Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1916-08-11
AS TO THE FRANCHISE

AS TO THE FRANCHISE
It appears, from the published state
ment of our contemporary, as we'll as
that OF the Water Power company,
that franchise is not of much i'm
portance, theory which will be re-
ceived with some surprise by people
in general. If franchise is of little
Importance and the people are giving
little or nothing when they make a
present of it to a corporation, it is
strange that thing Of SO little i'm
portance is of value as basis for the
issuance of bonds. AS a matter of
fact, franchise is grant of a privi-
lege, and has value varying with place
and circumstance, but it has value, and
there seems to be no reason to mini
mize this feature Of the franchise sit
uation. The council as trustees for the
people must take this into considera-
ton.
One of the considerations in the
grant OF any franchise ought to be
good service. All who ask for fran
chises promise good service, and poor
service should make a franchise null
and void. There is more than this,
however. Apart from proper service,
which any concern that expects re-
Enumeration should give, the franchise
represents something upon which all
service is based and the matter of
compensation to the people for the
privilege enters in. Franchises should
not be donations, and especially when
such utilities as light and water are
involved, both essential to comfort,
health, safety and sanitation. Nor
should it be used as basis for floating
bonds according to the secretary of the
Municipal Reference Bureau of the
Minnesota League Of Municipalities.
He says:
81 note from newspaper story
that your company is contemplate
ing hypothecating the franchises
in its fnanciering of the extern
sion. Permit me to suggest that a
bit of caution would be wise here.
It is agreed by virtually everyone
who has studied the matter and
confirmed by the experience of
cities throughout the country that
the franchise should not be re-
garded as a financial asset of tho
company which can be used as
source Of revenue by bartering or
sale.'
AS to how far and how much has
been done by the company to aid the
local manufacturing situation, is an
open question. Probably some folks
are weary Of hearing us talk about
the quarries, but how to reach the
quarries and how to get the raw pro-
duct-the finest granite on earth-to
Little Falls for working, does not ap-
pear to have seriously been considered
5y the local power concern at any
time, at least not since the death of
Mr.. Lester, several years ago. So much
for that.
In regard to rates, it seems accord
ing to the statement, that even were
rates agreed to in franchise, that a
court would protect the company if it
Gould show tie rates were too low. As
those familiar with the old franchise
litigation know, courts sometimes do
queer things, and they might protect
a company from it's own agreement to
do certain things. Whether a. concern
is operating at loss, the ele.
ments to be considered in making
necessary computation, is largely a
technical matter requiring examination
We have it, however, from the man.
ager of the power company, that the
local rates are not based on invest
ment, ETC., but is an arbitrary one
With franchises granted for but short
terms, rates can better be arrived al
and on a basis that would preclude
court action. However, we know Of
no citizen who desires to confscate tn,
public service corporation.
There is no objection to service be
ing furnished outside, except in so ia
as such outside service may tend t.
restrict the scope of what properl,
might be conceived as the company
local duty under the franchises O.
which it has for many years operate
without ever paying cent for then
There has been some fear that desir
for immediate returns will interfer
with that larger duty which the peop]
feel is due the citizens of Little Fall
It is proposed to issue more bond
and so far as any one knows, prime
pally to finance improvements for ou
side extensions, and not to promot
any local enterprise of definite valu
Why should the people Of Little Fall
under those circumstances, give ava!
now or hereafter, privileges wherei
no local return is to be received. The1
is no comparison with other manufa
turing concerns who are in an ope
field, and have no franchises. No bus
ness man in Little Falls would give h
customers premiums to liven trade
some other town.
Anti-income tax. Anti-two-cent pa
senger fare. That's Hughes.
Whatever else may be said, this 4
man will gainsay-the country h:
1,oon lyonf Of. neace Of tho val,