Los Angeles herald., 1892-02-25
THE COUNCIL.
Proceedings at Yesterdays
Session.
The Electric Wire Conduit
Franchise Discussed.
Last Years Water Rates Adopted
Again.
Considerable Opposition to the Conduit
Franchise-The Discussion-Water
Rates Considered in the After
noon-schedule Adopted.

The council met yesterday morning to
consider the ordinance granting D. Neu.
hart the right to lay conduits for elec.
trio wires, cables and other purposes on
and under the streets of this city. AT
10 O'Clock the council went into a com.
mittee of the whole to consider this fran
chise.
Mr.. I. J. Carran, the representative
of Mr.. Neuhart, made an argument in
favor of granting the franchise. He
maintained that the conduit system
would be OF decided benefit to the CITY,
and in closing said:
'This company proposes to give 2 per
cent of its net earnings as license.
This company offers facilities and priv
ileges that are offered by no other COM
pany. We expect opposition, but every
improvement meets with opposition. Ii
the peoples rights can be guarded more
effectually than we have provided in
this ordinance, we are willing that YOU
should add the necessary amendments. I"
superintendent Kaiser, superinten-
dent of the Telephone company-We
are now completing the arrangements
for putting all our wires. underground.
This proposition looks like scheme to
force all of the companies to use their
conduit. 1t will be of no benefit to us.
We will provide our own conduit.
Major Donnell-L am here in the in
terest OF Mr.. Walton. He has heard
nothing OF his application made some
meeting was to be held.
Chairman R0pooIl-T tbi l. = o~o ,..o -
three franchises asked for then and
they were all denied. Mr.. Neuhart
then came in separately and we are now
considering his proposition.
Major Donnell-In our application for
franchise we offered to give per cent
of the gross receipts.
Mr.. Rees-When we considered all of
these franchises per cent of the gross
receipts was the figure agreed on and
now the Neuhart people come here and
offer 2 per cent. of the net receipts.
Cheney of the Los Angeles Gas COM
pany-This is an omnibus franchise. It
asks for the streets beneath and the
heavens above. 1t asks for conduits,
also for pipes, also for cable system, and
also the right to maintain telegraph
and telephone system. 1t contains tive
separate franchises. They should clearly
define what they intend to do. They
say nothing about the size of the con-
dnit. There is nothing to prevent them
from taking the entire street. If this
franchise is granted they can run a
cable company, electric light, telegraph.
telephone system and the Lord knows
what else.
1t is an attempt to freeze out and COM
pei all other corporations in the city to
xxr,k hnr fA1A
are the best in America. Now they want
to tear up our streets, and the franchise
gives them permission to do what they
please. If they build three miles OF
conduit in the next thirty months they
will then be able to hold absolute power
on the streets of the city for twenty-five
years for street cable railway, telegraph,
electric light and telephone purposes.
Captain Barrett, Electric Railway
company-I do not believe there is
merit in this franchise. There is no
bond with it. There may be millions of
dollars back of it. If they want fran
chise for an electric road, cable road,
telephone and telegraph system, let
them have money back of it. The
Electric Railway company has spent
5000 900 in the past six months in this
city, and it is a practical benefit to the
city. This conduit concern is a club
with which to strike every other COM
pany and compel them to use it's con-
duit. 1t is COO broad and sweeping in
character. believe in granting every
franchise that will be for the best in
terests of the city, but this one will not
be of benefit.
Manager Beardsley, Western Union
Telegraph company-Ifit becomes neces-
sary for our company to place its wires
underground, this company would have
us at their mercy and would force us
out of business. Such company could
not make money here, anyhow.
Mr.. Carran The more the city gives
the freedom OF it's city to applicants, go
much better will it be for the city. We
want more companies Of all kinds. The
only trouble with this grand state of
California is that it has been ridden
with monopolies until she is bald
headed. We are ready to put up
check for $4,000; we are not poor and
we want to engage in legitimate busi-
ness, and are ready to convince the peo-
pie of our good faith We are not going
to have empty conduits. Our conduts
are the Edison conduits in use in other
cities. We are ready to let the city fix
the rates to be charged. This is peo-
ple's enterprise. We do not want to be
ground down by a tax of 8 per cent of
the gross earnings, but we are willing to
pay you per cent OF the net earnings.
Mr.. Rees-That means the city will
get nothing.
Mr.. Carran-If we don't make money
you certainly do not expect us to pay
anything. The telegraph and telephone
companies do not pay the city anything
in the way of direct imposition, and
do not think we should be treated dif-
ferently.
Mr.. Cheney OF the Los Angeles Gas
company-The gentleman's argument
is right in line with the proposed fran
chise. His company seeks to estab-
lish gigantic monopoly, as they have
done in many other cities.
Major Donnell All the good features
in the Neuhart proposition are en-
bodied in Mr.. Walton's proposition,
with the addition that he will give per
cent of the gross receipts.
Mr.. Rees-Senator Carran made an
eloquent plea in favor of granting a
similar franchise to Mr.. Walton. 1t
would be folly to give Mr.. Walton the
franchise for 2 per cent OF the net earn
ings while Walton will give 8 per cent
of the gross earnings. l move that the
franchise be amended to read 8 per cent
on fba Orosa aarninOa