The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-05-12
DISPOSED TO PICK FLAWS
COUNCIL COMMITTEE CONSIDERS
NEW TELEPHONE CONTRACT.
Company Weary of Delay-Great
BE Heard by Board of Works,

There was a disposition manifest last
night on the part of three or four members
of the Council committee on contracts and
franchises to pick flaws in the contract ex-
ecuted by, the Board of Public Works with
the New Telephone Company and several
members Of the committee seemed inclined
to send the contract back to the board for
modification. s. p. Sheerin, L. c. Walker,
A. II. Nordyke, Harry B. Gates, Bert Par
rott, Pierre Gray and w. w. Spencer rep
resentatives of the company, explained the
various provisions of the contract. After
listening to them over two hours the COM
mittee went into executive session, exclud-
ing reporters from their deliberations. When
they emerged 1t was announced that the
committee wanted time to further consider
the contract, but that there would be an
other meeting held and a report prepared
before Monday night
Mr.. Sheerin explained what steps had been
taken and said the company regarded the
contract as being as restrictive as it could
accept. I'VE feel that everything we could
in good business sense accede to has been
done, and we feel that we cannot assume
any additional burdens, said he The other
representatives of the company who were
present urged that some speedy action be
taken, calling attention TO the long and care
full elaboration that had been made by the
board and asserting that the city attorney
had safeguarded the city's interests in every
way possible. They said that while the COM
pany did not object to the notifications
suggested, so much time would have to- be
consumed they would rather the Council
would table the contract for good or pass it
next Monday night than send it back to the
board, as the latter course would postpone
its final passage a month or six weeks so
that but little time would be left to do the
underground work on the system this year
Besides this, it was represented, the war is
causing an advance in prices, and it will
cost the company much more now to make
its contracts for installing the system than
1t could have been done for six weeks ago
Mr.. Golfer chairman of the committee,
asked why there was not provision pro-
teoting the individual patrons from infringe
ment suits as we'll as the city? Mr.. Walker
explained that no patrons could be involved
In patent infringement suits, that the only
parties to such suits would be those who
bought or sold infringed apparatus He said
that patrons do not buy, but simply use the
Instruments
Mr.. Costello wanted to know why the
capital stock was limited to 100000 Mr.
Walker explained that was a provision
made by the Board of Works to prevent
watering and jobbing of stock. There was
also objection to the clause which provided
that at the expiration of the present fran
chise the board should sell it at auction for
another period not exceeding twenty-five
years. Mr.. Costello and Mr.. Golfer ques-
toned whether the Council had a right to
nix the terms on which future contracts
should be let. Mr.. Gray explained that this
was also an idea of the board to which the
company had acceded. 1t was simply along
the line of action taken in other States
where the tendency is to limit franchises to
short lives he said. 1t was explained that
the company would have been glad If its
franchise had been made fifty years and the
time for the future contract had been stipu-
lated to run a similar period. There was
objection by two or three members to Sec
ton IL, which prohibits the assignment or
transfer of the franchise to any other COM
pany without the consent of the Board of
Works. The old quarrel between the board
and Council came out in this connection,
and it was asserted there ought to have
been provision by which the Council
that so far as the company Is concerned
there would be no objection to such modi-
fication if it were not for the great de-
lay that would ensue if the contract were
sent back Mr.. Little could not see what
there was in this section to prevent the
company from selling to the Central Union
poration found it advisable to get the New
Company out of the way it would be COM
paratively easy thing to absorb it and then
abandon the franchise Mr.. Sheerin asked
him what he would suggest to prevent such
a contingency He said that the board had
made the contract as strong as possible to
guard against such a thing. Mr.. Little re-
piled that he was not prepared to say what
sort of a modification he had TO offer to pre-
vent such possibility
An effort to read the contract over sec
ton by section was made, but as 1t is so
long it was dispensed with after four sec
tions were discussed. Beside the nine mem
bers of the committee Messrs. Golfer, Mad
den, Knight, Little, Costello, Won Spreckel-
son, Scanon Rauch and Shaffer, President
Mahoney and Mr.. Higgins were present at
the discussion.
One thing was plain from the discussions
last night-the company seems to be about
worn out with delays. 1t. begins to look as
though competition in the telephone bust
ness need not be expected If the contract
is not passed by the Council next Monday
night One of the conditions on which the
company deposited $4,000 cash and agreed
to deposit SIS 600 more with the board on the
final passage of the ordinance by the Coun-
Gil was speedy action by that body.