The herald., 1896-03-19
70 Be SOLD FOR Cash
TIE BONDSMEN ON De LAGUNA'S FRAN
CHISE ARE SAFE
A Decision From the Supreme Court Which
Shows How the Council Has Upon Two
Occasions Jeopardized the Interests Of
the City of Los Angeles

The supreme court has just rendered
decision which has a most important bear
ing upon one, and possibly two franchises,
which were sold by the council within the
past year, one of which is now entirely in
validated by the ruling just made and the
other OF which is very much in doubt.
In deciding the cause of Arthur D.
Thompson against the board of supervis-
ors of Alameda county. affirming the judg-
ment against Thompson, the court OH
Monday upheld the act for the sale of
franchises, and decided that bids under
the act must be for cash.
Thompson bid for an electric railway
franchise in Alameda county against one
Vandercook, who offered 500 cash, besides
agreeing to pay for the advertising, main
tain certain lights and to nay one-fourth OF
/ per cent of the gross earnings. Thomp.
sons bid covered the same ground except
as to the amount of the gross receipts, in
which he offered 2 per cent. Nandercook
was awarded the franchise.
1t was argued that the franchise Act,
dated March %, 1883, was repealed by
the County Government Act, which went
into effect the next day and declared the
general permanent powers of Boards OF
Supervisors, but tho court says: 1.-THE law
looks with disfavor on repeats by implica-
ton and we SEE no such Inconsistency in
these two provisions as to call for deter
mination by this court that the earlier pro-
franchise may be sold to the highest bidder
and still the terms, conditions and restric-
tions upon which the franchise will be
granted may be fixed by the Board of
Supervisors under it's general permanent
powers"
In regard 10 the bids, the court says:
"When the law says franchise must be
sold to the highest bidder without stating
other terms or conditions of sale, it means
sold for cash. 1t does not contemplate
thai 1t may be bartered away for meats
and produce to feed the inmates of the
county infirmary or traded off for horses
to be used in the fire department of the
municipality. The moment you give
construction to the law by which the
officers selling may accept consideration
for the franchise in any other commodity
than money, the whole purpose and object
of the act becomes a nullity. for then a
discretion is vested in such officers which
most probably is not subject to review;
and values of personal property to be
received or services to be rendered in re-
turn for privileges and franchises dealt out
may assume magnified proportions in the
eyes OF the municipal or county officers
conducting the sale, entirely unjustified by
allowed the law would be a failure and
utterly inadequate to meet the purposes
for which it was enacted. The
statute contemplates cash sale and a per-
centage OF gross receipts is in no sense
cash."
The decision above knocks out entirely
the De Laguna telephone franchise and
makes the Scott lighting franchise even
more of doubtful quantity to the city
than it has been.
In protesting against the award of the
latter privilege it will be remembered that
Telfair Creighton and T.. H. Gibbon at the
time made the identical point before the
board Of public works decided by the su.
preme court on Tuesday, which point was
overlooked by the city authorities, and the
highest cash bid was thrown aside. So
confident were tho two attorneys men,
toned. however, of their ground, that their
client was advised to deposit the amount
OF his tender with the city treasury, where
the money now is.