The Fifty-Year Streetcar Bargain

Not since the present government came in has there been such a stubbornly fought battle as over the provisions of the franchise asked for by Fred E. Sander between South Third street and Railroad avenue and for the extension of the old one for fifty years. Last night in the house of delegates Mr. Coryell, as chairman, presented the report of the committee of the whole. He also proposed an amendment requiring that all material and supplies used in the construction of the railway shall be of Seattle manufacture, so far as such materials, etc., can be obtained in Seattle.

Mr. Lyon doubted the propriety of such a provision; it might result in a combination by which prices would be forced up, yet the owner of the franchise would be compelled to pay them. Mr. Coryell replied that it had worked in San Francisco, and it had helped materially to develop manufactures. J. B. Denny, who was in the hall, was asked what he thought of it and he replied that he was in favor of building up local industries; the only fear, of course, would be the creation of a monopoly. Delegate Calligan suggested that it might be guarded by a provision, "unless otherwise ordered by the city council," then, if an attempt to "cinch" were made, the council could afford relief. This was agreed to and the amendment adopted.

Mr. Drew proposed that the rental paid by the road should be 1 per cent at the end of ten years for five years, then 1½ for five years and 2 per cent thereafter. President Kloeber called Mr. Drew to the chair for the purpose of amending so as to make the payments quarterly instead of annually, but Mr. Drew asked to be excused from serving as he did not desire to rule upon a matter in which his own amendment was involved. Mr. Coryell was then chosen to preside and Mr. Drew protested that Dr. Kloeber's amendment was not germane. Dr. Kloeber insisted that it was. For instance, he was in favor of Drew's amendment only if his (the speaker's) was also adopted, but not otherwise, because each amendment was a part of the terms of the franchise. He moved to amend so that payments shall be made quarterly.

Mr. Drew then attacked the amendment on its merits, and recited the arguments upon which the committee had based its vote to make the payments annual. Dr. Kloeber replied that the railroads were asking for an extension of their franchises to fifty years; in San Francisco the earnings of the car lines are $20,000 a day. In ten years Seattle will have a population of 150,000, and it will make a great difference whether the lines pay annually or quarterly. As the city grows this will increase, and when the city has a population of 300,000, if his amendment is not adopted, the council will have to make a present to the roads of the accrued interest upon $150,000 a year. He had figured it out and in fifty years the profits to the city, by insisting upon quarterly payments, would amount at 6 per cent to $180,000.

The amendment was nevertheless lost, and the question then arose on the amendment of Drew to make the rate 1, 1½ and 2 per cent. Dr. Kloeber opposed this on the ground that a gentleman offered the city 1¼ per cent, and the house now proposes to give the franchise for less than he offers. That was what it meant, and such action would bring ridicule and reprobation upon the body of which they were members. He should, for his part, oppose it strenuously on behalf of the people until the bill was signed by the mayor. Delegate Brace said that this was proposed to be a model franchise, and most of the roads positively refused to accede; it was not fair to take advantage of the opportunity to squeeze one company. They could not make the others pay it and should not discriminate.

Mr. Calligan said the same generosity had been shown Mr. Sander as to lights. Sander proposed to light the road as long as his franchise lasted, but some of the members said, "No, that is too much; you shall only do it for ten years." He thought that the arguments used were very poor from a business point. Why, the members should be on the other side of the railing, lobbying for the railroads. He hoped the roads would make money; it was a sign of good times, but if they want an extension of the franchise they ought to pay for it. There was no need for any sympathy for Fred Sander; if they were going to put a guardian over him, they wouldn't be likely to pick him out of that house.

Dr. Kloeber moved that the settlement be made semi-annually. Delegate Cook supported this provision after a very spirited exchange of views between Messrs. Kloeber and Drew, resulting in the adoption of the amendment, and the percentage will be 1, 1½ and 2. The bill goes to engrossment.