Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1889-12-31
ELECTRIC LIGHTS.
SMITH, REDDING & CO. AWARDED THE
CONTRACT THEREFOR.
A Hot Struggle Over the Franchise
Mayor Gregory Finds Himself
in the Minority.

Tor awarding the contract for lighting the
streets of the city for the ensuing two
years, and for action on the petition of ].
D. Redding, L. L. Baker, H. G. Smith and
others for franchise for establishing a
Westinghouse electric light plant. There
were present Mayor Gregory and Trustees
Mclaughlin and Wolf, also strong array
of citizens, including several lawyers.
The proposed ordinance granting fran
chise to L. L Baker, H. G. Smith and
others was read by the Mayor.
A communication from City Attorney
Church was also read, holding that the
Trustees had not the power to pass an ordi-
nance granting an electric light franchise,
or, if it had, that it would be against pub.
lie policy to do so.
Mr.. Mclaughlin wished to know if the
Board had asked Mr.. Church for his opin-
ion.
Mayor Gregory said he did not know that
Mr.. Church had been asked, but he was the
city's legal adviser, and it was his privilege
to advise the Board at all times on legal
points.
]. D. Redding asked permission to reply
to Mr.. Churchs communication. He
held that the Trustees had absolute power
to grant the franchise asked and to regu-
late its operations at all times. 1t had
been said that the parties asking the fran
chise intended to sell out to some other
company, which was wholly without foun-
dation. They were sincere in their appli-
cation for franchise, and if granted one,
would carry out their enterprise in good
faith.
6. r. Leonard made an argument against
the granting of the franchise. He held
that the Capital Gas Company had kept its
obligations with the people. and if it could
not make fair interest on its money the
natural result would be that, if another
company were permitted to come in, some
body would be pretty certain to sell out. If
the present company was providing the
city with good lights it would seem to be
good policy to let well enough alone. 1t
was impossible to forecast the possibilities
of the next fifty years-the time for which
this franchise is asked. Electricity is the
most dangerous element in nature, and
there is no telling what improvements may
be made in its use in the next half century.
He did not think it good policy to discour-
age the present company in its operations.
1t had invested large capital here, and
should be protected.
Add. G. Hinkson spoke in similar strain.
He thought it possible that within the next
fifty years q franchise such as had been
asked for might be worth great deal of
money to the city. The population would
not justify the establishment of another
company at this time, and consolidation
would be necessary. The income of the
present company did not exceed s per cent,
and NO company could succeed by furnish
ing light at less than the present rates. For
many reasons it would be unwise to grant
the franchise asked for.
Mr.. Reddng replied to the arguments
made against the franchise. He read Pc
tition TO the Board asking for the granting
of the franchise, and signed by between
200 and 300 business firms and citizens.
Three other similar petitions were also
presented bearing the names of citizens.
Mayor Gregory said that petitions had
little weight with the Board. Only two
weeks ago a strong petition was presented
in another matter, and last week most
of the signers affixed their names to petit
ton on the opposite side of the question.
s. G. benson, as attorney for the Capital
Gas Company, appeared and made an argu-
ment against the granting of the franchise.
He said it would be bad policy to grant a
franchise to company organized and
working under the laws of another State
These matters should be within the juris-
dictiOn of our local Courts. There Is not
room in this city for two electric light
plants, and any person investing would
doubtless do so with the hope of one COM
pany being bought out by the other. Then
the public would have to pay all losses By
increased rates. The argument of cheap
ness is delusive. Nothing can be produced
for less than its value for any length of
time, and sooner or later the cheap article
always becomes expensive.
Mr.. Redding replied to the point made
by Judge benson, concerning the foreign
nature of the corporation whose light it
was proposed to introduce. The men ask
ing the franchise were Sacramento citizens,
and the proposed company would be COM
posed OF the men who have asked the
franchise. He held that Sacramento was
paying as high rate for light as any place
in the country, whereas her citizens should
have ii as cheap as those of New York.
Mr.. Hinkson again addressed the Board
claiming that-as but nv existed
here-the Board hSN eept 6
bid from any parties not pre- carry
out contract at once.
w. c. Clark replied to statements made
concerning the possible infringements o.
patents. He said his company was per
fectly secure as far as regards the patents.
3. U. Steinman, President of the Capita
NdS duuItsStQ lu6 OOdIu DIl6llA
on the subject He said his company wa,
on the ground and ready to carry out re
newal of the contract, now about to expire
The business was paying only eight pei
cent per annum, and if its property wa
insured the business would not pay six pc
cent. He claimed that the bid of his com
pany was really cheaper than that of thu
other company.
Trustee Wolf moved that action in thu
matter be laid over until afternoon, and i
was so ordered.
A recess was then taken till 100 P. NJ.
AFTERNOON SESSION.
The Board reassembled at the houl
named, and on being called TO order thu
Mayor said the members were prepared fol
the further consideration of the matter o
contracting for city lights. He remarked
that the Board had advertised for bids fol
lighting the city from the LIST of January
There was but one bid before the BoarC
that came within these terms.
Mr. Redding said that if given the con
tract his company would be prepared
within ninety days to carry out the provi
sions of the contract.
Mr.. Steinman said there was nothing il
the Boards call for bids that referred t
any ninety days proposition.
Mr. Hinkson said that the Board was, il
his opinion, bound by the terms of its no
tice. If a contract were awarded that die
not conform to the terms thereof thert
would probably be an injunction served
upon the Board to prevent it from carrying
out such contract.
Mayor Gregory said the opinion of tn
City Attorney, as submitted, seemed to b.
an obstacle in the way of seton at thi
time, and he would suggest that the mat
ter be laid over until tomorrow.
Trustee Mclaughlin moved that tn
franchise be granted to the new company
with the proviso that if it should sell on
within two years the franchise should re
vert to the city.
Mr.. Redding said he and his associate
were willing to agree not to sell out TO tn
Capital Gas Company, or any person ident
flied Herewith. But il would not be right
nor would it be possible 10 prevent indi
vidual stockholders from disposing of thei
stock if they shSpid desire to do so. Th
gentlemen asking the franchise are il
earnest, and had no idea of selling out
in the sense implied by several of thos
Directing.
Mayor Gregory said he did not wish t
discourage anyone from bringing capita
into the city. but re wanted to guard th
interests of the city. The present com
psny had been afforded encouragement, an,
he was willing to give q new COMPANY III