The record-union., 1893-02-20
STREET RAILWAY FRANCHISES.
What Manager Livermore Has to
Say on the Subject.
Aims and Desires of the Electric Pow
er and Light Company-Proposed
Suburban Lines.

anu hlSHt NOAlPdny, III Inc IOI4OWllB
communication explains at length the
purpose of the company in asking per-
mission to have certain changes made in
the street railway franchise recently
granted that corporation.
EDS. RECoRD-U D-UNIoN: Regretting that
We are under necessity of occupying your
valuable space, asking for attention of
The public in matter which has already
been so much discussed as perhaps to be
worn threadbare" in the public estima-
ton, we nevertheless must request in
dulgence for brief statement OF facts
with reference to the applications for
street railway franchises now pending
before the Sacramento City Board OF
Trustees, in behalf of the Sacramento
Electric Power and Light Company.
On the 10th of October, 1892, the COM
pany received, by grant to its principal
proprletors, Messrs. Gallatin and Liver
more, through Ordinance No. 302 the
right to build a system of electric rail-
ways, occupying number of prominent
streets OF the city of Sacramento, some of
them streets already used by the Central
Electric Railway Company, the said fran
chlSe, therefore, providing for the use, in
common, by both companies of said
streets. The conditions of this franchise
were, in all respects, the most favorable
TO the city ever granted in the city of Sac
ramento-lt may even be claimed in the
State of California. A bond was exacted,
and given, of $4,000 for the fulfllment of
the terms of the franchise.
Proceeding with the necessary steps for
tho construction of the road granted un-
der said franchise, the company met with
most serious difficulties as to the arrange
ment with the Central Electric Railway
Company for the common use of it's
tracks on the streets granted in said fran
chlSe. No other solution presenting it.
lNyf
necessary to arrange a contrac: of pur-
chase OF the entire system belonging to
the Central Electric Railway Company,
and this was accordingly accomplished
iii contract for future delivery, involv-
ing an outlay very much beyond any
original contemplation.
1t was felt that this outlay was justified
however, by reason of the fact that a
comprehensive system could be thus Sc
cured, atfording infinitely greater accom-
mediation to the people OF Sacramento
than could two competing systems on
different streets, with the necessarily
lengthy intervals of trips, and without
any possibility of transfers.
From this standpoint it became deSira-
bic, in the public interest, to so modify
the routes granted in Ordinance No. 302
as to make a perfect adjustment of the
comprehensive system. This is sought
to be done by proposals, on the part of
the Sacramento Electric Power and Light
Company, to relinquish certain streets in
the said Ordinance No. 302, leaving (it
should not be lost sight of certain other
streets still to be built, and with the orig
1nal bond unimpaired, as a guarantee
that they will be built and operated.
AS substitute for such streets SO relin-
quished, Tor the purpose of adjusting a
comprehensive system, the company pro-
poses to build on other and additional
streets, calculated to develop property
Nruln sl,11
order that II may construct these, it seek IS
a separate franchise, and offers to accept
the same, on conditions precisely identi-
cal with those placed in Ordinance No.
302, and still in force there. 1t offers to
give an additional bond of S25, 900, identi-
cal with that given in Ordinance No, 302
and still in force there.
1t would appear that there should be no
difficulty whatever, on the part of the
Board OF Trustees, in making these neces-
sary giants to the company, since it is
not questioned, that they are all in the
line of the public accommodation and
interest. There have, nevertheless, been in
terJected into the situation proposals that.
in making these new grants to the Sacra-
mento Electric Power and Light Com
pany, they, as purchasers of the property
and franchises of the Central Electric
railway Company shall be held amen
able to new conditions, or exactions, af-
fecting the franchises of that last men
toned company.
Merely mentioning the fact that it is
not seen why, in equity and business
fairness, it should be sought to place un-
usual burdens on the Sacramento Electric
Power and Light Company when its en-
terprises are all conceded to be largely
promotlve OF the public interests, there
yet remains another, and a conclusive
obstacle i'll the way of the imposition of
such proposed conditions affecting the
,,ll,,s. Of . el,sN i
Company. In the first place, the parties
interested in the Sacramento Electric
Power and Light Company are not yet in
possession OF the property and rights OF
the first mentioned company, and, while
1t is true they have made contract OF
purchase with controlling stock holders.
they have as yet no control whatever as a
corporation.
Were they, however, at the present
moment In absolute control of the cor
poration, they would yet be by nc
means in position to bind the bond
holders of the said company's system.
The entire property of the company, in
Guiding its franchises, has been convened
10 certain trustees as security for an
issue of bonds, the proceeds of which
have been used in the construction and
equipment of the railways. These trus-
lees representing the bondholders, are
an absolutely controlling factor in the
property, and nothing that the proprie-
tors OF the Sacramento Electric Power
and Light Company could stipulate or
undertake, in the matter of the qualifica-
ton of the franchises and conditions
under which said bonds were issued,
would, in any respect, bind the Trustees
or qualify the trust deed securing said
bonds.
The Sacramento Electric Power and
Light Company and its allied corpora
ton, the Sacramento County Water Com
pany, can WELD such vast influence in
prosperous development that all consid-
erations save of welcoming them with
open doors should be put aside.
The suggestion to impose onerous con-
ditions upon the Sacramento Electric
Power and Light Company, with refer
ence to the complete system of trans
portation, city and suburban, which it
seeks to give Sacramento, is one which.
in good public policy, ought to be dis
countenanced. Let the company. with
out delay, have the reasonable facilities
and accommodations which it asks for
and let it not be obstructed by vexatious
conditions in its good work.
II brings Sacramento, without any out
Law on its part, advantages and facilities
surpassing those enjoyed by any city in
California, and its advent ought to be
hailed as a public benefaction, rather than
met with obstructive impediments.
Through its enterprise Sacramento may
secure not only a street and suburban
railway system, such as its most enthusi-
astic citizens never dreamed possible, but
the city may likewise be supplied with
cheap and abundant lighting facilities
and with motive power in all depart
ments necessary to operate varied indus
tries, and to largely increase its popula-
ton and the value of all present posses
s1ons of its citizens.