The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-06-30

sCHEs AND PROTESTS.

The CeaTy-street Railway franchise was
the topic OF discussion by the Board of Sup
ervisors yesterday afternoon, and insinua-
tons were thrown out right and left.
The existing franchise OF the company
will not expire for seven years, but as
great changes have been projected, with a
view of providing an electric system of a
permanent character, extending facilities
10 meet the public requirements OF a large
and rapidly developing region of the Citv,
the managers of the corporation asked
that the sale of the franchise for fifty
years be advertised.
This proposition encountered violent OPP
position, and quite q number of petitions
have been filed in the office of the Board
Of Supervisors against granting the COM
pany's request.
Supervisor Dimond has been lead ing t he
opposition TO the sale of the franchise,
holding that the privilege, which would
now go for $1,000, would be worth 5000
when the present franchise expires.
Supervisor Spreekels is in favor of giving
I the company the right 10 bid for the fran
chise now, in view of the fact that it is the
purpose OF the directors of the corporation
to invest a large sum of money to build,
equip and operate an electric railway
system. He holds that men who are
willing to invest taeir capital to promote
the development OF the City and provide
for The people the best of modern facilities
for rapid transit should be protected in
their investments.
Herman de Laguna has sent commu-
nioation to the board, stating that the
corporate life of the applicant corporation
ceases earlier than fifty years hence.
Therefore, he holds that the corporation
should file with its written acceptance of
a new franchise a written abandonment
Al LII l. u, II
of Supervisors has no power to grant 8
vested interest in the street for a time
longer than the life of the grantee corpora
ton.
WheD the order granting the franchise
came up Supervisor Dimond moved its
indefinite postponement.
Supervisor Spreckels moved that the
order be laid over one week.
The motion to defer action one week
was lost.
The motion to postpone indefinitely was
lost by the following vote; Noes-Kfng,
Scully, Benjamin, Hughes, Bunker, Nor
gensterp, Spreckels, Wagner-8.
Ayes = Hirsch, Dimond, Taylor,
Hobbs-4
Supervisor Hughes moved to advertise
for bids for the sale of the franchise.
Supervisor Dimond said: 81 hope the
board will not do this In opposition to the
will of the people. What right have we
10 dispose OF q franchise seven years be-
fore it expires? Seven years hence this
franchise ought to be worth $50, 000" The
Supervisor mentioned the receipt of a
letter from the Geary-street Company
which he had received on coming into the
board yesterday. He presumed other
members had received a like letter. Ref
erence was made in the speech to one of
the provisions of the letter relating to
payment of per cent on gross earnings
ol-alc fn
Dimond, saying; The object of the COM
pany in seeking to obtain the franchise is
to protect the investment of capital in the
Improvement of the road. A larbe outlay
for permanent plant and the equipment
throughout of an electric railroad is con-
templated. Capital will not invest in en-
terpnses of public improvement unless
there is some guarantee of protection.
The Supervisor from the Fifth misleads
you in his statement as 10 what the COM
munication from the applicant for the fran
chise contains. l now ask the clerk to
read the entire letter"
John A. Russell, clerk of the board, then
Spreckels. Each Supervisor received a
similar communication. Following is
copy:
Dear Sir: Some objections have been raised
by newspapers, Improvement clubs and indi-
cation has been made TO the Board of Super
visors of the City and County of San Francisco
by the Geary-street Park and Ocean Railroad
The Street Committee of that board, after
careful consideration, have recommended that
the same be granted, but have inserted therein
q clause to the effect that per cent of the
gross receipts of the Lire shall be paid into the
City treasury by the grantee. This is a heavy
tax upon the operations of the road, and, II
travel thereon should increase according to
our expectations, will form q large and con-
tinuous addition to the financial resources of
the City, and Of itself be q full equivalent for
the privileges granted.
10 enable the company, however to do a
business which will yield 1t a reasonable
profit, or even cover its expenses, after pay
meRt of such O percentage, it is manifest that
the road and equipment must be of character
that can successfully compete with the high
class roads in the vicinity, in order that fair
share OF travel can be induced thereon.
The present cable road, cars and equipment,
are old and unsuited to modern requirements,
and the public naturally patronize other lines
where they can obtain superior accommodR-
tons at the same rate. The directors of the
Geary-street, Park and Ocean Railroad Com
pany have, for some time past, seen the neces-
sfty for reconstruction and RECRUITMENT OF
the road so as 10 bring II up 70 the desired
standard, but the vast expenditures which
would thereby be entailed are not regarded
as prudent in consideration OF the
short time the present franchise has
yet to run. They have, therefore, applied to
your honorable board for new franchise,
which, II finally granted TO THIS company, Will
run for o sufficient length of time 70 justify
such en- outlay. Should the company secure
said franchise 1t is the intention oftts direc-
tors TO convert the present road into first
class electric road, with all the most approved
equipments and devices, so that il viii receive
The full share Of travel 10 which It's location
entities 1t. II this is done both tho City and
company will be benefited, the former by the
receipt OF large percentage on the gross
receipts OF great and prosperous ROAD ana tne
latter by the increased business which Will
assuredly follow its reconstruction.
We're it not for the latter considerations the
onerous conditions presented by the Street
Committee could not be accepted, but with
such increase OF business the company feels
that it viii be able TO shoulder the additional
burden thus placed upon IL.
1t may further be suggested that this per-
centage VIII be payable for several years be-
fore the City could enforce such requirement
in any franchise 10 be granted at the expira-
ton of the term of the present franchise OF
said company, and thus all percentages prior
TO 1903 win be clear gain 10 the City.
The company feels assured that when the
merits of Its application are deliberately con-
sidered by you it will be apparent that no un-
due privileges are being sought from the City,
nor can any detrIment ensue to it from the
grant of the franchise applied for; on the con-
trary, as ! have shown, the interests of the
City, the public and the company Will alike be
su bserved and enlarged.
We therefore submit the matter to your dis !