The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-03-18
FRANCHISE MAY
TAKE NEW FORM
Plan Discussed For City to Own Light
and Railway Plant.
COUNCIL MEETS SECRETLY
PROPOSITION FOR PEOPLE TO
DECIDE THE MATTER.
A LTHoUGH the committees. to

A THOUGH the committees, 10
y which the application of the Utah
Light & Railway company for
consolidation and fifty years extern
sion of its franchises was referred,
viii not hold another joint session uu-
I'll Wednesday evening, there is con-
siderable doing in the franchise matter,
and important developments may be
expected within the coming week The
members of the council are holding Sc
cret conferences daily, not as a body,
but in punches of twos and thTees.
1t is said that a proposition is under
consideration by some of the council
extension with a provision attached to
the effect that the company may be
d1spossessed of all or part of its hold
ings under the franchise by Salt Lake
city Whenever a majority Of the legal
voters of the city shall decide at a
special or general election TO iuaugu-
rate municipal ownership of lighting
or street railway transportation facili-
ties, or both, and il is stated the money
IS in sight 10 pay the company for its
property.
This plan contemplates the putting of
price on the power plants and other
tangible assets of the company by a
board Of appraisers. The actual value
Is 10 be aSCertained and all over-Capi-
taiiZatiOn and water-lOgged stock dis
regarded, so that the people viii get
the property taken over at it's actual
cash value.
Compromise Is Suggested.
1t is believed that a compromise can
be effected between the mayor and q
majority of the members of the coun-
ell on the one hand and the Utah Light
& Railway company on the other by
which the company'S franchises may
10 1c-ralf 4 min.
fifty years from the date on which the
proposed extension ordinance goes into
effect provided the company viii agree
To the insertion in the extension Ordi-
nance Of a municipal ownership prOviS-
ion. II would it is sard be provided
i'm the ordinance that if. at any time
before the end of fifty years. the peO-
pie of the city became ready for mU-
nicipal ownership. the cOmpany's prop
erty could be assessed at its true value
and taken
Municipal ownership of lighting
plants has been tried in several Amer
lean and foreign cities, and has proved
profitable aside from greatly reducing
the cost of light 10 the consumers. The
ownership by municipalities of street
railways has not been given so long and
such thorough trial as lighting and
waterwOrks ownership. but enough has
been done in that way. particularly in
foreign lands, 10 demonstrate that fares
can be reduced. better service given
and money made to be devoted TO gen
eral municipal purposes.
Ten years ago Kansas City. Mo. dis
possessed the National WaterWOrks
company of its plant that supplied that
city with water. after long litigation in
the courts. and upon paying its ap-
praised value The plant has proved
profitable to the city. In Chicago both
the Republican and Democratic parties
are pledged in the pending city cam
paign to give the people of the city
municipal ownership of the street rail-
way systems
Advocates Of putting a municipal
ownership clause into the proposed
Utah Light & Railway extension Ordi-
nance say that the operation by Salt
Lake of the system of waterwOrkS that
supplies water to the city has demon
strated the benefits that will accrue to
the people from owning and operating
other public utilities.