The daily telegram. [volume] (Clarksburg, W. Va.) 1901-1926, 1913-11-15
RE A TON or
IRACIIO ON LINES
AS Well as Telephone Lines.
and Electric and Gas Plants
by the State Alone.
is CONDEMNED IN REPORT
Submitted to the National Mu-
lieipal League by Commit
tee on Franchises.

tuv AssoeiArEp pRsssi
TORONTO, Nov. 15-Regulatl
OF street railways, telephones. cleo
trio and gas plants exclusively by
1.-THE state was condemned in a repor.
submitted to the Nineteenth Annual
Meeting Of the National Municipal
League today by the COMMITTEES on
franchises. The report, submitted
by the chairman, DR.. Delos +. VIII
con, of New York City. dealt with
the relation of municipal home rule
to the control OF public utilities.
The committee pointed out that
public utilities are primarily urban
in character and that. on general
principles, the control OF public
functions should be localized as
much as possible, in order to secure
the interest and effective co-ppera-
ton OF citizens. Moreover, as q prac-
ltical matter, the more powerful the
corporations become and the more
widespread their services, the more
important Is is that they should ne
directly answeraible TO the local com
mInities which they serve.
SIT may easily be possible said
tho report. that an appointive state
commission vii lail more or less
completely under the domination OF
the powerful interests which control
the public utilities OF the state ana
thus the very machinery provided
for the regulation Of utilities be cap
tured by the interests presumed to
be regulated by Il. It may be neces-
sary 10 array against the powerful
financial interests of the compan-
les the direct mass interests OF the
local consumers in order to preserve
the vitality of the regulatory func-
ton. Public utility corporations ex-
list to serve the people, not TO con-
troll them.
However, in most cases, ,regula-
ton cannot be either logical or et-
fective without the active co-obera-
'tion OF both state and local author
tiles. The jurisdiction of state pub
general over all public utilities, so
that there will be no twilight zone.
within which the utilities can escape
regulation altogether, but every city
of enough importance to enjoy home
rule in framing its charter should
have the right to establish a separate
bureau, department or commission
for the supervision OF all utilities
operating within the city limits.
The city's Jurisdiction should ex-
tend to matters affecting the occupa-
ton of the streets, the quality of
service rendered and the character
of the franchise contract entered in
to for the purpose OF facilitating
ultimate municipal ownership. The
states jurisdiction should extend TO
matters relating to competition, stock
and bond issues, accounts and pub
tllclty. Rates and extensions should
be under municipal control, subject
ito review by the State commission.
The city should also have the right
to appear by its local experts before
the state commission il regard to all
matters affecting local aaterests.i
Coming to certain nortapt Ques-
tons in connection with franchise
contracts between cities and public
utility companies, the conamit lee
took the ground that a public utility
within a given urban community is
a natural monopoly and that one OF
the first and essential obligations OF
such a monopoly is to extend it's SER
vices to meet all the legitimate needs
OF the community. Accordingly, the
municipal authorities ought to have
! the right to initiate extensions, and
the reasonaDieness OF any particular
extension should not be determined
solely by the prospective profit from
its operation as seperate unit, but
by its effect upon the profits OF the
entire system.
The committee recommended the
iindeterminate franchise with a maxi
mum limit, on the principle OF tho
recent traction settlement franchises
granted in Chicago, Cleveland and
New York City. Opposition to the
WISCONSIN type OF indeterminate per-
init was based on the fear that It
tends to become perpetual as 1t can
ibe terminated only by purchase
and purchase means payment of the
full value in cash in a lump sum at
the time of purchase. This, it was
said, tends to make muntcipaIization
more difficult as time goes on.
Thee committee favored the idea
loi making utilities commence to pay
for themselves, eyeen under private
Conservation, by means OF an amortiza-
tion fund maintained out OF earn
fngs. This fund should be large
enohgh at least 70 wipe out all fran
lchises and other intangible elements
of capital value, so that the price at
which the city can buy will be kept
well within the actual value Of the
physical property.
The ccmmittee urged the import
anee of a systematic campaign for
the recovery Of control over the per-
lpetual and long-term franchises now
outstanding. SO long as the ptill-
ties in the heart Of the city continue
ito be owned and operated under I'M
satisfactory, out-of- date franchises,