The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-12-30

- While the rates and other features
OF the new telephone ordinance draft
ed by Corporation Counsel Hally are
causing considerable discussion and
[, speculation as TO whether.the enact
ment OF the measure would really re-
suit In better and cheaper service,
there is a much bigger question in
volved.
At present, the Michigan State
Telephone Co. has no franchise, nor
has 1t ever had one. In the past II
operated under an act OF the state
legislature, which authority was re-
pealed by the new constitution which
Michigan recently adopted. In other
words the Michigan company, and the
Home company, too, for that matter
are in exactly the position, right now
that the people would like TO have
the Detrolt United railway occupying,
bereft of any franchise, and forced TO
accept such terms as might be dictat-
ed by the city, in order to pursue its
corporate life.
The situation Is set forth in the
report OF the special council commit.
tee submitted and unanimously adopt,
ed Oct. 4, 1910. Some extracts fol-
low:
In 1883 the legislature passed an
act permitting the organization Of
corporations for conducting a tele-
phone business, and under this act a
statewide permit was granted, to In
wade any street, highway or public
place in the state of Michigan. The
power OF cities was confined to mere
police regulation.
When the revised constitution be-
came a law, all previous enactments
in conflict with Ii, were modified or
repealed by IL, and broad measure
Of home rule was designed to be con-
ferred upon cities. Among the inn
portant sections looking to this end
is Section rs, of Article s, which pro-
vides that:
No person, partnership. asso-
citation or corporation operating
public utility shall have the right
TO the use OF the highways,
streets, alleys, or other public
places OF any city, village or town
ship. for wires, poles, pipes,
tracks. or conduits, without the
consent of the duly constituted
authorities OF such city, village
or township. nor to transact a lo-
cal business therein without first
obtaining franchise therefor.
"Section %, Article 8, Is not diff.
cult to understand, there is no am
biguity In ii. II is a clear and un.
mistakable grant OF power to the
cities, villages and townships, and II
diyests the Legislature of a power
previously reposed in it. and exer.
cised by that body.
This grant of power concerns those
who may In the future, and those now
Operating a public utility in the
streets. Not only must they obtain
the consent of the duly constituted an-
thorities to their occupation OF the
streets, but those of them who trans
act local business In the city MUST
OBTAIN A FRANCHISE FROM
THAT CITY.
Both of the telephone companies
here now located, are transacting a
local business in Detroit"
Coincident with the adoption of this
report, a resolution was passed In
structing the corporation counsel "a
draft an ordinance reasonably regu
Iating" the telephone service, and the
measure just submitted is the result
Joseph w. Martin. who recently
sought a natural gas franchise here
was engaged at a salary of 5000 a
month as the regular investigator. He
drew $S15. Thomas +. Ahern, an en-
ginser, drew the other S1S5.
The ordinance prepafed seeks. its
author states, to protect the user