The record-union., 1896-12-01
VETOED THE GAS FRANCHISE.
Mayor Hubbard Says Such Privileges Are
Worth Money.
Believes the Time Has Arrived for
the City to Protect
Itself.


franchises for nothing. Recently a
corporation calling itself the Pa
cific Gas Light and Fuel Company
obtained a franchise from the City
Trustees to lay pipes under the streets,
but in a message to that body last
night Mayor Hubbard declined to ap-
prove the ordinance. He says:
To the Honorable Board of Trustees:
] herewith return to you without my
approval proposed ordinance No. -,
entitled AN ordinance granting a
franchise to the Pacific Gas Light and
Fuel Company to lay down mains and
pipes in and through any and all the
streets and alleys in the city OF Sac
ramento," and for the following rea-
sons, VIZ:
First believe that the time has now
arrived when the city of Sacramento
should protect itself in the matter OF
franchises. Our streets, which are be-
coming more valuable every year, are
the property of the citizens of Sacra-
mento, and we, as officers of the city,
are holding these streets in trust LOT
the use and benefit of the people; and
as such officers it is the duty OF the
Board of Trustees and the Mayor to
preserve them solely for the interest
and benefit of those who placed them
in Office and trusted them to manage
this property. If the right to use our
streets and alleys is grant of value
in the market it is clear that this grant
should not be made without just and
full compensation.
Franchises have in recent years be-
come valuable, and no franchise should
be granted or sold by the city except
with the understanding that from and
after the commencement of operations
under such franchise the city should
receive during its existence at least 3
per cent. per annum of the gross re-
ceipts arising from such grant. In
this instance the franchise was sold
for the sum of $25 and a special rate
TO be extended to the city for gas.
We must sooner or later take a firm
stand In relation to the granting of
these franchises, and I believe that no
franchise should be granted under any
circumstances unless the city retains
an interest in the receipts arising from
such grant.
Competition is what we want, but we
have learned from experience that fierce
composition soon leads to consolidation,
combination and high prices. One
company or corporation will endeaYor
to drive another out Of existence, and
the successful one usually makes up
for what it has lost by imposing eX-
cessive charges upon the people.
In all of the large cities of the United
States and Of Europe this matter or
granting franchises is being much con-
sidered, for such cities have learned
from bitter experience that they have
given away valuable franchises which
have created gigantic corporations and
trusts whose sole aim has been to op-
press and to make large fortunes at
the expense Of the people, and for
which the people have never received
anything like an adequate remunera-
ton.
In Paris, France, no franchise has
been granted for many years, except
in cases where the city receives a full
and fair share of the earnings which
are derived from the operation of such
franchise, and a large proportion OF the
expenses of that great city is paid from
this income.
The city of Glasgow, Scotland, now
pays nearly all of her municipal ex-
penses from the revenue derived from
the earnings obtained through the op-
Grafton Of franchises granted in that
city.
Second-This proposed ordinance
grants to the Pacific Gas Light and
Fuel Company the use of all Of our
streets which have been improved at
great expense to our citizens, for the
purpose of laying down pipes and sup
plying gas for the use of said city and the
inhabitants thereof for twenty-five
years, and as consideration therefor
the said company agrees not to charge
more than 81 80 for each 1000 cubic
feet of gas during the first five years of
this franchise, and that said gas shall
not be less than twenty-candle power
from burners which consume six cubic
feet per hour My objection to this is
that it may be two or three years before
the company will be able to lay down
their pipes and mains, and that, by the
time it is prepared to furnish gas, the
FIVE years Will have almost passed, and
it will then be at liberty to charge any
price which it, or its assigns. may see
fit. Tt seems to me that maximum
charge should be fixed for the time dur
ing which the franchise shall exist.
Third-The proposed ordinance lacks
the necessary safeguards for the pro-
lection of the best interests of the city.
There is nothing in said proposed or
dfnance requiring the said company to
commence the work of laying the pipes
and mains within any specified time, nor