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Re: Transfer mystery

Posted by BusMgr on Thu Jan 14 01:01:16 2021, in response to Re: Transfer mystery, posted by BusRider on Thu Jan 14 00:30:44 2021.

Historically in New York state the legislature could grant a franchise. Over the years state law would require gaining the consent, first of property owners along a route, later of the municipality in which the route would operate. The consent of a municipality is granted by the legislature of that municipality. It is complicated because there were changes in the law depending on the type of municipality, the size of the municipality (and in the case of Nassau County, the right of the municipalities to grant franchises was taken away and given to the county). Other states may vary.

Restrictions on competing with transit authorities are relatively new. Historically, transit was operated by private companies, and there were no transit authorities. In some cities there were restraints against multiple companies operating along the same street, as there was in New York for a short period of time in the early 1900s. In the era of publicly-owned transit authorities there have sometimes been restraints placed on private companies in order to protect the revenue of the government. In modern times, all of this has become academic since operating public transit is usually a money-losing proposition.

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