The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1901-02-05

Select Councilman Charles H. Chit
tcnden is going to introduce an amend
ment to the ordinance granting n
franchise to the Central Rapid Tran
sit company, when that measure
comes UP for first and second reading
on Thursday night. and it's safe to as
sumo that its provisions will form the
subject of much discussion and argu-
ment.
The amendment which the gentle-
man from the Ninth proposes, pro-
vides that upon the expiration CT
twenty years from the date of the
granting of the franchise, the city
shall have the right, If it so desires,
to apply to court for the appointment
Of "a board of appraisers, who shall
appraise the value of the company's
franchise and also the value of It's
entire equipment, including rails, poles,
wire. power house and rolling stock.
The amendment further provides
that the city may then have the abso-
lutte right to purchase the franchise
and equipment from the company for
this appraised valuation.
Mr.. Chittenden. in outlining his ideas
to "A Tribune man last night. stated
that he believes the adoption of such
m amendment would mean boon
to the Scranton of twenty years hence.
WHAT IT COULD DO.
when the city had acquired the
franchise" said he "it could do one
of two things. Local conditions might
have improved to such an extent as
to render the operation of the system
Ey the city feasible. That would not
be possible just now. but Who knows
what changes twenty years may bring
to pass.
IF the city didn't care to operate
the system itself, ii could ask for bids
for the sale of the franchise and equip
mcnt and I feel sure that they could
both he sold at a great profit. The
same plan was recently tried In Cleve-
land. The city, after a number OF
years, secured control of the fran
chises and equipment of the street rail-
way company, and when bids were
asked for, the capitalists fell over
themselves to get possession.
They made offers of three cent
fares and handsome premiums and the
city was the gainer in every way. l
haven't the exact figures regarding
that sale at hand just now, put ex-
pect to have them soon.
The granting of perpetual fran
chises is an abomination and the idea
is being discouraged in every progress
sive city in this country. An illustra-
lion of what this city has lost by the
plan is to be seen in the water COM
f1,Dn ir,, e,
capital stock has increased from a few
thousands to several millions Of doll
lars since It's original franchise was
granted, and the city hasn't got a
cent out of it.
WORTH OF FRANCHISES.
"An illustration of the worth Of
street railway franchises in this city
IS TO be found in the price paid by
the Scranton Traction company for
the Valley Passenger railway fran
chise out Washington avenue. One
hundred thousand cold American dol
lars were paid for it, after it had been
obtained from the city free, or almost
free of charge.
II held them off for three nights on
the granting of that franchise and Of
fered If it was put up for sale to guar
antee that at least $4,000 would be paid
for it, but | had only few members
with me, and they rushed it through.
The people of this city have realized
what they have lost in giving away
our streets for nothing and | think
public sentiment will be strongly
against repetition of the process.
"The franchise is at present of un-
known value and ] believe that for
the first twenty years it should be
granted to the company free, provid-
ing, however, that a sccopd amend
ment which | will also introduce, is
adopted. This provides that in lieu of
all other taxes the company shall pay
annually to the city a tax of five per
cent. on its gross receipts.
THE proposition as | view II, is a
fair one. The city gives the franchise
free for twenty years and demands
that the company pay only n fair
share of taxes in return. At the end Of
twenty years it reserves the right to
buy back at a fair figure and gives
the company chance to again buy II
back. / shall make a vigorous fight
for the adoption of my amendments. :"