The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-30
THE TIME IS TOO SHORT
TELEPHONE TRUST MUST BE sPRY
TO COMPLY WITH SPECIFICATIONS.
Prospective Bidders Take Exceptions
to Features I'm the Requirements
Laid Down by the Board.

The specifications adopted by the Board
of Public Works Monday, under which it
will require bids from, companies wanting
to enter the city in competition with the
Central Union Company, were the subject
of considerable com lnent yesterday by some
of those interested in the competing com
panies. Mr.. Potts, author of the co-opera-
tive plan, which is fostered by the Com
mercial Club, said he believed the board
was moved by desire to protect the citi-
zens in every condition provided in the
specifications. "A strong point showing
this he said, lis the provision that the
tangible property of the new company, at
the end of the term of the franchise, unless
certain other conditions are carried out,
shall become the property of the city, to
be disposed of by it to another company or
TO be operated by the municipality. A wise
and progressive provision. he thinks, is that
which is intended to prevent the watering
of stock
Il like the provision which requires the
company to give up the use of the streets
at the expiration of it's franchise unless
the franchise is extended by q new con-
tract This will prevent any complication
arising, such as is in dispute. in the
street-railroad litigation. The proposition to
require SlOCk SuDSCTIpLiOH VI SOUUVOu
shows that the board intends to receive
only bona fide bids. This provision may
prove serious difficulty in the way of the
movement which the Commercial Club has
taken up to provide telephones a cost. The
Commercial Club has been waiting for the
specifications before it could do anything
of definite nature Now when the speci-
ficatonS come there IS a period of less
than three weeks in which to raise the
necessary 100000. 1t is true that there is
a provision allowing ten days after the
award of the contract in which to incor-
porate but this is of no value to an organ
ization such as the one proposed. Unless
all the required stock is subscribed. those
who have signed the subscription list would
object to take a chance of FORGETTING their
$4,000 deposit. If it were a plain ordinary
business concern. where the subscribers ex-
pected to receive dividends which would
double their investment it might be worth
while to take the risk, but men will not
do this for possibility of per cent. The
condition is meant as a protection against
straw bids, but it may work hardship
in this case.
Il do not like the wording of the pro-
vision for consolidation of the new company
with the Central Union. 1t provides that the
existing company may consolidate with the
new company at any time, with the consent
franchise rates. All that would be necessary
Tor an ORDINARY company 10 DO would be to-
make showing of operation-in the out
sklrtS, Wnere the expense would be small
and sell out to the Central Union Company,
and then the maximum rate would be es-
tablished."
A committee of lawyers composed of w.
+. Fishback, T. p. Davis. Edger A. Brown
and A; c. Ayres, appointed by the Com
the plan proposed by Mr.. Potts ana work
ing II out and modifying it. The committee
VIII nave report to submit to the Board
OF Directors of the Commercial Club in a
day or two. If the directors think the time
allowed by the Board of Public Works is
sufficient, the work will be pushed forward
at once either by subscription or by pub
lie meetings. or both.
The promoters of the proposed co-opera-
i've company are anxious that large num-
per OF people take the stock if the company
pc organized, rather than that few cap
ltaJists take 1t ALL The company will have
hard fight with the Central Union Com
pany. Experience in other cities has been
In this line. Y is therefore better that
many citizens become interested. The fight
will then be in the nature of fight between
corporation and the people, rather than
nsnt q 9n ail eorpo d against ANOTHER
the Citizens Company were found together
in the formers office discussing the latest
tons are unnecessarily severe and restric-
tive In points. While there is no doubt"
he said, that the city is perfectly sincere
protect the cty's interests, it has provided
some conditions which will have the oppo-
site effect First, after requiring ample Sc,
bonds, 1t undertakes 20 fix the amount of
stock to be subscribed ard secured before
bidder shall have any standing, all of
which must be supported by an affidavit
showing that the subscriber are solvent
and respons Die deem this condition UNI
necessary forsthe city's protection and the
only effect will be to limit the probability
of competition. have called the attention
of the beard to this point ard l believe it
Will be changed.
Another Objectionable feature is the limit
on rer els beyond the two-mile limit. 1t is
that the company may not charge more
than M.S9 pee annum for each quarter-mile
beyond the Limit of two miles from Monu-
ment place The present charge is $6-four
times as much as the specifications allow.
within the two mile limit in two, why
should the price beyond the limit be made
only one-fourth the present rate? Uni
fOrmity would suggest that the rate addi-
tional be s. to the quarter-rniie 1t is more
expensive to connect telephones and give
service In the outskirts than in the central
part % the city,"
Capt Bieler questioned the right of the
Board &c demand to know who the stock
holders of the bidding companies are. He
argued that the bonds and cash deposits
We're Sufficient guaranty to the city and he
said further that. under a special statute
passed in 1881, telephone companies were
stockholders are liable for the face value
OF their stock. in addition to the stock, for
debts and obligations of the companies.
Both Messrs. Bailey and Bieler stated that
the automatic company was in the fight to
stay; that IL expected to make a bid and
hoped TO get the contract; that IL had re-
ceived fair treatment and had no reason to
believe that any other sort of treatment
would be accorded it,
IS. p. Sheerin and III. B: Gates. of the
New Company were seen, but declined to
discuss the specifications until thew had
been considered by the board of directors
OF the company.