The record-union., 1893-03-06
GIVING AWAY STREET FRAN
CHISES.

Any grant of privilege in the nature of
a franchise, or that by reason of its char
acter or the character of the business will
operate as an exclusive privilege in the
use of the streets or alleys, or other ways,
on any public grounds of this city, ought
from this time forward to be granted only
on terms that will insure to the city full
and continuing compensation. And this
rule should apply at once.
There should be no franchise granted
for street railways or other private uses
of our streets, or any portion of them.
except to the person or company that will
guarantee to the city the largest compen-
sation. That is to say, franchises should
be given only to the highest and best bid
der, the terms and conditions being the
same for all bidders.
The policy of the city in all the past has
been opposed to this; we have received
nothing for exclusive privileges. The
failure to exact compensation has been
because of our belief that the invitation
to capital was not strong enough for in
vestment among us, except it was free
from sharing profits with the city. 1t
has been sadly mistaken policy. Expe-
perience has proved that street way fran
| chises in Sacramento have become ex-
ceedingly valuable; that they pay the
investors under them well; that they are
counted superior security coupled with
construction under them, for heavy loans
for long terms. We have, then, bartered
cheaply our municipal birth-right in the
past. Originally it was perhaps defen-
sible, but it is now no longer so. and this
city must not give away any more fran
chises. Our new charter provides that we
shall not do so.
The policy of the new charter should
govern from this time on if there is any
asking for franchises between this and
the first day of January next.
On that date the rule of the new char
ter becomes the law. 1t provides that no
grant of any franchise shall have any
validity unless within six months the
grantee begins work upon it, and to ex-
ercise and enjoy his privilege, and that
he shall forfeit it, if for so long as one
year he fails to use it as provided in the
grant.
All franchises for street railways are
limited to twenty-five years; they cannot
be granted until ten days notice has been
given, with description of the route set
forth. The notice shall offer the privi-
| lege to any person or company that will
pay the city, after five years, the largest
per centum of the gross receipts of the
railway, but the bids must not be less
than for one per cent The city has the
power also to impose further regulations
and other restrictions that to it may seem
expedient, and to prescribe the details as
to the rails, and how they are to be laid,
the repair of streets between tracks and
for two feet each side of the tracks, and
so on.
Pipes, tubes, conduits, etc., for electric
and signal wires may be laid on, over, or
| in the streets, and there may be applica-
tions for franchises of that character such
as are not prohibited by the general laws:
and if there is, the rule of compensation
ought to apply. The city should make
terms for its profit in all future grants of
privileges. Any exclusive privilege
asked for, or any that in effect will give a
business under it to one control, ought to