H. Foerderer, of Philadelphia, who has since become the leading spokesman for the grantees of the new franchises; Clarence Wolf, Mayor Ashbridge's banker; Select Councilman J. P. McNichol, and Millionaire Contractor John M. Mack, all of Philadelphia; Henry W. and George T. Oliver, P. W. T. Mellen and E. M. Bigelow, Pittsburg capitalists and Quay supporters.

The Governor's action was officially published on the morning of July 8, and then the rush for charters began. The capitalists and politicians just mentioned were early on hand at the State Department, and, as the secretary of the commonwealth is a strong Quay machine man, he did not throw any obstacles in their way. Over one hundred applications for charters were filed between 7 and 10 a. m., of which thirteen were for Philadelphia companies. The formal incorporators were Robert H. Foerderer, John M. Mack, Michael Murphy, Clarence Wolf and Joseph Mack.*

The companies were capitalized for a total of $7,198,000.

The charters were granted on Saturday, June 8. The same day a special meeting of the Select Council of Philadelphia was called for the following Monday at 3 o'clock, the earliest possible day. The Chamber met on that day and thirteen ordinances, granting the requisite privileges to the thirteen companies, were formally introduced and referred to the Street Railway Committee, which met at 1 o'clock Tuesday. There was a semblance of a hearing on this occasion, and Harry B. French, president of the Municipal League of Philadelphia, was graciously permitted to read the following statement of the League's position:

"First. That, although the recent acts of Assembly permit the lapse of a long period of time before any construction need be undertaken by any of these corporations, it is within the power of the City Councils to cut down this time and fix a shorter period within which the work of construction shall be begun and finished, and the interests of the people thereby more quickly served.

"Second. That it is within the power of Councils to couple, with the grant of the franchise, any condition that it thinks is for the benefit of the city and its inhabitants, such as a condition limiting the rate of fare, one providing for free transfers, one providing for the paving of the streets, one providing for adequate compensation for the grant of the franchise, and, most important of all, it is within the power of Councils to limit the term of the franchise and to provide that the tracks of the

*The titles of the thirteen companies are Passynuk Avenue Elevated, Broad Street Subway, Western Rapid Transit, Broad Street Rapid Transit, Chestnut Hill and Glenside Rapid Transit, Ridge Avenue Elevated, Frankford Elevated, Northern Rapid Transit, Germantown Avenue Elevated, Southern_Rapid Transit, Eastern Rapid Transit, Central Rapid Transit and Market Street Elevated.

companies asking the franchise shall become public property at the expiration of the term for which the franchise is granted.

"Experience elsewhere as well as in this city has shown that franchises once granted have been but little subject to regulation, and that the interests of the city must be safeguarded at the time of grant, if at all."

The statement was heard by the committee in silence. Not a word was said about it by any member, and not a step taken, even, to consider the suggestions. The ordinances were all recommended for favorable consideration and were sent to Select Council, which passed them on first reading the same day. On July 12 the ordinances were passed finally by Select Council, and they were messaged to Common Council, which concurred in them all, sitting until 7 p. m. to accomplish this result-an hour beyond the time. fixed for adjournment by the rules. The record of councils was more expeditious, for it passed thirteen long and intricate ordinances through all the stages of legislation in three days—a process made possible by their rules and the laws under which they are organized.

The next day, the 13th, the bills were transcribed and sent to Mayor Ashbridge for his consideration. Notwithstanding the statement of his private secretary that the ordinances would not be signed that day, they were, as a matter of fact, signed that evening, the Mayor returning from the ceremonies incident to the opening of the United States Mint, and remaining at his office until after midnight for the purpose. This action of the Mayor was undoubtedly due to the offer of John Wanamaker to pay the city $2,500,000 for the franchises conferred by the ordinances, he having deposited $250,000 with a trust company on account of the proposition. The letter conveying this proposition was handed to Mayor Ashbridge by Mr. Wanamaker's private secretary. The Mayor contemptuously flung aside the letter when he saw the envelope, without taking the trouble to examine its contents. He hastened back to his office, however, and did not leave it until all the ordinances had been officially approved.

To sum up, we have two highly-important bills touching a question of vital moment passed in six legislative days-the shortest possible time under our Constitution-and approved the next day at midnight without hearings of any kind. Then thirteen companies were incorporated under them in a single day. Then thir

teen ordinances, granting valuable franchises, were passed in three days, and signed the fourth day by the Mayor at midnight, without hearing and in the face of a highly-advantageous offer from a responsible and well-known citizen, who had deposited a quarter of a million as an earnest of his good faith. I challenge any community in the United States to equal such a record of indifference to public sentiment, profligacy with the public assets, disregard of a public trust and the subjection of the law and lawmaking power for selfish private ends. If there is any city, large or small, which can show a similar record I want to learn of it, simply to relieve the feeling of degradation I now have.

Many scandals have attended the granting of franchises in Philadelphia, but we have never had anything that quite equaled this. I have heard of the "jamming" process in legislation, but I never saw it applied with more vigor than in the instance described in this article. The only concession of any kind made was the slight hearing granted to the Municipal League through its president, and his treatment was such as to reinforce rather than diminish the impression that the interest of the people were of remote consequence and consideration.

Shortly after the Focht and Emery bills were enacted, two supplemental bills were passed. The one to the Focht bill gave the corporations brought into existence by its provisions authority to build either an elevated or an underground road, or both an elevated and an underground railway, over the route described in their charter. The second provided that no street railway company shall hereafter be chartered until the necessity for such railways shall have been passed upon by a board consisting of the Governor, Attorney General and Secretary of the Commonwealth. In other words, having filched the State and the municipalities of all they could carry away at one time, they have left three of tried and trusted friends on guard to prevent any one else from carrying away any of the plunder yet unappropriated. The bills, popularly known as "chasers," were put through in the same time as the Focht and Emery bills, and, of course, received executive approval at the hands of Governor Stone.

BOSTON'S NEW SUBWAY.*

BY WILLARD WINSLOW.

To Boston belongs the honor of constructing the first municipal subway in the United States. Construction was begun in 1895 and the work was completed in 1898 at a total cost of $4,350,000. Its object was to relieve the congestion of traffic upon the crooked, narrow and crowded streets in the central portion of the city, and to afford rapid communication between the business district and suburban areas upon the south and west.

To many the scheme was an experiment, especially to those who oppose the extension of municipal action. But its success was immediately demonstrated, not only from the point of view of rapid transit, but of finance as well. As a result, the construction of a second subway was proposed, to connect Scollay Square with the suburban districts upon the east.

The first bill to effect this result was drafted by and introduced into the legislature at the request of the Citizens' Association of Boston. It provided that the Boston Transit Commission (the authority which has charge of the present subway) should construct the proposed subway and pay for it by issuing city bonds. It also empowered the commission to lease the road to an operating company for a period of 20 years, the terms of the lease being subject to the approval of the State Board of Railroad Commissioners. This bill was not satisfactory to the Boston Elevated Railway-the proposed lessee-and after considerable negotiation with view to effecting an agreement, a new bill was drafted.

The principle difference between this and the former plan was that, while the Rapid Transit Commission was to construct the road,

*The writer wishes to express his indebtedness to Mr. Louis D. Brandeis for the use of valuable material regarding the proposed subway.

the Elevated Railway Company was to defray all expenses and use the subway until 1937 without paying the city anything for the privilege. The bill also extended the lease of the old subway from 1917 to 1937, making both agreements terminate at the same date. At the expiration of the lease, purchase by the city was provided for upon the condition that a majority of the voters of the city should so decide, and the payment to be made to the private company was the cost of the subway and structure less depreciation.

This proposition, which virtually handed over the subway to a private corporation for 40 years at the expiration of which period the city could only purchase it upon paying the market value, aroused great hostility and was condemned by many as a serious menace to the interests of the city. The Associated Board of Trade took the lead in opposing this measure, and as a result of the hearings before the legislature and the widespread opposition it encountered, no action was taken in the session of 1900.

Early in 1901 the Citizens' Association introduced a bill similar to the one it fathered in the previous session. The Associated Board of Trade presented a scheme similar to the statute under which the present subway is being operated, namely: municipal ownership and construction of the subway, the Boston Elevated Railway Company paying 43 per cent. of the net cost of the subway and its appurtenances for a lease terminating in 1917. In case the Boston Elevated Railway Company should not desire to lease the new subway, a similar agreement could be made with any other

company.

Discussion of the various schemes continued. Numerous hearings were again held by legislative committees, and the longer the question was discussed the more evident it became that private ownership and control would be a grave mistake. Long after the hearings had been closed and while the committee on metropolitan affairs was considering the drafting of a measure, the Elevated Railway Company presented a new bill. The title and ownership of the subway was to be vested in the city of Boston, although the company was to furnish the funds to build it, not to exceed $6,000,000, and to have exclusive use and control of it for fifty years from date of completion. In other respects it did not differ materially from the measure introduced by the Associated Board of Trade and certainly was not much more favorable to the city.