El Paso daily herald. (El Paso, Tex.) 1881-1901, 1898-10-27
The Value of Public Franchises

The value OF PUBLIC fTdnCnIScS.
At the meeting of the League OF
American MunIci paliLies at Det' OFT In
August last some very striking papers
were presented. AmoOg the many
subjects discussed was that OF munich
pal ownership or control of corpora
lions operating the "public utliities."
Public ownership OF gas. water, tele-
phone, electric light aud power COM
panies and street railways Is que
ton that is well worthy of discussion
but it is SO unlikely that much Will be
dose toward the general requirement
of these proper ties during the lifet, me
of men now living that the discussion
must be in q large degree theoretical
and problematical.
While actual municipal ownership
| Of the public util ties is probably Tar
| in advance of the thought OF the age,
not so with municipal control Ode
phase of this Que.tion-tnat OF re-
nun GRAFTON to the cities for franchises
grsnted-is ably treated in paper
presented in tre Detroit conference by
the mayor of Denver, Mr.. McMurray.
From his paper we have prepared the
| following condensation, which covers
all the principal points. just at this
time, when we are about to enter upoo
a new era in this city, the article will
be great Interest To all who have the
|
Says the mayor in part:
A PUBLIC FRANCHISE PARTNERSHIP.
A corporation that may desire and
receive franchise rig hts in, over or I'M
DER public streets and alleys Is prac-
tica ly asking the people OF the NUM-
| G ,pality to eutsr into partpe ship with
It In tue construction of its plant for the
var Gus purposes for which the cor
/ hAU
The streets and alleys Of a city are toe
heritage OF the people aud should
never be given away for the ag-
grandizement Of any private corpora
ton.
tits beginning to be generally rec
oguIZsd that in our large American
cities the time has raised when these
public franchises should be given away
without ad, quate compensation. The
question presents itself to US: Wnat
remuneration should be paid TOR thee
great rights and privileges which are
sought Tor so greedily in every portion
| of our land:
| CORPORATIONS seeking franchises are
| very prolific in their promises rs to the
great improvements they are going TO
loaugurate, the large amounts OF
money the. expect to expeDd lpsrtic-
ularly for labor aud the benefits they
are going to bestow upon the commu-
nifty, but when they are asked to &C
cept amendments to their bill u COM
pei them TO carry out the numerous
promises they SO freely make, they Oh
ct to doing so, saying that to DO
tat would prevent them from raising
the money by the sale OF bonds and toe
city is asked to accept the mere word
of the promoters, while the grant TO
the cor poration must be fully set 'forth
| in The contract.
Franchise ordinances for public
utilities pSrtake of Z double nature
First the franchise or right to do bus1-
ness which may be more or less valu-
able according TO the grants or limlta-
tions thereof and depending upon the
volume and profit of the business, and
for this, in my judgment, the remune'
ration to the city should be based upon
, percentage of the gross receipts.
Second, the grant of the right OF WY
upon, across, over or under the pubic
high ways, thus in effect leasing GER
tain portion of the public domain t.
the private corporation.
Take q street railway, for example
The right of way along the pubic
streets is granted for double track
liue of rail way, which with the space
= between the tracks, etc necessary for
, a proper clearance OF cars, would take
, up a portion OF ground, equal IN mos
, cases to from 20 to % Ieet OF the pu bl1I
highway.
D This Is the largest part of the res
? estate of the railway corporation. Ii
order to carry on the business OF thi
street railway company, then, thre
classes of property are necessary as tn
= capital or plant of the intending cor
y poratiou. The city puts into the part
|. nership the franchise or right to d.
business and the right OF way, being
: the ground upon which the plant Is I
4 be constructed. The capitalist puts 1
4 the roadbed and superstructure an
track as the second part OF the partner
ship property, and also puts in the roll
: ing stock, machinery and power house
y forming third part OF the partnership
p Here, then, we have partnership pro
= per, contributed to by the city and tn
private capitalist, but we fail to I'm
u any recognition Of the rights OF tn
\ city as partner in the Management
q and transaction of the business. tn
capitalist seems TO act as If all OF tn
q plant were his. The city is not a
% lowed any voice in its management G
control and he etoiore, in the majorit
y of cases. has not been allowed any col
:. sideration for its share of the partne
~ ship funds or property.
y CITY ENTITLED TO RENTAL.
IS 1t seems to me that as considerable
for the right Of way granted, the valu
3, of that right of way as measured o
, the value of abutting property slmlla
q the city should be entitled to propt