§ 173. Condition upon which consent shall be given; sale of franchise\nat public auction. The consent of the local authorities in any city\nhaving a population of three hundred thousand or more must contain the\ncondition that the right, franchise and privilege of using any street,\nroad, highway, avenue, park or public place shall be sold at public\nauction to the bidder who will agree to give the city the largest\npercentage per annum of the gross receipts of such corporation, with a\nbond or undertaking in such form and amount and with such conditions and\nsureties as may be required and approved by the comptroller or other\nchief fiscal officer of the city, for the fulfillment of such agreement\nand for the commencement and completion of its railroad within the time\ndesignated by law and for the performance of such additional conditions\nas the local authorities in their discretion may prescribe. Whenever\nsuch consent shall provide for the sale at public auction of the right\nto construct and operate a branch or extension of an existing railroad,\nsuch consent shall provide that but one fare shall be exacted for\npassage over such branch or extension and over the line of road which\nshall have applied therefor; and further, that if such right shall be\npurchased by any corporation other than the applicant, the gross\nreceipts from joint business shall be divided in the proportion that the\nlength of such extension or branch so sold shall bear to the entire\nlength of the road whether owned or leased which shall have applied\ntherefor and of such branch or extension, and that if such right shall\nbe purchased by the applicant, the percentage to be paid shall be\ncalculated on such portion of its gross receipts as shall bear the same\nproportion to the whole value thereof as the length of such extension or\nbranch shall bear to the entire length of its road, whether owned or\nleased. The bidder to which such right, franchise and privilege may be\nsold must be a duly incorporated railroad corporation of this state,\norganized to construct, maintain and operate a street railroad in the\ncity for which such consent may be given; but no such corporation shall\nbe entitled to bid at such sale unless at least five days prior to the\nday fixed for such sale, or five days prior to the day to which such\nsale shall have been duly adjourned, the corporation shall have filed\nwith the comptroller or other chief fiscal officer of the city, a bond\nin writing and under seal, with sufficient sureties, to be approved by\nsuch comptroller or officer, conditioned that if such right, franchise\nand privilege shall be sold to such corporation, to pay to the city\nwhere such railroad is situated the sum of fifty thousand dollars as\nliquidated damages and not by way of penalty in the event of the failure\nof such bidder to fulfill the terms of sale, comply with the provisions\nof this article pertinent thereto, and complete and operate its railroad\naccording to the plan or plans and upon the route or routes fixed for\nits construction within the time hereinafter designated for the\nconstruction and completion of its railroad, and also conditioned to pay\nto the corporation first applying for the consent, if it shall not be\nthe successful bidder, the necessary expenses incurred by such\ncorporation prior to the sale pursuant to the requirements and direction\nof the local authorities, within twenty days after such sale and upon\nthe certificate of the comptroller or other officer conducting the same\nas to the sum or amount to be paid. Notice of the time, place and terms\nof sale, and of the route or routes to be sold, and the conditions upon\nwhich the consent of the local authorities to the construction,\noperation and extension of such street railroad will be given, must be\npublished by such local authorities for a least three successive weeks,\nat least three times a week in two daily newspapers of the city to be\ndesignated by the may
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