Hutchinson gazette., 1899-07-06
THE PARENT MONOPOLY.
FRANCHISES OWEN TO lNnI-
VIpuALs BY GOVERNMENT.
Grant of all Land Nothing More Than
Franohlso-Titie Always Remains IN
tho Peopio-AdJ of Taxation
Remedy for Unjust Conditions,

Attorney William s. Ram OF the
Corporation counsels office, gave an
interesting talk in New York before
tho Labor Lyceum, his subject being
"The Parent Monopoly" Among 9TH
or things Mr., Ram said that he was
In favor OF the Ford Franchise Tax
bill, and thought II was n move In tho
right direction.
Going back several years, Mr. Ram
talked OF thc early so.called monopo'
lies, He referred TO the exclusive right
granted TO Harvard College In 1850 to
ferry persons ucross the Charles river
ID Boston, making II unlawful for per-
sons who had enjoyed the common
right before that time TO charge fer
Fiage. Justice Story In the United
states supreme court, In the legal
complications that followed the con-
structon Of bridge over Charles river
at tho end OF the eighteenth century,
whore toll was charged, defined n
monopoly as an exclusive privilege,
granted to few, which was formerly
OF common right"
Three things mako the franchises
valuable; FIRST, the exclusive owner
ship OF themi secondly, large and
growing populations thirdly, great
or unlimited length OF tenure, The
franchise value was almost wholly
based On the power to levy tolls for IN
indefinite and great length OF time In
the future,
Referring TO the vPlue Of franchises,
Mr.. Ram said that, OF necessity, the
length Of time the franchise was to
run influenced Its value, not because
each year could be figured the same,
but by reason Of the increase In popu'
lation, the income from nn unlimited
franchise could not be figured, and
therefore was Of tremendous worth TO
the owners
According to Mr.. Ram, the grant Of
land by the government TO any person
10 n franchise, because the title Of
land was primarily with the people.
The government gives 10 person the
exclusive right TO use the land and the
Court OF Chancery had held that the
people have also the right to resume
the title 10 the land whenever the pub
lie interest demands II,
"The government has been granting
these various privileges pretty LAVISH
ly," said Mr.. Ram. 1t did not look
ahead, and has granted many of them
almost for nothing In some cases
valuable franchises have been granted
for nothing, and | presume instances
can also found where the commun-
ity has paid Il bonus to the party &C.
suring the franchise.
As the population hns in creased, the
result is that these franchises have
reached an enormous value"
Mr. Ram said that the franchise
granted TO the man who owns n lot In
the city Of Buffalo is of course worth
more today than 1t was twenty years
ago. The granting Of privilege with
ont cXacting an equivalent was the
primary cause Of the enormously un-
equal distribution of wealth at the
present time, he said Tho producers
of wealth are the poorest, while the
persons TO whom valuable privileges
have been granted are the wcalthiest
III the government had eXacted an
equivalent said Mr.. Ram, "for these
privileges granted, there would be no
suffering from the unequal distribu'
ton of wealth A man Is entitled to
life. II by labor he produces any
thing, It be.ongs to him, Not even
the government has the right to take
1t away, II there is fund to pay the
expenses of the government The re-
ceipts from franchises should make
that fund"
The manner OF eXacting some re-
turn from the franchises, was by
means Of taxation, Mr., Ram said.
The Ford Franchise Tax bill involved
the right principle, he said, which was
10 add the stock, bonds, etc, OF the
Incorporated company together, and
after deducting what 1t would cost to
reproduce the company's plant, the
difference would DO tho value OF the
franchise,
"Take the gas company here In Buff
ialo for instance said Mr. Ram. at
Ia said that its Dtock Is wutercd. Take
the compnny's word for 1t, and deduct
what it would cost TO reproduce the
plant, and tax the balance MS repre-
senting the frOnchisc The corpora.
tions don't like it, and the rea, on why
Is because we have got down TO the
right principle at last"
"The Ford franchise Tax bill ex-
tended to an ideal degree, would mean
the stopping of the taxation of the