The San Francisco call., 1896-11-17
NEW HELLO BOXES
MAY Be CHEAPER
Franchise Granted to the
Peoples Mutual Tele-
phone Company.
Genuine Competition and Re-
duced Rate of Taxation
Promised.
George G. Gauld, Who Opposes the
New Corpor alton, Is Denounced
=. as irresponsible.

:. After several months of waiting and
great deal OF contention a franchise has
been granted for a competitive telephone
company in this City.
Judge Seawell yesterday rendered a de-
cision that seems TO make possible the es-
tablishment of such system for San
Francisco and the surrounding country.
The matter on hearing was a petition
signed by George G. Gauld for writ of
review of the action of the Board of Super
visors, who have taken certain steps to
grant franchise to the Peoples Mutual
Telephone Company, pending the hearing
OF which an injunction had been served
on the Supervisors directing them to do
nothing further without an order of court
Attorneys Friedrich and Crittenden ap-
peared on behalf of the new telephone
company and asked that the injunction
he dissolved. In support of this they
aurged that it was matter of great i'm
portance TO the people of San Francisco
that speedy action should be taken, and
that 1t would cause great and irreparable
oloss to their company if the injunction
willch was directed against the Super
visors should be allowed to continue.
Mr.. Crittenden asserted that the only
power arrayed against the granting of the
franchise is an immense and wealthy
monopoly known as the Pacific Bell Tele-
phone Company. He contended that the
Injunction against the Supervisors had
been obtained in the interest of that cor
poration and that Gauld was in fact
mere 6surehead who was being used for
the purpose of injuring the community
and the company which he represen nted.
Touching this matter, the attorneys for
the new telephone company filed an an
swer 10 Gauld's petition in which the en-
. tire situation is clearly set forth according
to their views. The action being brought
against The Board of Supervisors. it was
the duty OF City and County Attorney
CreswelI to appear on their behalf, which
he accordingly did, and interposed a de-
murrer to Gauld's petition. He granted
permission for the Peoples Mutual Tele-
phone Company to appear as party in
interest, and the answer of that company
covers the ground pretty thoroughly. One
paragraph reads as follows:
This intervenor believes and charges that
the real purpose, object and intention of the
said George G. Gauld III the above en- titled
matter and in seeking the writ of review WAS
10 wrongfully, unlawfully and fraudulently
prevent, hinder, delay and defeat the granting
of any franchise for competing telephone
and County of Francisco to The Peoples Mu-
dud1 TeIepnone Com pany, or 10 any one else
yisors upon the bid for said franchise pre-
sented by The Peoples Mutual Telephone Com
pany until such time as will make 1t impos-
ssible for the Peoples Mutual Telephone Com
pany to carry out any contracts between ii and
the persons who have contracted for the use
of its telephone system.
Gauld's standing as a taxpayer was then
attacked.
The learned counsel intimated tkat it
called them sorelv to have a man like
Gauld, with only $50 worth of assessable
. property in this City, standing thus in the
Way of public i'm provement.
The aHuring prospect OF reduction of
taxation is then pointed out.
Considerable space is given to an ex-
planation that the new company, If al
lowed 10 proceed, will furnish genuinely
competitive telephone system, and the an
swer adds:
This intervenor is informed and believes
that the City and County OF San Francisco are
paying out for the use of telephones ABOUT
SIS, 200 year and receive no part whatever
of any income of any telephone company; that
said City and County will be benefited by the
granting oz said franchise and the successful
Introduction of com peting telephone system
under such franchise 10 the extent of al least
$25, 900 a year for fifty years.
These points were not discussed at
length, but were only touched upon by
the attorneys so far as was necessary 10
give the court an understanding of the
case.
Attorney Friedrich said that the new
telephone com pany did not ask for an i'm
mediate hearing OF the petition on its
merits. but only desired that the iniunc-
ton be dissolved, in order that the Super
visors might have the privilege of opening
the bid that had been fixed by the new
telephone company. He did not Suppose
that the Supervisors would go any farther
than that, and if they did, and Mr.. Gaud
should finally win and the action of the
- u =
loss would fall on the new telephone COM
pany and on no one else.
Attorney Brobeck, representing the City
and County Attorney, said that Mr.. Cres-
well, in compliance with request made
by attorneys Woods & Levnsky. who
represent petitioner Gsuld, had signed a
stipulation allowing the case to go over
until next Friday. He suggested that an
order be made in accordance with that
stipulation.
Herman de la L9gura. who represented
himself as clerk for Woods & Levinsky,
attempted to join in the argument, but an
objection being made that he was not q
member of the bar he was quickly sup
pressed and compelled to take his seat.
Mr.. Laguna was sharply criticized some
time ago when he attempted 10 make a
similar address before the Board of Super
yisors He was denounced as q specu-
Iator in franchises which he could not
Cdily Oht.
MI Br( derrick said that when the case
comes TO be heard on its merits the City
Attorneys office would give all its emery
and ability 10 supporting the action OF the
Board of Supervisors in whatever they do
touching he granting of the franchise.
Judge Seawell said that ne recognized
the fact Ii, at the City Attorney had signed
the stipulation for continuance till next
Friday as an act of courtesy to the attor-
news Tor the petitioner. and he would let
that stipulation remain in force so far as
it related to hearing the case on its mer-
its 1t would not in any way endanger
the rights of Mr.. Gould to dissolve the in
junction and would no. in any manner
mpromise the City Attorney. He there
fore vacated that part OF the order which
retrained the Supervisors from opening
the bids of the Peoples Mutual Telephone
Company for q franchise.
In the Board of Supervisors yesterday
afternoon Supervisor Benjamin informed
the Mayor and the board OF Judge Sea-
wells action, whereupon the bid OF the
Peoples Mutual Telephone Company was
opened 1t was found to be for SILL, and
the requisite amount of cash accompanied