Division of Metropolitan Planning

10USE No. 210

SPECIAL REPORT

OF THE

DIVISION OF METROPOLITAN PLANNING

RELATIVE TO uNIFIED STEET RAILWAY SERVICE IN CHELSEA, REVERE, EVERETT, MALDEN, AND BOSTON.

January, 1925

WRIGHT & POTTER PRINTING COMPANY 32 DERNE STREET BOSTON 9 HOUSE —No. 210. H

Cl)t Commontoealtl) of

SPECIAL REPORT OF THE DIVISION OF METROPOLITAN PLANNING,

11 Beacon Street, Boston, 9 December, 1924, To the Honorable Senate and House of Rt •presentatives, in General Court assembled. Chapter 45 of the Resolves of 1924 c mtains, among other provisions, the following

Resolved , That the division of metropolitan ianning, of the metropolitan district commission, is hereby directed to investigate and ma recommendal ions as to . . . the /. The subject matter of house document No. 1604 of current year, entitled “An Act providing for unified street railway service in Chelsea, Revere, Everett, Malden, and Boston.”

In conformity with that resolve, this Division respectfully submits its report. House document No. 1604 of 1924 is a bill prepared by the Committee on Met- ropolitan Affairs and Committee on Street Railways, sitting jointly, providing for the acquisition by the Boston Elevated Railway Company of the Chelsea Division of the Eastern Massachusetts Street Railway Company. This bill was based upon a report of this Division contained in House Document No. 1340 of 1924. The Chelsea Division of the Eastern Massachusetts Street Railway serves parts of Chelsea, Everett, Malden and Boston, and is the only street railway company doing business in the city of Revere. This Chelsea Division reaches Scollay Square through the subway, thus accommodating passengers en route and those wishing to reach the vicinity of that tern rus, but the very large number of per- sons living in Chelsea and Revere who d' ire to reach points on the Boston Ele- vated must pay two fares. With the exception of the Chelsea Div don, the Boston Elevated supplies the entire electric street railway service of tin Metropolitan District within five miles of the State House; and it seems both fai and reasonable to this Division that on equitable terms the Chelsea Division be a yuired by the Elevated, to the end that the entire Metropolitan District within fly- miles of the State House may be served by a single railway with a single fare. After many conferences with officials of lie interested cities, and with the officer? of the Eastern and the Elevated, a draft of a bill was finally reached, which was satisfactory to all parties concerned. It provided for the purchase of the Chelsea Division by the Commonwealth, and its lease to the Elevated; and it further provided for certain contributions by the cities served by the Chelsea Division. On the basis of the suggested bill, it was the opinion of the officers of the Elevated, that initially the Chelsea Division would be substantially self-supporting, and that ultimately it would work out as a profitable addition. It is our understanding that failure to enact the bill into law was based upon an objection to the use of State credit for the purchase of the Chelsea Division, combined with the fact that any lease made by the trustees of the Elevated could not extend beyond the period of public control, and that public control might terminate at any time after January 1, 1928. The result might be that the Common-, wealth would be left with the property on its hands, and with no lessee desiring to use the same. A special recess commission is now considering the whole problem of the future status of the Elevated Railway; and it is the hope of this Division, that the Legis- lature of 1925 will enact laws which will make it possible for the Elevated to finance itself in a reasonable and proper way, and carry out reasonable and proper pro- grams for extension and betterment of its service. If such a law is enacted, we believe that the Elevated should acquire the Chelsea Division of the Eastern 1925.] HOUSE No. 210, 3

Massachusetts Street Railway. We append to this report our report dated Feb- arJ 1 4, wllich gives in detail our reasons for favoring House Document Tj t mu w a^so accompany this report with a new bill similar to House Bill fen 7' f i® \r°’I\o. 1504 or the last session, it is quite possible that changes will be required in the torm ol the bill, dependent upon legislation enacted on the recommendation of the recess commission, but the bill accompanying this report covers the essen- tials of the purchase of the Chelsea Division by the Elevated, and is, we believe, a proper basis for a new bill. Respectfully submitted DIVISION OF METROPOLITAN PLANNING, H, I. Harriman, Chairman. A. C. Ratshesky. Richard K. Hale. Ralph S. Bauer. Frank G. Hall. Everett E. Stone. Francis E. Slattery.

House No. 1340.

. Final Report of the Division of Metropolitan Planning (under Chapter 70 of the Resolves of 1923) relative to the unifying of the Trans- portation Facilities within the Cities of Boston, Chelsea and Revere. February 25, 1924. To the Honorable Senate and House of Representatives: The General Court of 1923 passed the following Resolve, Chapter 70, approved May 25, 1923:

Resolved, That the Division of Metropolitan Planning is hereby directed to investigate the expediency and feasibility of consolidating under one management the operation of all street railway lines in the cities of Boston, Chelsea, and Revere, and ways and means by which such result can be accomplished. Said Division shall report its recommendations together with drafts of legislation to carry same into effect to the General Court by filin'* the same with the Clerk of the House of Representatives on or before October 15 in the year; and shall current at the same time file a copy of the same with the Budget Commissioner as part of the budget estimates required to be submitted under Section 4 of Chapter 29 General Laws. of the

On October 12, 1923, the Division sul preliminary -1 mitted U*.a jyi . . ' stating j report thatl/llciu it was investigating the matter; was collecting data; and would submit its final report at the earliest possible date. Accordingly we herewith beg leave to submit our complete report on the subject matter of Chapter 70 of the Resolves of 1923. Street railway transportation throughout the entire metropolitan area within five miles of the State House is, with the exception noted below, furnished solely by the Boston Elevated Railway Company, the one exception being the section of the Metropolitan District north of Boston, including Chelsea, Revere, Everett :Malden and parts of East Boston, which is served jointly by the Boston’Elevated Railway Company and the Eastern Massachusetts Street Railway Company. This duplication of service has given rise to much dissatisfaction in Revere and Chelsea; and has resulted in many years of effort to bring about a consolidation of street railway service in those cities. It is the very general desire of the citizens of Revere and Chelsea that the Boston Elevated Railway Company acquire the Street railway lines of the Eastern within their confines. They desire this consolidation to provide a single fare from Chelsea and Revere to any part of the Metro- politan District served by the Elevated, and in order that street railway service jnay be generally improved. 4 HOUSE No.' 210. [Jan

There is also a very general feeling that Revere Beach, a most accessible and popular seaside resort of the Metropolitan area, should be reached from all sections of the District by the payment of a single fare. At present two fares are required. The State has expended a large sum in the acquisition and development of Revere Beach. It lies within four miles of Boston; and it is felt that, if Revere Beach can be reached for a single fare from any portion of the Metropolitan Dis- trict, it will greatly increase the patronage of the Beach and add to the welfare and pleasure of the citizens of Metropolitan Boston. This entire question was very thoroughly considered by the Department of Public Utilities and was dealt with at length in the report of that Department dated January 2,1923, House No. 1110; and the whole question has been discussed so ably and so fully in that and in other reports that we think it may be accepted as axiomatic that a consolidation of the street railway service of Chelsea and Revere under the management of the Boston Elevated Railway Company is most desirable, if it can be brought about in a way that is fair to the two street railway companies and to the public. Accordingly, we address ourselves to the problem of consolidation and of the means by which this result may be obtained. If the consolidation is to be brought about, it is desirable that the Boston Ele- vated Railway Company should acquire the entire trackage and property of the Chelsea Division of the Eastern Massachusetts Street Railway Company. This includes about thirty-two miles of operating track mostly in Chelsea and Revere, but with short sections touching Everett, Malden and Boston. The present value of the Chelsea Division as reported by the Eastern Massa- chusetts Street Railway Company is as follows:

Way and Structures as of June 1, 1919 .... $1,990,783 67

Additions since June, 1919 ...... 36,913 83

Rehabilitation Fund ...... 140,954 78

Total $2,168,652 28 Chelsea Shops $198,212 00

Power Plant ...... 574,061 00

Broadway Car Barns ...... 3,672 00

Malden Car Barn ...... 30,260 00

Revere Car Barn ...... 73,131 00

Equipment ...... 800,000 00 Total 1,679,336 00

Grand Total . $3,847,988 28

Deduction for Depreciation ...... $184,914 22

Deduction for Discontinued Trackage .... 324,797 00 22 Total Deductions ...... 509,711

Present Net Value of Property ...... $3,338,277 06

The above valuation of the Eastern is based upon a valuation of the property made by the Department of Public Utilities in 1914; and is also the basis of value upon which the Eastern is permitted to earn dividends under the Act in which the Eastern was, in 1918, placed in the hands of Public Trustees for a period of ten years. In this connection it is interesting to note that for the two preceding current years the Chelsea Division of the Eastern earned more than 6% upon its valuation, the surplus above such dividend requirements being approximately $55,000 in one year, and 148,000 in the other. If the trustees of the Boston Elevated Railway Company felt they could pay the Eastern $3,338,000 for its Chelsea Division, the solution of the problem would be simple. The follotving reasons suggest why they cannot pay the above price: _ 1. If the Chelsea Division is consolidated with the Elevated, and a single fare is put into effect, the Elevated will lose approximately $140,000 of income from fares which are now paid by riders who have previously paid a fare on the Chelsea Division. This estimate is based upon careful counts made by the Elevated at the junction points of the two railways. 1925.] HOUSE No. 210. 5

2. The Elevated will have no use for the power station of the Chelsea Division, carried on the books of the Eastern at about $575,000. The power house is old both in years and in type; and is relatively inefficient; and the Elevated can produce power in its South Boston Station and transmit it to Chelsea at a lower cost than it can make the power in the obsolete station in Chelsea. 3. The Chelsea Division has more rolling stock than the Elevated could use if it acquires the property and rerouted the cars to accommodate the Elevated Sys- tem, Also, many of the cars are of the type which the Elevated does not desire to use. 4. The Elevated will have no use for the repair shop or the car barns. 5. The question is also raised as to whether a proper depreciation has been charged on rolling stocksjand tracks and whether the property is actually today worth the amount at which it is carried. This Division has carefully considered the above questions raised by the Trus- tees of the Elevated, and has come to the conclusion that the Boston Elevated can afford to pay at least $2,000,000 for the property of the Chelsea Division. If the Elevated can acquire the said property for approximately the above sum, this Division believes that there will be no loss to the Elevated in the initial operation of the road, and that eventually the Chelsea Division will become a profitable section of the Elevated System. From the above discussion it is evident that there is a difference in the value of the Chelsea Division to the Eastern and to the Elevated. The Eastern feels it cannot afford to sell at a price which the Elevated can afford to pay; and the Elevated feels that it would suffer a substantial loss if it should buy at the valuation of the Eastern. It is therefore evident that, if a transfer of the Division is to be made, some public body must assume at least a part of the difference in estimated valuations. Obviously the cities of Revere and Chelsea are the sections which would be most greatly benefited by the transfer, and should bear the bulk of the differential. This Division has discussed the situation fully with officials of Chelsea and Revere; and we believe that those two cities arq willing to assume a substantial portion of the differential in order to bring about the consolidation of street railway facilities within their borders. It is believed that Boston, Malden and Everett should be asked to share a small percentage. This Division has carefully inspected the property of the Chelsea Division; and is convinced that $3,000,000 is a fair and liberal sum for the Eastern to receive for the Division. Taking into consideration the actual physical value as it now exists; the fact that some additional burdens for subway rental will probably have to be assumed by the Chelsea Division in the near future; and that the Public Control Act under which its Trustees are acting specifically expires in 1928; it is convinced that the above suggested price of $3,000,000 is one which is advanta- geous to the Eastern and is not unfair to all parties in interest. Any price in excess of $3,000,000 would, in our opinion, be excessive. On the assumption that the Elevated can fairly pay approximately $2,000,000 for the property of the Chelsea Division, it is evident that the sum which must be directly or indirectly carried by the municipalities is approximately $1,000,000. The Elevated Railway cannot today itself finance the purchase of the Chelsea Division. Accordingly, it is evident that, if the Division is to be acquired, it must be through the medium of the Commonwealth or of some political division of the same; and probably the method set up in the case of the Cambridge Subway best fits the situation. If that precedent is followed, it would mean that the Com- monwealth would itself acquire the property at a sum not exceeding $3,000,000. It would then lease to the Elevated the portions of the property which the Ele- vated desires to acquire; would sell any remaining portions of the property; and would ask the cities and towns benefited to guarantee to the Commonwealth an annual payment which would equal the interest and sinking fund on the difference between the purchase price from the Eastern and the price basis of the lease to the Elevated. To be specific: Let us assume that the Chelsea Division is pur- 6 HOUSE No. 210. [Jan chased for 53,000,000, that the bulk of its property is leased to the Elevated at interest plus sinking fund on 12,250,000; and that there is 5150,000 of scrap value in the portions not taken by the Elevated. In such a case the ’sum of the annual payments to be assumed by the cities benefited would be the interest and sinking fund on $600,000. If the rental paid by the Elevated is based on a less price, the annual payments to be assumed by the cities will be greater and vice versa. The Commonwealth should build and lease to the Elevated a suitable substation in order that the Elevated may gain the economies of low cost through the use of its modern plant in South Boston. After numerous conferences with all parties in interest, this division believes that, if the permissive bill to be prepared is passed, the transfer of the Chelsea Division to the Elevated can be consummated; and that this transfer will be of great value to the cities of Chelsea and Revere, and of substantial value to the Metropolitan District. It will settle a controversy of long date; will consolidate all of the street railway facilities within a five-mile radius under the management of one company; will save to the citizens of Chelsea and Revere over $140,000 per annum which they are now paying in extra fares; and will greatly stimulate the development of rapid transit in the sections north of Boston; and will open up Revere Beach to the entire Metropolitan District. The bill to be prepared provides for the acquisition by the Commonwealth of the Chelsea Division of the Eastern and its lease to the Elevated under terms and limitations which have seemed wise to this division and which are outlined in this report. If the entire Chelsea Division cannot thus be obtained, the bill provides for specific relief for Revere Beach by the acquisition by eminent domain of the portion of the Eastern lying between Orient Heights in East Boston and Beach Street in Revere and the lease of this portion to the Elevated Road. Respectfully submitted,

DIVISION OF METROPOLITAN PLANNING H. I. Harhiman, Chairman. A. C. Ratshesky. Ralph S. Bauer. Richard K. Hale. Everett E. Stone. Frank G. Hall. Francis E. Slattery. 1925.] HOUSE —No. 210. i

An Act providing fob Unified Street Railway Service in Chelsea, Revere, Everett, Malden and Boston. Be it enacted, etc., as fallow Section 1. The department of pul lie utilities, hereinafter called the department, is hereby authorized, subject to th -5 conditions specified in sections three, twelve and thirteen, to purchase or take by eminent domain the following property, hereinafter called the property: all 3tn let railway lines, tracks, and locations, including ties, rails, special work, joints tie plates, fastenings, ballast, paving, and brow stones, also all trestles, bridges and other structures for the support of said tracks; all pole and line construction used in connection with the operation of or appurtenant to said street railway lii s, tracks and locations, including all poles, trolley wires, span wires, feeders, te ■phone and telegraph system, signals and appurtenances, underground conduit rolling stock, car barns and equipment, power houses and equipment, land and rights in land, and all other property owned, leased or in whole or in part operated by the Eastern Massachusetts Street Railway Company within the limits of i its Chelsea division, as now constituted, which division includes all lines and pro >perty owned, leased or operated by said company in the city of Boston between S ;ollay square, Boston, and the boundary line between Boston and Chelsea, and in that part of Boston called East Boston; also all lines and property owned, leased or operated by it in the city of Chelsea, in the city of Everett, in the city of Rev ire south of pole number J-76, which is located approximately three thousand seseven hundred and ninety-five feet south of the boundary line between Revere and Saugus on Broadway in Revere; and all lines and property owned, leased or operated by it in Malden, except that part of the line on Main street north of a point fifty feet south of the southerly end of the cross-over near the so called Orpheum theatre; excepting, however, from said purchase or taking the following property;— (a) all right, title and interest of the Boston Elevated Railway Company and the city of Boston in any such property; (b) eleven street railway cars of the type known as single truck; (c) the following internal combustion motor equipment: one Mack wrecking truck now operated partly in said Chelsea division am 1 partly in other divisions; one Stewart stores truck operated in connection with its shops; six passenger automobile busses; (d) a repair shop, with the machinery and tools therein, the land upon which the same is situated and the land appurtenant thereto, at the junction of Washington avenues, on Broadway,‘ " Chelsea, near and Webster Chelse arcel of land J J the Revere town line, upon which a car barn was formerly located; (/), a car barn at or near the junction of Salem street and Broadway in Malden and the land on which such barn stands or appurtenant thereto; ( g ) a parcel of land on the north- westerly side of Revere Beach parkw junction of Ocean avenue, in the city of Revere, containing one hundred and ten thousand six hundred and eighty- one square feet of land or less; (h) a parcel of land on the westerly side of the location of the Boston, Revere Beac ,nd Lynn Railroad near the Revere Beach parkway, in the city of Revere, coni ing ninety-two square feet of land more or less; (i) a parcel of land between V throp avenue and Revere Beach parkway, in the city of Revere, containing idred and eighteen thousand four hundred square feet of land more or k the following street railway lines not now operated: a line beginning at the jum ;tion of Webster avenue and Washington avenue in Chelsea and extending throuc ;h Webster avenue in Chelsea and Union street in Everett to a point at or near t he corner of Malden street in Everett; a piece of curved track extending from I fverett avenue in Everett, to a point on Malden street in Everett; a line begin: ing at or near the junction of Salem street and Broadway in the city of Malden, at or near the so called Maplewood car barn, and extending along Salem and B< ach streets in Malden and along Washing- ton avenue and Malden street in Rev re to the junction of Malden street and Broadway in Revere; a line beginnin at the junction of Beach and Lawrence streets in Malden and extending along Lawrence and Lynn streets in Malden and 8 HOUSE No. 210. [Jan, along Salem street in Revere from the Revere-Malden line to the Revere-Saugus line; and any lines or property in the town of Saugus. The department shall, at an expense not exceeding three hundred thousand dollars, construct and equip a substation or substations for converting from alter- nating to direct current approximately four thousand kilowatts of electric energy and shall build any conduits necessary to connect such substation or substations with existing conduits of the Boston Elevated Railway Company, hereinafter called the company, for high tension wires, and shall provide any necessary cables and feeders to connect with existing cables and feeders, and may purchase or take by eminent domain any land or interests in land necessary therefor. The commonwealth shall, as a condition of any such purchase or taking, assume any and all liability of the Eastern Massachusetts Street Railway Company, as successor of the Bay State Street Railway Company, to pay to the city of Boston, when the work on the permanent Chelsea bridge south, so called, shall be completed, under a decree heretofore entered in the supreme judicial court for the county of Suffolk, the sum of twenty-three thousand one hundred and seventy- three dollars and thirty-six cents, the extra cost required to adapt to each other the railway and said Chelsea bridge south. If the Eastern Massachusetts Street Railway Company shall be required to pay said sum to the city of Boston before such purchase or taking, the commonwealth shall, as a condition of such purchase or taking, reimburse to the Eastern Massachusetts Street Railway Company the sum so paid. Section 2. The taking or takings by eminent domain authorized herein shall be made and damages therefor determined and paid under and in accordance with chapter seventy-nine of the GeneralLaws, except that petitions for the assess- ment of damages may be filed in the superior court for the counties of Suffolk or Middlesex. Section 3. Before acquiring the property and before constructing and equip- ping the substations and conduits, cables and feeders under authority of this act, the department shall, in the name and on behalf of the commonwealth, execute a contract in writing with the company, for the sole and exclusive use by the company of (a) such parts of the property authorized to be purchased or taken by this act as the department and the company may therein agree should be operated in connection with and as a part of the system under the management and control of said company, in order to provide reasonably' adequate and convenient street railway service in said district and (b ) the substations, conduits, cables and feeders proposed to be constructed and equipped, all hereinafter called the premises, for a term beginning with the use of the premises by the company and extending until the termination of public control of the company under chapter one hundred and fifty-nine of the special acts of nineteen hundred and eighteen, or any extension thereof or to the first day of July of such definite year as the department and the company may agree and thereafter unless and until said contract is terminated by notice either from the commonwealth or from the company. The commonwealth may terminate said contract on the first day of July, of the year so agreed upon, or on the first day of July of any year thereafter, by giving at least two years’ prior notice in writing, which notice it shall be the duty of the governor to give if directed so to do by an act of the general court. The company may like- wise terminate said contract on the same dates by giving to the governor at least two years’ prior notice in writing. No notice on the part of either the commonwealth or the company shall be given more than three years prior to the date therein fixed for termination. The company shall pay for the use of the property acquired from the Eastern Massachusetts Street Railway Company under proid- sions of section one, an annual rental at therate of a percentage upon such sum not less than two million dollars as may be agreed upon between the department and the company as the value of the property acquired from the Eastern Massachu- setts Street Railway Company and leased to the company, which percentage shall be one half of one per cent in excess of the average rate of interest upon the bonds issued to pay for said property. Upon completion of the construction and equipment of the substations, conduits, cables and feeders constructed under authority 1925.] HOUSE No. 210. 9

of section one and delivery of possession thereof to the company ready for use, the amount upon which rental is based shall be increased by the amount of the entire cost of such substations, conduits, , cables and feeders, including interest during construction. The amount upon which rental is based shall be further increased by the amount of the liability ass' aimed, or payment made, by the department to the Eastern Massachusetts Street!Railway Company under the provisions of section one in respect to the sum of twenty-three thousand one hundred and seventy-three dollars and thirty-six cents, payable to the city of Boston by the Eastern Massachusetts Street Railway Company, as successor of the Bay State Street Railway Company, upon the cc mpletion of the work on the permanent Chelsea bridge south, so called. In ca ie the company shall be kept out of possession or deprived of the use of the pr< imises, or any part thereof, by any act on the part of the commonwealth or of any person or corporation claiming an adverse interest in said premises, the rental or a just and reasonable part thereof as agreed upon by the department and the company shall be suspended or abated during the time the company is so kept out of possession or deprived of the use of the premises, or any part thereof. In case the commonwealth shall, during the term of such contract, reimburse the company for capital expenditures upon the premises as provided in section six, the amoin Nt of such reimbursement shall be added to the amount upon which therental is bi ised. The use of the premises by the corn- pany, exclusive of said substations and conduits, shall begin when the commonwealth has acquired good title to the pr iperty and possession of such premises is delivered to the company. The use of t he substations and conduits by the company shall begin upon certification of t: ae department that said substations and conduits are in safe and proper conditioi for operation Section 4. The contract shall appc 'rtion said two million dollars or other amount upon which the initial rental is based between (a) rolling stock, (6) conduits, (c) roadway and other structure; -3 and (d) such other classes as may be agreed upon between the department an d the company and shall contain in sub- stance the following provisions with refe rence to depreciation The company shall accrue a depreciation charge of twelve per centum per annum upon the amount allocated to rolling stock and eight per centum per annum upon the cost of substations, conduits, cables and feeders constructed by the department, which amounts shall annually be paid to the commonwealth and applied in payment or retirement of bonds issued under authority of this act and thereupon the amount upon which rental is based shall be reduced proportionately, When the company shall have paid to the commonwealth the full amount allocated to rolling stock and the entire cos st (including interest during construction) of said substations, conduits, cables an id feeders, said depreciation charges and payments to the commonwealth shall si uccessively cease and title to said rolling stock and said substations, conduits, calbles and feeders shall successively vest in the company, when and as the payments as to each are completed. The company shall maintain the balance of the premises in proper repair and condition and shall annually accrue an adequate depreciation charge upon the value of all such property included in the contract for use, such that the actual value of the property upon which depreciation is accrued plus the depreciation reserve shall equal the agreed value of such property, and at the termination of the contract for use shall be accountable to the commonwealth for any depreciation from the amount of the agreed value of such property, increased by any amount paid by the commonwealth under section six hereof . Section 5. Said contract may contain such other provisions and conditions not affecting the term or rental and not inconsistent with this act as the department and the company may agree upon. It shall provide that, if the contract authorized by section thirteen is not executed within three years from the date this act- takes effect, it shall thereupon terminate but the department may from time to time agree in writing with the company for the extension of said time. _ Section 6. Said contract for use shall provide that the company may from time to time make such alterations, replacements, additions and improvements in and to the premises as the company shall deem to be necessary or advisable to 10 HOUSE —No. 210. [Jan,

put the premises in good operating condition, provided, however, that no such alterations, replacements, additions or improvements which involve any reimbursement by the commonwealth as hereinafter provided shall be made, except in case of emergency, without a certificate from the department that the proposed work is reasonably necessary or advisable to put the premises in good operating condition. In case of any such alterations, replacements, additions or improvements, the department shall, on application of the company determine what proportion thereof, if any, would, under the standard system of accounting prescribed for street railways by the interstate commerce commission and adopted by the department constitute a proper charge against capital and the commonwealth shaE thereupon pay the same to the company. If the commonwealth shall not make said payments when due, the company shall be entitled to deduct the amount thereof, with interest, from ally rental subsequently payable to the commonwealth for the use of the premises. The company shall apply toward the portion of the cost thereof which does not constitute a proper charge against capital, such portion of the amount reserved for depreciation as hereinabove provided as has been accrued on account of the property replaced. When the companybegins the use of the premises, all licenses for the operation of motor vehicles, except those issued to the company, under the provisions of section forty-five of chapter one hundred and fifty-nine of the General Laws within the cities, except Boston, served by th e Chelsea division of the Eastern:rn Massa- chusetts Street Railway Company at tl e time of the passage of this act shall terminate and thereafter no such license w ithin such cities shall be valid, unless and until the department, after notice and i üblicüblic hearing, issues a certificate that the ig of such license or licenses is re< uired by reason of public convenience and necessity n 7. The department shall fr :n time to time sell the whole or any part or par rty acquired under his act which are not included in the contract for use or which are surrendered by the company, and the proceeds of any sale shall be applied toward the payments or retirements of bonds issued under authority of this act, and to the extent that bonds are thus retired, the annual payments of cities and towns provided for in section thirteen of this act shall be reduced to the extent of the interest and sinking fund on the bonds thus retired. The department shall permit the com ry without extra charge to use the power plant and equipmentuntil said substa ns, conduits, cables and feeders are ready for use and may on the same terms pi ■mit the use of any other items of property acquired under the provisions of thi; act and not leased to the company and, during the period of such temporary use, the company shall, at its own expense, maintain and care for such property. Section 8. To meet the expenses incurred and expenditures required under the provisions of this act, the treasurer and receiver-general shall from time to time on request of the department and with the approval of the governor and council, issue and sell bonds, in the name and behalf of the commonwealth, to an amount not exceeding the cost of carrying out the provisions of this act. Said bonds shall be designated on the face thereof, “Chelsea Division Loan,” shall be registered or with interest coupons attached, shall bear interest payable semi- annually at such rat e as the treasurer and receiver-general shall fix and shall be on the serial payment plan for a maximum term of fifty-six years. The maturities thereof shall be so arranged that the amount payable each year other than the final year, shall, as nearly as is in the opinion of the treasurer and receiver-general practicable, be met by the amount applicable thereto from the rental and other payments provided for in the contract with the company executed under authority of this act and the amount applicable thereto from the amounts chargeable against cities under the provisions of section thirteen and shall provide that in the reverse- order of their maturities they may be called for payment from any funds avail- able for such payment or retirement under the provisions of this act. The proceeds of such bonds shall be used to meet all damages, costs and expenses incurred by the department in carrying out the provisions of this act. Section 9. If the taking or purchase of the property authorized by section one 1925.] HOUSE No. 210. 11 is effectuated, the portion used by the company shall be operated as a part of its entire system in the same manner as to fares and in all other respects as though it had been incorporated therein prior to July first, nineteen hundred and eighteen. For the purpose of providing connections with the existing tracks and properties of the company, and adapting the properties so acquired to such unified operation, the department may grant such locations or alterations or extensions thereof for tracks, poles, wires, conduits and incidental railway structures in or upon public ways or lands to the company and to the extent that in its opinion the structures to be constructed or placed thereon are to be the property of or paid for by the commonwealth under the terms of this act, shall recite in such grant that it is in trust for the commonwealth. Section 10. In respect to the equipment, use and operation of the premises included in said contract the company shall have all the powers and privileges and be subject to all the duties, liabilities, restrictions and provisions set forth in general or special laws now or hereafter in force applicable to it. The contract for the use of said property executed in accordance with the authority conferred by this act shall not in any respect impair any right which the commonwealth, or any political subdivision thereof, may at any time have to take the railway properties of the company. In the event of any such taking the compensation to be paid to the company shall not be enhanced by reason of such contract or any extension thereof nor shall it be diminished because of the fact that without such contract, or extension thereof, the connection between different parts of said properties might be cut off. Section 11. If the company begins the use of the premises under the contract authorized by section three, the department shall as promptly as may be construct the sub-stations and conduits in accordance with the terms of such contract. The department may make contracts in the name of the commonwealth for the work herein authorized, but all contracts involving two thousand dollars or more in amount shall be advertised in a reasonable number of newspapers for proposals for the performance of such work, shall be awarded to the lowest respon- sible and eligible bidder, except that the iepartment may reject any and all bids and shall be entered into by a written act signed by a majority of the d partment. No such contract shall be al pt by an instrument in writing dgned by the contractor, a majority of the department and also by the surluretv or sureties on any bond given by the coni ■actor for the completion of the original contract or in compliance with any state ;e. The company is authorized to bid upon and make and carry out any such i mtract. Section 12. No taking or purchase ur ler the authority of section one or contract under the authority of section three hall be made unless and until a city or cities in which the property is located hav determined to be charged by the commonwealth annually with sums which in the aggregate when added to the annual rental to be paid by the company will, in the opinion of the treasurer and receiver- general, supply sufficient funds to pay the interest and principal upon the bonds to be issued to provide funds to pay for the property to be acquired or constructed, as said bonds mature. Such determination shall be made by resolution in sucl form as shall be approved by the attorney-general, adopted by the city council or corresponding body and approved bj the mayor, and filing of certified copies thereof in the office of the secretary of the commonwealth and of the treasurer and receiver-general. Upon the acquis: tion of the property authorized by section one the treasurer and receiver-general shall thereafter collect the amounts so determined by an addition to the state tax of such cities until all bonds issued under authority of this act have been paid or retired. Each city in which the property is located is hereby authorized to enter into a contract with the commonwealth to be charged with an annual sum as provided in this section. Section 13. No taking shallbe made under authority of this act unless a contract of purchase is executed with the Eastern Massachusetts Street Railway Company, by which it agrees to sell to the commonwealth the property specified in section one and to accept in payment therefor such sum not exceeding three million dollars as may be agreed upon between the department and the Eastern 12 HOUSE No. 210. [Jan. 1925.

Massachusetts Street Railway Company, and that there may be deducted or repaid from such sum the amounts of any judgment or judgments in any proceedings for the taking in fee of the whole or any part or parts of said property in favor of any person for any interest at the date of the taking in any property so taken, nor unless any mortgagee of such property under any mortgage executed by said Eastern Massachusetts Street Railway Company assents thereto and joins therein, provided, however, that if the attorney general certifies on such contract that from investigations made under his direction he is of the opinion that all such mortgagees have so assented and joined, this condition with reference to mortgagees shall be conclusively deemed to be satisfied. Notwithstanding any provision of general or special statutes to the contrary, the Eastern Massachusetts Street Railway Company may enter into such contract upon authorization by vote of its board of directors, and vote of its board of trustees appointed under chapter one hundred and eighty-eight of the special acts of nineteen hundred and eighteen. Upon the completion of such contract and payment of the purchase price stipulated therein, all right of the Eastern Massa- chusetts Street Railway Company, the East Middlesex Street Railway Company, the Boston and Revere Electric Street Railway Company, the Boston and Chelsea Railroad Company and the Winnisimmet Railroad Company to furnish transportation service within the territory served by the lines conveyed shall cease and said companies shall not thereafter operate street cars, motor or other vehicles for transportation of passengers within such area, except such through cars from its remaining lines as may be agreed upon between it and the board of trustees of the Boston Elevated Railway Company. The provisions of section fifty-four of chapter one hundred and fifty-nine and sections sixty-one and sixty-two of chapter one hundred and sixty-one of the GeneralLaws shall not apply to any contract authorized by this act.