Wheeling Sunday register. [volume] (Wheeling, W. Va.) 1882-1934, 1901-09-01
ELECTRIC RAILWAY
GRANTS ARE VALUABLE.
A COMMUNICATION FRoN .. A.
THOMPSON. SECRETARY OF
TIRE BOARD or TRADE.
GIVING AWAY FRANCHISES
ConhRcd 10 This Country-I.Ias-
gov, scotland - n Fine Example
OF Municipal wisdom-Council
should study the Question.

Mr.. S. A. Thompson, secretary OF the
! Board of Trade. writes for the Register
the following interesting paper upon
the very pertinent sabjeet of street
railway franchises;
One OF the most interesting Develop
ments of recent years is the extension
OF electric roads from city to city. Ii
is only few years. comparatively.
since electricity was successfully APP
piled to running ears through city
streets, now plans are under way which
promise soon to cover the country with
a network of electric lines having
mileage which will compare quite ia
vorably with the mileage OF steam rail-
roads.
Contrary to all expectation. the de-
, yelopment of electric lines has been. ON
the whole. beneficial rather than in
furious to the steam railways, showing
that the electric lines cover a field not
occupied by the steam roads: or that
the additional facilities provided have
developed entirely new traffic.
Wheeling is just now the center of
an active development of suburban and
interurban electric roads, and there are
a number OF applications pending be-
! fore the City Council for franchises.
some OF which aim to provide addi-
tienal facilities In the city itself. and
others to give entrance to roads coming
| from outside.
Many things will need to be consld-
cred by the committee on ordinances
and the Council in framing the ordin-
ances for these franchises, so that the
interests of the public, as well as of
the companies making application,
shall be duly protected.
The practice in this country, unfor-
tunately. has been generally to give
away franchises of great value without
any adequate return. The cities OF
Great Britain and the continent OF
Europe have been much wiser in this
respect than those in our own country
and II may be OF some interest to men
tion one or two instances 10 show the
returns derived by British cities from
street railway franchises.
One OF the finest examples of munich
pal wisdom is that given by the coun-
ell OF Glasgow. in Scotland 1t Is fact
of some slight interest that the first
movement for the Introduction of street
railways in England and Scotland was
inaugurated by that erratic American
genius, George Franeie Train. The
city council of Glasgow, after careful
consideration. decided that they would
keep absolute control of their streets.
and thereupon provided the capital, to
a total OF nearly two million dollars.
and constructed the tracks under their
own supervision and proprietorship.
They did not. however, at that time
choose to enter upon municipal opera
ton of street railways. and according
executed lease, under which the oper-
ating company agreed to pay.
First-Annual interest ON the city's
entire Investment.
Seeond-An annual contributor to a
sinking fund sufficient to clear the en-
tire cost of the tracks by the termina-
ton Of the lease.
Third-A renewal fund of per cent
out of which the lines were kept In re-
pair and turned over to the city at the
expiration of the lease in 1894 In az
perfect condition as when first laid
down, and
Fourth-An annual rental Of $3.50 for
each mile of street occupied. In addi-
ton, the lease provided that the fares
should not exceed two cents per mile;
many routes were specified on whicn
the rate should be two cents for the
entire distance, although this was con-
siderably more than mile, and cars
for the benefit of workingmen were re-
quired to be run during certain hours
morning and evening on which the fare
should be but one cent a mile.
There was something Of craze on
street railways at the time this lease
was given. and the company securing
the same sold out to another company
at premium of s750,000 The latter
company, naturally, had rather a
heavy load to carry for time after the
lines were opened in 1872. but from and
after 1880 after paying all the charges
above mentioned, writing off each year
proper proportion of the $750,000
premium which they had paid for the
lease and paying all other expenses,
including all costs of operation, wages,
etc, they paid to their stockholders
dividend of 10 per cent. net annually.
Such results achieved under such con-
ditions throw a strong light on the
values Of franchises which are too often
in this country given away.
No doubt the council, before passing
the ordinances asked for. will make
careful study of what has been done
elsewhere, so that the interests of the
city may be properly protected.
The experience of other cities in
Great Britain and of those on the Con-
tinent which have achieved equally
valuable results through the use OF diff
ferent methods may be left for another
communication.
S. A. THOMPSON.