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HUTS ABOUT THE GAS TRUST.
The Consolidation Bill Violates the Con
stitution at the Outset by Its
Faulty Title:
Violates the Constitution in Taking Away
the Right of a City to Grant
Franchises, and
Gives the Trust the Right to Charge Three
Dollars per 1,000 Feet
for Gas.
Provisions of the Ordinances Granting Fran
chiies to Various Consolidated Companies
in This City.
One of Them Was Forfeited for Non-Compliance
with Contract Back
in 1892.
Some Interesting Information Which the Oity
Oouncil Should Call For from Various
Officials.
The Gas Trim paid 5250,000 to mem
ber of tbe Fortieth General Assembly
of Illinois for a law under which It
could rob the people to Its heart's con
tent. But It overlooked a few points that
even bribery couldn't cover up.
Sectlou 13 of Article 4 of the Consti
tution of Illinois declares that no sub
ject not embraced In the title of a bill
shall become a law. There arc some
subjects In the body of the Infamous
gas-cousolldatlon and frontage bill not
embraced in the title. Ueuce the law Is
void.
THIS LAW. known as the "GAS
CONSOLIDATION ACT," empowered
ill existing pus companies to consoli
date with and merge into a single cor
poration, "which shall le one of said
merging and consolidation corpora
tion," and Inasmuch as tills ACT, con
veying purported authority, grants to
all then existing gas companies In the
city of Chicago certain exclusive rights
aud privileges, not contemplated by or
given them by any ordinance of the
Chicago City Council, and as the right
to Issue franchises and prescribe terms
for privileges granted thereby Is ex
pressly reserved to and held to bo In
herent In the City Council by the State
Constitution of 1870, which provides
that the State Legislature shall not
grant and caunot convey rights nnd
privileges In the streets of cities to cor
porations or Individuals, except by and
with the consent of the local authori
ties (meaning the City Council), it Is
unconstitutional on that paint.
LET US LOOK AT SOME PERTI
NENT FACTS relating to this point:
In ordinances passed by the Chicago
City Council, prior to the passage of
tbe "Gas Consolidation Act," aud un
der and by virtue and existence of
such ordinances, certain bonds, con
tracts, privileges and obligations were
assumed by certain gas companies, in
return for franchises granting them
provisional rights In the use aud occu
pancy of the streets, always subject,
however, to the reservations held In
said ordinances for the benefit nnd pro
tection of tho peoplo comprising the
municipality of Chicago, the intent and
object of which provisions is apparent
and well known, and In such ordi
nances it Is expressly stated, reserved
and provided, to wit:
1. CONSUMERS' GAS, FUEL AND
LIGHT COMPANY.-.! perpetual fran
chlso passed April 29, 1SS2, granting
the corporation tho right to tho use
and occupancy of the streets, in return
for which tho corporation agreed and
bound itself by bond nnd various pen
alties, to lay all feeders and service
pipes at the time of laying main pipes,
without subsequent disturbance of the
surface or pavements; to extend Its
main pipes, when ordered by a major
ity of tho City Council, In any block,
one-half of which shall bo Improved by
buildings; that tho corporation should
not extend Its pipes beyond tho city,
or allow any connections to bo mndo
with Us pipes to supply gas to any con
sumers outside of the city; that It
should not charge more than 25 cents
per foot for service pipes, nor charge
general consumers of gas more than
$1.73 per 1,000 cubic feet, giving con
sumers of more than 100,000 cubic ffot
per year a rebate of 25 cents per 1,000
cubic feet; that said company should
be nubject to all existing general or
dinaneei concerning gas; that tho city
fdiould have tho right to inspect meters
and that tho gas supplied should bo of
the uniform n vera go of 1(1 sperm can
dles, burning 120 grains per hour In n
5-foot burner; that tho company's
rights nnd privileges provisionally
granted should be forfeited unless with
in threo years from date of acceptance
of the ordinance it had erected and
hud In operation works and mains suf
ficient to distribute ten million cubic
feet of gas every thirty days, said
works to cost not less than $500,000;
that If said company should directly or
Indirectly sell, lease or transfer Its
franchise and privileges to any other
gas company or companies, or cease to
manufacture and furnish gas for a
period of mora than ten consecutive
days; or If It should fall or refUM to
extend its main pipes whui requested
to do' so by a majority fit H Council,
OGDEN GAS COMPANY.-An or
dinance passed Feb. 25, 1805, granting
n llfty-ycnr franchise, subject to all
general ordinances regarding gas com
panies then In force, the company
agreeing to chnrge n fixed maximum
price of 00 cents per 1,000 cubic feet
to general consumers nnd 75 cents to
the city, or ?10 per nunum for each
street lamp consuming four cubic feet
per hour, Including the labor of light
ing nnd extinguishing the snme, the
city expressly reserving Its require
ments of this labor as n part of the con
sideration for the ordlnnucc; also that
the company shall pay the city not less
than 3Vj per cent, of Its gross receipts;
make a statement annually under onth
of its gross receipts to the Comptroller,
who shall have free access to Its books
at nil times; submit Its meters to In
spection nnd quality of gas to test, ns
prescribed; expend on Its works at least
$100,000 within twenty-four months
from acceptance of ordlnnucc; manu
facture and distribute five million feet
of gas every thirty days within three
years from dnte of acceptance; nnd the
ordlunncc prescribes ns Accepted tbnt
the price to consumers shall never ex
ceed the rate prescribed by the ortlln
ntice; thnt tho compnny shall not
charge nny person for service pipe, but
shall lay the same nt its own expense,
and the company agrees nnd did give
filed with the ordinances passed nnd
franchise contracts mutually entered
Into by the city and gas companies,
which latter gained valuable lights
and privileges thereby, nnd whoso du
ties and obligations, ns well ns the
rights of the city and of Its citizens, nre
therein specified, reserved nud pre
scribed. CAN RAISE THE PIUCE. Tho IN
FAMOUS "GAS CONSOLIDATION"
ACT provides thnt after one year the
GAS TRUST may charge nny rnto
charged by any company with which
merger or consolidation Is made, as,
for Instance, with the PEOPLE'S GAS
LIGHT AND COKE COMPANY,
which lias a perpetual franchise from
the Slate and tuny chnrge ns much as
$2.75 per 1,000 cubic feet to the city
nnd ?3 per 1,000 feet to general con
sumers, thenceforth and forever.
S U P R E M E C O U R T AGAINST
THEM. Tho Illinois Supremo Court
has held nnd decided that an ordinance
granting franchise privileges Is a con
tract by, mutual consent, nud the rights
nnd privileges so granted nre consider
ations In the same, and evasion or re
pudiation of the spirit and letter of the
contract or nny change therefrom un
less by consent constitutes a forfeiture
of rights, nnd, ns It has nlwnju been
held n proposition In both English nnd
American law thnt "ACTS conferring
Its rights nnd privileges should cense
aud be of no more effect nud thnt this
termination "shall not be required the
Judgment or decree of nny court;" thnt
the price charged for gas sliould never
exceed the rate named In the ordinance
nud thnt It would neither sell nor
lease Its franchise or privileges uud
would not enter Into nny combination
with nny gas company concerning rate
or price to bo charged for gas and
should give bond of 5500,000 to satisfy
nny damages to the city of Chicago or
any consumer of Its gas who should
suffer through violation of any obli
gations, or conditions of the ordinance,
the liability not to be limited by the
amount of the pcunlty of said bond.
2. EQUITABLE GAS LIGHT AND
FUEL COMPANY.-An ordinance
granting a perpetual franchise, passed
Aug. 10, 1SS5, authorizing the company
to construct, operate nud maintain
works, lay mains nnd service pipes,
the company agreeing to charge not
more than 25 cents per foot for service
pipes; to charge not more than 5L75
per 1,000 cubic feet for gas, with a re
bate of 25 cents per 1,000 feet to nil
users who consumed over 100,000 cubic
feet per nunum; "any attempt to col
lect a greater rato would work a for
feiture of all rights and privileges;"
that meters nnd quality of gas shall be
subject to inspection nnd tests; thnt
mains should bo extended upon de
mand by two-thirds voto of the Coun
cil In nuy block three-fourths of which
shall bo Improved by building; thnt
the company should expend 5100,000
within tho first twclvo months nud lay
mains nnd distribute within threo years
gns to the extent of Ten Million feet
every thirty days; that If said company
shall at nny tlmo enter Into nny com
bination directly or indirectly, with any
gas company or companies, concerning
rnto or prlco for gas, or shall directly
or Indirectly sell, or transfer Its rights
and privileges, nil its rights nnd privi
leges under Its franchise, without nuy
judgment or decreo of any court, shall
fully cease and term Inn to absolutely,
and the company was required beforo
the ordinance becamo operatlvo to give
a Iwnd of 5100,000 ns surety to tho city
or nny consumer of Its gas for any dam
age they might sustain by reason of any
fniluro of tho company to perform nny
or slnglo of tho obligations Imposed by
Its charter, said bond not to be set up
as tho limit of liability.
UNIVERSAL GAS COMPANY.-An
ordlnauco for a fifty-year franchise,
passed by tho Council July 23, 1604,
which provided expressly that tho com
pany should not chargo general con
sumers to exceed $1 per 1,000 cubic
feet, and thnt upon this chargo tho
Universal should pay tho city 10 per
cent, of its gross receipts, ana ir, or
when, tho company should reduce the
price to 00 cents or less, the company
should bo released from paying tho
city nny percentage. This company
wns required to expend 100,000 upon
Its works nnd mains within twelve
months, and within threo years to have
a plant capable of supplying to con
sumers ten million feet of gns every
thirty days; tho compnuy wns required
to deposit 5100,000 In cash with tho
City Comptroller nnd glvo bonds of
5100,000 additional for faithful compli
ance with nil provisions of tho ordin
ance; ngreo that tho rate named
should never bo exceeded; that the
company would not enter into nny
combination with any other gas com
pany; and that Its liability for any
damage resulting to the city or consum
ers for nny damngo resulting to the
city or cousumors for nny Infraction
of tho provisions of Its franchise would
not bo limited by Its bond; nil upon
the express condition thnt tho com
pany should not sell, lease, transfer Its
privileges or enter liito nny combina
tion ns to prlco with nny other trust
or corporation, nnd tho company spe
cifically agrees that for any violation
of its obligations to tho city or consum
ers, Its plant, mahlncry, tools and ap
pliances shnll revert and belong to tho
city, without Intervention or process of
law; and it Is expressly provided that
tho city shall have tho right to pur
chase tho pUurt entlro at an appraised
value at the wA of fifty years.
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lease, nnd shall not Increase the price
charged by it for gas of tho quality
furnished to consumers during ANY
PART OF THE YEAR IMMEDIATE
LY PRECEDING such purchase or
lease, or such CONSOLIDATION," tin
der penalty (section 12) of Liability IN
DAMAGES THEREFOR to tho PER
SON AGGRIEVED, and shall, for each
offense, forfeit two hundred dollars, In
nn action for debt, In the name of the
people of the Stato of Illinois, or by
nny person who may sue for the same,
and such company shall also bo llnblo
to proceedings QUO WARRANTO for
violation of either of said provisions,
and If adjudged guilty the court may
glvo Judgment of ouster from Its fran
chise, UNLESS THE COMPANY
SHALL CEASE AND DISCONTINUE
such violation, as and when determined
by tho court," thereby attempting In
tho last paragraph to destroy any rc
courso by tho city or by tho people as
to continuous intermittent violations of
franchise restrictions and requirements
ns to price, quality and Inspection of
gas.
MURRAY & CO.
' ItTABtllHKD !
ALD. W. T. MAYPOLE.
Who Wants to Be a State 8onator.
bond of 5100,000 ns surety thnt nil the
provisions of tho ordinance shall be
faithfully carried out, under unlimited
liability for damages, aud that at the
expiration of tho life of tho ordinance
tho city shall havo tho right of fran
chise at an agreed appraised value.
CHICAGO ECONOMIC FUEL GAS
COMPANY.-An ordlnunco pnssed
July 31, 1801, conveying a franchise for
fifty years for tho supply of both man
ufactured nud natural gas, upon tho
same general provisions nnd require
ments goverulug tho other coiupnuies,
especially tho provision of Section 12,
which provides that In case the said
compnuy should nt nny timo In any
manner enter Into n combination di
rectly or Indirectly with any other gas
compnny, Its ordinance nnd privileges
should become null nud void and all
rights revert to tho city without refer
ence to nuy court or legal appeal. Tho
company agreed to charge for Illumi
nating gns 51.10 per 1,000 cubic feet,
with 10 cents reductlou per 1,000 foot
for prompt payment, and 00 cents per
1.000 for natural and fuel gas, with
10 cents reduction for prompt paymcut;
agreeing nud contracting nlso to pay
tho city 3 per ceut. on gross receipts
from Illuminating gas aud 0 per cent,
on gross receipts from snlo of natural
or manufactured fuel gns, and to fur
nish gas to tho city for 517.50 per street
lamp post per year.
ON THE 20TII DAY OF FEBRU
ARY, 1802, a preamble nnd resolution
wns passed by tho City council, re
pealing tho abovo Chicago Economic
Fuel Gas Company ordlnnnce, and
declaring all pipes and connections In
tho streets of Uie city to bo city proper
ty, In neeordnnco with tho provisions
of the ordlunnco regarding forfeiture,
and upon tho ground Uint a majority of
the stock of snld company had passed
iuto tho hands of the Gas Trust.
THE OGDEN. It Is now currently
reported, nud thero nre grounds for be
lief, thnt tho Ogdon Gas Company has
entered upon u contract with the Gas
Trust agreeing not to extend Its plant
or pipes nny further for n period of
threo years.
ALL EVADE THE LAW. All of tho
abovo companies and corporations
have ovnded the plain letter nnd legal
requirements of their franchises nnd
by the terms of bald franchises have
forfeited every right and prlvllego con
tracted for with tho city nnd conveyed
provisionally by ordlnnucc.
VIOLATE FRANCHISES. It Is pro
vided In nn ACT regulating tho condi
tions for tho granting of rights aud
privileges for lighting and heating pur
poses by cities, alto passed by tho lato
-JOTII ASSEMBLY, that no gas com
pany In futuro shnll bo granted privi
leges of building or extension of mains
nnd pipes, except they secure petitions
signed by owners of more than ono
hnlf tho froutngoof each tnllo aud frac
tion of a mile of any street or alley,
which requirement Is designed to pro
tect the merge companies In their Ille
gal evasion of contract obligations,
and prevents any competition, through
tho organization and operation of now
companies, now and forever In tho fu-
I turc, and sold ACT Is directly la con-
special privileges upon or granting pub
lic property to private individuals or
corporations nro construed strictly
against the grautecs nnd In favor of
the State" or the municipality.
MENACE TO ALL. Section 0 ol
tho GAS CONSOLIDATION ACT
is retroactive, and provides that
"nny corporation purchasing or-leas
tug tho property of any other com
pany shall be subject to and perform
for each of tho compnules so entering
Iuto snld agreement tho legal OBLIGA
TION8 now resting upon each of them
respectively under their charters and
ordinances!' "in tho snmo man
ner nnd to tho snmo extent ns If the
companies had remained Individual and
distinct," nnd, providing, however,
"that nothing in this act shall bo con
strued as extinguishing said companies
entering Into tho agreement or agree
ments mentioned, or annulling or Im
pairing any of their respective fran
chises, licenses or privileges, but that
they shall soverally bo regarded as still
subsisting, so far ns tholr contlnunueo
for tho purpose of upholding nny right,
title or interest, power, prlvllego or Im
munity over exercised or enjoyed by
any of them, may bo necessary for tho
protection of their respective creditors
or mortgagees, or any of thorn" aud
SECTION 10, of tho ACT, which Is a
vlolutlon of the letter of tho Constltu
tlon, In thnt Is attempts to supcrsedo
tho rights expressly vested In the City
Council by tho Constitution, In relation
to grant privileges in tho streets of the
city, and would destroy tho vested
rights nnd property Interests of tho
city nnd liabilities and obligations to
tho city nud Its citizens assumed by
tho gns companies, under their ordl
nances nnd frauchlso contracts, by pro
vldlng thnt "the purchaso and sale or
lense, or consolidation nnd merger,
shnll not be held or construed as a vio
lation of tho provision of any ordlnauco
or bond given theroundcr," thereby en
dcnvorlng to protect tho evaslvo and
dishonest gas companies nt tho ex
penso of the legal and equitable rights
of the city and Its citizens.
READ AND PONDER. This snmo
CONSOLIDATION ACT, In SECTION
10, provides that "Ir taso tho property
sold, or leased, or nequlred through
consolidation or merger, Is subject to
mortgngo OR OTHER LIEN, such
mortgage or other lien shnll be nnd re
inula a Hen upon ALL PROPERTY
ho bold, purchased, leased or AC
QUIRED, so that tho samo shall bo
liable for and respond (to the payment)
of such mortgage or other lien exist
ing nt tho tlmo of such snlo or leaso,"
and "Any corporation purchasing or
leasing tho real estate aud personal
property of any other company or com
panies shall PAY AND DIS
CHARGE nil debts and LIABILITIES
of each of tho companies, and
actions may bo brought and maintain
ed and recovery had thcrcforo against
tho company so purchasing or leasing,
or ngalnst such consolidated corpora
tion," and In SECTION 11 It Ib provided
that tho consolidated corporation, or
GAS TRUST, "shall furnish gas to con
sumcrs as good In Quality as it fur
nished provJous to such purchase or
The City Council should ask for tho
following Information:
1. The Comptroller shold bo directed
to report forthwith to the Council, at
Its next regular meeting, what, If any,
receipts have como to tho city from
gns companies under the provisions of
nny of tho gas ordinances; what, If
any, struct lamps nro being supplied
with gas by the Ogdcn Gns Company;
capacity of the plant, nnd If said com
pany or any other Is performing the
labor of lighting and extinguishing
said lumps, nnd what, If nny, contracts
have been let to gas companies for sup
plying the city with gas, together with
the name, or nnmes, of said company,
or companies, and tbe amount of which
snld contracts have been let, and by
what authority.
2. Tho Corporation Counsel nnd the
Comptroller should be Instructed to re
port forthwith to tho Council whether,
In accordance with tho provisions and
requirements of tho resolution of Feb.
20, 1802, tbe franchise of the Economic
Gas Compnny was duly forfeited aud
Its pipes and equipment recovered to
the city, nnd, whether any permit has
been Issued granting any other com
pnny the use of snld pipes, aud also
whether any measures have been taken
to recover to tho city its rights and In
terest In tho pipes nnd equipment of
other gns companies, which, by eva
sion nud infraction of their ordlnnnce
and franchise contracts, have forfeited
snld franchise and their plant nnd
equipment to the city, nnd what, If any,
measures havo been taken by the city
to recover pcnnl sums on bonds filed
by nny of tho nbove named companies
ns surety and gunranteo for the per
formance of their obligations to tho
city nnd to gas consumers in general,
under tho terms of nny franchise
which nny of said companies through
evasion or noncompliance with nil the
terms nnd requirements of said frau
chlso have forfeited.
3. The city gas Inspector should bo
Instructed to report forthwith, direct
to the Council, what. If any. tests have
been made during the past year of tho
power nnd Illuminating quality of gns,
ns required by tho various gas ordin
ances, provisionally granting street
nud other privileges to gas companies,
nnd it such required tests havo been
made, to stato for what company, or
companies said gas was Inspected, ex
amined nnd tested, and where nnd by
what process said gas was manufac
tured. 4. The Comptroller, tho Corporation
Counsel, tho City Gas Inspector and
tho Commissioner of Public Works
should bo severally Instructed to re
port forthwith to tho Council, In whnt,
If any, respect any of tho gns compan
ies grunted ordinances and franchises
by this Council havo violated snld or
dinances nnd hnvo hereby becomo lia
ble to forfeiture of their franchise
rights and privileges back to tho city.
5. Tho Corporation Counsel should bo
directed to communlcato with tho At
torney General of tho Stato aud to re
quest his co-operation and support In
tho inauguration on behalf of the city
of Chicago of proceedings In QUO
WARRANTO, for tho purpose of dis
covering the present condition and sys
tem or operation and responsibility un
der their ordinances nud franchises of
tho various gns companies and the con
solidation of theso companies known as
tho GAS TRUST, which nre operating
under tho provisional ordinances uud
franchises granted them by tho Coun
cil, with the view of determining In a
court of last resort whether the said
companies, or tho said GAS TRUST
nro legally fulfilling tholr duties and
obligations to tho city and its citizens.
TENTS.
BPraHyBBBJuM44B7g!
FLAGS. Manufacturers of
I Ell I u for AM PurPsM
AWNINGS ARoTdYnoM
010110 of Ivary
OlullO Description.
PflUCDC WhIUOanvaa
UUf tllO and Watar Proof.
FLAGS f AU Ntiona
NOT! CHANQI
OP ADDMSSl
329-333 S. CANAL ST.
RUDOLPH HURT,
Tailor and Hatter.
693 BLUE ISLAND AVE., CHICAGO.
(BttwMn 18th and ISth .)
Uniforms of AU Kinds a Specialty.
' PRICES REASONABLE,
W. D. CURTIN & CO.,
Undertakers
Embalmers
bHHHb1bbIkw jflsV
i
"Bumps" Bllllugs cares nothing for
Chicago. If his exorbitant bills nro
not paid all tho peoplo In Chicago may
break their necks In tho dark, for ho
will turn out the gas on them.
Corporation moucy buys bailiffs and
bribes Juries, Corporation money buys
legislation. Is this sort of freedom
guaranteed by tho constitution?
At Inst the peoplo of Chicago aro In
a fair way to obtain their rights,
Tho lufnmous Gas Trust will soon
hnvo a foe worthy of Its steel.
When tho Trust bought tho Infamous
frontngo legislation at Springfield, it
shut out nil now gns companies, but It
did not shut out tho solid and honestly
conducted Ogdon Gas Company, which
now proposes to parallel all of tho Gas
Trust lines in Chicago.
Tho Ogdcn. compnuy stands for cheap
gaH aud good gas. .
All of its customers nro satisfied with
It, and that portion of tho city served
by It Is tho best fronted In tho gns lino
of nuy part of Chicago,
Tho Ogdcn company means business,
It has tho money.
It has tho machinery.
It has tho brains nud tho ability to
carry out lis projects In every way.
It will bust tho Gns Trust.
now ninny pollco nnd flro ofllclnls
get clothes for nothlug at Work Brothers?
With tho corporations buying tho
courts and denying tho peoplo Justice;
with tho corporations buying tho Leg
islature and depriving tbe people of
tholr rights, of what use Is a Republic?
and Livery...
148-160 Walla Street,
LIVERY: 148 and 150 Wells Strett.
176 Grand Avanuc
TUs)ht)n Main '
JOHN ADANK,
'
Livery, Boarding,
ZfDc
SALE STABLES.
831 and 333 Webster Ave. (Tel. North 646.)
CHAS. BURMEISTER,
UNDER TAKER!
303 Larrabea Street,
Ttlepkoat North 188
CHICAGO, ILL.
n. K. SLOAN.
J. CORNISH.
SLOAN & CORNISH,
Livery and
Undertaking.
ssV m
i
a 8a i and 2833 Archer Ave., Chicago.
Tslsphona Yards 721.
Hearses, Carriages and Baggies. Orders Promptly
Attended to Day and Night.
E. MUELHOEFER & BRO.
UNDERTAKERS.
112 and 114 Clybourn Avenue,
Tln)nNrth4ll.
OHIOAQO.
'
.