Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-05-20
COUNCIL HEARSOF
RIVER FRANCHISE
HARB0R COMPANY ADDS TO
ITS OFFER
SPEAKERS WARN LAWMAKERS
NOT TO YIELD
Before Acting, Aldermen VIII Hear
Reports from Art ComniIs-
sIon and City At
torney

All yesterday morning the city coun-
ell listened to arguments on the river
bed franchise situation.
The application of the Los Angeles
Harbor Railroad company was first
talked about. This is the Bird-Win-
trode project, whose promoters want to
use a portion of the official bed OF
the Los Angeles river and certain
streets and alleys for a period of fifty
years.
They expect to maintain and operate
a single and double line of railroad
track for steam railroad; nothing said
about other motive power.
Besides agreeing in its amended Pc
tition to pay the city 2 per cent OF Its
gross earnings every year after the
first FIVE years, the harbor railroad
company's petition contains this Sec
ton:
City Can Purchase
"Section sit is also provided as an
essential condition of this grant that
the city Of Los Angeles may purchase
the said road, its appurtenanceS ana
equipment covered by this grant at
anv time after five years and before
ten years from the date of the grant.
at cost and interest, or at a price to be
agreed upon between the city OF Los
Angeles and the Los Angeles Harbor
Railroad company, or by arbitration In
case an agreement cannot be reached
as to the then value of said railroad, Its
appurtenances and equipment, or the
said city of Los Angeles may, at Its
further option, in addition to the road
covered by this grant. purchase that
portion of the railroads OF said Los
Angeles Harbor Railroad company
which is not covered by this grant upon
the same terms and conditions. pro-
vided that should the said city of Los
Angeles exercise the aforesaid rights
to purchase, or either Of them, then said
grantee, its successors and assigns,
shall have the right to use and enjoy
said railroad upon just and reasonable
terms; and provided further, that the
city of Los Angeles, its successors and
assigns, shall at all times grant to the
said Los Angeles Harbor Railroad COM
pany, its SUCCESSORS and assigns, just
and reasonable divisions of through
rates in connection with its steamship
line, and Just and reasonable rates on
land traffic between the city of Los
Angeles and Wilmington, and grant the
said Los Angeles Harbor Railroad
company the right to run Its trains
over said road under terms provided In
this ordinance and at all times on as
favorable terms as that granted to any
other road"
Municipality In Control
Attorney Frank Thomas explained
the case for the company asking the
franchise, calling attention to the hold
which the municipality has on the en-
terprise. :,
Attorney Lee Gates. one of the d.
rectors of the harbor trolley movement
and Attorney James A. Anderson, for
works, who followed, in their talks dis
agreed as to the city's right to op-
crate q municipal ownership line.
Councilman Wallace asked Mr.. An
derson If there was any legal safeguard
which the municipality could inject to
prevent the transfer or sale OF fran
chise afterward to interests possibly
inimical to Los Angeles.
1.-THE city has no power to enter into
any such contract" said Mr.. Anderson.
'iIn other words" continued Mr.. Wal
lace, "if we were to grant a river bed
franchise then the new owners could
sell say to the Standard OIL company,
and II after five years we chose to want
the franchise for the city we would
have to fight the most powerful cor
poration in the world"
Recalls Water Works Fight
"That lis it." said Mr.. Anderson. "I
might cite the case Of our own water
works here. Though the board Of
deemed wiser to pay million dollars
rather than have years of litigation.
don't care which railroad corporation
gets hold Of the franchise 1t would take
years for the city to assert its legal
rights, assuming that 1t had rights"
Councilman r. M. Dromgold wanted
to know If the danger was as great Il
the city were to lease the river bed.
The answers were yes.
Mr.. Anderson said Los Angeles should
have an ocean terminal. and the only
feasible way was to build and operate
a municipal- line to ocean
wharves.
Promoter Joseph Bell asked Mr.. An
derson If the city could build and ope-
rate q line for profit In addition to
using IL for municipal purposes.
Mr.. Anderson said that within the
city limits 1t could operate the road for
profit or for loss, but beyond the limits
doubts arose.
Gates Differs
Lee Gates differed with Mr.. Anderson
on the point whether the city could
acquire, build and operate a road out
side of the city limits. The supreme
court had held that the city could not
fix rates outside, however. He said the
city could safeguard its interests by
taking an option to purchase any road
to which it gave franchise at the end
of a certain period. The municipal line
idea If carried to the ultimate meant
that the city must build it's own
wharves and own its own, steamships in
time.
AS far as questions OF legal doubt
were concerned, Mr.. Gates remarked
that such questions could be raised to
bar progress of any project for expan-
sion.
Attorney Thomas, for the harbor rail-
road, said that his clients asked for the
franchise within the city's lines simply
incidentally, the object of course being
to get a right of way to the ocean. The
city could protect it's interests by TAX
ing an option on the proposed line for a
given period. With lease great diff
culties might be encountered. Possibly
in years to come by charter or legisla-
tive enactment conditions would be
changed.
AS for his company. he said posi-
lively it had nothing to do with the
Santa Fe system. Its bonds, moreover,
have all been underwritten.