[1] Municipal Corporations—Electric Power—Distributing System —Los Angeles Charter—Construction.—The purpose of subdivision. 41 of section 2 of the charter of Los Angeles is to require the city to acquire by purchase or construction of a "distributing system adequate to serve the citizens of that city with the electrical energy which it owns, rather than for the city to sell its power to others to retail to consumers.

[2] Id. ■— Contract for Purchasing Distributing Systems and for Distribution of Electric Power—Validity of.—A contract between the city of Los Angeles and two private corporations having for its purpose the acquiring by the former of the distributing systems of the latter and pending the consummation of the purchase it being agreed that the systems should be used to distribute power generated by the city and by the companies to the consumers of the companies in the city, the private corporations agreeing to distribute the electrical energy of the city to the consumers then served by those corporations within the city limits and to collect from the customers for such service, the funds derived from the sale of such electrical energy to be applied by the companies in the manner specifically agreed on in the contract, sufficient of the returns to be retained by the companies to pay a certain percentage npon the purchase price of the plants as fixed in the agreement of purchase and upon the severance damage allowed in connection with the sale, does not violate a provision of the charter of the city prohibiting a sale by the city of its electric energy at wholesale, unless authorized so to do by a two-thirds vote of the electors of the city, as it is a contract to buy rather than to sell electricity.

[3] Id.—Constitutionality of Contract.—Such a contract does not violate section 31 of article IV of the constitution in resulting in making a gift by the city of its property or extending its credit.

[4] Id.—Construction of Section 31, Article IV, of the Constitution.—Section 31, of article IV of the constitution is a limitation npon the power of the state legislature, and has no application to a city operating under a freeholders’ charter, which is subject only to the restrictions and limitations provided in its charter, and with respect to other matters it is subject to and controlled by general laws.

[5] Id. — Municipal Affair — Sale and Distribution of Electrical Energy.—The sale and distribution of electrical energy manufactured by a city is a municipal affair and one over which the legislature of the state has no control.

[6] Id.—Construction of Contract.—Such contract does not purport to give away electrical power of the city and does not in fact do so, but, if there is no adequate return to the city from its power so distributed, it will be because of insufficient retail price to cover the expense of generating and distributing the power, and not because anything has been given to the contracting corporations. ■

[7] Id.—Partnership.—Such a contract does not establish a business partnership.

[8] Id.—Los Angeles Charter—Construction.—A fair construction of subdivision 41 of section 2 of the Los Angeles charter would seem to require that where the electrical power of the city is to be sold at wholesale to be distributed to the citizens of Los Angeles, the consent of two-thirds of the voters must he secured, whether or not the power is surplus. The evident purpose of the proviso was to permit the sale of power to outside municipalities and consumers of energy when such power was not needed within the city itself and was therefore “surplus power.”

[9] Id.—Letting of Contract—Section 207a, Los Angeles Charter —Construction.—Such a contract is not one required to be let only after advertisement and to the lowest bidder, under section 207a of the Los Angeles charter.