Akron daily Democrat. [volume] (Akron, Ohio) 1892-1902, 1902-08-29
PLAN
OF the Perpetual
Franchise.
Claimed II Will Knock
Out Politics
And Encourage Corporations TO
Greater Enterprises

'~- H''~ 1900
The plan of the perpetual franchise
promoters is as follows. The franchises
are to be awarded by the City Council
upon the best terms obtainable for the
public. Every ten years thereafter
there is to be revision Of these terms.
This is to be accomplished through
arbitration, each side being left free
to appeal to the Courts for relief If the
conditions imposed are unjust to either
The question of remuneration is left
open for the judgment Of the Council.
1t is held that minimum percentage
that might mean ample revenue for a
large city, would mean destruction to
IL small corporation elsewhere, and
again that large corporation might
escape the payment of its just dues
through this very minimum. The
franchises thus granted are subject to
revocation If \. should be found that
the holders thereof are not living up
to, Heterogeneous. The medium of
custer is through proceeding in quo
warranto to be filed either by the
Prosecuting Attorney of the county or
by the Attorney-General The city is
to have reserved the right at certain
periods to condemn and appropriate
the plants of these corporations
through the usual methods provided
in such cases, this being concession
to the doctrine of municipal ownership.
AS stated the argument of those
supporting the proposition is in chief
that it will forever remove tempta-
ton from the ward politicians who
deal in the necessities of public cor.
porations. 1t is also held that 1t will
make field for longtime investments
that will induce capital to build up
street car railway lines especially and
thus benefit the public. 1t was at first
thought that the section was to apply
to future franchises, but one of the
Senators questioned concerning it, said:
There is not street railway company
in existence that would not surrender
its present charter and seek new one
under the ter of this section
This would, therefore, mean that if
the movement Is successful, there will
be general rush all over the State
by the existing operating companies for
the enjoyment Of this privilege. This
will be especially true of Cincinnati,
where the present company is in i'm
minent, vital danger of losing all the
benefits conferred by the Rogers law,
and in Cleveland, where, in the last
few years; large investments secured
by bonds have been made.
This develops the interesting fact
that, it is alleged, some of the bond
issues by consolidated companies will
not expire until long after some of the
franchises of the constituent compan-
les. One of the curious
facts in connection with the movement
of today is that every code proposed
to the Legislature, including that OF
the Governor, limits the life of fran
chises for street railways to
% years, and in all the dis,
cussions that time is regarded as being
the most reasonable. Ten years ago
Senator Hanna backed a bill which |
granted 80 year franchises, but was
forced to abandon the fight after the
bill had passed the Senate, Senator
Spencer, of Cleveland, introduced the
bill, and was driven from public life
by public sentiment. 1t may be that
the Senator believes that public senti-
ment has changed, or,perhaps it is the
Legislature. The political effect of
the attempt to pass such bill is being
freely discussed and wonder is ex-
pressed that it should even be men
Toned