Chicago Traction Wars
The Chicago Traction Wars was a political conflict which took place in Chicago primarily from the mid-1890s through the early 1910s. It concerned the franchise and ownership of streetcar lines. At the time it was one of the dominant political issues in the city and was a central issue of several mayoral elections and shaped the tenures of several mayors, particularly those of Carter Harrison IV and Edward Fitzsimmons Dunne.
Background
Chicago awarded its first street railway franchises in 1856. Early on, dozens of streetcar companies arose. However, by the 1890s mergers and acquisitions had left only a handful.99-year franchise act
In the summer of 1863, the "Gridiron Bill" was proposed to extend the franchise of Chicago streetcar companies to 99 years. This generated outrage in Chicago, with large petitions and protests arising.In January 1865, overriding a veto from Governor Richard Yates, the Illinois legislature passed the "Century Franchise", which had by then become known as the "99 years act"/ "99-year franchise act" which extended the franchise of streetcar companies to 99 years. There were strong doubts about the constitutionality of the legislation.
In 1883, to postpone a conflict, Chicago mayor Carter Harrison III brokered an understanding with streetcar companies that the city would extend their franchises for twenty more years, and settle the status of the 99 years act at another time.
Yerkes-backed bills
, owner of a large number of the city's streetcar lines,began leading a push for extended franchises. Yerkes held great power and influence, at one point holding influence over a majority of the state legislature.
Crawford bill
On May 14, 1895, Governor John Peter Altgeld vetoed a bill to extend franchises which had been passed by the Illinois legislature. He declared "I love Chicago and am not willing to help forge a chain which would bind her people hand and foot for all time to the wheels of monopoly and leave them no escape."Humphrey bills
In early 1897, legislator John Humphrey introduced several bills which would grant 50-year franchises with very little compensation to the city. The bills were defeated in the Illinois House of Representatives on May 12, 1897.Newly-elected Chicago mayor Carter Harrison IV had taken vigorous opposition to the bills, and successfully lobbied legislators to kill these bills. Ultimately, the traction wars would become a dominant concern of the young mayor's five terms in office.
Public opinion sided in opposition to a 50-year extension.
Passage of the Allen Law
After the defeat of the Humphrey bills, State Representative Charles Allen introduced a bill which would enable City Councils to grant 50-year franchises. It passed in both the Illinois Senate and Illinois House of Representatives on June 4, 1897 and was signed by Governor John Riley Tanner on June 9. After the bill was successfully passed, the arena of the conflict moved from the state legislature to the Chicago City Council.City Council vote (Lyman Ordinance)
The April 1898 Chicago aldermanic elections was seen as an opportunity shape the City Council's pending vote on the matter. The Municipal Voters' League requested that all candidates sign its platform, which contained a pledge to not vote for any franchise which exceeded twenty years or which did not provide the city with ample compensation. Of the twenty-nine candidates the league endorsed in the April Chicago aldermanic election, nineteen were elected. Additionally, another six elected alderman had signed the pledge despite not carrying the League's endorsement. It was believed that voters had elected a City Council that would oppose the Allen Law extensions, as 42 out of the 68 alderman were believed likely to cast votes against it.On December 5, 1898, five months after the state passed the bill introduced by Allen, seven months after the aldermanic elections, and a month after state legislative elections had seemed to signal a death knell for the Allen Law, an ordinance was introduced to the Chicago City Council that would award 50-year franchises. The ordinance would extend all franchises that had been granted and enacted before July 1, 1897 fifty year extensions. It also specified a five cent fare for the first twenty years. It also specified considerably low compensation to the city by streetcar companies. This ordinance was introduced by 23rd Ward alderman William H. Lyman, and was dubbed the "Lyman Ordinance". This was, in essence, a last-ditch effort by the streetcar companies.
Harrison vowed to stop the ordinance, stating that, "If Yerkes can pass an ordinance over my veto I'll eat my old brown fedora".
The ordinance had the support of a number of the City Council's Gray Wolves. Harrison stopped the bill by "burying" it in a committee. Decisive roll call votes came from aldermen Michael Kenna and John Coughlin on December 19. The bill was sent first to the Committee of Streets and Alleys South, Streets and Alleys North, and Streets and Alleys West, where it remained until December 19, when it was withdrawn and instead referred to the Committee on City Hall. It was held by this committee until February 14, 1899, when in accordance with an unfavorable opinion on the bill issued by Corporation Council Granville W. Browning a majority report was created, which recommended that no legislation be enacted at the time. A minority report had been signed by William C. L. Zeiler and William Mangler recommending its passage.
Other ordinance were attempted. The minority report recommended the so-called "Kimbell ordinance", which would, among other things, extend franchises to December 31, 1946 and have a five cent fare for the first twenty years. The proposed "Hermann Ordinance" would extend franchises for twenty years, but thereafter allow the city to purchase, own and operate lines.
Repeal of the Allen Law
So strong was the public opinion against the Allen Law, the platforms of the conventions of all parties in Cook County, as well as many party conventions elsewhere in the state, included support for the repeal of the law. The two major parties' state conventions also passed resolutions calling for the repeal of the law. Again, as in the aldermanic elections earlier that year, the Municipal Voters' League requested all candidates sign their platform. Efforts were also undertaken in many legislative districts to block the renomination and reelection of members who had previously voted for the Humphrey bills and/or the Allen Law. So successful was this effort, that only 22 of the 114 members of the Illinois General Assembly that had voted for the Allen Law were reelected.Not only was Harrison, like the majority of Chicagoans, opposed to the 50-year extension, but he also was opposed to accepting any franchise extension unless the Allen Law was repealed by the state legislature. This stance was seen as having paid off when the bill was repealed on March 7, 1899. Conceding defeat, Yerkes sold the majority of his Chicago transport stocks and moved to New York.
Municipal ownership movement at the turn of the 20th century
A standoff emerged between the streetcar operators, still asserting their right to 99-year franchises, and Harrison's municipal government. The dispute between the city government and the companies would not be settled until 1907 after Harrison had already left office. Meanwhile, public frustration with this inaction began to grow.At the same time, a new movement emerged in support of municipal ownership. Alongside a number of "progressive" causes, a movement for municipal ownership had arisen in the United States. As a result, a movement arose in Chicago which sought to immediately pursue public social ownership of the streetcar lines, running them as a publicly owned enterprise/ public utility.
The influential Municipal Voters' League, which advocated on the traction issue, was founded in January 1896.
Mayor Harrison did not embrace the idea of municipal ownership, even after it had become supported by both major political parties by 1900.
Transit emerged as a central issue in municipal elections.
In 1897 John Maynard Harlan ran for mayor on a platform supporting municipal ownership.
When Carter Harrison IV had been reelected in 1899. One of his opponents had been former governor Altgeld, who ran under the "Municipal Ownership" party label on a platform which supported municipal ownership.
In 1902 a municipal ownership referendum passed by a six to one margin.
Street Railway Commission
On December 18, 1899, the Chicago City Council passed a resolution enabling the appointment of a special committee of seven, subsequently referred to as the Street Railway Commission, to form a policy on the traction issue. This followed the "Harlan Committee", a commission which existed from 1897 through 1898, which was led by then-alderman John Maynard Harlan and which issued the "Harlan Report", a document that laid out facts about the issue but drew no policy conclusion.Among other things, the committee was to examine the feasibility and practicality of municipal ownership, as well as the terms and conditions under which municipal ownership might exist.
On January 15, 1900, a resolution was adopted by the City Council further directing the commission to examine and report what companies, if any, were authorized under their charters to operate streetcars using anything other than animal power, the validity of ordinances granting such right in opposition to the charters of companies, the related provisions of the 99-year act, and what streetcar lines, if any, might be acquired the city by virtue of their ordinances.
The committee consisted William F. Brennan, Milton J. Foreman, Ernst F. Hermann, William Mavor, Walter J. Raymer, William E. Schlake.
The report was submitted on December 17, 1900. Among other things, it recommended that streetcar businesses be recognized and treated as a monopoly, that the City Council have broad powers of control over them, the creation of a new standing committee on local transportation, and that the city should have the power to own and operate street railways. It recommended holding referendums on important questions of street railway policy.
On May 20, 1901, the City Council passed an ordinance creating the Committee on Local Transportation. Some of the committee's special duties was "to carry on any work of investigation that may have been left uncompleted by the Street Railway Commission, to consider and devise plans for meeting the situation that may arise when street railway ordinances come up for action," and, "to make special study of the kind, quality, and sufficiency of the local transportation service and facilities of Chicago, and to make City Council from time to time, as it may see fit, recommendations looking to the improvement of the same." The committee would consist of nine City Council members, and the mayor as an ex-officio member. In its first report, issued December 11, 1901, it reported that the municipal ownership of street railways was not feasible.