The Key West Citizen

One Dissenting Vote Against Ruling Made

DECISION MADE IN QUO WARRANTO PROCEEDINGS TAKES ROSENTHAL OUT OF PICTURE; HAS NO VALID FRANCHISE TO CONSTRUCT AND OPERATE BRIDGES

(By Associated Press)

TALLAHASSEE, April 8.-The state supreme court today held that George J. Rosenthal, of Miami, does not hold a valid franchise to construct and operate oversea toll bridges on Road 4-A, between Miami and Key West.

Rosenthal obtained a franchise from Monroe county commissioners. The Overseas Bridge Corporation, of Miami, and Monroe county, obtained a franchise from the State Road Department. Rosenthal claimed he was entitled to exclusive right to build the bridges.

The court ruled that the county commissioners of Monroe were without authority to grant an exclusive privilege, and that whatever franchise they did grant was subject to approval of the State Road Department. The road department declined to approve Rosenthal's franchise.

FAILED TO OBSERVE CONDITIONS

The supreme court, in a previous decision, held that the Overseas Bridge Company's franchise from the road department was no longer in effect since, the court said, the department failed to observe the conditions set out by the franchise.

Both the Overseas Bridge Company and Rosenthal have applications for self-liquidating loans pending before the Reconstruction Finance Corporation, for funds needed for the project.

Construction of the oversea bridges, linking No Name Key with Lower Matecumbe Key was estimated to cost from seven to 15 million, depending on the type of bridges built and difficulties encountered in the work.

Five of the six judges voted for the decision with Justice Rivers Buford dissenting.
A brief history of the bridge matter can be summed up as follows: George Rosenthal applied to the board of county commissioners about two years ago for a franchise to build bridges over the water gaps, on the Overseas Highway.

When the time arrived for the beginning of the work he made a renewal of his application and the franchise time was extended six months. He gained another extension and still another which was to and did, expire on December 31, 1932.

In the meantime the Reconstruction Finance Corporation was formed under the direction of President Hoover. As there seemed no possibility of Rosenthal carrying out his program a body of business men of Key West and Miami formed the Overseas Bridge Corporation with intention to make application to the R. F. C. for a loan to build the bridges.

Application was made to the State Road Department for a franchise granting the Overseas corporation the right to construct the bridges. This was granted.

Carried To Supreme Court

Immediately Rosenthal took steps to have that franchise nullified and carried the matter to the supreme court of the state. That tribunal later handed down an opinion to the effect that the State Road Department had no authority to grant a franchise covering the construction of the bridges, inasmuch as Rosenthal held a franchise from the board of county commissioners and this superceded that held by the Overseas Bridge Corporation.

To strengthen his position which he felt was securely established by the action of the supreme court, Rosenthal then made application to Judge Jefferson B. Browne, of the 20th judicial circuit, asking for orders to be issued restraining county commissioners of Monroe from interfering in any manner with his plans.

This motion was denied and several weeks later he applied to the same court for two orders.

This was on February 25. One of these orders was to have the attorneys for Rosenthal and the Monroe county commissioners file briefs in cases in which they are concerned instead of having oral arguments.

The other motion was a plea of the plaintiff to be allowed to file a supplementary bill to matters that were already before the court.

Both of these motions were denied.

Receives Altered Bond

Before this in December the board of county commissioners had received an alleged bond of $500,000 assuring the body that the performance as provided in the franchise given Rosenthal would be carried out. At a regular meeting of the board this bond was declared valueless and as the date of expiration on the franchise was December 31, it was declared null and void. Rosenthal contended that his bond was valid and franchise good.

It was then decided by the Dade and Monroe county commissioners to have the supreme court hand (Continued on Page Three)
COURT RULING MADE
AGAINST ROSENTHAL

(Continued from Page One)

...down a decision in the matter and quo warranto proceedings were started.

Oral hearings in the matter were held on March 10 in Tallahassee.

Judge Taylor argued the case with Attorneys J. Lancelot Lester and William V. Albury present during the arguments.

With the decision handed down by the supreme court today, the matter of the bridges over the highway stands practically as it was before applications for loans were made by either the Overseas Bridge Corporation or George J. Rosenthal.

In other words neither of the applicants has a franchise permitting them to contemplate the construction of the bridges but each party is in a position to make application to the Reconstruction Finance Corporation for a loan to do the work provided it is armed with a legal franchise permitting...