The Providence news. (Providence [R.I.]) 1891-1906, 1891-12-01


The franchise law concerning which
so much has been said in this campaign
has by the persistent misstatements of
the Telegram and the silence of the Jour
nal become much misunderstood by
many people who have had no oppor-
tunity to see what it really is. Ac-
cording to the Telegram it is a sort of
Legislative Capt. Kidd or Jack Sheppard,
ready to steal the city and all there is
in it, and then turn it over to four cor
porations waiting TO devour it,
Let us see these corporations are the
Providence Gas Company, the Union
Railroad Company, the Providence Tele-
phone Company and the Narragansett
Electric Lighting Company, all now es-
tablished her by our own citizens with
their own capital, and in the interest of
the public as well as themselves. The
Providence Gas Company has had the
use Of the streets for forty years for
which it has not been required to pay
anything. It's capital is s9,50O,o0O The
Union Railroad Company has a capital
of 81 100000. 1t has used the streets
about eighteen years and now pays for
that privilege $4,000 per annum. This
sum is paid as result of an agreement
with the city, but is voluntary, and if
suspended the city could not enforce its
payment. The Providence Telephone
with a a,itol nf x1r0 00n apd
the Narragansett Electric company hav-
ing capital of 100000 have had the
use Of the streets for dozen or so of
years and for such use are required to
pay nothing, but they are all, excepting
the gas company, obliged under the ordi-
nance by which the use Of the streets is
granted to them, to remove therefrom
their wires, rails, etc, upon certain no.
tice. That council, however, which
should order the rails, wires, ETC., to be
removed would speedily find that its
members constituents had no further
need of their services.
The fact is that all these works while
controlled by private capital are of a
semi-public nature and on them the
people depend for service which is
entirely satisfactory and has now be-
come indispensable in the transaction of
ordinary business, and can be furnished
better and at less cost by capital as
sociated for that purpose than by in
dividuals or municipalities. But in
order TO render this service and maintain
its quality they ought tohave the privi-
lege of doing so without being
obliged to fight off or buy out any gang
of pirates or wreckers that see fit to
come here and by pretended competition
to levy blackmail upon them, and for
such privileges as they ask they are
willing to pay. Now as to the franchise
law: it provides that the city council
may make a contract with each of these
companies for q term not exceeding
twenty-five years for the use of the
streets to the exclusion Of other similar
companies, but in return for this what
will the city get? 1t can get per cent.
of the gross receipts of each of them
which, at the rate of business now done
by them, would amount to an income to
the city of 81, 200 per ,reek, or $62 400 per
annum, or at the rate the city is able to
hire money, the interest on about mil
lion and half of dollars, as against
ss 900. now received or an annual diff
ference in favor of the city of $54. 400.
The story has been industriously cir
culated that the mayor was putting the
city into the hands of monopoly for
fifty years. This is directly contrary to
the fact. Twenty-Five years is the long
est time permitted i'm the law, and
neither the mayor nor the committee
has any power in the matter of grant
ing the franchises. That power rests
with the City Council, the members of
which the taxpayers of the city have al
ready just elected.
The functions of that committee are
Just those of any other committee of the
City Council. The committee will rec.
ommend such measures respecting the
subject as il sees fit, the Council acts
thereon according TO its judgment. 1t
then goes TO the Board Of Aldermen who
dispose of it as seems best to them; after
which Gf passed by both branches) 1t
goes to the mayor who approves or We
toes as seems good to him; so that put
into plain statement the matter resolves
itself into the question of whether it is
best for the city TO enjoy an income of
some sixty thousand dollars per annum
for the use Of its streets. besides giving