The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-08-28
GIFT TO CENTRAL UNION
TAGGART ADMINISTRATION AND IT'S
ELECTROMAGNETIC DEAL.
A Perpetual Monopoly Fastened on
the City-"Cute" Little Phrases
in the Contract.

How Mayor Taggart's Board of Works.
with the aid of a Democratic Councl-the
latter goaded to hasty action by a Demo-
cratic unprecedented the franchise rights
of the Central Union Telephone Company,
a year ago. forms an interesting chapter
in the annals of the present administration.
When the subject of requiring electric
companies to place their wires underground
within the mile square was taken up by
the administration it was announced that
nothing would be done to enlarge the rights
of any of the companies or in any way ex-
tend their franchises. The mayor, the
board and the city attorney repeated this
declaration in many interviews. After
months Of secret conference with the Off
Gals of the companies such results as the
administration cared to have known were
given out. The first contract introduced in
the Council was that with the Central
Union Telephone Company On one Satur-
day afternoon the final conference was had
and the only thing that remained was to
obtain the approval Of Vice President Jack
son on the following Monday June 20, 1885,
the day the contract was sent to the Coun-
Gil for it's ratification. That Saturday aft
ernoon City Attorney Curtis went over the
contract that had been agreed on and gave
what he said was the gist of its provisions
to a Journal reporter. Mr. Curtis at that
time repeated the assertion that the COM
pany was given no additional privileges,
quoting verbatim from clause THAT the
rights here granted to go underground
and make local distribution as above pro-
vided shall not enlarge any rights or
privileges in indianapolis which the COM
pany enjoys under ordinances, contracts or
ota
substantiation of the assertion that no adj
ditional rights or privileges had been
granted. Mr.. Curtis gave further details Of
the contract. reading from the copy before
him, which provided that the company
should pay $4,000 a year, furnish ducts in
its conduits, allow tho city to use top cross
arms on poles, etc.
FRANCHISE FORCED THROUGH.
On the Monday following the contract
was formally signed and sent to the Coun-
Gil where it was referred to the committee
on contracts and franchises, which reported
favorably on the ordinance at the regular
meeting Aug II, following. The ordinance
ratifying the contract was passed at that
meeting. The Journal the next morning in
reporting the Councils proceedings, said:
In reporting on the Central Union tele-
phone ordinance Mr.. Golfer took occasion
to criticise statements printed in a morn
ing paper He declared that the members
Of the franchise committee are not all law
yerS, and that they could not be expected
10 dispose Of an important measure in q
Gay that had been before the Board of Pub
nc works three months. lie said the COM
mlttee wanted time to understand the con-
tract thoroughly before reporting in its IA
Vor. In his opinion the contract was a
good one, and ought to be passed. Last
sunday the Sentinel said edtorially that
the delay was causing unpleasant intima-
tons that the matter was being held up by
the committee with the hope of squeezing
a little money out of the company. Mr..
Golfer and Mr.. Montgomery were very free
IN denounclng the editorial as an out
rageous imputation of dishonesty. In Vot-
ing against the ordinance Mr. Woody de-
clared that the contract was the most in
definite thing ever brought before an intel
ligent body of men, and said that he could
not support it. The ordinance passed by
war, Dudley, Kirkhoff, Montgomery, Muir
ply, OConnor, Ohleyer, Puryear, Rauch,
tello; nay, Woody. Messrs. Allen, Cooper,
Madden and Payne We're absent"
If all the members of the committee had
been lawyers the city might have Jared bet
ter, and even the Council might not have
given away this valuable franchise. A
careful reading of the contract and a COM
parison with subsequent underground wire
contracts entered into with the telegraph
companies prove that valuable rights and
privileges were virtually given to the tele-
phone company, Notwithstanding protests of
city officials to the contrary. The very
words that deceived people into believing
that no additional rights were given
matter of fact did give additional rights.
The contract says that the city, by and
through it's Board of Public Works, does
hereby authorize, empower and grant to
said company, party OF the second part, It's
successors and assigns, and by the terms
of this contract consent, permission and
authority by said city, party of the first
part, through it's Board of Public Works,
hereby given, granted unto and vested in
said company, party of the second part,
subject to laws, ordinances and resolutions
now in existence, excepting as they are
hereby modified, the right to construct, lay
and operate in said city, conduits, ducts,
cables, manholes and appurtenances there
to, underground, and to string and erect
wires cables, poles and proper fixtures and
appurtenances suitable for telephone and
telegraph uses overhead, in and through the
streets, avenues, alleys and public places
of said city, and to operate q telephone eX-
change and furnish telephone service to the
subscribers of such exchange" etc.
A PERPETUAL GRANT.
1t will be seen that this not only gives 10
the company, but to its successors and as
signs'-in effect perpetual grant-the right
to not only lay it's wires in underground
cables, but also to LAY and operate" wires,
cables, a telephone exchange and to fur
nish telephone service to the subscribers.
This grant would probably be construed as
perpetual If the rights had been given only
subject to laws, ordinances and resolutions
now IN existence, IL might nave peen all
right, but the contract did not stop there.
The words excepting as they are hereby
modified were added No such exception
was itlade i'll either of the two telegraph
contracts on this same subject, which
quoted further on. Clause wv" of the con-
tract also has an exception of double mean
ing: 1T is understood that the rights here
by granted to go underground and make
local distribution above provided shall
not enlarge any right or privileges in In
dianapOliS which the company enjoys under
ordinances, contracts or otherwise'-the
contract did not stop there, but the words
except as herein provided" were added.
The contract with the Postal Telegraph
Gable Company had a provision on this
score so simple that it cannot be mistaken,
as follows: "(O.) 1t is understood that the
rights herein granted to so underground
shall not enlarge any rights or privileges in
the city of Indianapolis which the company
now has, or extend the time during which ii
is entitled to do business in said city" No
right is given it To furnish Geographic
service" TO operate plant or do any
thing else than place its wires underground.
The Western Union Telegraph Company
was simply given the right to construct
and lay conduits for wires underground
under the streets, avenues, alleys and public