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In 1913 the state of Pennsylvania ap- | gating $3,500,000 have been issued to propriated $250,000 for the improvement of public docks and wharves at Philadelphia.

Baltimore. In recent years the state legislature and the voters of the city of Baltimore have authorized the issue of bonds aggregating $9,000,000. After the great conflagration of 1904, the Burnt District Commission embraced the opportunity to launch a scheme of public wharves, and this policy has won its way. A new commercial and recreation pier is in course of erection and will be completed in 1914. Private corporations have also been actively developing their frontage during the past year at both Baltimore and the near-by ports of Canton and Port Covington. Savannah. The city has acquired 303 ft. of wharfage on the city front and 400 ft. of waterfront on the upper harbor. There are nine public docks and 29 private owners. Further harbor improvements include a turning basin to accommodate the largest liners. During the past year the railroads have expended more than $1,000,000 on new slips, wharves, warehouses, and other terminals. The wharves of the Merchants and Miners Transportation Co., which were burned early in 1913, are being rebuilt at an estimated cost of $300,000.

Mobile has bought 2,000 ft. of waterfront, erected steel sheds, 1,240 ft. long by 100 wide, and has expended $20,000 to help dredge the harbor. Galveston. Recent improvements by private parties are the installment of three banana conveyors, the construction of several piers and of 24 miles of railroad terminals.

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better the harbor facilities. Among recent improvements are a new wharf, 1,500 ft. in length, seven banana conveyors, six conveyors at the Southern Pacific Co.'s wharf, and appliances at the Sugar Refinery wharf. The Board has erected three conveyors to unload bananas.

San Francisco. The 10 miles of waterfront at San Francisco and its 30 projecting wharves, together with a belt railroad serving the waterfront, are owned by the state of California and are administered through a State Board of Harbor Commissioners. It has never been necessary to deepen or widen the harbor, as all channels are well scoured by tides. For port improvements there have been issued during the past 10 years bonds aggregating $12,000,000, running for 75 years, and redeemable from harbor dues. Wharves are leased for terms not exceeding 15 years, the lessee paying in advance the cost of construction. There are now in course of construction or projected, 18 new concrete piers, some of which are to replace wooden structures.

Los Angeles. When the ports of San Pedro and Wilmington were consolidated with Los Angeles, which is about 21 miles from the sea, a bond issue of $3,000,000 was authorized for port and harbor improvements; in 1913 an additional issue of $2,500,000 was authorized for the same purpose. Extensive improvements have been made in and around the harbor, and the city and private parties are now constructing transit sheds.

Seattle. Prior to 1911 the harbor facilities of this port were entirely in private hands. The existing improved dock frontage is 49,935 ft., to which 23.686 ft. is being added at public expense by the Seattle Port Commission. This body was organized two years ago and is authorized to expend $6,300,000 in harbor improvements. It is expected that by 1915 there will be 13 miles of dock frontage improved and available. Out of 58 wharves, three are now owned by the public. The present waterfront aggregates 70 miles, which will be about trebled on the completion of the Lake Washington Canal to connect Union Bay with Puget Sound.

New Orleans.-The Board of Commissioners of the Port of New Orleans, a state board, took over the public wharf system in 1901. The earnings of the Board in 1912 amounted to $429.996, as against $396.730 the preceding year. There are 41.4 miles of waterfront under the control of this Board, five miles of wharfage, with an area of 2,264,571 sq. ft., and 3.66 miles of steel sheds, with an area of 2,642,689 sq. ft.; only six wharves are owned by private parties. A public belt railroad connects the wharves with the industrial section of the port. In recent years, bonds aggre

XI. PUBLIC SERVICES

RICHARD C. HARRISON

FRANCHISES

New York Subway Contract.- boro Bridge to Astoria and Corona. Overshadowing all other franchise The contracts were the subject of one matters during 1913 was the settle- of the bitterest possible political ment reached in New York City for fights, with the weight of popular the construction and operation of the opinion ultimately turning in their new rapid-transit lines. The agree- favor through sheer exhaustion and ment finally ratified on March 19, irritation with the inadequacy of ex1913, undoubtedly constitutes the isting transit facilities (A. Y. B., most gigantic franchise deal ever ef- 1912, p. 285). The contracts recog fected by a municipality. Statistics nize the principle of the indeterminate of the financial and operating details franchise after ten years of operation. are given on a subsequent page of this They provide for municipal ownership article (see Municipal Ownership, in- from the date of construction and the fra). Considered as franchise docu- gradual amortization of private capiments the new contracts are extremely tal contributed toward the building. interesting and important. They are In so far they are an advance over very complex, not less than 125,000 previous rapid-transit contracts. The words having been marshalled to chief objection urged against them is cover the details of the agreements. the ultra-liberal financial terms alThe net result is a division of rapid- lowed the companies. Present profits transit facilities in New York City are guaranteed by the city through into two great interlocking systems. the creation of a first lien on earnings The lines, both elevated and subway, after operating expenses. New private on Manhattan Island and in the capital is granted six per cent. and Bronx are to be controlled by the placed ahead of the city's new investInterborough Rapid Transit Co., the ment. According to the opponents of operator of the existing subway. The the contracts these preferentials will lines in Brooklyn are to belong to the eat up all the earnings, leaving the New York Municipal Railway Co., city with a heavy load to carry in its which is the name assumed by the annual tax budget to meet its own Brooklyn Rapid Transit Co. interests interest and sinking-fund charges. for the purpose. The Brooklyn com- Construction under the new contracts pany is, however, given a line into the is proceeding rapidly. The entire sysvery heart of Manhattan running tem will be completed in between along Broadway from the City Hall three and four years. The city made to 59th Street and across the Queens- no attempt during the negotiations to boro Bridge to Queens. The Inter- recover control over the outstanding borough Co. is extended into Brooklyn perpetual franchises of the elevated by lines running from the terminus railroads, although these are welded of the present subway along Flatbush into the general plan. The new franAvenue to Eastern Parkway and chises for extending and enlarging the thence through a densely populated elevated lines by third tracking are residential section to Queens. Both indeterminate, but contain the curious companies are to operate jointly ele- provision that if recaptured by the vated lines in Queens from the Queens-city they may not be used for rapid

transit purposes, thus making the possibility of capture so remote as to be negligible. (See also Municipal Ownership, infra, and XXIII, Civil Engineering.)

Indeterminate Franchises in Indiana. One of the most interesting franchise provisions in our state statutes is contained in the ShivelySpencer Utility Commission Act passed in Indiana in 1913 (House Bill No. 361). Section 100 provides:

Every license, permit or franchise hereafter granted to any public utility shall have the effect of an indeterminate permit subject to the provisions of this Act and subject to the provision that the license, franchise or permit may be revoked by the Commission for cause or that the municipality in which the major part of its property is situated may purchase the property of such public utility actually used and useful for the convenience of the public at any time as provided herein, paying therefor the then value of such property as determined by the Commission and according to the terms and conditions Any such municipality is authorized to purchase such property, and every such public utility is required to sell such property at the value and according to the terms and conditions determined by the Commission as herein provided.

fixed by said Commission.

Any utility company prior to July 1, 1915, may surrender its franchises and accept from the Public Utilities Commission in their place an indeterminate permit. By so doing it is deemed to have consented to municipal purchase of its plant as provided in the act. As an inducement to persuade companies to accept indeterminate grants, it is provided that in cities where companies are so operating, no competing municipal plant

shall be erected without the express consent of the Public Utilities Commission. The Commission is given power to declare municipal franchises unreasonable and void and to grant franchises direct. The act is radical and its practical operation will be watched with great interest by other states. The duration of franchise grants is one of the most difficult franchise problems to solve. The indeterminate grant is the most promis(See also Pubing form yet devised.

lic Service Commissions, infra.)

Cleveland Street Railway Franchise. The whole country is interested in the experience of this city under its famous settlement ordinance of 1910 (A. Y. B., 1910, p. 228). It marked so distinct an advance in municipal control of transit that difficulties in details of administration have more than local interest. Differences between the city and the Cleveland Railway Co. in June led to the appointment of a board of arbitration as provided in the franchise. C. N. Duffy, Vice-President of the Milwaukee Electric Railway and Light Co., A. B. Du Pont, City Engineer of Cleveland, and Judge John M. Killets, of the United States Circuit Court, were named to decide two questions in dispute: "(1) Should the present allowance for operating expenses as defined by the ordinance be increased, and if so by what amount? Should the present allowance for maintenance, renewals and depreciation be increased, and if so by what amount?" The decision of the board was in favor of the city, holding that present allowances are sufficient.

(2)

PUBLIC SERVICE COMMISSIONS

Legislative Tendencies. These are stirring days in the field of publicutility regulation. During 1913, 42 states held legislative sessions and in 17 of them the Governors urged the passage of public service commission laws or the strengthening of existing laws. A large volume of legislation affecting public utilities was passed, including a number of statutes creating new state commissions. In the majority of cases the new commissions are constructed along the lines fa

miliar through existing legislation. Most of them are given ample regulative powers. The year's legislative record shows the steady advance of the state commission system as opposed to regulation by local city commissions. It is true that the advance has been fought vigorously by a number of cities as opposed to the principle of "home rule." The League of Nebraska Municipalities, for example, adopted strong resolutions against centralized control. So, too, did the

League of Commission Governed Cities made an exhaustive study of the acof Illinois. In Minnesota the legisla- tual working of municipal ownership ture passed a bill permitting the of public utilities. The result was an establishment of city commissions. It exceedingly valuable and authoritative was vetoed by the Governor as wrong report. The advent of the public in principle and a general state com- service commission plan of state conmission was recommended. Missouri, trol in 1907 and its rapid developone of the pioneer states in the matter ment all over the United States has of city commissions, abandoned the been widely heralded by its advocates plan in favor of a state commission. as an effective substitute for municiSpokane and Seattle tried hard to se- pal ownership, having practically all cure legislation which would have per- of its advantages and none of its obmitted them to create local boards, jections. As a logical supplement to but without success. Colorado, how its analysis of municipal ownership, ever, passed a new utilities act mod- the Federation undertook a thorough eled closely upon the California stat- study of public-service regulation, ute, creating a state commission with with the object of determining how local option in the matter of city far this claim is true and to serve as commissions. The law is not in effect, the basis for the drafting of a model having been suspended by petition for public service commissions act which a referendum. The bitterest fight be- will represent the judgment of the tween the state control and "home leading experts in the country. Dr. rule" advocates was in Illinois. Gov- John H. Gray of the University of ernor Dunne had made a state utili- Minnesota was placed in direct charge ties commission one of the strong of the investigation under the superplanks of his platform. At the same vision of a committee of distinguished time he strongly favored giving direct experts. The work has been completed control of local utilities to cities of during the year. As stated in a recent 20.000 and over and of permitting interim report, the chief object has been smaller cities to vote themselves "to evolve if possible a working plan, under or out of state control. The adaptable in the main to every part of Governor also recommended the divi- the country, whereby public utilities sion of the state commission into two may be regulated by the state wisely parts as in New York, one to devote and in the interests alike of the public its attention to the city of Chicago and of themselves." Special reports exclusively. In his annual message have been prepared on the regulation he said: "The public utility problems of capitalization, the sliding scale of Chicago are so great and so com- method of rate making, and the relaplex as to require the entire attention tive advantages of state and local of such a body of experts." A bill municipal control. Studies were made embodying these features was intro- by special experts of foreign condiduced by Representative Rapp. When tions, particularly the English method it was reported out of committee, how- of control of capitalization through ever, the home-rule section was public auction and letting of securiomitted and a general state commis- ties. Court decisions have been comsion was provided. The city of Chica-piled and analyzed. Special sub-comgo began a hot fight against the measure, but without success. After the passage of the bill the Chicago City Council adopted resolutions requesting the Governor to veto it as "a vicious measure subversive of the rights of the people of Chicago and other municipalities." A telegram signed by the Mayor and by 67 of the 70 aldermen was also sent to the Governor in opposition to the bill. was signed, however, on June 30.

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Model Public Utilities Law.-In

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mittees have investigated and ported upon uniform accounting systems, capitalization, forms of reports, franchises, rates and service. A valuable analysis of the existing statutes has been made in such form that similar provisions can be conveniently examined. The completed work should prove of great value to states adopting new public utility acts and to those which are revising and strengthening existing laws.

District of Columbia.-Since 1908 1906-7 the National Civic Federation the Interstate Commerce Commission

has had supervision over the service | League of Denver and the other by the Denver Trades and Labor Assembly, were defeated by vote of the people during the year.

of the street railways of the district. In 1909 the accounts of local gas and electric companies were placed under its control. An attempt was made in 1910 to relieve the Commission of these collateral duties and to give to the Commissioners of the District of Columbia the powers of a public service commission. Again in 1911 President Taft strongly urged Congress to make this change. It has finally been effected by the District of Columbia Appropriation Act for 1913-14 (H. R. 28499), section 8 of which provides that the Commissioners of the District of Columbia shall be ex-officio a Public Service Commission. The new act is elaborate and drastic, giving to the new Commission broad powers of control. It is modeled closely on the Wisconsin and New York statutes. All street railways, gas and electric companies, express, pipe-line, waterpower, telegraph and telephone companies are under the jurisdiction of the Commission. Steam railroads are expressly excluded, as are also the Washington Terminal Co., the Norfolk and Washington Steamboat Co., and companies engaged in interstate traffic upon the Potomac River and Chesapeake Bay. Full power is granted to the Commission to fix rates and to supervise and control service. No securities may be issued without its approval. Uniform accounting systems are to be prescribed. Other provisions of the act are in the main those which have become familiar in the public utility legislation of all of the more progressive states. A novel provision of the act places the cost of investigation upon the public utility where rates are held by the Commission to be unreasonable. An appropriation of $40,000 was made to cover the expenses of the Commission for the fiscal year 1914.

Colorado.--The legislature passed a Public Utilities Act modeled closely on the California law. It creates a strong state commission with broad regulative powers, but leaves local option for the establishment of municipal commissions. The law has been suspended by referendum petition signed by over 18,000 voters. Two state-wide Public Utility bills, one advocated by the Direct Legislative

Delaware. The state is unique in having a general state Public Utilities Act applying to but one city, Wilmington. There has been considerable difference of local opinion as to the success of this Commission. bill to extend its jurisdiction over the whole state was considered during 1913. It was supported by Governor Miller, but failed of adoption.

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Idaho. The Public Utilities Act adopted in Idaho on March 13, 1913 (House Bill 21), reflects local conditions in the emphasis placed on the rate-making and service-regulating functions of the new Commission to the exclusion of powers of control over the financial operations of utility corporations. The Commission consists of three members appointed for six years with salaries of $4,000. It is "vested with power and jurisdiction to supervise and regulate every public utility in the state and to do all things necessary to carry out the spirit and intent of the provisions of this act." "Public utility" is defined as including all common carriers, pipe-line, gas and electric companies, telegraph and telephone companies, wharfingers and warehousemen and all water companies except those constructing irrigation works. The Commission may regulate rates, establish standards of service, and control competition. It may examine corporate records, compel attendance of witnesses, and enforce its orders in the courts by the collection of penalties for disobedience at the rate of $2,000 a day. The Commission may prescribe uniform systems of accounts, but has no control over the issue of securities nor over dividends. The Act is decidedly weak in its failure to profit by the unfortunate experience of other states which have tried to regulate rates without reference to securities. It is generally recognized that the relation between capitalization, corporate debts and rates for service is so close that the state must regulate all three to maintain successful control over the charges and service of utilities.

Illinois. For a number of years there has been a strong party in Illi

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