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directly concerned with the ownership | of waterfronts and with the administration of ports. There is now, however, an augmenting tendency on the part of local authorities to coöperate with the Federal Government in the matter of harbor improvements.

waterfront in public ownership is increasing each year and has been so increasing since 1871, when the Department of Docks and Ferries was organized. Three years ago there was constructed the last monumental improvement, the Chelsea trans-Atlantic steamship terminals. But the rapid growth of trans-Atlantic liners has forced the city to secure a new location, and it is now constructing in the vicinity of West 46th Street, North River, a modern steamship terminal capable of accommodating 1,000-ft. liners. Meanwhile, the Harbor Commission of New Jersey, in its report to the Governor, outlines a plan to improve the portion of this waterfront that is subject to its jurisdiction. The report also points out that New Jersey has too long allowed its portion of this riparian property to be exploited by railroads for lighterage purposes and in the general interest of other sections of New York Harbor.

As regards the ownership of waterfronts and the construction of wharves and other terminals, these, with a few notable exceptions, have been largely matters of private enterprise. Thus the waterfront at a very large number of American ports belongs to railroads and industrial companies, while port terminal facilities, including docks, wharves, warehouses, and mechanical appliances for loading and discharging vessels are generally the property of dock companies, railroads, coal, ore, and other business corporations that are frequently unconnected with general shipping. But there is to-day a widespread movement to acquire these facilities, as did years ago New Orleans, San Francisco, and, in Boston. During the past year the less degree, New York, for the general Directors of the Port of Boston, a use of the shipping public and thereby state board for whose work the legis to eliminate, as it were, all private lature authorized a bond issue of gain from the waterfronts. This has $9,000,000, have been actively developerated to bring about a larger meas-oping shipping facilities. At South ure of centralization in port administration. Ideals such as those just described represent the forward movement of American ports, a movement that found national expression at New York City in December, 1912, at a conference held there of port authorities, composed of representatives from all of the leading ports of the United States. After a general exchange of views relating to port construction and administration, the conference was organized as a permanent association. Its second meeting was held at New Orleans in December, 1913.

New York. Two states, New York and New Jersey, are represented in the port of New York, whose total waterfront aggregates 770 miles. The frontage in New York City aggregates 577 miles, of which that municipality owns 349 miles and the Federal Government 10 miles. The city also owns 235 wharves out of a total of 805, and the rent therefrom in 1912 was $4.240,510. Jurisdiction over these public wharves is vested in the Commissioner of Docks. The length of

Boston, Commonwealth Pier No. 5 has been recently completed at a cost of $2,500,000. It is 1,200 ft. long by 400 wide. On the Commonwealth Flats, also in South Boston, the lessee, a private company, is erecting the Fish Pier, which will be one of the finest fish terminals in the world, if not the finest. In East Boston the Board is expropriating and widening a pier at a cost of $1,750,000. A large dry dock is also projected.

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Philadelphia. About six years ago the legislature of Pennsylvania created a Department of Docks, Wharves and Ferries, which was empowered to purchase and construct port terminal facilities. Under the direction of this department the city is gradually reorganizing shipping facilities. waterfront is still largely owned by private corporations. Recently, however, several piers have been taken over under an eminent domain enactment of the legislature. The Dock Street Pier, costing the city about $1,000,000, including the site, is about completed. Preliminary work has also been started on the Southwark Piers.

In 1913 the state of Pennsylvania ap- | 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.

gating $3,500,000 have been issued to 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

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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 exthe isting transit facilities (A. Y. B., 1913, undoubtedly constitutes most gigantic franchise deal ever ef- 1912, p. 285). The contracts recogStatistics nize the principle of the indeterminate fected by a municipality. 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 The Inter- recover control over the outstanding boro Bridge to Queens. 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 provision that if recaptured by the companies are to operate jointly elevated lines in Queens from the Queens-city they may not be used for rapid

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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 Shively Spencer Utility Commission Act passed in Indiana in 1913 (House Bill No. 361). Section 100 provides:

franchise

Every license, permit or 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 fixed by said Commission. 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.

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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 promising form yet devised. (See also Public Service Commissions, infra.)

Cleveland Street

chise. The whole country is interRailway Franested 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.

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

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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 of Illinois. In Minnesota the legislature passed a bill permitting the establishment of city commissions. It was vetoed by the Governor as wrong in principle and a general state commission was recommended. Missouri, one of the pioneer states in the matter of city commissions, abandoned the plan in favor of a state commission. Spokane and Seattle tried hard to secure legislation which would have permitted them to create local boards, but without success. Colorado, how ever, passed a new utilities act modeled closely upon the California statute, creating a state commission with local option in the matter of city commissions. The law is not in effect, having been suspended by petition for a referendum. The bitterest fight between the state control and "home rule" advocates was in Illinois. Governor Dunne had made a state utilities commission one of the strong planks of his platform. At the same time he strongly favored giving direct control of local utilities to cities of 20,000 and over and of permitting smaller cities to vote themselves under or out of state control. The Governor also recommended the division of the state commission into two parts as in New York, one to devote its attention to the city of Chicago exclusively. In his annual message he said: "The public utility problems of Chicago are so great and so complex as to require the entire attention of such a body of experts." A bill embodying these features was introduced by Representative Rapp. When it was reported out of committee, however, the home-rule section was omitted and a general state commission was provided. The city of Chicago 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. It was signed, however, on June 30.

Model Public Utilities Law.-In 1906-7 the National Civic Federation

made an exhaustive study of the actual working of municipal ownership of public utilities. The result was an exceedingly valuable and authoritative report. The advent of the public service commission plan of state control in 1907 and its rapid development all over the United States has been widely heralded by its advocates as an effective substitute for municipal ownership, having practically all of its advantages and none of its objections. As a logical supplement to its analysis of municipal ownership, the Federation undertook a thorough study of public-service regulation, with the object of determining how far this claim is true and to serve as the basis for the drafting of a model public service commissions act which will represent the judgment of the leading experts in the country. Dr. John H. Gray of the University of Minnesota was placed in direct charge of the investigation under the supervision of a committee of distinguished experts. The work has been completed during the year. As stated in a recent interim report, the chief object has been "to evolve if possible a working plan, adaptable in the main to every part of the country, whereby public utilities may be regulated by the state wisely and in the interests alike of the public and of themselves." Special reports have been prepared on the regulation of capitalization, the sliding scale method of rate making, and the relative advantages of state and local municipal control. Studies were made by special experts of foreign conditions, particularly the English method of control of capitalization through public auction and letting of securities. Court decisions have been compiled and analyzed. Special sub-committees 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.

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District of Columbia.-Since 1908 the Interstate Commerce Commission

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