08/1905 Board of Public Works Minutes

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270 Said St. Joseph Company further promises and agrees to relieve and hold harmless said railway company from -all taxes, and all assessments for street, sewer or other municipal improvements on the streets named aforesaid, over which said railway com- pany may operate its cars. The South Bend Railway Company will construct its line from Niles, Michigan, to the point of connection with the tracks of said St.. Joseph Company, as herein designated and will operate all of its cars coming into St. Joseph over the tracks of said St. Joseph Company --so as to interfere as little as possible with the busi- ness and cars of said St. Joseph Company and will pay to the said St. Joseph.Company Three (3) cents for every passenger it carries into or out of the City of St. Joseph as the limits of the City are now established. Said Railway Company further promises and agrees to pay to said St. Joseph Company for every passenger it carries from any point.within to any other point with - in the City limits of said City of St. Joseph, as said limits are now established, the amount of cash fare -that St. Joseph Company receives for like service, and in addition thereto to pay such sum for baggage, mail, freight or express cars that are • brought over said tracks, as the parties hereto may agree upon. And in case the parties hercO are unable to agree upon such tum then each shall choose an arbritrator and these two arbritrators so chossd may select a third---". The St. Joseph Company also agrees that it will not build a competing Interurban line and will not lend adi or assistance to any line entering St. Joseph that may become an active competitor of the South Bend line. The South Bend Company agrees n that it will not build any local line or enter into competition with the St., Joseph Company for local business within the limits of St. JosepJ.. The.gist of this contract is that the South Bend & Southern Michigan Railway Comp.--Lny will build and. -operate an Interurban line from South.Bend, Indiana to St. Joseph, Michigan; that it does not want to and will .not attempt to.do a loc- line in competition with the local company, that the local company will construct all necessary lines and do all of the local business within the limits of the City of St. Joseph; that it will permit a non- competing Interurban line to enter the City of St. Joseph and enjoy the benfits of the terminal loop and stations, with any charge for power, maintenance,of tracks and overhead, taxes,, assessments or any other charge except a payment of Three (3) cents for each passenger crossing the junction point of the tracks of the two companies. This amount of compensation was fixed upon what was thought to be an equitable basis in view of the great expense to be incurred by the local company in the . construction and maintenance of tracks and overhead lines, the cost of producing power, anc7 payments to be made for taxes, assessments, etc. It may be argued in this connection that.a,rate based on a price per passenger is largely to the advantage of the incoming company as the amount of compensation to be paid rests wholly with the amount of business done by it; while the expense of maintenance of tracks and overhead, the amount of taxes, assessments, etc., remains the same, whether the compensation received is light or heavy. I desire also to invite the attention of the -Board to the standard contract of the local Street Railway Company in Indianapolis with the cumbrous Interurban lines entering that City. In this contract the incoming companies pay to the local company Four (4) cents for each and every passenger carried over the local lines, which compensation is entirely in accord with the agreement above quoted, inasmuch as the trackage and expense of maintenance, taxation, etc., is greater in Indianapolis than would be the case in the.City of St. Joseph or South Bend. In view of the foregoing full explanation I beg to say that the Indiana Railway Company will permit any non -competing Railway Company to operate its cars over the tracks of the Indiana Railway Company on the same general terms as are embodied in the contract it has made for an -entrance into St. Joseph for.its South Bend and Southern Michigan line, Namely.: The Indiana Railway Company will receive all cars of such an Interurban Railway Company at the limits of the City or at any point where the incoming Company may strike the lines of the Indiana Railway Company and will double track any of its trunk lines if need:tie, where not already double tracked, to the center of the City; it will construct all necessary and proper curves for entering its present contral l loops; it will provide for all the local service on said tracks, keeping its cars out of the way of the.Interurban cars as far as practicable; it will supply pwwer from.the said point of junction and pay all charges in the nature of taxes, maintenance of tracks and overhead lines, City Assessments, etc.,.and will charge the incoming Company a rate of Three (3) cents for every passenger brought into or taken out of the City, crossing the said junction point.