The record-union., 1898-03-29
BAN FRANCIsco's NEW CHARTER.

The Call" of yesterday publishes in
full the work of the Board Of Freehold
ers in formulating and presenting a
new charter for the city of San Fran
cisco. AS an experiment in the way of
municipal government, it will be read
with interest by people who are not
residents Of San Francisco.
The science of municipal government
is practically in its infancy and is still
a field of experiment. There are many
features of this new charter which
viii attract attention, but the one with
which we desire to deal at present re-
lates to the granting Of franchises for
public utilities.
The charter declares that no exclu-
sive privilege or franchise shall be
granted for laying wires, pipes or con-
duits; that the Board of Supervisors
shall have the power to grant author
ity for a term not exceeding twenty
five years to construct an6 operate
street railways; that this can be done
only by bids on the part Of applicants
for such charters, and the bids must
state the amount of the gross annual
receipts which the person or company
to whom the franchise may be awarded
is disposed to pay. No award can be
made under these bids unless the ap-
plicant shall offer to pay at least
per centum of the gross receipts during
the first five years of the period for
which the franchise is to be granted,
per cent. during the next ten years,
and 5 per cent. during the next sue
ceeding ten years. The board is au-
thorized to grant the franchise only on
condition that the rates Of fare charged
by those operating or enjoying the
franchise shall be regulated by the
board. There is also the sweeping pro-
hibition against regranting franchise
or renewing 1t any way, and when the
franchise itself expires, the road-track
and bed and all its stationary fixtures
upon the public streets shall become
the property of the city and the coun-
ty. When the road has thus become
the property Of the city and county.
the Board Of Supervisors shall have
the right to determine whether 1t will
operate the road on behalf Of the people
of the city, or whether it will lease 1t
TO q corporation or company to operate
it upon such terms as the board and
the leasing company may agree.
The outlines OF this system may per-
haps be summarized more briefly than
herein presented Future franchises
are to have no longer tenure than
twenty-five years. They are to Be
granted only on condition that the
holders of the franchise pay 8 per cent.
of the gross receipts for the first five
years, not less than 4 per cent. for the
next ten years. and not less than 3
per cent. for the succeeding ten years;
that the structures put down on the
streets shall become the property of
the city at the end of twenty-five years
and that no franchise can be renewed
or granted; that the Board OF Super
visors- shall at all times have the srbi-
trary right to regulate the rates of fare
to be charged over street railways.
These conditions are very onerous,
and will place any new company at a
very great disadvantage in competi-
ton with already existing companies.
The Market-street Railroad Company,
into which has been consolidated nearly
all the street railroads of San Fran
cisco. is in the enjoyment of franchises
granted for fifty years. Some of these
have forty years, and many of them
thirty-five years to run, while the main
charter of the Market-street company
still has tenure of thirty years In
this way the existing railroad compa-
nies who pay no percentage of their
gross receipts have a longer tenure of
charter than can be granted after the
new charter is adopted, and will enjoy
immunities constituting signal advan-
tages in the competitive race for busi-
ness.
Indeed it is very doubtful whether
capital could be induced to invest in
further street railroads against this un-