The labor world., 1921-12-17
THE HEATING FRANCHISE

totypo6 WcT0 OuT1uX t4o 0WAtcAmoA q
strike in 1909 in a similar frame-up.
THE HEATING FRANCHISE
The proposed central heating fran
chise is to run to an individual and
not to a corporation. That is not
good. It is fraught with danger. It
indicates one of two things. The
gentleman wants the franchise as a.
promoting proposition or he is merely
the straw man for a number Of others
who for one reason or other do not
wish to have their names Connected
with it just now.
If the editor Of The Labse World
asked for the same franchise would
the council be disposed to grant it
to hima Not by a long shot: The
commissioners would want to know
whether or not he had the ability. to
put it over. Knowing him to be a
poor man they would conclude that he
wa. merely taking a speculative
chance on a public grant, or he was
using such influence as no is sup
posed to possess to work the council in
behalf of others. He would bs re-
quired to come clean, and if he did not
he would be turned down, as he
should be.
It is too late in the day to grant
valuable franchises on blind. The
city did that once and it. was sorry
for it shortly after. A telephone
franchise was granted to a man named
Evans. He was but q promoter.
When he obtained the franchise he
sold it to the Duluth Telephone COM
pany. That was not ALL They Or
ganized a construction company on
tho side which built the independent
telephone system at it's own figure.
The actual cost Of construction was
covered up and we never were able
to ascertain the true physical valua-
tion Of that telephone system for the
purpose Of fixing a fair and just
rate.
It has been proposed to tack onto
the proposed franchise a provision
for the purchase by the city Of the
heating plant after five years. That Il
very good, but such a provision would
be Of little advantage to the city un-
less the ordinance also provided for
the city's supervision Of the construe.
tion Of the plant. It should require
that bids for all work to be done
should be advertised in the city 's
official paper, the proposals to be
opened in the presence Of represen-
tatives Of the city. The full record
of the original cost, sworn to by the
proper officers Of the company, should
be filed with the city auditor. The rate
Of annual depreciation should be
agreed to in advance. No issue of
Indebtedness against the plant or the
franchise should be permitted without
the sanction Of the council, and, a
number Of other such safeguards, all
gained from our experience with other
public service corporations, should be
inserted in the ordinance.
There is good reason why the city
commissioners should carefully 60 over
every provision Of the proposed ordi-
; nance and see to it that the interests
of the people are fully protected. If
a franchise is to be given it would be
folly to confine the grant to the cen.
tral portion Of the city. Its holders
should be required to make exten.
sions to contingent territory whenever
sufficient revenue may be assured to
, cover the; cost Of operation, plus a
, fair return on the money to be invest.
: ed.
, The Labor World believes the city
: is abundantly able to build and sue
! cessfully operate a pnblic heating
$ plant, but there are so many people WHIT
? still fear public ownership Of tn,
e things we use in common that it j.
! doubtful if it can be put over at thi.
9 time. It ought to be done. It will
4 be done some time, but that time evi
IDENTIFY is not at hand. Possibly Il
7 the people in the central portion ot
: the city once enjoy the comfort ani
t convenience Of a public heating sys
a tenn it may hasten the day for publ.
: ownership, for the other folks will moi
: be content without such convenience
i. A private company would not fine
u it profitable to furnish heat to purely
n residential districts. It is not in bus
9 mess for its health. The city, how
: ever, would be in the business for tn,
d general welfare. It would operatt
without profit. There are a lot o:
y fixed charges such as taxes, divi
o dends and high salaries to officials i
/. would not be required to pay. II can