Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1888-03-02
MUNICIPAL FRANCHISES.

Prof I. Richard I. Ely, of Johns Hop
kins University, is publishing in the Bal
timore San series of articles upon "Mu-
nicipal Problems" As rule theorists
upon policies of municipal administration
write over the heads of their readers. Not
that the readers are less intelligent than
the essayists, but generally their theories
fail to come down to the application of
feasible remedies, and to the level of the
practical needs made manifest by misgov-
eminent in cities. If they would adj
dress themselves to eradication of the
spoils system, and the making of bossism
odious, all other ills, under business pru-
dental administration, would disappear
Remove the political control of bosses, and
the cities of the land. now the worst gov
erned of any subdivisions of government,
would become the best governed branches
of our system. Municipal Indebtedness in
the United States is to-day much greater
than that Of counties or States, and it is
due almost wholly to political control and
the absence of business wisdom.
Upon one subject, recent paper by
Professor Ely appears to be sound His
proposition is for the sale of all future
street railway franchises to the highest
bidder, limiting the term to say fifteen or
twenty years. The plan adopted by New
Orleans is cited as an instance in which
this system has been tried with excellent
results. The sale in 1856 of one street I
railway franchise alone realized sufficient
to defray one-eighth of the municipal ex-
penses of that year, the city reserving the
right at the expiration of the term to pur-
chase the equipment of the road. Buffalo |
and New York more recently have adopted
the system, with good results The one OBJ
lection to the plan is the liability of the
city being compelled at the expiration of
the term to take and operate the roads. |
With bossism controlling this would be
positive evil. Of course largely paying
roads could always be resold, but the pat
ronage that would attach to roads owned
by the city would be very strong in
centive to bosses to keep the control in the
municipality. In New York the sale
of such franchises developed corruption,
but not probably so much as in the free
granting of privileges to occupy the streets
with tracks for half-century terms, as I'M
der the generally prevailing system. The
preponderance of reason is all in favor of
the plan of sale. Except IN some small
cities, street railway privileges are so yalu-
able that the franchise ought to command
a premium for the benefit of the municipal |
treasury. 1t is not by any means as GER
tain, however, that another of Professor
Ely's suggestions is so meritorious-the |
ownership by cities of gas and electric |
plants. 1t is true that in Belfast, Ireland, |
the gas for street and domestic purposes is
furnished by the city at lower figure than
when owned by private individuals But |
Belfast is under rule widely different /
from any that can prevail in American |
cities. 1t would seem to be plain bust |
ness proposition that competition in fur
nishing artificial light is the best regulator,
just as it is in furnishing food. Excepting
water supply, the best judgment of the
day is that the fewer institutions owned BY |
cities the better for them, as they are feed
ers for bossism, and furnish constant sub
iects for contention for patronage and con-
sequent control. If the sale of street rail
way franchises is so advisable, we cannot
understand why Professor Ely does not
apply the same doctrine to all other profit
yielding privileges for which municipal
grants are necessary. However, in the !
light of the experience of American cities,
we believe it is established that, no matter
how artificial light franchises are disposed
Of, it is most economical for municipalities
to trust to competition, and that they buy
light for city purposes, and secure it to citi-
zens for private uses cheaper and better
than if such industries were owned by the
cities, to say nothing of the dangers that
attend the enlargement of municipal |
patronage and the consequent fostering of |