New-York tribune., 1909-03-08

tba rronertv thus taken. exclusive OF frahchiSe-
This is the only way says the OorllIIllSSioiiel'
.,a-st,- . community can always and contlnu-
IL control its own destinies and direct lts
own growth tie
has gone on record in favor OF the
f.,cbise. for when the subject Of rapid transit
,.,atio was I'D in the legislature year ago,
~. commission recommended legislation along
,,s line The plan also found favor with the
,-,-iza,,s Union and many other city Organiza-
,,.-e ,.-bicf were represented at public hearing
,aped by the commission TO discuss needed leg
islation
PROVISIONS TO BE MADE.
Commissioner Maltbie argues that TO obtain
complete success with the indeterminate fran
cbise the following provisions must be observed;
The grant should be subject to termination on
sTrILer company specially authorized by ne clI!,
Al fair valuation The provision Tor puIcnaSSe So ~
ePeia1Ta T Ff ffs same result may oe accomplished
" couLe' ~ ,,,It1icirai purchase followed by
ssIe or lease under an indeter erTnilate grant 10
private company, assuming tAat me Guy , ia -
hover 10 purchase and the financial means 40 ~
nav fol the plant temporarily But dIey{ jT
sre prefera ble TO indirect methods ana II ll.e
fss MOI the power operate, or may De ~
from purchase because of financial disabiilty. ie.e
n1sr b way transfer the property dlIecug ~ ~
he lessee company. the right Of revocation VIII
Tbe princpIes according to which the property
Is 10 lie appraised and the method Of deteTnltiig i
-hs valuation should be stated They sholIG Iaft
INTO account every Legitimate cost, depreciation Oh
every Ead a59 ma eTeopment Of business
AS profits b. small or non-eAlsteht gu olI ilis
some Tine NAV be required TO uT,cer way and
show what can he done. there ordinarily shouIu e
an initial period during which purchase may De
MADE aniv on payment Of a prescribed bonus IN
addition to The actual vaiue OF me I IIoPeIIS S,rj1sc
possibly very short peIloa fH MlLicLl , p L5g
may take place al all. II the schelne i ~ IL
one similar bonus should be PROVIDED Tor 7 on .,-I
new capital expenditures for extending the %unqeT- under
taking purchase takes place within soT IN,
s+re~ s,r expenditures have been incurred A piaIl
for VARYING the nversely with the tlIne that
has elapsed since the expenditure was llcuIIeu -
ProTision should be made for the revocation
a. rights and The removal OF pipes mains. tracks.
changed ssrEice conditions they are no longer Ie
prozizon should also be made for the reoca,
ton OF fixtures n streets where owing 20 eLlaiise1
conditions such relocation becomes necessary -.
{ Continuous control and supervision by a s1flt
~ citv authority should be provided for either by
franchise OF by general statue ll,r-.,,ctio,3
should include approval Of plans OF constr - oJeI
% ado7t and enforce general special rules .,Ild
regulations in relation "a construction or "a
transfers. and control of capitalization acSoul9 nv
snd transfer of noverS I's rayiTrT an ade-
nnsta organization for the continuous. lntelHeeht
anJ e~ar,i,-e exercise Of such rourars-
reserved as ahorH viii p" SO ,,.ae+
rq.4s st p-f1 Weld sufficient retl--n Z" Iay
for r-oft the actual Investment Iheofe.Ican
she-er-~a there VIII ha e~cHsSiv" nroh's ann
~ oocq sion f7r ? money r~vrne~+ - the cit as
co7nnenSation fc- the francfse .Tr "a - Srrozsa
sharing r,rosts ritF the city bur ool-
-1ril~ rates should ha lowered inefe9o ~ 14Titl2
40 ~S=r~ ~ service 70 d'fraN inc eNP1'SsS %
Eore----e1-
Use OF UNDERGRADUATES FRANCHISE
Commissioner Maltbie then gives summary
u the experiences a. different communities with
various forms Of the indeterrninate Franchise.
IN Massachusetts, where. there has been
greater de,eIor,rn, mt Of street RAILWAYS probably
than anywhere else in the world the principle
has becn IN operation IN simple form since the
introduction Of streetcars Capital has been
attracted. decentralization has been avoided 10
an unusual degree the service has generally
been considered good and the rates have been
ordinarily reasonable.
The new law Of Wisconsin not only pro-
yides that all future franchises must be re-
vocable at any tina, but also allows any com
pany which originally received limited fran
chse 10 exchange ii for an indeterminate per
nit
In Chicago the idea has been adopted in the
street railway adjustment effected last year. ana
under the indeterminate grant arrangements
have been made for the infusion OF large
amount Of new capital. the work Of reconstruc-
don Is under wcy. the service has been I'M
FIofSo ana the situation ADJUSTED u ti1o S1'-S
faction OF all
In New York City at least eleven important
franchises have been issued with the express
reservation Of the right TO amend or repeal, and
II two instances purchase by the city was
Specifically provided for. Owing 10 court de-
osons invaldating many early franchises, these
provisions for municipal purchase or repeal have
oeen Ineffective. but they show that the ad-
Fantages Of a revocabe franchise were realized
my years ago
Al the Present time form Of the indeter
inmate franchise exists in ,1he McAdoo tunnel
taliroads OF which Commissioner Maltbie says:
lie franchise Of the Hudson g. Manhattan
f'a'lroad Company for that portion Of its tun-
Hes nhder Sixth avenue and So: street reserved
Inc city OF New York the right TO purchase
I property al any time after twenty FIVE years
le aiso provides for readjustment Of the com
ls3uoA paid 10 the city at the end of each
- -hke-y sar period. This franchise is. there
'ioeterminate but lacks "A very important
IN that il does not provide for the
'1iti q The citys right Of purchase 10 an
- company that might offer = higher rate OF
service" '''''e''' ''oiis faciiiiies OF
sp,a,z. 'i'e 'ndeterminate plan is particularly
~ Sae to snbways and TRANSFORMATION lines
l.