Perth Amboy evening news., 1906-01-09
AmariteS.
Aquahongas.

as a rule, the roadbeds of our trolley sys-
tens. The right of way upon the streets
for this purpose is granted by the various
municipalities. They ave the power to
make their own terms as to the conditions
of the franchise and the number of years
which it shall continue in force, whether
1t shall be ten, twenty, fifty or unlimited.
The 'trolleys have proved important fac
tors in the development of our state. The
public has welcomed this means of con.
veyance, and little attention has been paid
to the length of time for which the fran
chises have been granted. Population has
increased, and the use of the public
streets for these purposes has proved to
be a concession of great value. The mu
inequalities, however, hampered by per
petual franchises, a not been able to
take advantage of these changed condi
tons. If the highways are to be used fol-
business purposes the people, who own the
highways, should be in a position to de.
mand an increased rental as their roper
ty becomes more valuable, just as the
owner of the business block is able to
raise the rent thereon in proportion as
increased trade and traffic center about it.
This of course cannot be done If the
streets are leased for an unlimited term
of years, but if the lease or franchise is
limited it's expiration would permit new
terms to be made in proportion to the IN
creased value of the grant.
How far the power of municipalities tt
grant franchises to public uti Ny corpora
lions should be limited shouK be deter.
mined solely by the interests Yf the PEG
Pile. Their interests will nott be served
by a destructive policy. No avenue car
be derived under laws SO harsE that they
prevent the development of enterprises
from which the revenue must gone.
The question of competition should also
be considered. Under too restrtcted condi'
tons new and like concerns t&nnot com
pete with those holding perpetual and un'
restricted franchises. Nor SHOULD II De
forgotten that terms that might warrant
the investment of capital in tMckly popu
lated centers would not temptiit in unde
veloped sections. The commission ap.
pointed by the last legislatureto investi'
gate this subject will recommend a linn.
itation of the power of municipal officials
to grant franchises to public utilities
That this limitation may not restrict en-
terprises or arrest progress in the rura
districts it might be provided that any
ordinance granting a franchise for a lon
ger period than twenty-five years should
be submitted to a vote of the people. VIII
a limitation as to a maximum term Oh
years. -
Provision should be made for publicity
in the granting of franchises, DOM WIFI
regard to the advertisement OF appica'
lions and the prevention of undue haste IL
the passage of ordinances FOR such pur'
poses.
Decentralization and It's Remedy.
Limited franchises, however, remedy
only one phase of evils complained OF IN
connection a with public utility corpora
tions. The opposition to public utility
corporations as now conducted grows Out
of the belief that they are vastly over.
capitalized In the way of bond issues ano
watered stock and that they are reapins
undue profits out of the use of the fran
chises that belong to the people. TINS
question will be acute until these mat
tiers are satisfactorily adjusted. 1t IS mol
easy to prevent overcapitalization. II h
not impossible, however, to restrict It's
The present franchise law provides for
tax of 2 per cent upon gross receipts, re-
CARELESS of the financial condition pf
earning capacity of the company. There
would seem TO be a clear distinction te'
tween the value of the franchises of pyb-
lie utility corporations that lay their pipes
or wires or conduits underground or ula'
use only so much of the street abpve
ground as is necessary to string wireslo oil
poles and that of franchises like those OF
trolley companies that use a large por
ton of the streets and highways. If "a
per cent tax on the gross receipts is am
posed upon the first class of public utility
franchises, the latter class of franchises
should justly be expected to pay more,
A franchise tax upon the gross receipts
has the advantage of being levied accord
ing to a mathematical rule. There can
be no controversy as to valuations; there
can be no dispute As to the fairness andt