The Marion daily mirror. (Marion, Ohio) 1892-1912, 1908-12-26
A MODERN MUNICIPAL FRAN.
CHISE.

liy UT III EnBldnu. Inc franchise IS
described In Municipal Engineering,
and its principal provisions are as
follows: The capital stock of ore
million dollars can be increased at
any time by submitting the addition
al shares to sale at public auction on
thirty days published notice, any pre-
MUM to go into surplus, and not to
bear dividends. 1t is provided that
II extensions of mains are desired,
and they cannot be obtained under
other paragraphs in the contract, the
petitioners for extensions may sub
scribe for stock sufficient to lay the
mains and sign contracts for gas suf-
ficient to pay the interest on the cost,
but even then the stock must be put
up at auction and must be purchased
at par by the petitioners in case it is
not sold at premium at the auction
These provisions insure that the
stock shall always bring its par value
into the treasury, and that the divi-
dends paid shall be on this par value,
no more and no less The necessary
extensions are also provided for
without ever burdening the company,
while at the same time giving the
property owners large interest on the
money invested in the extensions and
ultimate return of the principle as
we'll
The capital stock, by the terms of
the subscriptions is placed in the
control of board of five trustees,
stockholders, and must be voted as a
whole This board of trustees was
named in the articles of incorpora-
tion, and the board fills all vacancies
except that one member was nomi-
mated by the mayor of the city, and
a vacancy in this particular Office is
filled by another nomination by the
mayor.
This provision keeps the company
In the control of the trustees even if
the stock is all bought up by COM
is one in which the people have full
est confidence.
Any member Of the board OF trus-
tees can be removed by the circuit
court on showing that he is an Q
ployee or a holder of stock or other
securities any company delivering or
purposing to deliver gas in the city,
or for corrupt practice or misconduct
detrimental to the companys inter
est.
The board of nine directors is elect
ed each year by the board of trus-
tees, to manage the business and pru-
Dental concerns of the company. This
relieves the board of trustees of all
duties, except that of securing COM
petent directors independent of any
influence detrimental to the company,
and makes It possible to enlist as
trustees men of the highest class and
possessing the fullest confidence of
the citizens and stockholders, with
out the opportunity to refuse on ac-
count of pressure Of business or tenn
porary condition of health.
The company expects to pay cumu-
lative annual dividends Of 10 per cent.
payable semi-annually. The earn
ings of the company are devoted first
to the payment of matured debts and
operating expenses; second, to the
paymepnt of the dividends semi-an-
nually and unpaid accrued dividends;
third, to the extensions and better
ments ordered by the Board of Pub
lie Works; ana fourth, to repayments
of stock subscriptions thus reducing
the capital upon which 10 per cent,
dividends must be paid. When the
stockholders have been repaid their
entire subscriptions with 10 per cent.
interest the stock is cancelled and
ownership by the company ceases,
and It is wound up. The ultimate
ownership question is settled by
the property to the city
when the stockholders are fully paid
The company is required TO make
detailed statements of
It's affairs, including assets and liza
bilities, disbursements and receipts,
and publish them in two newspapers.
The city controller can investigate
IhO b'ohoi W NhSih lHt reports OF |
otherwise, and the city engineer can
examine the plant at any time.
The gas furnished must have at |
least 600 British thermal units per
cubic foot, and the price must not
exceed sixty cents per 1000 cubic
'eet
There are the usual provisions dur
ng construction, giving rights OF
way, insuring compliance with the
erms of the franchise, etc.
The certainty of no water in the
stock, and the publicity of accounts,
Is we'll as the supervisory power of
he city officers, insure reasonable
lxed charges and minimize the dang
rs of political manipulation, useless
employees, misapplication of funds, so
hat the low price fixed for gas may
'e predicted in advance with reason
Ible certainty, and protected from
nfair attack. The public interest in
he company makes friends for II.
he high character of trustees and
directors promises the best of Iaan-
cement, based on the highest prin-
iples and for the public benefit. The
ermanence of these boards and the