May purchase ber, stone, etc. the owners of such new railroad in forming such intersections and connections, and grant facilities therefor; and if the two corporations cannot agree upon the amount of compensation to be made therefor, or the points or the manner of such crossings, intersections and connections, the same shall be ascertained and determined as is provided in Title VII, Part III, Code of Civil Procedure (Secs. 1237–1263); 7. To purchase lands, timber, stone, gravel or other materials lands, tim- to be used in the construction and maintenance of its road, and all necessary appendages and adjuncts, or acquire them in the manner provided in Title VII, Part III, Code of Civil Procedure, for the condemnation of lands; and to change the line of its road, in whole or in part whenever a majority of the directors so determine, as is provided hereinafter; but no such change must vary the general route of such road, as contemplated in its articles of incorporation; Carry persons and freight. Erect 8. To carry persons and property on their railroad, and to receive tolls or compensation therefor; 9. To erect and maintain all necessary and convenient buildings. buildings, stations, depots, fixtures and machinery for the accommodation and use of their passengers, freight and business; Regulate time and tolls. Establish rules for management of business. Purchase other roads not in competition. 10. To regulate the time and manner in which passengers and property shall be transported, and the tolls and compensation to be paid therefor within the limits prescribed by law and subject to alteration, change or amendment by the legislature at any time; 11. To regulate the force and speed of their locomotives, cars, trains or other machinery used and employed on their road, and to establish, execute and enforce all needful and proper rules and regulations for the management of its business transactions usual and proper for railroad corporations; 12. To purchase, lease or acquire the franchises, rights and property, or any part thereof, of any railroad corporation, leasing or owning any railroad outside of the State of California, and to operate the same, and to use the franchises of any such road, and to build and operate extensions thereof; provided that nothing herein shall authorize any corporation to purchase the franchises, rights and property of any railroad operated in competition with it; and to purchase, acquire and hold the stocks, bonds or other securities of any railroad corporation organized under the laws of this state or of any other state or territory, with full power to sell the same; provided that nothing herein will authorize any corporation to purchase the stock of any railroad corporation operated in competition with it. SEC. 2. This act shall take effect immediately. CHAPTER CCX. An act to amend section seven hundred and eighteen of the Civil [Approved March 20, 1903.] The people of the State of California, represented in senate and assembly, do enact as follows: SECTION 1. Section seven hundred and eighteen of the Civil Code is hereby amended to read as follows: term of 718. No lease or grant of any town or city lot, for a longer Limit of period than fifty years, in which shall be reserved any rent or lease of service of any kind, shall be valid; provided, that the property city lots. of any municipality, or any minor or incompetent person shall not be leased for a longer period than ten years. SEC. 2. This act shall take effect, and be in force from and after its passage. CHAPTER CCXI. An act to provide for the issuance and sale of state bonds to create a fund for the construction by the board of state harbor commissioners of a seawall and appurtenances in the city and county of San Francisco; to create a sinking fund for the payment of said bonds; and providing for the submission of this act to a vote of the people. [Approved March 20, 1903.] The people of the State of California, represented in senate and assembly, do enact as follows: pare bonds improve SECTION 1. For the purpose of providing a fund for the state treaspayment of the indebtedness hereby authorized to be incurred urer to preby the board of state harbor commissioners for the erection of for seawall a seawall and appurtenances in the city and county of San ments. Francisco, at a cost not to exceed two million dollars (which said seawall and appurtenances the board of state harbor commissioners are hereby empowered to construct in the manner authorized by law, and at a cost not to exceed said two million dollars), the state treasurer shall, immediately after the issuance of the proclamation of the governor, provided for in section ten hereof, prepare two thousand suitable bonds of the State of California, in the denomination of one thousand dollars each. The whole issue of said bonds shall not exceed the sum of two million dollars, and said bonds shall bear in- Interest terest at the rate of four per centum per annum, from the time of the sale thereof, and both principal and interest shall be payable in gold coin of the present standard of value, and they shall rate. When payable. When interest shall cease. be payable at the office of the state treasurer, at the expiration of nineteen years from their date, subject, however, to redemption by lot as in this act hereinafter provided. Said bonds shall bear date, the second day of January, A. D. nineteen hundred and five, and shall be made payable on the second day of January, nineteen hundred and twenty-four A. D. The interest accruing on such of said bonds as are sold, shall be due and payable at the office of the said state treasurer on the second day of January, and on the second day of July, of each year after the sale of the same; provided, that the first payment of interest shall be made on the second day of January, A. D. nineteen hundred and six, on so many of said bonds as may have been theretofore sold. At the expiration of nineteen years from the date of said bonds, all bonds sold shall cease to bear interest, and, likewise, all bonds redeemed by lot shall cease to bear interest as in this act provided, and the said state treasurer shall call in, forthwith pay, and cancel the same, out of the moneys in the San Francisco seawall sinking fund provided for in this act, and, he shall on the first Monday of January, nineteen hundred and twenty-four, also cancel and destroy all bouds not theretofore sold. All bonds issued shall be signed by the governor, and countersigned by the controller, and shall be endorsed by the state treasurer, and each shall have the seal When sub- of the state stamped thereon. Each bond shall contain a clause that it is subject to redemption by lot after the year 1914. SEC. 2. Interest coupons shall be attached to each of said bonds, so that such coupons may be removed without injury to or mutilation of the bond. Said coupons shall be consecutively numbered, and shall be signed by the state treasurer. But no interest on any of said bonds shall be paid for any time which may intervene between the date of any of said bonds and the issue and sale thereof to a purchaser. ject to re demption. Interest coupons. Appropriation for issue. SEC. 3. The sum of one thousand dollars is hereby approexpense of priated to pay the expense that may be incurred by the state treasurer in having said bonds prepared. Said amount shall be paid out of the San Francisco harbor improvement fund on controller's warrants duly drawn for that purpose. Shall be sold at public auction. Publication of notice of sale. SEC. 4. When the bonds authorized to be issued under this act shall be duly executed, they shall be by the state treasurer sold at public auction to the highest bidder for cash, in such parcels and numbers as said treasurer shall be directed by the governor of the state, under the seal thereof, after a resolution requesting such sale shall have been adopted by the board of state harbor commissioners; but said treasurer must reject any and all bids for said bonds, or for any of them, which shall be below the par value of said bonds so offered; and he may, by public announcement at the place and time fixed for the sale, continue such sale, as to the whole of the bonds offered, or any part thereof offered, to such time and place as he may select. Due notice of the time and place of sale of all bonds must be given by said treasurer by publication in two newspapers published in the city and county of San Francisco, and also by publication in one newspaper published in the city of Oakland, and by publication in one newspaper published in the city of Los Angeles, and by publication in one newspaper published in the city of Sacramento, once a week during four weeks prior to such sale. The costs of such publication shall be paid out of the San Francisco harbor improvement fund, on controller's warrants duly drawn for that purpose. The proceeds of the sale of such bonds shall be forthwith paid over by said treasurer into the treasury, and must be by him kept in a separate fund, to be known and designated as the "San Francisco Sea- "San Franwall Fund" and must be used exclusively for the construction wall Fund" of seawalls and appurtenances thereto on the water front of created. the city and county of San Francisco. Drafts and warrants upon said fund shall be drawn upon and shall be paid out of said fund in the same manner as drafts and warrants are drawn upon and paid out of the San Francisco harbor improvement fund. cisco Sea fund of public SEC. 5. For the payment of the principal and interest of Sinking said bonds a sinking fund, to be known and designated as the created. "San Francisco Seawall Sinking Fund" shall be and the same is hereby created, as follows: The state treasurer shall, on the first day of each and every month after the sale of said bonds, take from the San Francisco harbor improvement fund such sum as, multiplied by the time the bonds then sold and outstanding have to run, will equal the principal of the bonds sold and outstanding at the time said treasurer shall so take said sum from said San Francisco harbor improvement fund, less the amount theretofore taken therefrom for said purpose; and he shall place the sum in the San Francisco seawall sinking fund created by this act. Said state treasurer shall, on controller's war- Purchase rants duly drawn for that purpose, employ the moneys in said bonds. sinking fund in the purchase of bonds of the United States, or of the State of California, or of the several counties or municipalities of the State of California, which said bonds shall be kept in a proper receptacle, appropriately labeled; but he must keep always on hand a sufficient amount of money in said sinking fund with which to pay the interest on such of the state bonds herein provided to be issued as may have theretofore been sold. And to provide means for the payment Means proof interest on the bonds that may be sold and outstanding, payment said treasurer shall monthly take from the San Francisco of interest. harbor improvement fund, and pay into said seawall sinking fund, an amount equal to the monthly interest then due on all bonds then sold, delivered and outstanding. The board of state harbor commissioners are hereby authorized and directed by the collection of dockage, tolls, rents, wharfage and cranage, to collect a sum of money sufficient for the purposes of this act, over and above the amount limited by section two thousand five hundred and twenty-six of the Political Code of the State of California. Between the first and the tenth Arbitrary drawing of day of November, in the year nineteen hundred and fourteen, bonds for and between the first and the tenth day of November of each cancellayear thereafter until the maturity of said bonds, the said. treasurer shall, in the presence of the governor, proceed to draw vided for tion. Controller and to make annual report to governor. by lot such an amount of bonds as shall be requisite to exhaust as nearly as may be the amount in said sinking fund at that time, and shall thereupon and before the tenth day of December following, give notice by public advertisement to be inserted twice a week for two weeks in two newspapers published in the city and county of San Francisco, and also in one newspaper published in the city of Oakland, and also in one newspaper published in the city of Los Angeles, and also in one newspaper published in the city of Sacramento, stating the number of bonds so drawn and that the principal of said bonds will be paid on presentation to the treasurer on or before the second day of January, following, and that from and after such last named date all interest upon bonds thus drawn shall cease and it shall be the duty of the treasurer as soon as said bonds so drawn by lot are surrendered to him and paid to cancel the same and the interest coupons thereon, and each year beginning with the year 1914 the said treasurer shall, in the manner aforesaid, proceed to draw by lot such an amount of bonds as shall be requisite to exhaust as nearly as may be the amount in said sinking fund, and proceed in the manner herein above stated. After the payment of all of said bonds, the surplus or balance remaining in said sinking fund, if any there be, shall forthwith be paid into the San Francisco harbor improvement fund. At the time of the respective drawings by lot as aforesaid, and also at the maturity of said state bonds, said treasurer shall sell the United States or other bonds then in said sinking fund, at governing market rates, after advertising the sale thereof in the manner hereinbefore provided for the sale of bonds hereby authorized to be issued, and shall use the proceeds for the payment of such bonds as may be drawn by lot, and at the maturity of said bonds outstanding shall pay and redeem said matured outstanding bonds out of said moneys in said fund in extinguishment of said bonds on controller's warrants duly drawn for that purpose. SEC. 6. The state controller and the state treasurer shall treasurer keep full and particular account and record of all their proceedings under this act, and they shall transmit to the governor an abstract of all such proceedings thereunder, with an annual report, to be by the governor laid before the legislature biennially; and all books and papers pertaining to the matter provided for in this act shall at all times be open to the inspection of any party interested, or the governor, or the attorney-general, or a committee of either branch of the legislature, or a joint committee of both, or any citizen of the Interest state. SEC. 7. It shall be the duty of the state treasurer to pay payments. the interest of said bonds, when the same falls due, out of the sinking fund provided for in this act, on controller's warrants duly drawn for that purpose. When act effective. SEC. 8. This act, if adopted by the people, shall take effect on the thirty-first day of December, A. D. nineteen hundred and four, as to all its provisions except those relating to and |