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This provision was an invitation to individuals and do- <br />mestic corporations organized for the purpose to enter cities <br />having no public works owned or controlled by the municipality, <br />and lay pipes for the distribution of gas in the public streets, <br />under the direction of the supperintendent of streets, and under <br />such general regulations as the municipality might pre s�cribe for <br />damages and indemnity for damages. <br />The distributing mains of the Company were laid in your <br />streets in strict compliance with this constitutional provision, <br />and under the direction of your superintendent, and in accordance <br />with the general regulations for damages and indemnity for damages <br />prescribed by your honorable Board. <br />And it has been by the supreme court of this state held <br />that an act of the legislature requiring municipalities to sell <br />such right or franchise to the highest bidder is unconstitutional <br />and void, as being contrary to the right granted under this con- <br />stitutional provision. (Persia v. Irallace, 129 Cal. 397.) <br />October 10,. 1911, section 19, Artiole XI, was again <br />amended to read as follows: <br />"Any municipal corporation may establish and <br />operate public works for supplying its inhabitants with <br />light, water, power, heat, transportation, telephone <br />dervice or other means of communication. Such works may <br />be acquired by original construction or by the purchase <br />of existing works, including their franchises, or both. <br />Persons or corporations may establish and operate works <br />for supplying the inhabitants with such services upon <br />such conditions and under such regulations as the muni- <br />cipality may prescribe under its organic law, on con- <br />dition that the municipal government shall have the right <br />to regulate the charges thereof. A municipal corpora- <br />tion may furnish such services to inhabitants outside <br />its boundaries; provided that it shall not furnish Vany <br />ddrvice to the liahabitants of n otiha samecs�rvit$ to <br />owning or operating works supplying <br />1. <br />IL <br />1 <br />Ica, <br />into <br />and supplying such city and <br />its inhabitants either <br />with <br />gaslight, or other illuminating <br />li`h ' , or wi th <br />fresh <br />water for domestic and all <br />other purposes, upon <br />the <br />condition that the municipal <br />government shall have <br />the <br />right to regulate the charges <br />thereof." <br />This provision was an invitation to individuals and do- <br />mestic corporations organized for the purpose to enter cities <br />having no public works owned or controlled by the municipality, <br />and lay pipes for the distribution of gas in the public streets, <br />under the direction of the supperintendent of streets, and under <br />such general regulations as the municipality might pre s�cribe for <br />damages and indemnity for damages. <br />The distributing mains of the Company were laid in your <br />streets in strict compliance with this constitutional provision, <br />and under the direction of your superintendent, and in accordance <br />with the general regulations for damages and indemnity for damages <br />prescribed by your honorable Board. <br />And it has been by the supreme court of this state held <br />that an act of the legislature requiring municipalities to sell <br />such right or franchise to the highest bidder is unconstitutional <br />and void, as being contrary to the right granted under this con- <br />stitutional provision. (Persia v. Irallace, 129 Cal. 397.) <br />October 10,. 1911, section 19, Artiole XI, was again <br />amended to read as follows: <br />"Any municipal corporation may establish and <br />operate public works for supplying its inhabitants with <br />light, water, power, heat, transportation, telephone <br />dervice or other means of communication. Such works may <br />be acquired by original construction or by the purchase <br />of existing works, including their franchises, or both. <br />Persons or corporations may establish and operate works <br />for supplying the inhabitants with such services upon <br />such conditions and under such regulations as the muni- <br />cipality may prescribe under its organic law, on con- <br />dition that the municipal government shall have the right <br />to regulate the charges thereof. A municipal corpora- <br />tion may furnish such services to inhabitants outside <br />its boundaries; provided that it shall not furnish Vany <br />ddrvice to the liahabitants of n otiha samecs�rvit$ to <br />owning or operating works supplying <br />1. <br />IL <br />1 <br />