Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1912-03-04
SPEAKERS FAVOR
NDETERM|HATE
FRANCHISE BILL
Pierce, DeIos S. Wilcox
and Others Address
Committee.
fFrom a stan CORRESPONDENT. ]

lFrom a stan Correspondent
TRENTON, March 1.-THE publ
hearing on the indeterminate franchis,
bill. Senate ISL, was held in the Sen
| ate chamber today. Senator Pierce
who introduced the measure, declare
that the bill was introduced for tn
purpose of aiding public utilities In tn
matter of extend ng their operation
He said that the limited franchise ha
retarded progress. He introduced Delo
Wilcox, head of the franchise burea
of the Public Service COMMISSION, o
New York, who helped Mr.. Pierce pre-
pare the bill.
Governor Wilson was present at tn
hearing and took keen interest in tn
proceedings.
Mr. Wilcox said that competition II
public utilities is bad and sooner OF
later separate corporations in the sans
city get together because of the ex
pense attendant upon competition.
Mr.. Wilcox said we now have twt
methods of control of public utilities
One, he said. was a contract, but /
has been shown that it is impossibl,
to foresee conditions necessary TO i'm
prove on utilities when the contrac
extends for a period of 20 to 40 years o
longer.
ION account of this" he said, wv
have fallen back upon the supplement
tary control of regulation"
THE question arises whether W
have a complete system of public
regulation. If this system is complet,
we don't need contracts, only permits.
He continued;
I'm large cities, however, 1t is tn.
practise to put into the franchise tn
terms upon which a contract is to be
regulated, because of the possible
laxity of publ C officials"
Mr.. Wilcox said that where a com
pany has a perpetual franchise it de
ies public sentiment.
The speaker disapproved of perpetual
franchises and said that the limited
contracts We're not ideal because it is
Impossible to ~foretell the future. "a
limited term franchise" he said, zig
nores the fact that the public utility
is here to stay. A contract like this
is SO uncertain that progress goes by
fits and starts"
He also said that companies find II
hard to operate under the limited term
franchise, find it hard to get money
and when a renewal is sought the com
panies often attempt to influence alder
men in giving them reasonable terms.
Perpetual and limited franchises nave
not been successful, according to Mr.
Wilcox.
at is a public function to determine
how a city shall grow" said Mr.. VIII
cox, speaking of the Influence of
transportation on the growth of the
city.
"Another important factor in the
safety of investments. 1t is essential
to the good faith and prosperity of the
city. as well as investors, that the in
vestment should be guaranteed" said
MIR. Wilcox. He believed that the city
in which a transportation company
fails ought to consider itself partly To
blame.
Summed up, the speakers argument
was Thai the limited franchises, con
were inefficient, did not safe
guard investment and did not insure
good service.
He declared that the indeterminate
franchises permit a company to oper-
ate during good behavior, supervised
by the Public Utility Commission, is
the desirable form of regulation.
Mr.. Wilcox, explaining the bill, said
that under its provisions the public
would know the exact cost of a public
utility and hat efficiency would al
be maintained. Mr.. Wilcox made
a strong plea for the indetermlnate
franchise and said the bill was a good
one. He read a letter sent by Mr..
Daniels to Senator Pierce, which
pointed out the weaknesses in the bill.
One question asked in the letter was
which municipality would terminate a
that was violated when the
public utility serves several munich
palities.
Mr.. Barber inferred that II would
perhaps be better TO defer the enact
ment of the bill until further investiga-
ton.