Great Cities in America Their Problems And Their Government

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The rate of fare prescribed in the ordinances is five cents with universal transfers, except in the central business district.
These ordinances, which contain many other features of interest and importance, undoubtedly set a new standard for street railway franchise agreements en- tered into by American cities. Since their adoption, however, the supreme court of Illinois has held that the street railway certificates which the city might issue for the purchase of the property under the Mueller l
...aw would be counted as a part of the regular munici- pal debt, subject to the limitation contained in the state constitution that this debt may not exceed 5 per cent of the assessed valuation of taxable property within the city. This decision makes the purchase of the street railway system impossible under present conditions. Accordingly, the chances are that munic- CHICAGO 235 ipal ownership of street railways in Chicago will be deferred for many years to come, in spite of the re- peated expression of the people in favor of that policy.

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