The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1915-10-22
JONES DECLARES
FOR new ORDER
IN FRANCHISE
Minneapolis Reformer Urged
Municipal Control of Public
Utilities at League Meet.
BIGELOW MAKES TALK
FOR CITY OWNERSHIP
Prof. William Schaper Urged
Need of Constitutional Con-
ventiOn in State.

venti0n in State.
That in the new way of dealing with
public utility companies municipalities
are securing service at rates based on
cost, was the declaration Of Stiles P.
Jones, of Minneapolis, Of the Public
Franchise league. His subject was
"The New Order in Public Franchises" !"
he delivered his address at the morn
ing session of the convention today.
The 'jitneys' have caused a serious
situation to arise in connection with
traction systems, according to the
speaker.
:'The old way of dealing with pub
lice utilities owned by private COM
panies has passed." asserted the
speaker. "The traction companies are
seeking cooperation from the pub
lie. The city of Cleveland is an ex-
ample where the residents are get
ting street car service at a rate based
on cost. Under the new order in pub
lie franchises, public utility companies
are required to base their investments
on the physical valuations of the pro-
perties and not water any stocks.
The investor, especially the small in
vestor, is protected. The citizen is
given maximum service at minimum
cost. 1t is not all matter of profits
with the company, but service. EN-
ployers also share in the profits CT
certain public utility companies"
Detroit and Toledo are cities which
refuse to compromise with public
utility companies in franchise mat
ters, according to Mr.. Jones.
New Order in 6hicsges $780,
The new order in public franchises
came in Chicago in 1907, when the city
settled with the surface car COM
panies. The city was granted right
to purchase the roads when it saw
fit. Although the Minneapolis street
car company franchise will not ex-
pire for eight years, the company IS
already negotiating for new fran
chise, the speaker reported.
Speaks on Municipal Ownership.
That municipal ownership of pub
lie utilities increases land values and
that municipalities should have some
restrictions on the benefited lands was
a statement made by Hon. Herbert S.
Bigelow, of the Public Power league,
Cincinnati. 0.
municipal ownership purifies poll
tics" declared the speaker. The peo-
ple should have the control over
monopolies. 1t has been demonstrate
ed in Cleveland, Cincinnati and scores
of cities throughout the United States
that municipal ownership pays. In
England and Germany there is no dis
pute that municipal ownership is the
thing"
Hits at Opponents!
That every statement OF the Fupne
Service league regarding the condl'
ton of the municipality owned electric
plant of Cleveland is false, was 8
declaration of the speaker.
Cleveland Report.
~ investigated conditions at the
Cleveland plant and found that th<
plant was making good" said tht
speaker. "A saving of $1,00O,O0O ha'
been made to the residents of Cleve
land by the establishment of mum
cipality owned electric plant. The pri
vate company has twice reduced it
rates since the city entered the SAM
field. The city has $4,000 patrons TO
its electric service. Only seven mel
are employed in the city's plant an
there is no waste. The best sort o
machinery is used. It is easy to ex
aggerate the faults Of a municipa
plant"
After speaking of the Clevelan
plant, the speaker turned his atten
ton to the report of the interstat
railroad commission on the Rock Isl
and road.
"In 20 years corrupt management
made the stock Of the road go fro1
$500 a share to $50 share" de
clared Mr.. Bigelow. Excessive sa
aries were paid the officials and graf
was rampant. The Denver Post wa
s. paid $4,000 for editorial service
! the company's behalf" -..-
sS Refers to Hibbing. t..
Speaking of the municipal plants :
Hibhing, the speaker said he undel
sAood that thsy were not making goa,