Transcribed by Dorothy
Wiland
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Forfeiture of Franchise Possible, Culkin Says, Rejecting Traction Company's Excuse" For Failure To Make Extension
As his farewell to the Cincinnati Traction Company in his official capacity of Director of Street aRilroads, (sic) W. C. Culkins, who retired from that office yesterday to become Executive Secretary of the Chamber of Commerce, notified the officials of the company that he could not accept their "excuse" for failure to comply with an order to extend the Warsaw avenue line to Covedale.
In a letter from W. Kesley Schoepf, President of the Company, received Thursday, that official states that the suits filed against the company recently has made it difficult to finance the extension. Mr. Culkins, in reply, calls attention to the fact that the suits were filed but recently, whereas the ordinance calling for this extension was passed by City Council September 6, 1917. Continuing, Mr. Culkins says:
"The continuing excuse given for failure of such compliance was your inability to obtain funds, and many months before any of the suits were filed by the city I recommended that you borrow the funds from the bank to be funded at the later date when securities might more readily be disposed of. In reply you stated that the banks would not lend you the money so that from your own statement the situation in relation to your credit has in no wise changed by any suits brought by the city. I may say further in this connection that even were such the case the fact that your own acts have led to the filing of the suits by the city could not be construed as a defense against compliance with the terms of your contract.
"I must therefore insist that my order of March 21, 1921, be compiled with both in letter and spirit. Unless this is done the necessary step will be taken to enforce your compliance.
Concerning the last paragraph, Mr. Culkins announced several steps may be taken by the city. First of all he said, failure to make the extension constitutes a violation of the contract awarded to the company by the city and makes forfeiture of the franchise possible. A suit also might be filed he said to compel the company to appropriate for the extension before any dividends to stockholders are paid or before any rentals to the Cincinnati Street Railway Company are paid.
William Jerome Kuertz, former Assistant City Solicitor, who succeeds Mr. Culkins as Director of Street Railroads took the oath of office yesterday, it being administered by City Solicitor Saul Zielonka. Both the incoming and outgoing official was remembered by the office force with a large basket of roses.
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May 1, 1921
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