The San Francisco call., 1906-04-03
HEAR ARGUMENT
On. LOWER FARE
Supervisors Consider 0rdi-
nance Fixing Three Cent
Rate During Certain Hours
LEGALITY Is DEBATED
Authorities Are Submitted
and Committee Will Rem
der a Decision Later

The Supervisors judiciary commit
tee Yesterday resumed consideration OF
the proposed ordinance fixing the rate
OF fare 10 be charged passengers on
street cars from $3.50 TO $50 a. m. and
TO p. m. at three cents.
City Attorney Burke, who had de-
clared the proposed ordinance legal.
and with whom the Supervisors on the
judiciary committee have taken issue
on that point, was present with almost
his entire force Of deputies, with the
intention Of showing that he mad not
erred in his legal diagnosis Of the
measure.
In preparing this ordinance" said
Burke. I have kept strictly within the
law which gives the Board Of Super
Risors power. TO fix and reduce fares.
Section -. chapter of the charter spe-
cifcally gives the board the right to
regulate the affairs OF transportation
companies in this city"
Burke went into a history of the
transfer Of the street-rellroad proper
ties in this city from the United Rail
ways Investment Company of New Jer-
sev 10 the United Railroads of San Fran
cisco. which. he said, was originally
capitslized at $4,000 coo, including a
mortgage Of s2O.0O0,00O given on the
properties 10 secure bond issue by the
Union Trust Company. Burke read
long typewritten statement in which
ne showed by figures that the capitali-
zation was increased to Ss7.0O0,O00, Of
which only $500 Of the stock is owned
by local people, the rest being owned
by the New Jersey corporation. Burke
held that the scheme manipulated by
the corporation was contrary to public
policy and public welfare, and cited a
Supreme Court decision TO show that
the Board Of Supervisors has the right
10 regulate street-railway corporations.
GRANT OF FRANCHISES.
TO a question Of Supervisor Wilson
as 10 whether the franchises, having
been granted previously to the passage
OF the ordinance. could be affected by
a subsequent ordinance. Assistant City
Attorney Baggett said:
Your own charter gives you the necessary
mower delegated by the State Legislature,
and there is no Limitation 70 the power. You
would have the right 10 fix the fare at 1 cent,
but the courts might decide that the rate
would not be a reasona bic compensation for
the moneys invested and confscstory Of the
property OF the corporation. You recently
companies supplying those commodities were
IN existence long before the adoption OF the
new constitution II there is any doubt give
the people the benefit OF IL.
Baggett said that the fact that the
State had delegated its power to the
municipality TO fix fares subsequently TO
the granting OF the franchises TO the
railway corporations did not exempt the
latter from being regulated, and pre-
sented several decisions from the Su-
preme Court Of the United States in IL
Hnois in support of his contention.
Supervisor Gallagher referred to one
decision, which gives the municipality
the right TO fix the fares 10 be charged
by railway corporations unless pro
tected by their charter" which, he held,
would prevent such regulation.
Baggett said that the clause in some
Of the franchises that the fare shall
not be more than FIVE cents" did not
limit the power Of the board TO fix the
fare below five cents.
WANTS COURTS TO DECIDE.
Reduce the fare" said City lAttor-
ney Burke. and let the United Rail
roads take the matter to the courts. 1
am satisfied we Will beat 1t there"
Baggett said the provision compel
ling the companies to sell books of
twenty tickets at the reduced fare
would not be legal and should be elm
mated.
Tirey /. Ford. attorney for the Unit
ed Railroads, said the corporation had
spent s4,000.00O TO improve its service
and that plans are being prepared TO
relieve the congestion of travel Ford
denied a statement made by Baggett
lndL the railroad OlUCldlS were present
to defy the Supervisors, and said that
with the present transfer privileges
the company was giving more for the
money than ever before. Ford denied
that the right TO regulate water rates is
analogous TO the regulation of street
car fares. and said that the Legislature
had never presumed to lower fares be-
low the FIVE cents named in the fran
chises Ford said:
The provision requiring the continuance Of
transfer privileges is clearly Illegal and should
BE- left out, as are only compelled to give
With due Difference TO the City Attorney I
say that the law prohibits this board from
reducing fares because the franchise under
which operate is a contract with the city
and stipulates that the fare shall not exceed
cents and a Supreme Court decision in a
Detroit case held that fares could not be
reduced in the face Of the plain provisions
Of the franchise.
Ford asked the committee not to be
swayed by the impassioned plea of
Baggett, who. he said, had gone outside
OF the law and injected partisan preju-
dices into the question to bolster up
his case. Baggett replied to Ford's ar
gumenf, and J. B. Stetson Of the Cali
fornia-street road and ]. B. Layton Of
the Union-street road were given until
next Monday morning at 10 o'clock to
present further arguments against the
three-cent fare.