The herald., 1896-03-11
NEW TELEPHONE COMPANY
Plans on Foot TO Inc0rD0rate Rival
to the Sunset
Dr. J. S. Potts and Others Want to Supply
Cheap Service in the City and Near
by Towns

Following close upon the heels of the
reported abandonment of the de Laguna
telephone franchise, another project for
competitive service will this morning be
introduced to the public DR.. ]. S. Potts,
who has recently moved to this city from
San Jose, is the originator of the idea, and
he was yesterday interviewed at his office
on South Broadway. In introducing his
remarks, DR.. Potts prefaced by saying
that while he was little known in this city,
in the northern portion of the state he had
engineered several deals, notably the Ven.
dome hotel at San Jose, being presi-
dent and founder of the Waldeck hospital
of San Francisco.
He has secured capital to back him and
proposes to establish a rival telephone
service all over the city and Southern
California. The new company will be
called the Southern California Telephone
and Telegraph company, and while not
yet incorporated, will embrace some local
capitalists who propose to see the thing
through.
Canvassers will start out this morning to
visit all parties and offer for signatures an
agreement to use the 'phones of the new
company for three years at monthly
rental of $3.50 each. 1t is anticipated that
800 or 1000 subscribers can be secure i in
side of a couple of weeks, and if so, appli-
cation will at once be made to the city
council to advertise for sale franchise.
The doctor stated that his company had
been offered the Laguna franchise, but did
not want it. This document imposes the
necessity of paying into the city treasury
- per cent of the gross proceeds of tue
grantees, which is equivalent to per cent
net on the investment. In the present
franchise held by the Sunset company,
there is no such clause, and he failed to see
why one corporation should be taxed in
this manner and anoth er go free. His
company was willing to supply all tele-
phones for police, fire and other
public uses, free, in fact, to do all
that the Sunset company is now doing,
both as to this and the placing of wires in
underground conduits in the business por-
ton, and all they intended to ask was a
duplicate franchise.
They will Use the old style Bell tele-
phone, on which the patent has expired,
which, modified in some particulars, is
called the Standard. 1t is GAINED that it
took first prize at the Vienna exposition,
and as an instrument is perfect, no buzzing
or other noises being perceptible. COM
plete copper circuit will be used on all
lines, which will be extended as fast as
practicable to outside towns. The rates
proposed are about one-half of what are
now charged, and the doctor says his COM
pany will guarantee efficient service. Con-
sidering the low price at which the phones
are offered, he does not consider it just to
require any more of the new company than
OF the old, but if a license or special tax is
to be imposed they will stand on the same
ground as the Sunset.
If the desired number of subscribers can
be secured and the council will advertise
such a franchise, they stand ready to COM
mence the erection of the plant in ninety
days and push it to completion.