The morning call., 1893-05-19
NOT GRANTED YET.
New Telephone Company
in Hard Luck.
TERMS OFFERED THE CITY.
Ex-senator Cross Says the Company
May Have to Pay Sl00, 900 for
the Franchise.
TERMS OFFERED THE CITY.

afternoon. At that hour ex-senator Cross,
the attorney for the petitioners. entered
and was soon followed by Ex-Governor
Perkins, j. P. Stetson. Louis Sloss Jr.,
E. B. Ridley and w. C. Whittier.
After Clerk Russell had read the petit
tion of the new company ex-senator Cross
addressed the committee. saying that he
had no set speech, but desired to come
promptly to the business points of the ap-
plication. Ee said the hackers of the
company were all present and would be
willing to answer any question that might
be asked.
"There are two dangers" said Attorney
Gross; lone is to put no limitation on
franchise and the other is to load it with
conditions and provisos so heavy that it
could not be carried out
I'VE are willing TO bid for this franchise
and give reasonable price for it. If we
could be put upon an equal footing with
the old company we would be satisfied,
but we don't want to be loaded down with
conditions"
Chairman Day-What do you propose to
give the city?
You ask what will the city get" said
Mr.. Cross. sit will get what the city
never got before. 1t will get competition.
There is no actual chance for competition
the street railways Now. as regards the
telephone franchise, if you have two COM
panes you will have all the benefits of
competition in service and price. Service
will be better and prices will go down."
Day-Pravded they don't com bine. We
had the California Electric-Light Com
pany, the Edison Light and others. They
were going to do so much, and yet they all
ell down and combined and now charge
shat they want. The streets belong TO the
people, and they should get something for
giving away such valuable franchise.
CrosS-I suppose we ought to furnish
beds for the poor, but that is not our pur-
pose. We will give better service and
rates will 60 down.
Day-How much?
Cross-Pll get to that. The design is to
have telephones in all private houses at
reduced rates. The chairman suggests
that the franchise should be SO drawn up
that 10 combination will be possible. We
don't want to combine with anybody. Put
it in your franchise, If you want to, tnat
whenever the company shall come under
the control of another corporation it is
forfeited. That VIII be good in law, and
we have no objection.
Now. as regards service" continued
Attorney Cross, IF we cannot give cheaper
rates we have no chance in the business
at all. If we cannot give better service,
then our competitor can command better
prices and we would not be in IT, If the
men on this petition were tricksters there
would be some cause to be over cautious,
but their standing in the business COM
muDlty is sufficient guarantee that they
are in earnest, and mean business for them
selves and not others.
Another benefit that will accrue to the
city is that it will get the purchase price
of the franchise. a thing which has never
happened in the history of the city before.
Again, it will give employment to hum
dreds of idle workmen, and put money
into circulation now tied up"
Day-What is your price fixed at?
Cross-Two dollars month.
Day-What for switches?
Cross--That question | am not prepared
to answer yet.
Mr.. Cross continued: "If we have to
bid 100000 for a franchise we will have
to pay a higher rate of interest, and we
must take that into conside ration. But |
come to another proposition. The Super
visOrs establish the rates for certain COM
modities. l believe that the legislative es-
tablishment OF prices is a mistake, but |
will not argue that. Such legislation is
Illogical, because 1t prevents competition
because capitalists will not enter into new
enterprises where they have nothing to say
about prices.
But to be definite, | will say that we
will give you free wires for the Fire Alarm
and Police Telegraph system and furnish h
telephones for all city purposes without
cUdTRes j his Is III our OTulDdDcb lHaL we
ask Tor. Now, we don't want you to over
load us with too many burdens. SO that we
cannot enter into legitimate completion"
Supervisor Denman-L would like to
hear from some of these capitalists here,
to know what they have to say.
Day-HOW Tar 10 you expect to run your
wires?
Cross-We intend to run wires all over
the city and county. Put in your fran
chise when we will have to commence
ourlwork, and when we will have to COM
pete it. We will subscribe 10 all neces-
sary conditions.
j. B. Stetson was called on, and said:
We intend to put in this telephone in op-
pOsitiO n or competition with the other
unless you hamper US with conditions.
We do not intend TO combine or sell out
Put in whatever conditions you like. so as
to make it binding"
w. c. Whittier said ne indorsed the
ideas of Senator Cross and j. s. Stetson.
Ex-Governor Perkins said he appreciated
the position in which the Supervisors were
as custodians of the rights of the people.
The speaker said that Senator Cross was
not the paid attorney of the company, but
one of its members who appeared as a citi-
zen asking a franchise.
"We come as business men to benefit
ourselves and to benefit the city. Yon
know the Bell telephone patents have ex-
plred and now no royalties have TO be
paid We can purchase telephones now
ourselves. If we cannot make it appear
as a good investment we would not be be-
fore you now.
"The telephone is a public necessity and
should one comp ny have the exclusive
privilege? There is n telephone in every
house and stable ia Honolulu. This is be-
cause there were no royalties to pay the
Bell patent. 1t only costs so cents month
az Honolulu.
Competition is the only thing that fos-
ters trade. The great arteries OF the ocean
are open and free. We want competition
and should have it. We have not the
slightest intention to sell out: we are get
ting into this as a business proposition
We are considering a half dozen differ
ent telephones and corresponding with the
ablest electricians in the East, and intend
to give the best service possible"
Louis Sloss said he could not add any
thing except to emphasize the good faith
intended. The proposition was a good
one. He and others had got interested in
the scheme, and thought that it would be
good business investment.
W. G. Wiley, a delegate of the unem-
ployed, said that the granting of the fran
chise would give work 10 about 700 men.
The company intended to do the work
themselves, and not employ contractors
He asked that the franchise be granted in
the name of the unemplo yed
a. this point Supervisor Ryan suddenly
rose and moved an adjournment. The
motion was carried without objection, II O
action being taken by the committee on