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THE SECRETARY read:

one vote should be cast by one stockholder. I read from the statutes of SEC. 24. The Legislature shall pass all laws necessary for the enforce-eighteen hundred and seventy-seven, page eight hundred and eightyment of the provisions of this article.

If there are no amendments, the Secretary will read section twelve, temporarily passed.

three, an Act defining the business of cooperative societies:

"A coöperative business corporation is a corporation formed for the purpose of conducting any lawful business, and of dividing a portion of its profits among persons other than its stockholders. Coöperative business corporations shall be formed under and governed by division one,

MR. FILCHER. Mr. Chairman: I gave notice some time ago that, after we had completed this article, I would propose a new section. THE CHAIRMAN. Sections twelve and thirteen are before the Com-part four, title one, of the Civil Code of this State, and when so formed mittee. The Secretary will read.

THE SECRETARY read:

SEC. 12. The Legislature shall provide by law that in all elections for Directors or managers of incorporated companies, every stockholder shall have the right to vote, in person or by proxy, for the number of shares of stock owned by him, for as many persons as there are Directors or managers to be elected, or to cumulate said shares and give one candidate as many votes as the number of Directors multiplied by the number of his shares of stock shall equal, or to distribute them, on the same principle, among as many candidates as he shall think fit; and such Directors or managers shall not be elected in any other manner.

MR. ESTEE. Mr. Chairman: The committee, on November nineteenth, reported the following amendment to section twelve: Add to the section," Except that members of coöperative societies, formed for agricultural, mercantile, and manufacturing purposes, may vote on all questions affecting such societies in the manner prescribed by law."

REMARKS OF MR. ROLFE.

inay, in their by-laws, in addition to the matters enumerated in section three hundred and three of said Code, provide:

"First-For the number of votes to which each stockholder shall be entitled; and,

Second-The amount of profits which shall be divided among persons other than the stockholders, and the manner in which, and the persons among whom, such division shall be made."

MR. SCHELL. It says, for the purpose of conducting any lawful business; is not a banking corporation a cooperative society? MR. BLACKMER. The amendment here says, "formed for agricultural, manufacturing, and mercantile purposes." It reads: "SEC. 12. The Legislature shall provide by law that in all elections for directors or managers of incorporated companies, every stockholder shall have the right to vote, in person or by proxy, for the number of shares of stock owned by him, for as many persons as there are Directors or managers to be elected, or to cumulate said shares and give one candidate as many votes as the number of Directors multiplied by the number of his shares of stock shall equal, or to distribute them, on the same directors or managers shall not be elected in any other manner." principle, among as many candidates as he shall think fit; and such Then the amendment of the Committee on Corporations comes in. It reads thus--and the gentleman will see that there is no foundation for

his criticism:

ties formed for agricultural, mercantile, and manufacturing purposes, Add to section twelve: "Except that members of cooperative sociemay vote on all questions affecting such societies, in manner prescribed by law."

MR. ROLFE. Mr. Chairman: As far as the section now before the Committee of the Whole and the amendment are concerned, I will merely express the opinion which suggests itself to me, that the whole thing is unnecessary, because it is improper, to say the least. It says the Legislature shall provide by law so and so, and then goes on to state what kind of a law the Legislature shall pass. Why make it their duty to pass that law, when the law itself is inserted here in the Constitution. I do not consider it necessary to have it in the Constitution. Let the Legislature do it. The Legislature, in my opinion, will have the power if we strike out this section. If we are going to put the law in the Constitution, why say anything to the Legislature. If we are going to have the Constitution, to give these associations an opportunity of organizing Now, this is merely an effort to incorporate this same principle into the Legislature do it, let us leave it to legislative discretion. If we are for agricultural, manufacturing, and mercantile purposes. It is to progoing to direct right here what shall be done, why say that the Legisla-vide against the possibility of any man or set of men securing control of ture shall do it. Now, I am opposed to this section because it is code the majority of the stock, and by that means the control of the corporalegislation. I started in at the beginning, and I am going to carry it tion. There is no harm in it, while there is a great deal of good. through to the end, to oppose everything in the shape of code legislation in the Constitution. And I may as well say right here, that I am opposed to all such things as imposing pains and penalties in the Con- MR. SMITH, of Kern. Mr. Chairman: I hope this amendment will stitution, or fines in the Constitution. We may find that a uniform rule be passed. It seems to me a very important matter that we should have will not work, and consequently these constitutional pains and penal-cooperative capital. Now, then, the combinations of capital, under the ties will not work. influence of a few persons-and such is the case where each stockholder THE CHAIRMAN. The question is on the adoption of the amend-is limited and can have but one vote-are a very good thing. This has

ment.

REMARKS OF MR. SCHELL.

MR. SCHELL. Mr. Chairman: I believe I have the honor of belonging to the Committee on Corporations other than Municipal, but I did not have the pleasure of being present when the committee passed upon that amendment and agreed to it. For one, I do not understand the meaning of the word "coöperative societies," and I would like to have the Chairman of the committee explain it, or I shall be compelled to vote against it. If the word "cooperative" has any special meaning,

I would like to know what it is. I do not wish to vote in the dark.

REMARKS OF MR. WEBSTER.

REMARKS OF MR. SMITH.

worked well in England; and there, too, each member is limited to one vote. Each member is permitted to vote under all circumstances, and is only limited as to the number of shares. Now, under the last clause this will be impossible, unless we put in this amendment. There would be no power to organize these societies unless we adopt this amendment. I hope, therefore, that the committee will pass it.

REMARKS OF MR. BARBOUR.

MR. BARBOUR. In the Committee on Corporations, there was a proposition presented by myself, which will be found in the minority report, providing for these societies. That proposition was made so that corporations could adopt this coöperative principle. I do not remember whether the gentleman from Stanislaus was present or not, but it was understood that it should only apply to agricultural, manufacturing, and mercantile societies. I hope this amendinent will be adopted. THE CHAIRMAN. The question is on the adoption of the amend

ment.

The amendment was adopted.

MR. ROLFE. I offer an amendment to section twelve.
THE SECRETARY read:

"Strike out in the first line these words: The Legislature shall prescribe by law that.'"

THE CHAIRMAN. The question is on the amendment.

REMARKS OF MR. ROLFE.

MR. WEBSTER. Mr. Chairman: The object of that amendment added to the report was to exclude from its provisions all cooperative societies which have been formed in the State, and which, under the Constitution as it now stands, supported by the decisions of the Supreme Court, that they are compelled to follow, as it is the law as laid down, that each share of stock shall be entitled to one vote. The object of this is to follow the plan, as adopted in England, governing coöperative societies, where each member of a society, without regard to the number of shares he shall hold, is simply entitled to one vote. The idea is here, that although there may be different amounts placed in the society of that kind by different stockholders, that each shall be equal in the matter of voting and in the regulation of these coöperative societies. We have a number of these societies in this State and they have operated well. The design is that individuals who have limited means may associate themselves together for the purpose of conducting business on the coöperative plan, by which each member receives a portion of the profits, according to the amount of capital he has invested, but in its government and control each is entitled to one vote, without regard to the number of shares he may hold. I don't suppose it is necessary to enter into the details of this matter. But it is necessary that we should give some encouragement to these societies, which have been of so much benefit to the laboring classes of this State. They have been a wonder-it in a better form than it now is. It is self-executing, and the superful thing in England, and I think we ought to encourage them here. I don't think there can be any one serious objection to it on the part of any one, as it can work no harm, and we think will do a good deal of good.

REMARKS OF MR. BLACKMER.

MR. BLACKMER. Mr. Chairman: I think this amendment offered by the committee certainly should pass. It has been found by experience throughout the State, heretofore, that these coöperative societies have worked a great deal of good. But under the Constitution as it now exists, without legislative enactment, it will be impracticable, because it will be possible for certain parties to gather up large amounts of the stock and secure control of the institutions. The Legislature, last Winter, provided for this very thing, because the Constitution did not do it. They provided that the by-laws might be made so that only

MR. ROLFE. Mr. Chairman: My object in offering this amendment is to prevent unnecessary legislation. Now, as I stated in the first place, I am opposed to putting such provisions as this in the Constitution. But I hope the fact of my being opposed to incorporating it in the Constitution will not prejudice gentlemen against any motion or amendment which I may offer, or reason that the amendment is not offered from the best of motives. I have no desire to thwart the will of the Convention, or to attempt to clog the provision in any way. I am disposed now to treat this section as a part of the Constitution, and my object is to put fluity of these words consists in this: that it requires the Legislature to do what we have done in the Constitution. It goes on and states that the Legislature shall provide by law just what is already provided in the section itself. If any gentleman can explain and convince me that all this is not fully provided for in this section, I will willingly withdraw the amendment. But until I am convinced that it is not a selfexecuting section; so long as I am not convinced that it is not full and complete, then I say I shall insist upon my amendment, because the requirement of this section merely is that the Legislature shall enact a law repeating the very words of this section. Would not that be a complete compliance with this section by the Legislature? But gentlemen may say there are further details necessary for the purpose of carrying out this section. I am not prepared to say whether any further legislation is or is not necessary. But if it should be ascertained that it will

be necessary to have further legislation in order to enforce this section and put it into full execution, then the Legislature can pass such necessary enactment aside from this section. It would look inconsistent to me for this Convention to say what the rights of a stockholder in a corporation shall be by simply saying that the Legislature shall pass the following provision, and then go on and give the provision they are to pass. It is already provided for here, and what is the use of saying that the Legislature shall do it. It looks very plain to me, and I hope these words will be stricken out, unless some gentleman can show me wherein I am wrong.

THE CHAIRMAN. The question is on the amendment of the gentleman from San Bernardino, Mr. Rolfe.

The committee divided, and the vote stood: ayes, 37; noes, 31.
THE CHAIRMAN. There is not a quorum voting, try it again.
The vote stood: ayes, 45; noes, 33, and the amendment was adopted.
THE CHAIRMAN. The Secretary will read section thirteen.
THE SECRETARY read:

SEC. 13. The State shall not subscribe to or be interested in the stock of, or in any manner loan its credit to, any person, company, association, or corporation.

No amendments.

MR. ESTEE. As there is no amendment to section thirteen, I move that this article, as amended, be printed and referred to the Convention. THE CHAIRMAN. That motion will have to be made in the Convention. MR. HALE. Mr. Chairman: I desire to offer a new section, to be numbered section twenty-one; because it is germane to the subject-matter of section twenty.

THE CHAIRMAN. Send it up. THE SECRETARY read:

SEC. 21. No railroad company or corporation shall establish or construct any line of railroad in this State, for the transportation of passengers or freights, except street railroads in incorporated cities and villages, nor establish any terminal point thereof, nor establish nor maintain any depot, station, or other business place for receiving or discharging passengers or freights, except with the approval, to be duly certified, of said Railroad Commissioners, or a majority of them; and said Commissioners shall have power, and it shall be their duty in said matters, to exercise general supervisory control over all railroads to be operated as public highways in this State, other than said street railroads, and the Legislature shall enact laws to render such control effective. THE CHAIRMAN. The question is on the amendment.

SPEECH OF MR. HALE.

MR. HALE. Mr. Chairman: I desire to occupy about five minutes of the time of the committee to explain the objects of this amendment, or new section. This principle is new to our laws-I mean the laws of the State of California. It is not new in principle, however, as a law by which railroads are regulated. It is made for a purpose. It may be necessary, sir, to refer to matters of history. This proposition will be found in the printed bill of propositions, No. 451, and most of the members, I believe, have printed files on their desks. If you go back to the history of the construction of railroads in Great Britain, you will find this principle, and also in the United States, with the exception of the State of Iowa and the State of California. I believe there is no other exception. The principle upon which locations have been made for lines of railroad, has been by legislative discretion. In England there was an Act of Parliament passed, and in other European countries, by governmental edict or decree, the construction of lines of railroad was authorized and provided for. These prescribed the terminal points and the various places of business to be established and maintained by the railroad companies. In the United States it is also true that probably nineteen twentieths of all the railroads that have been constructed within the United States-now amounting to eighty thousand miles-have been constructed under special Acts of the Legislature, and charters and grants conferring upon the companies designated in the law, the right to construct and maintain a road at points designated. And this is all in pursuance of that general theory and policy of treating railroads practically as highways, as public institutions, and therefore subject to public control-the precise principle upon which section twenty has been established here. The Legislature by these means prescribes the route, the county to be gone through, fixes their terminal points, and establish generally, or hold the right to establish the places of business of these companies. This was in entire accord and harmony with the general system, the general policy pursued for the government of highways. As highways are for the public, to be established and maintained by public authority, and in their behalf, private property, for the public interest, may be taken for public use upon the payment of an adequate sum, it follows as a logical conclusion that the government has control of the whole proceeding in accordance with the system which prevails in reference to ordinary highways throughout the country. What is done then? The circumstances perhaps of others require that there shall be a highway between certain points. The needs of the community require it. They may present to the proper Board-under our laws the Board of Supervisors of the county-whose duty it is to pass upon the question whether a highway is needed between the points designated as terminal points, and also whether the petition rightly describes the alignment of the road. That being passed upon affirmatively-and, of course, it rests with the discretion of the Board as to whether a highway is there needed-then comes the question of proceeding to condemn and take private property for the public use. It all proceeds upon the basis, upon the principle, that the public need it, and that it is for a public use. And as I have remarked, the general policy of European governments, and of a majority of the States, is the equivalent of this course in respect to the railroads and their construction. The governments of Europe have treated them as highways. The States of this Union have treated

them as highways. The State of California has treated them as highways. Our Courts have held them to be public highways; and because they are public highways, for the public use, private property may be taken for the purpose of constructing. The right of eminent domain is invoked for this purpose.

Now, the purpose of this new section is to bring our laws into general harmony with this theory of right. Under our law, it is provided that a given number of persons, originally nine, now five, may associate themselves together, subscribe to certain articles, make their acknowl edgment to their terms before the proper officer, and declare their purpose to be to construct and maintain a railroad, which are privileges without restraint from any authority of the State. These five persons are privileged in their articles of incorporation, to fix the aliguiment of the road, designate the terminal points between which it is to be constructed, to survey and fix the line, and having done it, to file a map in the office of the Secretary of State, and in the county in which it is formed, and that becomes the established line of the road. Now, they are privileged to establish all places of business upon the line of the road. We all know practically that a railroad, to be operated for the transaction of the business of the country, must have a large number of places of business-usually called stations-where freights are received and discharged, and where passengers are received and discharged; where, in fact, the main business of the corporation is to be done. Now, in accordance with the policy of the law elsewhere-both in Europe and America-unless, perhaps, you may except the State of Iowa, and I am not at all certain about that-but in the other States it is true that this question of determining the aliguments of the road, fixing its terminal points, its places of business, etc., have been regularly prescribed by governmental authority. That is, sir, it is left alone to the discretion of the company, unrestrained by any officer or any authority of govern

ment.

Now, the object of this section which I propose is to set railroad corporations in this State in harmony with this general rule, and inasmuch as they are highways, and as they invoke the power of State to take private property, it is a public use, and the public should have a voice in determining where these roads should be constructed, and where their places of business shall be maintained. Hence, sir, the terms of this article should be: "No railroad company or corporation shall establish or construct any line of railroad in this State for the transportation of passengers or freights, except street railroads in incorporated cities and villages, nor establish any terminal point thereof, nor establish nor maintain any depot, station, or other business place for receiving or discharging passengers or freights, except with the approval, to be duly certified, of said Railroad Commissioners, or a majority of them; and said Commissioners shall have power, and it shall be their duty in said matters, to exercise general supervisory control over all railroads to be operated as public highways in this State, other than said street railroads, and the Legislature shall enact laws to render such control effective."

MR. LARKIN. I would like to ask the gentleman from Placer s question, if he will allow me.

MR. HALE. Certainly.

MR. LARKIN. Suppose the railroad interest of this State should secure control of this Commission; what then?

MR. HALE. They would only do exactly what they are doing now, and what they always have done as they please. But I would say to the gentleman that the theory upon which we have approved and passed section twenty is, that the State exercises this control through this Commission. The Commissioners are elected by the people of this State, in the interest of the people of the State, as agents acting both for the people and for the railroad companies, to deal justly and to act fairly, and to adjudicate in all respects impartially between them. I apprehend that upon no other theory, or for no other purpose, could this committee have adopted section twenty; and it is upon that theory, and upon the doctrine enunciated in section twenty, that I engraft this proposition as section twenty-one, for the purpose of expressly adding to the powers already conferred upon these Commissioners.

For the want of such control as is here proposed, complaints have come up from all parts of the State. I have heard them from the North, and I have heard them from the South, and I have heard them from the center of the State. I cannot certify to the truth and to the justice of many of these complaints. I only know they are believed to be well founded. These railroads, which are highways-have been so declared by the Courts-have laid out their lines of road, fixed their terminal points, established their places of business, in numerous instances not only in disregard to the public interest, and to the interest of communities who support the road, but for the purpose often of establishing special and adverse interests. For instance, referring to a matter of history, the railroads here in this State-or the one great railroad corporation which has control of nearly all the railroads in the State-owns immense tracts of land, lying along and close to the roads. For instance, supposing a case, a railroad is being run down the San Joaquin Valley. It is a prosperous valley, because it is a great valley, inhabited by thousands of contented and happy people. They run down the valley until they come to the City of Stockton, one of the most prosperous and enterprising cities in the State. They say to these people, we will do one of two things. We have plenty of land, and we can locate our road where we please. We can have all the terminal points and all our places of business established just where we please. They come to a city and say to the citizens, come out and give us so much money, or give us such amounts of money, or such certain privileges, or we will make no station at your city; or else we will run our line of road just far enough away so that your city will go down, as has been done in more than one instance in this State. Now, sir, it needs no argument, no stretch of the imagi nation, to see that these things can be done at any time if this check is not

put upon these railroad corporations. There is power in the State to
prevent these abuses, and it would be a very wise policy on the part of
this Convention to provide that this power should be exercised, to see
that these lines of road are constructed only where the public conve-
nience requires it; that their terminal points shall be selected with a view
to the public interest and the public convenience, and their places of
business established upon the same principles; that these Commissioners,
as the agents of the people, should have the power of supervision over
all the acts of these companies, and that the companies can only estab-
lish their lines of road, their terminal points, and their places of business
under the direction and by the permission of these Commissioners.
MR. CAPLES. If the gentleman will allow me?
MR. HALE. Certainly.

should be carried, might have this effect upon our Commissioners. There is a very great responsibility, as far as actions of this kind are concerned, resting upon these Commissioners. The purpose has been that of establishing rates of freights and fares. Now, I am convinced that even in this there will be sufficient for them to do. But suppose the railroad is to be constructed, and there are different competing points which wish to secure stations. Certainly in such an event there will be a heavy pressure brought to bear upon the Railroad Commissioners. Do we not see that they would be placed in a position where they would be greatly tempted. This we wish to avoid. I am convinced that this matter has not been discussed before the people. The great and allabsorbing topic with them has been the regulation of freights and fares. If that is accomplished, it strikes me that we will have accomplished the grand purpose, and one which will meet the fullest expectations of the people in this State. And I believe if we proceed further there is danrocks upon which we are liable to run, but I do not believe it is necessary. We have already accomplished a great deal-all I believe that it is wise to undertake-all I believe that the people expect or demand at our hands. Let us not try to do too much, lest we weaken that which has already been done.

MR. CAPLES. The gentleman, in his proposition, uses the term "public highways." I desire of the gentleman to know whether he places the same construction upon that term as the gentleman from Sanger of harm. I might continue upon this subject, and point out the Francisco, Mr. Barbour, did in his amendment, which was offered in this Convention some time since; whether the gentleman from Placer places the same meaning upon that term that Mr. Barbour did?

MR. HALE. I do not know as I know what the gentleman is driving at. I will state, however, what meaning I attach to it. The Courts of Great Britain and Europe, and all over the world, wherever railroads have been established, in every State in this Union, including the State of California, have treated railroads as public highways of the land. They have declared them to be such in the plainest terms known to the law. Our Supreme Court has passed upon it, and it is no longer an open question. It is upon that ground, and upon that alone, that the power of the State can be invoked for the taking of private property. MR. CAPLES. The gentleman appears not to have heard distinctly. The construction that Mr. Barbour put upon that term, when he offered his amendment, was that anybody had a right to put their cars and engines on the track and run them. MR. HALE. Now I understand the gentleman's question; to which I simply reply that if my friend from San Francisco put that construction upon the term, I think it is entirely unwarranted by any authority that I ever heard of. In other words, the Courts have held this

REMARKS OF MR. LARKIN.

MR. LARKIN. Mr. Chairman: This provision is a most remarkable one. Had it not been for the eminent author, whom I know and believe to be sincere, I should be greatly inclined to look upon the provision with suspicion, and as an attempt to load down and weigh down the Constitution. This power, if placed in the hands of the Commission, can be used by them, if they choose to do so, to hinder and prevent the building of local lines of road. Not one single road could be built in this State unless by the consent of the Commissioners, which might be in the interest of the present railroads. This power should never be conferred, as the gentleman from Los Angeles, Colonel Ayers, has well said, should never be conferred upon any Commission. I do look forward to the time when every roadbed in this State, and in this nation, will be a toll road, open to every company and every individual who desires to go upon it, and when Commissioners will regulate the tolls and make the time tables. Now, this proposition will preclude the building of comthey can clearly satisfy the Commission that the new road is for the benefit of the people. It is too much power to place in the hands of the Commission. I hope, therefore, that the Convention will vote it promptly down. MR. FILCHER. Mr. Chairman: I offer an amendment to the amendment.

MR. BARBOUR. If the gentleman will allow me? That is to be taken with a great deal of qualification, as the gentleman will find by reading the amendment. I never claimed any such extraordinary thingpeting lines in this State; preclude any individual or company, unless as the gentleman suggests.

THE CHAIRMAN. Send up your amendment.
THE SECRETARY read:

Ma. HALE. I desire no controversy on that point. I wish to say to the gentleman from Sacramento that the sense in which the Courts have held this term is this: not that they are highways in the same sense precisely that an ordinary highway is considered, upon which every citizen may go without restraint or condition, but that it is a highway, a roadbed, on which, though for public use, is under a reasonable control of the companies or corporations by which it is constructed, owned, and operated. The meaning of the term is, that these highways shall be open upon the same and equal conditions to all, for the convey-abandon or discontinue the use of any depot, station, or other business ance of passengers and freight. Not that anybody can put cars on that place for the receipt or discharge of passengers or freight." road, except those who control and operate the road, but that all citiTHE CHAIRMAN. The question is on the amendment. zens shall have a right to its use, both for the transportation of persons and freight, under proper regulations prescribed by law. In that sense they are regarded as highways, and therefore a public use.

Now, we all know that when once those roads are established they supersede all other modes of conveyance, as far as the general mass of commerce, both freight and passengers, is concerned. We know that when once a road is established between points, or between different sections, the stage coach disappears, and all modes for the transportation of passengers or freight, other than railroads, disappear. Experience has demonstrated this, and therefore we know that when once a line of railroad is established, it becomes the exclusive highway. It is a monopoly, because it is better than anything else that can come in competition with it. The duty is all the more imperative upon the State to exercise a wise and sound and just control, because they transact all the business of the community. I think, for the reasons I have given, that this is a provision that ought to be adopted by this Convention.

SPEECH OF MR. AYERS.

Insert after the word "freights," in the sixth line, these words: "Nor

SPEECH OF MR. FILCHER.

MR. FILCHER. Mr. Chairman: I confess I am greatly surprised at the opposition manifested to this section. However, I may possibly be laboring under a delusion myself. If, however, I am not mistaken, sir, this long-standing and justly complained of evil will be remedied by this provision. Now, sir, as already stated by my colleague, Judge Halethough I do not know precisely the details of all the facts in the matter-I have heard indirectly repeated complaints, and I have heard them so often that it has come to be almost a universal cry, that the railroad corporations, in the construction of their lines, have located them, as well as their depots, stations, and terminal points, in many instances to the detriment of the community, and of wants, as they proceeded along through the country. The case of Stockton is a case in point. That city was almost left out in the cold. Visalia and other towns along the line are cases in point also. They have located their lines, and then, under an excuse that the road was going to cost more, and, under a threat of removal, they have levied blackmail upon the citizens. Unless a certain amount of bonds were given them, they changed the line of the road, to the injury of the people. But there is still another oft recurring abuse which this amendment I have offered proposes to correct, and that is, that they shall not abandon any station once established without the consent of these Commissioners. I know of instances in my own county that a man, because he had had the temerity to was made the victim of their malice and revenge. He owned a piece of timber land. He had hired a lot of wood cut, which was piled up along the line of the road, near a switch which had been used for that purpose for some time. He had gone to San Francisco, and made good sale of it. He returned, and ordered a car to be left at the switch to take on a load of his wood. He was then informed that the switch had been abandoned. He appealed to the company, but it was useless. He went to the President of the road, but his reply was that he could not help it.

MR. AYERS. Mr. Chairman: I shall oppose the adoption of this amendment, for the reason that I do not believe it would be proper to place the power in any set of men, or in the hands of any man, to deny the people of this State the privilege of competing with the railroad corporations. Under this provision it would be necessary to secure the consent of the Commissioners to build a local line. It may be the policy of these Commissioners to say that more lines of railroad are not neces-oppose the encroachments of the railroad corporations upon the people, sary, and they have it in their power, at any time, to prevent the building of competing lines of road. It may become necessary for the necessities and convenience of the public to build new lines of road, and I do not want to place it in the power of the Commissioners to refuse them the privilege. So far as the supervision of railroads is concerned, the Commissioners already have full power, and I do not propose to place in their hands the power to put a veto upon the power of the citizens of this State to establish new roads in any part of the State. Mr. Chairman, I do not know whether I have said it here before, but there is so much force in the idea that I wish to say it now, that I look forward to the time when local railroads and canals will ultimately form a complete railroad system for the entire State. MR. WICKES. I move the previous question.

SPEECH OF MR. BROWN.

MR. BROWN. Mr. Chairman: I do not propose to make any lengthy speech upon this question. Now, it is evident that we should not wish ourselves to be placed in a position where we will be compelled to take advantage of the people who sent us here to perform a certain duty. I am convinced that the amendment of the gentleman from Placer, if it

MR. ESTEE. Will not sections nineteen and twenty remedy all such abuses?

MR. FILCHER. I do not know that they will. Finally, the man's creditors came down upon him; the men who had been working for him wanted their pay, and finally, a man known to be in the interest of these corporations-known to be making money by the favors of this corporation-came to him and offered him a certain price for the wood, stating that, as he had teams to haul it, he could not pay but so mucha losing price to the owner-who had put in his whole Summer's work. He was compelled to take it. He could not afford to haul it to another station. In less than a week cars were left at that abandoned switch, while the purchaser was the gainer by several thousand dollars. Now,

I say there is an abuse to be aimed at. This is only a single instance, but I have no doubt there are many others. We know how easy it is for the corporations, with the power that they wield, to crush out its enemies. We have seen them fall by the wayside. We have seen some exalted and others crushed in every community. We all know it by experience. There is the main evil which we wish to strike at. We are perfectly willing that these corporations should have justice-we do not wish to annihilate them; but we wish to curb this power which they have been wielding for evil, and bring them upon the same level as all other citizens before the law. We demand that they shall no longer have the power, by their enormous wealth, to crush all who may MR. HALE. I accept the amendment offered by my colleague from THE CHAIRMAN. The gentleman accepts the amendment, and the question is upon the original amendment.

oppose them.

Placer.

SPEECH OF MR. ESTEE.

MR. ESTEE. Mr. Chairman: I fail to see any necessity for the amendment proposed by the gentleman from Placer, Judge Hale. Section nineteen, as adopted, prescribes that no discrimination in charges, or facilities for transportation, shall be made by any railroad or other transportation company between persons and places. There shall be no difference in the facilities afforded to persons for the transportation of freight or passengers. That applies, also, to the amendment proposed by the gentleman from Placer, Mr. Filcher, and accepted by Judge Hale. Section twenty gives the Commissioners power MR. HALE. Allow me a question.

MR. ESTEE. Certainly, sir.

MR. HALE. I will ask the gentleman if he thinks section nineteen confers any power upon the Commissioners to require the railroad companies to fix the time of their road, or designate the stations and places of business?

SPEECH OF MR. HERRINGTON.

MR. HERRINGTON. Mr. Chairman: I think the members of this

Convention all understand the provision which I have offered, and the objects for which it is offered. This provision will be found in all the recently adopted Constitutions in this country. Nearly all of them have, in substance, provisions of such a nature. It is a provision against the possible contingency which may arise in the conflict between the instrument as adopted and any supposed agreements existing between the corporations and the State. I have endeavored to make this as plain believe that members are striving in good faith to complete this article, as possible, and to cover home corporations. Mr. Chairman, I do not the consideration of this article, now before the Convention. I do subfor they seem to be more interested in their papers than they are in Convention, the section now proposed is equally as worthy of their conmit that if this article is worthy of the serious consideration of this sideration and their candid deliberation. I do not propose to weary you, but this is an important provision, and I do not want it to go by default. I ask your earnest attention to it, believing it to be absolutely necessary, in order to avoid future difficulties which may arise and conflicts which may occur before the Courts, particularly with reference to the present Constitution which we propose to submit to the people. Now, it is necessary, particularly with foreign corporations, before they receive any benefit from future legislation, that they should, in good faith, accept the provisions of this instrument. Where there are acquired rights, there may be serious difficulties which will arise, and complications which it will be exceedingly hard to adjust. The same conflicts are liable to arise between home corporations and the government. I think it does not require any extended argument to convince intelligent men of the necessity of a provision of this kind.

THE PREVIOUS QUESTION.

MR. REDDY. I move the previous question. Seconded by Messrs. Murphy, Swing, Dunlap, and Cross. MR. HOWARD, of Los Angeles. Mr. Chairman: Would it be in order for me to say, after the previous question has been moved, that this is a very good provision, and ought to be adopted? THE CHAIRMAN. No, sir.

MR. ESTEE. Read just what it says: "No discrimination in charges, or facilities for transportation, shall be made by any railroad or other transportation company between places or persons, or in the facilities for the transportation of freight or passengers within this State, or coming from or going to any other State. Persons and property transported over any railroad, or by any other transportation company or individual, shall be delivered at any station, landing, or port, at charges not exceed-put? ing the charges for the transportation of persons and property of the same class, in the same direction, to any more distant station, port, or landing. Excursion and commutation tickets may be issued at special

rates."

MR. HOWARD. Then I won't say it. [Laughter.]
THE CHAIRMAN. The question is, Shall the main question be now

Carried.

THE CHAIRMAN. The question is on the proposed new section proposed by the gentleman from Santa Clara.

It was adopted on a standing vote-ayes, 70; noes, 34.

MR. ESTEE. I move that the committee rise, report this article back to the Convention, with the recommendation that it be printed and placed upon the calendar, to be heard before the Convention. MR. FILCHER. Will the gentleman suspend his motion for a moment? MR. ESTEE. No, sir.

THE CHAIRMAN. The question is on the motion of the gentleman

IN CONVENTION.

THE PRESIDENT. Gentlemen: The Committee of the Whole have

Now, I do not think you can get any language more specific and clear than that. It says that all citizens shall be treated alike in regard to the transportation of persons or freight. Now, section twenty says they shall have power to correct abuses-all classes of abuses, included in which are the abuses cited by the gentleman from Placer. They shall have power, and it shall be their duty, says the section, to exercise a general supervision and control over railroad and other transportation companies. Now, I think they have the fullest power, under that sec-from San Francisco, Mr. Estee. tion, to correct all that class of abuses, and my opinion is that this pro- Carried. posed provision will only weight the article down. I think it will injure rather than benefit us. It will tend to defeat the whole article, and I hope the friends of this measure will vote it down. I know my friend from Placer is sincere, but I have not heard a single argument to show that every abuse designed to be corrected by this new section cannot be corrected under the provisions of sections nineteen and twenty. This very section which he now proposes was before the Committee on Corporations, was repeatedly discussed, and it was concluded by the committee that the other sections were ample to meet the evils complained of. I think the great danger now is in loading down the article. It is not that it does not mean enough, but that we will have so much in it as to load it down and destroy it. I do not pretend to say that there are not possibly evils which this article will not reach. I understand that; but when we are reaching out trying to correct all the evils that exist, we are in danger of reaching too far. I hope the amend-leave to send up his report. ment will be voted down. I do not think there is any necessity for such a provision, in the light of what we have already done, and there may be great danger in it.

THE PREVIOUS QUESTION.

MR. WALKER, of Tuolumne. I move the previous question.
MR. MURPHY. I second the motion.

MR. HOWARD.

I second the motion.

MR. REDDY. I second the motion.

MR. HALE. I hope the gentleman will give way for a moment.
THE CHAIRMAN. The previous question has been called for. The
question is, Shall the main question be now put?
Carried.

had under consideration the report of the Committee on Corporations
other than Municipal, have completed the same, and report the same
back to the Convention, with the recommendation that the article, as
amended, be printed and placed on the calendar.
MR. ESTEE. Mr. President: I move that nine hundred and sixty
copies be printed.

So ordered.

REPORT OF THE COMMITTEE ON CITY, COUNTY, AND TOWNSHIP ORGANIZATIONS.
MR. HAGER. Mr. President: I ask leave to make a report.
THE PRESIDENT. If there is no objection the gentleman will have

THE SECRETARY read:

The Committee on City, County, and Township Organizations have had under consideration the subject-matter and the various propositions referred to them, and herewith report a number of propositions, with the recommendation that they be adopted by the Convention and incorporated in the proposed Constitution, under a separate article and heading, as follows: "Article No. - Counties, Townships, Cities, and Towns."

The propositions relating to cities having more than one hundred thousand inhabitants, being only applicable to the City and County of San Francisco, are reported by the committee for the consideration of the Convention, with the understanding that each member of the committee is free to vote for or against the same.

The committee report back the propositions referred to them, numbered as follows Numbers seven, eight, one hundred and sixty, two hundred and sixteen, three hundred and thirteen, three hundred and fifteen, three hundred and forty-nine, three hundred and seventy-six, four hundred and eleven, four hundred and twenty-two, four hundred and twenty-nine, four hundred and thirty-four, four hundred and dred and seventy-two, four hundred and seventy-nine, four hundred and eighty-six. four hundred and eighty-seven, four hundred and ninety-five, four hundred and MR. HERRINGTON. Mr. Chairman: I offer an amendment to the ninety-seven, and five hundred and five, with the recommendation that they be laid on the table. article, to be known as section twenty-three. Respectfully submitted. THE CHAIRMAN. Send up your amendment. THE SECRETARY read: December 7, 1878.

THE CHAIRMAN. The question is on the adoption of the amend thirty-eight, four hundred and fifty-three, four hundred and sixty-seven, four hun ment of the gentleman from Placer.

Lost-ayes, 21 (noes not taken).

"Every railroad corporation, or other incorporated company or association, existing under the laws of this State, or doing business thereunder at the time of the adoption of this Constitution, shall accept the provisions of this article in good faith before being entitled to claim or have the benefit of any future legislation thereunder."

THE CHAIRMAN. The question is on the adoption of the proposed new section. The gentleman from Santa Clara has the floor.

ARTICLE

JNO. S. HAGER, Chairman.

CITIES, COUNTIES, AND TOWNS. SECTION 1. The several counties, as they now exist, are hereby recognized as legal subdivisions of this State.

SEC. 2. County seats shall not be removed by special law, but such removals shall be provided for by general law. No county seat shall be removed unless two thirds of the qualified electors of the county, voting

on the proposition at a general election, shall vote in favor of such removal. A proposition of removal shall not be submitted in the same county more than once in four years.

SEC. 3. No new county shall be established which shall reduce any county to a population of less than eight thousand; nor shall a new county be formed containing a less population than five thousand; nor shall any line thereof pass within five miles of the county seat of any county proposed to be divided; nor shall a county be divided, or have any portion taken therefrom, unless a majority of all the qualified electors of the county or counties affected, voting at a general election, shall vote therefor. New counties, when created, or portions of a county, when added to another county, shall be liable for their just proportion of all debts and liabilities, then existing, of the county or counties out of which they are respectfully formed or taken.

SEC. 4. The Legislature shall establish a system of county governments which shall be uniform throughout the State; and, by general laws, shall provide for township organization, under which any county may organize whenever a majority of the qualified electors of such county, voting at a general election, shall so determine; and, whenever a county shall adopt township organization, the assessment and collection of the revenue shall be made, and the business of such county and the local affairs of the several townships therein shall be managed and transacted in the manner prescribed by such general laws.

SEC. 5. The Legislature, by general and uniform laws, shall provide for the election or appointment, in the several counties, of Boards of Supervisors, Sheriffs, County Clerks, District Attorneys, and such other county, township, and municipal officers as public convenience may require, and shall prescribe their duties and fix their compensation. It shall regulate the salaries and fees of all county officers, in proportion to duties, and for this purpose may classify the counties by population; and it shall provide for the strict accountability of county and township officers for all fees which may be collected by them, and for all public and municipal moneys which may be paid to them or officially come into their possession.

SEC. 6. Corporations, for municipal purposes, shall not be created by special laws, but the Legislature, by general laws, shall provide for the incorporation, organization, and classification, in proportion to population, of cities and towns, and cities and towns heretofore organized or incorporated may become organized under and subject to such general laws. Cities and towns may become incorporated under general laws, whenever a majority of the electors voting at a general election shall so determine, and shall organize in conformity therewith.

SEC. 7. City and county governments may be merged and consolidated into one municipal government, with one set of officers, and may be incorporated under general laws providing for the incorporation and organization of corporations for municipal purposes. The provisions of this Constitution applicable to cities, and also those applicable to counties, so far as not inconsistent or not prohibited to cities, shall be applicable to such consolidated government. In consolidated city and county governments, of more than one hundred thousand population, there shall be two Boards of Supervisors or houses of legislation-one of which, to consist of twelve persons, shall be elected by general ticket from the city and county at large, and shall hold office for the term of four years, but shall be so classified that, after the first election, only six shall be elected every two years; the other, to consist of twelve persons, shall be elected every two years, and shall hold office for two years. Any casual vacancy in the office of Supervisor in either Board shall be filled by the Mayor. SEC. 8. No person shall be eligible to a county or city office unless he has been a citizen and resident within such county or city for two years next preceding his election or appointment to an office therein. SEC. 9. Any city having a population of more than one hundred thousand inhabitants may frame a charter for its own government, consistent with and subject to the Constitution and laws of this State, by causing a Board of fifteen freeholders, who shall have been for at least five years qualified electors thereof, to be elected by the qualified voters of such city, at any general or special election, whose duty it shall be, within ninety days after such election, to prepare and propose a charter for such city, which shall be signed in duplicate by the members of such Board, or a majority of them, and returned, one copy thereof to the Mayor, or other chief executive officer of such city, and the other to the Recorder of deeds of the county. Such proposed charter shall then be published in two daily papers of largest general circulation in such city for at least twenty days, and within not less than thirty days after such publication it shall be submitted to the qualified electors of such eity at a general or special election, and if a majority of such qualified electors voting thereat shall ratify the same, it shall, at the end of sixty days thereafter, become the charter of such city, or if such city be consolidated with a county in government, then of such city and county, and shall become the organic law thereof, and supersede any existing charter and all amendments thereof, and all special laws inconsistent with such charter. A copy of such charter, certified by the Mayor, or chief executive officer, and authenticated by the seal of such city, setting forth the submission of such charter to the electors, and its ratification by them, shall be made in duplicate, and deposited, one in the office of the Secretary of State, the other, after being recorded in the office of the Recorder of deeds of the county, among the archives of the city, and thereafter all Courts shall take judicial notice thereof. The charter so ratified may be amended at intervals of not less than two years, by proposals therefor, submitted by the legislative authority of the city to the qualified voters thereof, at a general or special election held at least sixty days after the publication of such proposals, and ratified by at least three fifths of the qualified electors voting thereat. In submitting any such charter, or amendment thereto, any alternative article or proposition may be presented for the choice of the voters, and may be voted on separately without prejudice to others.

SEC. 10.

The compensation or fees of any county, city, town, or munic

ipal officer shall not be increased after his election or during his term of office; nor shall the term of any such officer be extended beyond the period for which he is elected or appointed.

SEC. 11. No county, city, town, or other public or municipal corporation, nor the inhabitants thereof, nor the property therein, shall be released or discharged from their or its proportionate share of taxes to be levied for State purposes, nor shall commutation for such taxes be authorized in any form whatsoever.

SEC. 12. Any county, city, town, or township may make and enforce within their respective limits all such local, police, sanitary, and other regulations as are not in conflict with general laws.

SEC. 13. Taxes for county, city, town, school, and other local purposes must be levied on all subjects and objects of taxation. In addition to that which may be levied for the payment of the principal and interest of existing indebtedness, the annual rate on property shall not exceed the following: For county purposes, in counties having two million dollars or less, shall not exceed cents on the one hundred dollars' valuation; in counties having six million dollars, and under ten million dollars, such rate shall not exceed-cents on the one hundred dollars' valuation; and in counties having ten million dollars or more, such rate shall not exceed cents on the one hundred dollars' valuation. For city and town purposes such annual rate on property in incorporated cities and towns shall not exceed cents on the one hundred dollars' valuation; and in any city and county with consolidated government, such rate shall not exceed cents on the one hundred dollars' valua

tion.

SEC. 14. The Legislature shall have no power to impose taxes upon counties, cities, towns, or other public or municipal corporations, or upon the inhabitants or property thereof, for county, city, town, or other municipal purposes, but may, by general laws, vest in the corporate authorities thereof the power to assess and collect taxes for such purposes.

SEC. 15. The Legislature shall not delegate to any special commission, private corporation, company, association, or individual, any power to make, control, appropriate, supervise, or in any way interfere with any county, city, town, or municipal improvement, money, property, or effects, whether held in trust or otherwise, or to levy taxes or assessments, or perform any municipal functions whatever.

SEC. 16. No State office shall be continued or created in any county, city, town, or other municipality, for the inspection, measurement, or graduation of any merchandise, manufacture, or commodity; but such county, city, town, or municipality may, when authorized by general law, and the public interest demands it, appoint such officers.

SEC. 17. Private property shall not be taken or sold for the payment of the corporate debt of any political or municipal corporation." SEC. 18. All moneys, assessments, and taxes belonging to or collected for the use of any county, city, town, or other public or municipal corporation, coming into the hands of any officer thereof, shall, immediately on the receipt thereof, be deposited with the Treasurer, or other legal depositary, to the credit of such city, town, or other corporation, respectively, for the benefit of the funds to which they respectively belong.

SEC. 19. The making of profit out of county, city, town, or public school money, or using the same for any purpose not authorized by law, by any officer having the possession or control thereof, shall be a felony, and shall be prosecuted and punished as prescribed by law.

SEC. 20. No county, city, town, township, Board of Education, or school district, shall incur any indebtedness or liability in any manner, or for any purpose, exceeding in any year the income and revenue provided for them respectively for such year, without the assent of two thirds of the voters thereof at an election to be held for that purpose; and in cases requiring such assent no indebtedness shall be incurred (except by a county to erect a Court House or Jail) to an amount, excluding existing indebtedness, in the aggregate exceeding five per centum on the value of the taxable property therein, to be ascertained by the assessment next before the last assessment for State and county purposes previous to the incurring such indebtedness, and unless, before or at the time of incurring such indebtedness, provision shall be made for the collection of an annual tax sufficient to pay the interest on such indebtedness as it falls due, and also to constitute a sinking fund for the payment of the principal thereof within forty years from the time of contracting the same.

SEC. 21. No county, city, town, or other public or municipal corporation, by a vote of its citizens or otherwise, shall become a subscriber to the capital stock, or a stockholder in any corporation, association, or company, or make any appropriation, or donation, or loan its credit to, or in aid of, any person, corporation, association, company, or institution. SEC. 22. No law shall be passed by the Legislature granting the right to construct and operate a railroad within any city, town, village, or on any public street or highway thereof, without the consent of the municipal or other proper local authorities having the control of such street or highway proposed to be occupied by such railroad. SEC. 23. In any city where there are no public works owned and controlled by the municipality for supplying the same with artificial light and water, any company duly incorporated by the laws of this State shall, under the direction of the Superintendent of Streets of said city, have the privilege of disturbing and using the public streets and thoroughfares thereof, and of laying down pipes and conduits therein, and of making connections therewith, so far as may be necessary for introducing into and supplying such city and its inhabitants either with gaslight or other illuminating light, or with fresh water for domestic and all other purposes, for which the same or either may be used, upon the conditions following: Such company shall make good all damages to such streets and thoroughfares, except necessarily occasioned by the reasonable use thereof, and be liable to such city and its inhabitants therefor. Such company introducing and supplying gas

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