THE BONDAGE OF CITIES - The Community Environmental Legal ...

TO POLITICIANS AND MONOPOLISTS MUST CEASE. 449inhabitants; 3d class cities(8,000 to 20,000 people) may providethe city and its inhabitants with water, light, heat, power,and telephone service by contract or works of its own; 4thclass cities may light public places by gas or otherwise;andin 1st class cities (over 100,000 i. e., Louisville) the board ofpublic works has exclusive control of the lighting and use ofstreets. The Kentucky constitution of 1891 provides, 163,that "no street railway, gas, water, steam heating, telephoneor electric light company in any city or town" shall lay itstracks, pipes, wires, etc., without consent of the local legislativeauthority, and 164 declares that "no county, city, town,taxing district or other municipalityshall be authorized orpermitted to grant any franchise or privilege or make any contractin reference thereto for a term exceeding 20 years.Beforegranting such franchise or privilege for a term of years,such municipality shall first, after due advertisement, receivebids therefor publicly, and award the same to the highest andbest bidder. But it shall have the right to reject any and allbids.This section shall not apply to a trunk railway."This principle of sale of franchise to the highest bidder isalso recognized in Hew York, Ohio, Wisconsin, Missouri,Louisiana and California. In all, the method has been appliedto street railway franchises, and in California, Wisconsin andKentucky it has a much wider application.Generally the saleis to the company bidding the highest percentage of grossreceipts, but the bid may be for so much cash down, as in NewOrleans, or the franchise may be sold to the company agreeingto serve on the lowest fare, as in the Ohio provision (relatingto 2d class cities, i.e., Cleveland). New Orleans has soldstreet railway franchises for cash at various times since 1879when she first advertised for sealed proposals. Chap. 370 ofWisconsin's laws of 1897, provides for publicationof fullspecifications, rates, etc., and advertisement for bids, beforeany city or village can grant a franchise to establish and operatea street railway, gas or electric plant, or water works ortelephone system or other franchise involving the use of thestreets. Chap. 361 provides for the submission of water andlighting grants to the voters at the polls, and requires suchsubmission if 20 per cent, of the voters petition for it.29