Excerpt from Franchise Facts

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 franchises 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 percent petition. The Metropolitan, in the contract submitted has assuredly avoided any further vote on rapid transit matters after December 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 company, 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 provisions 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, regulate 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.

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