Sacramento daily record-union., 1890-09-23
sLOW-ACYIHG LIGHTNING
WHY THE ELECTRIC RAILROAD FRAN
CHIsE HANGS FIRE.
Mr.. Henry is Satisfied With 1t, But the
Stockholders Are Not-Hints of
Possible Lawsuit.

During the session of the City Trustees
yesterday the Mayor read letter from
Edwin K. Alsip, Secretary of the Central
Street Railway Company, refusing, on the
part of the company, to accept the fran
chise as granted to Mr.. Henry, believing
that the bonds issued under such a fran
chise would be Of little value aud not
safe investment for capitalists
Grove L. Johnson, attorney for Mr..
Henry, read to the Board short history
he had written of Mr.. Henry's relations
with the Central Street Railway Company,
mentioning the most important clauses in
the agreement, one of which was to the
effect that Mr.. Henry was to be given pos
session of the road if he could obtain
the necessary changes he desired in the
present city franchise. Mr.. Henry did Sc
cure the changes he asked for and then
called upon the owners of the road and de-
manded the possession of the same, in
compliance with the provisions of the con-
tract. Under the ordinance, as amended
he was ready and willing to fulfill the con-
ditions of the contract. He demanded from
the other parties, both as shareholders and
Directors, that they comply with their
agreement, bat they refused to do so. The
reasons given for the refusal were entirely
foreign to the agreement and in no man
ner concern the Trustees or the public ;
though Mr.. Henry has no objection
whatever TO making them known to any,
body who may inquire for them. The fact
remained, however, that they have de-
clined to turn over the road, in accordance
with the terms of the contract. Mr.. Henry
stood prepared to expend $4,000 in the
city OF Sacramento in equipping the road,
electrically, under the provisions of the
agreement. He was anxious to begin the
work and to have the road in running
order within the time specified. He was
confronted. however. at the outset, with
the positive refusal on the part of the share.
holders to surrender to him the possession
of the road, or to permit him to carry out
his contract.
In this dilemma he presents the matter
fairly and squarely to the Board of Trus-
tees, in the hope that, by so doing, he
might be better able to determine pre-
cisely what remedy he should invoke to
compel the shareholders to live up to their
agreement and to secure for the citizens of
Sacramento the benefits of a modern first
class electric street railway. By the ex-
pendture of Mr.. Henry's money on the
road, the company's property would be
greatly enhanced in value, and the security
afforded the company bondholders, instead
of being impaired or in any manner
affected injuriously, would be increased
and enlarged to an extent corresponding to
the additional rolling stock, motive power,
machinery, etc.
Naturally, Mr.. Henry was desirous of
proceeding carefully in a matter involving
so much to himself and the people of Sac
ramento. 1t was only on the Goth instant
that the refusal of the shareholders to COM
ply with their agreement was made final
Mr.. Henry could not decide in moment
what course he ought to pursue but mas
much as the ordinance in question con-
tanned the provisions requiring its accept
ance in writing by the Central Street Rail-
way Company within ten days, and mas
much as that company had declined to
accept it, he now asked the Board TO extend
the time within which the company might
file its acceptance, for a period OF thirty
days from date, that he might in the mean
time devise the best means of enforcing his
contract with the shareholders, and thus
enable him to furnish the city of Sacra-
mento with the street railroad so much de-
sired, as he believed. by all its people.
This result is now prevented only by the
action Of the company's stockholders, N
violation of their contract.
Mr.. Johnson then asked that the Board
pass an ordinance extending for thirty,days
the time within which they should accept
the refusal of the electric company.
All the members agreed to this, the rules
were suspended and the ordinance read
twice and passed.