The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1893-05-20
A LEGAL OUTRAGE.
Provision of the Traction
Law Which Makes
Street Grants
IrreVoCab1e.
RESOLUTION IS A CONTRACT.
Even the Legislature Then Could
Not Remedy Abuses-Wbat
Lawyers Say.
RESOLUTION IS A CONTRACT.
special to The Jersey citu Ne,ps.

TRENTON, May 20, 1893.-In two meas
ures perLai ming to street railways. intro
duced by Senator Barrett In the last ses-
sion of the Legislature and made laws.
turks, in one particular, according to sew
erai lawyers of high standing. "a serious
menace to public interests. These meas
ures were introduced ON March s. They
were two of batch of five introduced by
Mr.. Barrett about the same time, all APP
parent.y with the same end in view. All
became laws. &s
OF the two bills of March 8, one was en-
titled, IAN act to authorize the formation
of traction companies for the construc-
tion and operation of street rail-
ways. or railroads operated as
street railways. and to regulate the
same" The other was entitled, "Au act
to enable street railroad companies, or
companies owning railroads operated as
street railroads, to unite and consoiida te
their corporate franchises and other prop
erty with those Of traction companies,
and to prescribe a method therefor"
These enactments prepared the way for
the organization of the Consolidated
Traction Company.
DANGEROUS CLAUSES:
In the latter of these is a section which
provides, among other things, that the
several corporations which are parties TO
an agreement of consolidation, shall be
deemed and taken to be one corporation.
Apparently, according to this, the Con-
solidated Traction Company Swallows
all its constituent companies. In the
former enactment is section which, II
it Is us viewed by legal minds OF high
order. is calculate1 to transfer all the
Of
panies to the Consolidated company.
The section referred to above is as fol-
lows
Any consent required by this act to be given
by any public body may be given by resoiu-
ton or ordinance of such body, which consent.
when accepted by any corporation created
under this act in writing under its corporate
seal, filed with the clerk Of such body, or IN the
body exists, shall have the force and effect OF
contract.
WHAT LAWYERS THINK OF IT.
Speaking of this clause, one of the best
known lawyers in the State said, this
morning:-.'This gives extraordinary
powers to our public boards. Heretofore
any permission given in the way OF street
regulations was gwen by ordinance.
II any franchise was to be granted.
say, the course was as follows:-First.
a notice of intention was published, in
forming the public that an ordinance
was to be drawn for the grant OF
such a franchise; then the ordinance
was introduced. That ordinance had TO
be read three times before it's final pas
sage, of fcourse,-and-Ret--A than -twfee-
at one meeting, and then only under
suspension OF the rules. 1t under these
circumstances the people remaiped i'll
Ignorance of such an ordinance, or gave
it no heed, it was their own fault.
"But mark the difference now. A
resolution can be passed at the meeting
at which it is introduced. The people
maysnot know, are not likely to know
that such a resolution is to be intr odu ced.
They are, in fact, in the dark. The reso-
luton may be rushed through, and in
that way consents given IN
important ~ alters without the least
public knowledge beforehand. No steps
can, therefore, be taken to array an op-
position against it.
THE CONTRACT OUTRAGE.
"The second clause. however, gives to
public bodies even more remarkable
powers, such as they never had before
under our charter. 1t greatly wldens
their field for tho making OF contracts.
Their consent, that clause says. shall
have the force and effect of contract
Under that the Board of Works, for in
stance, may grant TO one corporation
street franchise. Such franchise, before
the passage of this law, was pou trans
ferable OF salable. 1t was repealable by
the Legislature. 1t could be taken away
If the Legislature at any time deemed
such action advisable. But not under
this new law. This grant of a franchise
has now the force and effect of e con-
tract, The franchise is, in short, con-
tract. So the franchise that heretofore
was repealable at any time by the Legis-
lature is pot SO now. 1t Is made by this
law contract. and under the constltu-
tior, =, nok hA n4irad ~