The herald., 1894-04-20
A NEW TELEPHONE FRANCHISE.
Board of Public Works Now
Working on 1t.
Equal Privileges Granted With the
Old Concern.
The OOunOiimsn Make an Important
Discovery by which Under the
City Charter They Gan Reg
ulAts Telephone Tolls.

The board OF public works held an in
formal conference yesterday morning.
with MIR. Rhodes In the chair. to con
slider the granting OF franchise
for new telephone company in this
city.
rough draft OF an ordinance had
been prepared similar to that granting
franchise to the Sunset Telephone and
Telegraph company, and the same was
read section by section. In the section
regarding the furnishing of telephones it
was stipulated that there should be no
restrictions as to the use of the city tel
ephones, as is now the case with the
telephones supplied for the use Of the
municipality.
The question was raieed by Mr.. Mum
son that there wac nothing in the fran
chise OF the Sunset Telephone company
to compel that company to put its wires
underground, although it required them
TO build underground cJndults.
Mr.. Iced thought that the new COM
Pany should be compelled to put their
wires underground.
Mr.. MRrsh-All that the new com
pany asks ia TO be put on equal terms
with the exiting company. We do not
think that We should be asked to do
more than the monopoly which now has
control Of the telephone service in this
city. The new company will reduce the
rates for telephone service so per cent
on the present rates.
Mr.. Munson-Are YOU willing that
the council shall fix the rates OF toll
and rental to be charged by the COM
pany?
Mr. Marsh-We are willing to be gov
erned by the state law bearing on this
subject. We ask, however. that the
Law In this particular be made appli-
cable to all companies. We do not
want to be made An exception OF in this
matter and be subject to An arbitrary
change of our rates at the will OF the
council, other than as provided for by
the state law. We want proper and just
protection from any possible enoroach-
ments from monopoly. We are con-
tent to accept fair return on the money
invested, and we will agree not to make
any charge for putting in telephones,
as the present COMPANY does. We will
give the people telephone service with.
in the telephones.
new franchise should contain the Same |
section regarding the laying of under
ground conduits within two years that is
in the franchise of the Sunset Telephone
company.
Mr.. Munson-If we regulate the
charges of the new company the natural |
laws of competition would compel the !
other company to reduce rates.
Mr.. Pursell-Yes; but by fixing the |
rates OF the new COMPANY the monopoly |
council, might get Ieud pip -:;. - q; ..
the new company and force them out OF
business.
President Teed-We want to give the
new company an equal chance to do
business with the old company. We
have no right to i'm pose greater hard
ships upon the new concern than on tbs
old one. .....f
The board took recess for the pur-
pose of consulting with the city attor.
ney as to whether the council had the
right to regulate the charges for tele-
phone service in the city To the great
surprise of the couucilmen they ascer-
tanned from City Attorney Mcfarland
that under section 81 of the new charter
they had the right to regulate the tolls
collected by the telephone company, and
as there have been complaints of an in
crease recently in the charges, Mr..
Rhodes WAS in favor of exercising the
right and making q reduction in the
rates at once for the benefit OF the pub
lie. 1t was, therefore, decided that
there was no necessity to insert any
clause regarding the rates OF toll to be
charged under the new franchise, as 1t
would be governed by the provisions OF
the city chsrter.
The board decided to place the ordi-
nance ON its passage and the city clerk
was instructed to advertise for bids for
the sale of the franchise.