Pacific Railways Advertising Co. v. City of Oakland

This appeal was taken from a judgment and decree permanently enjoining the City of Oakland, the members of its council, its chief of police and its city attorney from enforcing an ordinance prohibiting commercial advertising on the exterior sides of street-cars. The decree declared the ordinance to be unconstitutional and void.

The following facts are alleged in the complaint and not denied: The plaintiff Key System Transit Company, a Cali fomia corporation, operating a street railway system under franchises from the City of Oakland and the county of Alameda, made a contract with its coplaintiff, Pacific Railways Advertising Company, whereby the Transit Company granted to the Advertising Company the exclusive right to advertise in, upon and about all its cars from October 30, 1925, to December 31, 1931, for a consideration of $40,000 a year.

The Advertising Company, at an expense of more than $8,000, placed upon each side of every car two sheet metal frames approximately twenty-two inches wide, twenty-eight inches long and 1/32-inch thick, to hold advertising matter. Thereafter the council enacted ordinance No. 3568 (N. S.), making it unlawful to operate a street-car within the…