Government in the United States, National, State and LocalGarner, James Wilford
History
Government in the United States, National, State and Local
Garner, James Wilford
United States -- Politics and government
Great improvement has been made in the methods of fighting fires and in
the character of the apparatus employed, so that the danger from loss by
fire has greatly diminished. Furthermore, the more general use of brick
and stone for building purposes in the larger cities has made the danger
from fire much less than in the old days when most houses were built of
wood. Many cities have what are called "fire limits," that is, districts
in which it is forbidden to erect wooden buildings.
=Municipal Public Utilities.=--People crowded together in cities depend
largely upon public service companies for their water supply, for
electric light and gas, for telephone service, and for the means of
transportation. The furnishing of each of these services, from the very
nature of the case, tends to become a natural monopoly. Moreover, such
companies must use the city streets in serving their patrons. It
follows, therefore, that they must be subject to public control,
otherwise the public might be charged exorbitant prices and the use of
the streets by the citizens unnecessarily interfered with. Before
engaging in a service of this kind, therefore, the street railway
company must secure permission from the city to lay tracks on the
streets and to operate cars thereon. Likewise a telephone or electric
light company must have permission to erect its poles on the streets or
alleys, and a gas or water company must have authority to tear up
pavements and put its pipes and mains under the streets.
[Illustration: MUNICIPAL LIGHTING, DENVER, COLORADO]
[Illustration: PART OF THE LOS ANGELES AQUEDUCT, CALIFORNIA
This Aqueduct is 11 feet in diameter and carries water from Owens River
246 miles to Los Angeles.]
_Franchises._--The permit thus granted is called a "franchise," and is
in the nature of a contract between the city and the company. Public
service franchises are often of great value to the companies which
receive them, for the business of these companies in a large city is apt
to be very profitable. Sometimes the dividends which they pay their
stockholders are very large, and not infrequently, to deceive the public
as to the real amount, the profits are concealed by "watering" the
stock, that is, by increasing it beyond the amount of the capital
actually invested. Experience has shown that in granting franchises
certain restrictions or conditions should be placed on the companies to
whom they are granted.
Public-domain text, read in full here on John Shaqi.
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