The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1905-06-11
CONSOLIDATION
Is IN QUESTION
Legality of Utah Light & Railway
Merger Is Doubted by Some.
CONSTITUTION Is CITED
POINT MAY INFLUENCE ACCEPT
ANcE OF NEW FRANCHISE.

Before the present complication over
the attempt OF the Utah Light & Rail
way company 10 secure a consolidation
and extension of its franchises is set
tied. the legality of the action of that
company in absorbing a NUMBER Of
competing street railway lines may be
tested in the court
Certain attorneys contend that the
consultations of lines made by the
company are Illegal and cannot be
made legal They declare that the state
constitution expressly fOrbiGs cOnsOIi-
datiOns such as have been made by the
Utah Light & Railway company and
that II IS not within the power of the
state legislature or the city council to
give legal sanction TO the acts of the
company in violation of the Constitu-
tlon' which IS the supreme law of the
state
Section 13 Of article II Of the state
constitution says.
No railroad corporation shall con-
soldate its stock, property or fran
chlse with any other railroad corpora
ton owning a competing line
Asked as to how the higher courts
define street railway. Assistant City
Attorney ". II. Bramel said: The
courts have held that street railroads
are railroads TO all intents and pur-
poses IN law They are treated ex-
actly the same by the courts"
Law Is Put Through.
For some purpose which has not been
explained but which was evidently to
create the impression that il was
striving to legalize its previous acts of
consolidation, the Utah Light & Rail-
way company lObbied an act through
the last legislature, which is found i'm
chapter 131 Of the session laws of 1905.
This act, which is now a law and
which certain attorneys assert IS uu-
constitutional, provides for the con-
SOlldattOn of corporations engaged in
the same general business. especially
naming street railway corporations.
me consolidation may be accomplished
by vote Of the majority of the amount
OF the outstanding capital stock of each
corporation, upon notice stating the
time, place and object of the meeting
20 De held, to be published for at least
thirty days prior thereto in a news
paper having general circulation within
the county or counties where each cor
poratlon has its principal place of bust
hess.
Such consolidation may be effected
either by joining two or more corpora
tons together or by Lhe formation of a
new corporation under the laws of the
state for the purpose of buying in and
taking over the properties of the cor
pOTatiOns desiring to consolidate.
Section ? Of this act Validates all pre-
NlouS consultations I'm accordance
with the laws of this state OF the pro-
visions Of this act"
Constitution Is Cited.
1t is contended by some of the legal
talent of Salt Lake City that this act
would be perfectly legal If il were not
Tor the fact that it bumps square UP
against the constitutional prohibition
quoted, and they say that because 1t is
In conflict with that provision it IS
almost certain to be knocked out if it
Is ever tested in the courts. To
strengthen their contention they quote
section ., article u. which saws.
The legislature shall not extend any
franchise or charter nor remit the for
feiture of any franchise or charter of
any corporation now existing. OF which
shall hereafter exist under the laws of
this state
Asked as to the constitutional status
OF the Utah Light & Railway conpanv-s
consultations. City Attorney = c
Dey declined TO give an opinion
The matter has not been officially
submitted to me" said he. "and until
II * 1 must decline to discuss it.
understand certain attorneys have in
NeStigated 1t. among them Judge I.e-
Grand Young"
The question thus raised NAV have
an influence in bringing the companv
to accept the new franchise. as an en-
tirely new franchise may obviate this
trouble. or at least put the COMPANY
into a better position.