The People’s Franchise: Seattle Votes Down Municipal Ownership of Streetcars

Municipal Ownership Is Defeated.

The Navin resolution for municipal ownership of the city’s street railways was turned down by a large crowd at City Hall last night. The matter had been a subject of debate for some time, and a large crowd was present to hear the argument.

The petition is said to have been circulated for submitting the question of municipal ownership to a vote of the people. Although the minimum number of signatures required was not present, the petition will be further circulated until as many signatures as possible are obtained.

On motion of Councilman Jones, the discussion on the street railway issue was given an opportunity. By mutual consent, the time allowed each speaker was limited to one hour and thirty minutes for arguments and thirty minutes for answers.

Prof. J. and Emile, Dr. H. P. Timm, and Judge Weaver spoke in favor of municipal ownership. Jacob North, J. S. Goldsmith, Monogorin, Allen L. Mason, Dr. B. C. Kidder, and James Thomas Burke spoke against the measure.

Prof. Smith opened by stating there are some facts intended to afford a basis for consideration of municipal ownership as to plants. In each company has an annual product of 1,000,000 cubic feet of gas, a capitalization of $3,908,000, or possibly $12,184,000, which he meant was fair. This would allow it or them to take the capital invested for gas feet of product. Many plants under private ownership have but seven times as much stock as it should.

This case is a capitalized issue in dispute of plants and waterworks. The total capitalization can plant in this city is one million, over one-half of which represents do outlay of capital. This is one way to compare public and private ownership. Another is to compare the cost of gas under the two systems.

Here is the price under private control: 2¢ city pay $1.00 per 1,000 ft; 5¢ pay $1.14; 7¢ pay $1.16; and 9¢ pay $1.18. The municipal gas operators average is $1.11.

Here is the street railway problem in Cleveland: Capital stock $30,900,000; authorized debt $45,000,000; gross annual earnings $12,600,000; net income $1,170,000, or 3.8 per cent. loan on $50,000. In St. Paul, the cost of construction and equipping the street railways was $14,696,000; their value is $17,587,000. The income gives a fair return of 3% per annum.

In addition, Prof. Smith took up street railway systems of Philadelphia, and a number of other cities.

"We only ask that this matter be left to the people," said one advocate. "The people can settle the matter in their own homes and the church of being under inducements. The owners at the franchise cannot ask otherwise. We have our petition present with that signatures of 50 per cent of the voters, but wish to secure more signatures. These were secured in three days. I want to protest against the robbery of the many for the benefit of the few."

J. L. Goldsmith spoke on behalf of the friends of the franchise. He said: "The man who pays the taxes is the man who bears the burden. Taxes are higher in Seattle than in any city on the coast. Workingmen do not care whether fares are three or five cents. What they want is their wages paid regularly. Seattle cannot be compared to Chicago or any other city in the West. What we want is outside capital. The city is not ripe for this move."

Jacob North said: "I have been connected with the street railways since 1890 and I know what they cost and what they earn. Only two times have operating expenses been kept out of the hands of receivers by their paying the operating costs out of their own pockets. A private corporation pays closer attention to business than can municipal ownership."

"It is a question of business with the law," said Mr. Monogorin. "We want street cars, and not theory. The consolidated company will give us extensions, and the city cannot do it. Older and wealthier residents try this experiment."

"Men who have invested money in this city," said Mr. Allen, "should carry more weight than those who have no financial interest here. The donor should consider claims advanced to the two positions before we vote on them."

Judge Weaver closed the matter in favor of municipal ownership, making a comprehensive argument, and Judge Burch spoke for the other side that municipal ownership only is found in despotic countries. He wanted to know why the citizens were taking so much interest in the ownership of railways when they did not have enough school room for the children now in the city?

Councilman James moved that the resolution be referred back to the council with the recommendation that it be legally passed. The question was carried by a vote of 4 to 3.

The committee of one hundred will meet Friday at the City Hall on the matter of municipal ownership. Now that the Navin resolution has been defeated, as many signatures as possible will be secured for the petition asking for the referendum in this matter. The petition addresses the council on the coming night. The committee hopes to have the signatures of at least 40% of the voters of the city by that time.

J. M. Smith, chairman of the committee of one hundred, has appointed James Hamilton, Rich, and Weaver and J. C. Allan as a committee to have charge of all legal steps if the franchise is granted by the council. This committee will, in all probability, bring an injunction suit.