New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-03-31
.PROCRESSNES SEEK
TO LIMIT FRANCHISES
Offer at Albany Their Bill to
Prevent Perpetual Rights
for Corporations.
PROVIDES FOR FIXED TERMS
Calls for Examination of Out
standing Charters and Com
pulsory Legal Proceedings
Whenever Possible.

lEy TELEGRAPH 10 The Tribune
ALBANY. March 20 a bill designed to
prevent perpetual franchises for public
service corporations and To put into the
statutes a definite. coherent policy FOR
granting limited franchises will be intro
duccd tomorrow night by Senator Palmer
and Assemblyman Suifrin. II comes from
the legislative committee of the Progress
sivc party \ special committee. on
which were Dclos f. Wilcox, BainbrdEe
Colby. Joseph =. Cotton. jr., Robert II.
Elder and Robert H. Wilton, Professor
Hayes. of Cornell. r.. Watson Gardner,
of Amsterdam: Herbert =. PcU. IT" oil
Tuxedo. and Louis VIII, of syracuse
drafted il.
Most of these men are authorities on
this subject Mr. Wilcox, for instance
studied the question as one of the Ne"
York CITY Public Service Commission ;
experts. while Nh Cotton. as a corpora
ton lawyer. has had equally valuable tx
pcriouce.
This bill contains provisions against per
pctuaI franchises I'm future ana au'hor-
ICES the granting of franchises tor INC"
p.ri,,d of not more than twenty -hVe years
or iudcterminatc franchises with q maxi
min, limit of hfty years. Tn" hill de-
rl,r.s that I'm all proceedings involving
I'm. rights OF corporations now claiming
franchises in pcrpctuity or franchises io'
a longer period than twenty-five years
the burden of proof a. 10 the validity oi
such franchises shall in all cases he on
The corporation.
To Investigate Franchises.
Publi, service commissions are required
10 make am exhaustive inquiry into out
standing franchise rights 10 ascertain
whether on not tho terms and conditions
of these franchises have been compiled
with The corporations are required 10
dlc with the commissions copies oi AL
their outstanding franchises. and failure
to do So is 90 o." prima faclc evidence tha'
the franchises d. not exist.
Tho findings Of Public Service Com
mission relative 90 the franchises of each
comIauy are 20 hc published. and u 1t
appears that tlc rights claimed hy any
couuauy have uccn forfeited. or have bee
come forfcitablc. the commission IS to r'-
port that fact 10 the Attorney General,
who must forthwith commence appro-
pirate proceeding to have IN" franchises
declared void hy the courts
Do the case of any such company act
uallr operating q public utility. however.
,hc commission will bc required 10 make
al. arrraisal OF tho companys property
fr.,f..sI.f.. (which
ar,rov.d tv a.. local franchise. viii be
offered Co tic company 80 return for the
surrender o. SIS claims 10 existing fran
chi.cs against which tho ATTORNEY Gcner-
al has brought suit
Provisions arc inserted 10 make IL the
purpose of any SUCH new franchise 10
safeguard tho legitimate investment on
the physical property, provide for rea-
.ouablc return upon capital and for the
continuous Ipkccp and development Of
the utility 20 meet public needs. insure
good service ~ reasonable rates and pre-
serve 10 tn. local authorities or 10 the
state the right 20 take over IN" utility Tor
public ownership and operation. II a com
many whose franchises az" subject 10 for
fixture. accepts the new franchis" offered
to it. tine new gran, will be- made a part
of tho court decree IN tho Attorney Gen
erals proceedings.
al municipalities arc authorized 10y the
bu to own and operate public utilities.
An interesting section of the measure"
relates To- franchises oa private streets
and is intended TO stop th~ practice now
goins on in New York city, notably m
tine Borough of queens. oy which various
companies are successful % securing per
rctual easements in streets which are on
the city map. and in many cases i'm
proved and used 10y the publtc. but not
vet condemned or dedicated as public
streets in the legal sense.
Provision ~ made hy the bill for the
voluntary surrender 81 outstanding fran
chiscs. irrespective Of the result ~ the
commissions investigation into their va
lldity.