The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-09-10
PRICES FOR TELEPHONES
TAGGART ADMINISTRATION FAST
ENED A MONOPOLY ON CITY.
Opportunity to Get Cheap Rates from
Phoenix Company Sidetracked by
the Democrats.

After bestowing a valuable franchise on
the Central Union Telephone Company for
the insignificant consideration of $4,000
year the party now in control of this city
refused to enter into contract with the
Phoenix Telephone Company, although the
terms it offered the city were most advan-
tageous. Among other things the Phoenix
Company agreed to pay the city $1,000 on
Sept of each year after 1905. Up to that
time the company was to pay smaller
amounts, beginning with $1,000 in 1900, $1,000
the next year and so on until the maximum
of $4,000 was reached.
This was not regarded as the most valu-
able concession the Phoenix Company
offered. Many people are opposed to any
corporation being required to pay part of
it's revenue into the city's Golfers, believing
that the people should have a direct bene-
fit in the way of reduced charges. Beside
agreeing to pay a sum annually into the
city treasury equal to that paid by the old
company, the Phoenix Company agreed to
furnish business telephones for $42 year
($3.50 a month"; and residence telephones for
$50 q year $3.50 monthly This would have
been a saving to Indianapolis subscribers
Of $4,000 a year.
In addition the company agreed to furnish
telephones for the use of the city, connected
with it's central exchange, for SIS year,
payable at the end of each quarter instead
of in advance, as the old company did. For
telephones furnished by the company and
connected with the citys police and fire
exchanges the rate was to be SIS a year.
There is no such agreement in the contract
with the Central Union Telephone Com
pany. Before it was presented with per-
petual franc liSe by Mayor Taggaft there
was an arrangement by which the city got
telephone service at reduced rates, but there
franchise given it. In a short time the city
will have to rent one hundred telephones
from some company, presumably the Cen
trail Union, to equip the police patrol boxes.
The rental that will be paid the company
for these telephones Will probably about ex-
haust the boosted $e,O a year that it is
required to pay the city.
There was absolutely nothing done in the
franchise to require the old company to re-
duce rates. one clause provided that the
rates or prices for telephone and telegraph
service which 1t may charge to subscribers
customers within the city of indianapolis
shall be the same or shall not exceed the
rates OF prices which 1t charges in other
cities within its territory of the same size
and population" If reports are true con-
corning rates that the company is charging
in other cities 1t is not being compelled to
live up to it's agreement to furnish tele-
phones in this city at the same price that
is charged in other places.
The Phoenix Telephone Company was
willing to give several bonds, one for S., 600
guaranteeing that 1t would have an ex-
change in operation of sufficient capacity
to accommodate 1000 subscribers by Dec. 81
1897. 1t was willing to give bond for $50
goo guaranteeing the carrying out of it's pro-
posed agreement, beside which it agreed to
give 5000 bond to begin work on its plant
within four months after the passage of an
ordinance giving 1t the necessary authority.