The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1904-10-13
PUBLIC FRANCHISES.

In addition to requiring that limit be
placed on the power to issue bonds by
cities of this state, the enabling act, also
places certain restrictions upon the power
Of the city in matters Of granting pub
lie franchises or privileges.
Under the present charter, the entire
authority for granting such franchises
rests with the city council, which body
is privileged to make whatever arrange
granting and regulating the operation Of
such franchises.@.s T. =, f.t&ss5s :: -. III
The enabling act places the following
limitations upon this power: -
First-It provides that no perpetual
franchise shall ever be granted.
Second-That no franchise shall be
granted or extended for a longer period
than twenty-five years. -,
'Thrd-That no exclusive franchise
shall be granted or extended, unless the
question of granting or extending, the
same shall first be submitted to the vot-
ers Of said city and adopted by major
ity vote. ..~. .'' :.
No one will question but what these re-
strictions are desirable and for the best
interests of the city. -. ,"
The present. charter commission, with
the restrictions and conditions named in
the enabling act as a basis, inserted a
chapter in the new charter on municipal
franchises which appears as chapter sew
enteen. 49,
After defining the word franchise" to
mean ANY special privilege granted to
any person or corporation, in, over, upon
or under any Of the streets, alleys or pub
lie places of Minneapolis, the chapter
further provides that : the city council
upon receipt of application for any such
franchise, shall determine by resolution
| whether or not the same shall be granted
and shall name the terms and conditions
under which the grant shall be made. !
| The application shall then be published
In the official paper for ten days, which
| advertisement must be completed not. less
than twentyr'o or more than thirty days be-
fore any, further action thereon is taken
| by the council. This advertisement, in
addition to stating the character of the
| franchise asked for and clearly setting
forth all matters in relation to it's use
shall invite sealed bids for such fran
| chise; each bid to state the percentage
Of the gross receipts which the person, OF
corporation bidding is willing to pay tt
| the city annually in exchange for such
franchise or privileges. . Each bidder il
required to furnish bond to the city
guaranteeing his bid. T.
| At regular meeting of the council
after bids are received, such bids shall be
opened in the presence of the city coun
Gil. by it's president, and the council
shall then award the franchise to the bid
der offering the highest percentage Of the
gross receipts. The council, however
shall grant no franchise where the per
centage Of gross receipts offered is no
at least 3 per cent for the first five year
Of the franchise; per cent for the neg
ten years, and 5 per cent for the next tel
years.
The chapter further. provides that tn
city council may provide in granting an.
| franchise, that upon it's termination tn
property of the company, holding sucl
franchise shall become the property of tn
city, or it may provide in such grant TO
the purchase of the property by the city
it's value to be appraised by three com
missioners appointed by the judges Of tn
district court. 81. -, : III.
No franchise shall be granted unles
such grant contains a provision for penal
ties including forfeiture of the grant, TO
the purpose of securing efficiency and
reasonable rate of charge to the public.
Whenever the city council shall pass a
ordinance granting franchise, the sam
shall, not be in force until sixty days at
ter its final passage. Within said sixt
days.. if the people are not satisfied wit
the conditions Of the ordinance, they ma
petition the. council to submit such. ord
nance to vote of the people,, and if sal
petition contains the names of voters i
number equal to Is per cent of the vote
cast at the last preceding election, til
council must submit the same to a vot
, at the next election. y
The franchise chapter requires an
. corporation holding a. franchise from tn
city; to make monthly statements of il
receipts and monthly payments of til
gross earnings tax, and also provides fl
!. official examination of the accounts
: the company. IS
3 The city council in granting any frar
!, chise, must expressly reserve the right
: control all matters relating to the opera
: ton of such franchise, including the reg
0 ulation OF rates