Los Angeles herald., 1908-02-11
PUBLIC DUTY
NOT POLICY
THE ISSUE
CITY. ATTORNEY ADVISES ON
FRANCHISE SALE
COUNCIL SHOULD CONSERVE THE
PEOPLES RIGHTS
Lawmakers Will Act Today on Notice
of Sale of San Pedro-south
Park Trolley
Line


City Attorney Leslie r. Hewitt
brought before the council yesterday
his report on the South Park San
Pedro franchise, the lawmakers decid-
ing to hold a special session this morn
ing to decide on the sale.
Mr.. Hewitt holds that if the city sells
the franchise of this road the entire
franchise should be offered.
At the meeting of February the
council instructed the city attorney to
draft and submit a notice of sale of
a proposed street railroad franchise, in
accordance with the petition OF the
Los Angeles Railway company, along
the following route:
Commencing at the intersection of
San PEDRO and Thirtieth streets;
thence southerly along San Pedro
street to South Park avenue thence
continuing southerly along South Park
avenue to Sarson avenue.
Legal Questions and -
At the time such instruction was
given several members of the council
expressed an intention to further con-
slider the legal questions involved in
the sale of this franchise before taking
final action on the application therefor.
Upon the assumption that the sale
of the proposed franchise is a matter
for further discussion before a final
decision is made [ desire to submit
further report thereon in order that
the issue when finally determined may
be clearly understood" Mr.. Hewitt
said yesterday.
AT the legislative session of 1897 a
r. ,,la afin In IN pa N
chise laws of this state. On March ID
of that year an act wac approved which
embodied the first comprehensive
scheme ever provided in this state for
the sale of public utility franchises
Prior to the enactment of this law such
franchises had simply been granted,
without competitive bidding, and the
result of such loose practice had not
conduced TO promote the public in
terest.
I'm answer to general demand that
the granting of public franchises
should be more carefully safeguarded,
and that such franchises should yield
!; more adequate return for these valu-
able privileges the law / have referred
TO was passed.
City Gets Percentage
ut prohibited the granting of street
railroad or other franchises, except by
sale after competitive bids, to the
highest bidder, and required in addition
the payment to the city annually of
fixed percentage of the gross annual
receipts arising from the possession and
use of the franchise. The proposals
were required to state what percentage
of such gross annual receipts the bid
der would offer to pay, in no case TO be
less than per cent.
1.-The act further provided that the
council should reserve the right to re-
ject any and all bids; that no franchise
could be surrendered without the con-
sent of the council, and that, upon the
application of the mayor or majority
of the council it was the duty of the
attorney general, upon a breach or
the franchise to sue for forfeiture
thereof.
"The law went into effect May H.
1897, and between the passage of the
act and it's taking effect an unusual
amount of activity was displayed in
franchise matters in this city, IN orasr
to obtain privileges that would be free
from restrictions and burdens of the
new law.
ION May g. 1907, two important street
railroad franchises were granted With
out competitive bidding; and on May
II. or the day before the new law was
to become effective, the franchise
known as the John c. Lynch FRANCHISE
was granted. 1t was passed by the
council, approved by the mayor ana
published all on the date mentioned.
'rhe franchise ran for fifty years, and
was also granted without competitive
bidding.
Plaza to SIauson Avenue
"This franchise was so drawn that it
was designed to, and did. constitute a
main. through line, extending directly,
by a continuous and easy route, from
the Plaza, on North Main street, to
the then south city boundary, a dis
lance of four and three-fourths miles,
and traversed Los Angeles, First, san
Pedro streets and South Park avenue
10 Slauson avenue.
IAN inspection of the map of the
city will show that the line of the road
was then, and is still, one of the very
few practicable lines along which n
street railroad can be operated on
main thoroughfares from the center of
The city directly to it's outskirts.
"The failure of the holder of this
franchise to complete the road de-
scribed therein within the time limited
tn .refor, and within such time as SUD
seuently extended by the council, was
the cause of litigation between the Los
Angeles Railway company and the city,
when the company in 1903 attempted to
construct that part of the line south
of Thirtieth street.
Municipality Wins
'',That litigation resulted in favor of
the city, and hence the railway COM
pany now applies for franchise for
portion of the line as originally granted
which it neglected to construct
ut has been strongly urged by the
applicant for this franchise. and the
view has been also taken by some
members of your body, that 1t would
be unjust and inequitable for the city
to deny the application therefor, or to
authorize the city attorney to insti-
tute proceedings to test the right of the
railway company to operate any part
of tn. original franchise.
IT have already advised you that
such d contention has no proper place
in influencing your action in a matter
of this character. where the city coun-
ell is dealing with property and rights
which so directly affect the public well
fare. as trustees appointed by law to
protect and conserve the Same
1.-THE question involved, as ] under
stand it, is one of public duty, and not
merely one of policy"
-A->-S
CLARENCE BARROW