish such grades where none have been established, when requested by the Companies. FORFEITURE FOR VIOLATION OF THIS OR ANY OTHER LAWFUL ORDINANCE. Section 37. If any of the railway Companies shall at any time fail, neglect or refuse to obey and comply with any g^^ of the provisions of this ordinance or any lawful ordinance of ^ Kansas City, then in addition to the rights and remedies of the City now possessed by general law or otherwise, the said Companies shall forfeit all rights, powers and privileges by this ordinance granted and conferred and this ordinance shall be null and void. Provided, that the Company shall have the right to contest the validity of any such other ordinance, and in that case there can be no forfeiture unless the Company refuses to obey the same after the validity has been finally decided. COURT PROCEEDINGS TO ENFORCE FORFEITURE. Such forfeiture may be had by proceedings instituted by the City in its own name in a court of record of Jackson jCoun- ty, Missouri, or in any other proceeding in any court of com- petent jurisdiction brought by the City or any lawful author- ity. The failure of said Street Hallway Company to obtain the requisite consents of the property holders for the construction of any of the extensions herein provided for shall not affect 106 The Peace Agreement. the obligation of said companies to pay the eight per cent of the gross earnings herein stipulated to be paid, nor shall it affect any of the other provisions of this ordinance, except in so far as they shall apply to the extensions to which such consent cannot be obtained. And if there shall be a failure in any case to obtain such consents for any extension or new line, the Company shall not be required to build the same. IN ADDITION TO OTHER RIGHTS UPON FAILURE OF COMPANIES TO COMPLY WITH THIS ORDINANCE, CITY TO HAVE THE RIGHT TO TAKE POS- SESSION OF ENTIRE PROPERTY OF COM- PANY AND COLLECT $250,000 AS LIQUIDATED DAMAGES. Provided, further, that if said Companies or either of them shall fail, neglect or refuse to build said extensions, or any of them, and said Swope Park line and the new lines provided for herein, within the time and in the manner herein specified (subject, however, to the extensions of time and emergencies referred to herein), then, in addition to the for- feiture above provided for, the City shall have the right from time to time by its officers to take possession of all the prop- erty of said Companies in Jackson County, Missouri, and to run, manage and operate all of said lines of road until the Gity shall collect, in addition to the sums specified in Section 22 hereof, the sum of $250,000, over and above the expenses of the operation of said road, as and for liquidated damages, which sum is herein agreed upon as the damage which the*City shall suffer by reason of such failure; said sum being agreed upon because it is deemed impossible to accurately fix a stand- ard or measure of damage. ' Provided, further, that the city may in any other manner, arid by any legal means, otherwise enforce the payment and collection of said sum of ^250,000; but the seizing of said road or the collection of $250,000 shall not take away from the city the right to enforce all of the rights of forfeiture afore- said. EXPIRATJON OF RIGHTS GRANTED BY JACKSON COUNTY. - . Section 88. . All rights and franchises of said Companies, 6r either of them, no matter how acquired, which do not ex- pire on or before June 1, 1925, to run or operate street cars on any street or highway, or part thereof which may be embraced The Peace Agreement. 107 within the corporate boundaries of the City of Kansas City, on June 1, 1925, shall, by virtue of this contract, expire, cease and determine on said June 1, 1925. SPECIAL FIRE PRESSURE SYSTEM. Section 39. As soon as the City shall have constructed its special fire pressure water system between Fourteenth Street and the river, and Washington Street and Oak Street, the Company shall, during the life of this contract, free of cost, but at the risk of the city, furnish convenient to its power house, such power as may be necessary to operate the special fire pumps, not exceeding 500 horse power, to the city, to be used in case of fire; with also the men necessary to start up and shut down the pump motors at such times as the City shall indicate. WATER MAIN PRIVILEGE JAMES STREET BRIDGE OVER KAW RIVER. Section 40. The Company shall permit the City, free of cost, at any time prior to 1925, to lay one or more water mains over its bridge across the Kansas River at or near James Street; provided, that the safety of the bridge is not impaired thereby, and the City shall have the right to stren^hen said bridge if it desires. REPEALING CLAUSE. Section 41. All ordinances or parts of ordinances in conflict hereivith are only in so far as they conflict hereby repealed, but all obligations of every kind and character m§32 favor of the City now existing, except in so far as they are hereby modified or repealed, shall continue in full force and effect. Passed May 25, 1903. J. P. Lynch, Speaker Lower House of the Common Council. Passed May 25, 1903. Geo. M. Shelley, President Upper House of the Common Council. Attest: Approved June 2nd, 1903. (Seal) Baxter Brown, City Clerk. Jas. A. Reed, Mayor. The Metropolitan Street Railway Company, the Kansas City Elevated Railway Company and the Central Electric Rail- way Company hereby accept the provisions of foregoing ordi- nance number 22780, and agree to abide by and comply with the requirements thereof. Pated this June 3, 1903. i(J8 Philadelphia Rate Decision. IN THE SUPREME COURT OF PENNSYLVANIA. EASTERN DISTRICT. City of Philadelphia, Appellant, vs. The Philadelphia Rapid Transit . Company. No. 45. January Term, 1909. Appeal by plaintiff from the final decree of the Court of Common Pleas No. 5, of Philadelphia County. Sitting in Equity. Filed April 26, 1909. Stewart, J. Prior to the organization of the Philadelphia Rapid Tran- sit Company, here the appellee, the lines of street railways in the City of Philadelphia were owned and operated by several independent companis. With a viw to unify these to the ex- tent of bringing them under a common system and manage- ment, the Philadelphia Rapid Transit Company by lease and othel-wise acquired control of all of them. This control, while it allows each company to retain its separate existence, com- mits to the Traction Company the operation, management, and regulation of each line of railway. The several companies differed bith in their charter rights, and in their municipal privileges and obligations as well. To maek these latter fixed, fair and uniform, to supersede former regulations, and to define and regulate the relations thereafter to be observed between the City and the railways — so reads the agreement — the contract of July, 1907, was entered into between the City and the Traction Company. In its entirety the contract does not concern us. It is quite enough to say of it that the advantages derived thereunder are reciprocal. It is only the rimitation imposed by a proviso in the contract on the right of the Company to change the rates of fare that calls for con- sideration here. The proviso is as follows: "Provided, hoiv- eVer^ Tha^^^ of fare may be chanored from "tim^ ^6 y^fee, but only %ith the consent of both parties here- to.-' 'At the time the contract was entered into, the regular ■fare charged oii each line for a continuous ride in the same car, irrespective of distance traveled, whether for a square or' to the terminus, was five cents. This fare was uniform I^HILADELPHU RATE DECISION. 109 throughout the city. For reasons of its own, not that it was compelled by law or ordinance to do so, the Traction Company had been accustomed to offer to the public cards or slips con- taining six printed, detachable tickets, each enttiling the holder to a single continuous ride, for twenty-five cents. Each ticket was regarded as the equivalent of a five-cent fare, and secured to the holder the same privileges. In addition, the Company had in force at the date of the contract a system of free transfers which allowed one who paid a single fare, whether in cash or by ticket, to complete his ride on certain connecting roads without further charge. For reasons not necessary to discuss, the Traction Company has since the date of the contract discontinued such privilege when the fare is paid by ticket, and allows it only in cases where a cash fare has been paid. The bill complains that this action of the Company is a change in its established rates of fare in force when the contract was entered into, inasmuch as it requires now a cash payment of five cents to secure the same transfer ride which before could be had on a ticket costing but four and one-sixth cents; and since the change was made without the consent of the City, an injunction was asked for to re- strain the Company from discriminating in the way indi- cated. The question thus presented is a very narrow one. The expression "rates of fare" as used in the proviso is more or less inapt, and therefore lacks definiteness. We are not aided in its interpretation by anythin gelsewhere appearing in the contract. The proviso is left to speak for itself. Strictly speaking, the Traction Company had no established rates of fare when it entered into this contract. A rate is the measure of a thing by its ratio or relation to some fixed standard. When a certain sum is determined for a particular service, unless it is proportional and comparative according to a rec- ognized standard, it is not a rate, but a charge. The com- pensation which this Company was accustomed to receive for the facilities it afforded had relation to no standard. The five-cent fare for one continuous ride was not measured by distance traveled or anything else that would suggest pro- portion; and the same must be said of every other fare it re- quired. None of them were determined by ratio. It is quite evident, however, that the reference in the proviso was to the charges and fares the Company was receiving at the date of the contract; it could be to nothing else. Accepting this as the meaning, it is necessary first to inquire what these sev- eral charges were. We have referred to one — five cents for a single continuous ride in the same car. Another was, eight. 110 Philadelphia Rate Decision. cisnts for a single change from one car to another on certain intersecting lilies. It is not defined that these charges fall within the meaning of the proviso. No attempt has been made to change these in any particular. It is contended that there was also a third charge, distinguishable from these mentioned, which also falls within the proviso, viz.: twenty- five cents for six ticekts when purchased together, each ticket being the equivalent of a five-cent cash fare and entitling the holder to equal service. It must be conseded, we think, that if there was a distinct charge within the contemplation of the parties, the change that is complained of with respect to it would be violative of the terms of the contract, since the ticket is no longer the full equivalent of a five-cent fare, in that it will not now purchase the same facilities in the way of transfer. The question is, was it such a charge? The case turns upon the answer. The sum of twenty-five cents dis- tributed upon six tickets makes the cost of each, considered separately, four and one-sixth cents. This simple statement would seem to show such a reduction in cost to the purchaser as would warrant a conclusion that the Company had two chares for the same service, that is the continuous ride, one five cents and another four and one-sixth cents. But this method of differentiating does not express the whole truth as we need to know it for a proper determination of the question. Clearly the four-ando-en-sixth-cent charge is not all the Com- pany exacts in the way of payment when it sells by ticket. One ticket cannot be purchased for that sum. In order to get one the purchaser must buy six, and pay twenty-five cents before he gets any service whatever in return. It results that the Company gets the benefit of this advance payment without interest. Where all the six tickts are used promptly, the ad- vantage deriver by the Company in this respect may be too slight to be considered ; but, as every one knows, all are not used promptly; and it is not mere speculation to say that the general average would show a very substantial benefit enur- ing to the Company from this source, an advantage which ^ could be very fairly regarded as the ful lequivalent of the amount abated. Whatever the Company gains in this way is at the cost of the party purchasing, of course. These consid- erations would indicate that in adopting this charge for tickets the Company had no intention of departing from the five-cent standard charge for a continuous ride; but that what was intended, and all that was intended, was an equitable adjust- ment on the basis of a five-cent fare for a continuous ride, which would advantage its patrons in the way of convenience Philadelphia Rate Decision. Ill without entailing loss upon the Company. If any other pur- pose controlled, it is not apparent what it was. The Company was all the while adhering to this five-cent charge for the general public. The ticket arrangement was one of its own devising, adopted not because forced upon it, but at its own pleasure. If the purpose was to reduce the charge, the ques- tion at once arises, to what end? It will hardly be contended that it was to gratify a generous impulse prompted by an over abundant income. No more can it be supposed that it was done with a view to increase the Company's revenues through an enlarged traffic. The average individual would not be likely to take more rides during a month or year be- cause of the reduction of five-sixth of a cent upon each ride. It is quite as inconceivable that its purpose was to give indi- viduals who, without inconvenience to themselves, could spare twenty-five cents at any time, the advantage of a lower fare than was charged those who could conveniently spare not more than five cents each time they travel. The only reasonable explanation is that, in adopting the ticket system, the object was to afford an additional convenience for a consideration in the way of advance payment, which would equal the amount of abatement in the fare in dollars and cents. Indeed, we think it so evident that the purpose of the ^Company was to adhere to the five-cent charge as a basis that we are unable to see how the complainant in contracting with the Company with respect to the matter of its fares could have any reason to suppose that the ticek system introduced any other. It is only by supposing that the understanding of the parties with respect to it was wholly different from what the transaction on its face imparts as to its meaning and purpose that wq can read this ticket system into the terms of the proviso, and there is nothing in the case as presented that would give us warrant for so doing. If, then, it is not "a rate of fare" with- in the meaning of the proviso, but a mere regulation of the convenience of the public involving no change in charge — and this is our conclusion — it folloWs that the Traction Com- pany in restricting its application in the manner complained of was strictly within its rights, and the concurrence of the City was not required. The decree is affirmed and the bill dismissed at the costs of appellant. OF THE The man who votes for such a Franchise 1 1 is a traitor to AMERICAN DEMOCRACY —Judge Ben Lindsey, of Denver - r UNIVERSITY OF CALIFORNIA LIBRARY THIS BOOK IS DUE ON THE LAST DATE STAMPED BELOW NOV24I92!0 30m-6,'14 Bro\vu«\ auniiitn Pty. ^^J- C^^^^ 1-3 Temple