Daily new dominion. [volume] (Morgantown, W. Va.) 1897-1906, 1901-06-29

Says that There is Nothing in The N
That is Objectionable Defends them
Strongly His open Letter will be full
OF Interest to Those who are Con.
i cerned.
Two ordinances are pending before
the City Council relating to the Union
Gas and Water Company and the
Electric Light and Power Company,
about which much misunderstanding
exists. A few facts concerning which
no controversy can exist should be
known TO everyone.
The two corporations are separate
and distinct, not having a single
stakeholder in common. Each now
holds a grant or franchise from the
old town of Morgantown, limited to
the territory included in the town at
the date OF granting the right TO use
streets and alleys and neither has any
legal right to extend it's lines over the
public streets and alleys in the new
territory or in the limits of South
VMorgantoWn, Seneca or Greenmont
except SO far as either of the town
councils may have granted such
rights.
!. The original grants were without
limit as to time, as the law then per-
mitted such grants, and the Gas and
Water company was given the exclu-
siye right for twenty years, and in adj
dition to that privilege, was also
granted exemption from all town
taxes for a period of twenty years, In
order to induce and encourage capital
to undertake hazardous, expensive
and uncertain enterprise. Nei ther Of
these provisions, exemption from tax
alton Or the exclusive right, can be
sustained by the courts.
The Electric Light and Power Com
pany was not granted either OF these
rights, but the council reserved the
right TO compel the company to put
its wires underground after ten years,
If it deemed it necessary TO the pro-
lection OF persons or property. Coan-
Veil had this right as we'll without as
with this provision, as the Council
can never abdieate its right to regu-
late the fiscal, police and general at
fairs pertaining to the city. under the
Constitution and laws Of the State
Fconferring its powers. tt is an in
strument of government and empoW-
cred by the will of the people to regu-
late its affairs, including the control
Of its streets, alleys and public
ground, 1t may condemn and appro-
pirate the property OF each company
upon paying just compensation to
be ascertained according to law and
operate both plants, supplying light,
heat, power and water at the public
expense if it deems best just now
the city is in no condition, financially
to do this and must depend upon pri-
vate corporations for such services.
1t is admitted by all that this SER
vice should be extended as fast as pos
sible to the additional territory re-
Gently taken into the new city. This
can not be legally done, nor can the
companies be forced to do it, except
as a condition annexed to the new
grants now before council. The new
territory will necessarily be taxed for
water, lighting, sewers and fire pro-
lection in the old limits, and yet it
can get none Of these for itself unless
the right is granted these corporations
to extend their lines into the new ter
ritory in order to serve the new tax
payers.
The fifty years limit is much OBJ
jected to. A moments reflection will
show the objecticn is without just
foundation. 1t is the time limit pre-
scribed by the statute for the life of
all such corporations. Railroads con-
stitute an exception. 1t is also pre-
scrbed Gor the first time, by an act
OF the legislature, passed last winter
as the limit for which City and coun-
ty franchises can be granted. But in
both cases second grant may be
made at the end of the first fifty
years.
Very large sums of money must be
raised and expended by both the com
panies in order to increase their pow
er, plants, acquire additional land,
and extend their lines. Neither bond
holders, nor stockholders will put
any money into SO expensive enter
prises. unless given Il reasonable time
in which to make their investments
safe anu Ialrly pfOHudule. Long blme
bonds can be sold at a much lower
rate of interest than short time; the
cost or expenses of operating either Of
these plants reduces bonds. What
ever reduces the cost of water. gas,
light and power or car fare, and what
ever increases the cost of these services
increases the cost to the public and
the consumer. Hence the wisdom of
longtime bonds. low interest and a
80 year grant. Ninety-nlne years is
the usual time Of such grants where
any limit at all exists.
In accepting the proposed ordin-
ances, the corporations submit to
greatly reduced maximum rates or
charges for their services, waive ex-
emption. from taxation and can claim
nj, 80 Hos. 11fa al " fff