The Streetcar Stranglehold: Eastern Capitalists vs. Seattle’s Future

According to T. X. Perkins, the legal adviser of the Eastern capitalists who are trying to consolidate and thus control nearly all of the street railway lines here, the scheme will probably fail if a 18-year franchise is not granted.

Mr. Perkins has been in Seattle about three months guest at the Butler Hotel. He says the proposed consolidation is by no means an assured fact. The hitch in the scheme occurred when the city was asked to grant Mr. Perkins' company a 18-year franchise.

The application for this franchise was made by Jacob Furth and J. D. Lashmutt of this city, who acted for the Eastern men. It will be remembered that after it was made it was stated that the city should acquire all the lines, and operate them. The matter came up in the city council, and was 'debated' in order to get an expression of public opinion.

Many people protest, and are protesting against the granting of a 18-year franchise to the Eastern men. They argued that Seattle would, in time, be a very large city, and that in granting the franchise, the city has simply giving away millions of dollars worth of property.

This morning it was rumored on the street that certain modifications in the terms of the franchise asked by the Eastern capitalists had been proposed. This rumor was to the effect that Mr. Perkins would submit a proposition to the city council to pay, instead of 1 per cent. of the gross earnings, an amount estimated to nearly 3 per cent. This alleged change, it was stated, was to be made on a kind of a sliding scale, starting at 1 per cent. the first year and increasing every five years until an average of 3 per cent. of the gross earnings of the road sold go into the city treasury.

The report further stated that Mr. Robinson, a prominent engineer of Boston, had arrived in the city with the authority to make the above-mentioned modifications in the terms of the franchise.

A plan reported called on Mr. Perkins and Mr. Robinson at the Hotel Butler this morning, to ascertain if there was any truth in the report. Mr. Robinson, who was first interviewed, said that he was simply an engineer employed by the Eastern capitalists to look over the situation here and report on it. He knew nothing of the proposed consolidation other than that such a scheme was afoot. Having no connection with the company except as an employee, he was not in a position to say anything.

Mr. Perkins, who says he is here looking up the legal status of the present remnants, stated in most emphatic terms that as far as any modifications in the terms of the franchise asked by his company. 'If any report is in circulation,' he said, 'that we propose to pay an average of 3 per cent. of the gross earnings should be effected, it is absolutely without foundation. We could not possibly pay more than 1 per cent. of the gross earnings and could accept no franchise giving us for forty years.'

Mr. Perkins stated that arrangements for the purchase of all the street-car lines in the city with the exception of the Grant street line running south, the Yesler avenue line and the Rain beach line, had been made by the Eastern capitalists, as he represented.

'Everything is in readiness,' said Mr. Perkins, for the consolidation of the lines referred to and all we are waiting for now is the granting of the 18-year franchise. We propose to establish a new transfer system all over the city and to greatly improve the cars on certain lines.'

There is at present an agitation for municipal ownership of the street-car system here, although the city has taken no action in the matter of our application for a franchise.

'I am in a position to say that we can accept nothing but a 18-year franchise. The money is ready for the purchase of the different lines,' Mr. Robinson was reported as saying.