The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-04-01
UNDER THE CLUBS WING
PLAN FOR THE PEOPLES TELE-
PHONE COMPANY SET FORTH.
Commercial Club Directors Approve
the Report of the Special Com
mftfee-The Cost.

Thomas c. Day, w. p. Fishback, Edgar A.
Brown, A. G. Ayers, w. c. Bobbs, Theodore
p. Davis and John A. Finch, appointed to
formulate plans for the incorporation of
peoples telephone company. The directors
decided to refer the plan to the members
Of the club at a meeting to be called by the
president. The meeting will probably be
held early next week, as there is but little
time left for the company to incorporate
and get in bid under the specifications
adopted by the Board of Public Works. The
plan recommended by the special committee
is somewhat similar to that known as the
Potts plan" A. +. Potts said that the ac-
ton taken by the Commercial Club is with
the approval of himself and w. A. Pickens,
who had taken steps to form company on
similar lines The officers of the club
thought that it should be movement pro-
Noted by the club. with trustees and di-
rectors selected from its membership.
Accompanying the report is an abstract
of articles of Incorporation under which 1t
is proposed the Commercial Clubs peoples
company shall be organized The name of
the corporation is left blank. Its purpose is
stated to be to establish a telephone system
in the city of Indianapolis and its suburbs,
and to receive and transmit telephone
messages to other lines and exchanges, with
a capital stock of $3O0,0O0 divided into 1900
shares of $25 each. The term of existence
is to be fifty years. The board of directors
is to consist of nine members. The entire
capital stock is placed in the control of five
trustees, who are to be stockholders in said
company, and they are to have irrevocable
power to hold said stock in trust and vote
it for the election of directors.
fG IN n a
agreeing that the stock subscribed for shall
be held by said trustees in such trust. Fol-
lowing is the form of contract II hereby
of the - Telephone Company in the city
of Indianapolis, of the denomination of $25
q share, for which | agree to pay as follows
upon demand Ten per cent. upon ten days
notice after the franchise has been granted;
10 per cent. in thirty days thereafter; 10 per
in ninety days, and the remaining 60 from
month to month as may be demanded
hereby agree that the stock above SUBJ
scribed shall be issued to the board of trus-
tees above named in perpetual and ire
yocable trust in the manner and according
to the terms and conditions of the articles
OF incorporation under which said company
is organized, and that when the indebted
ness of said company is fully paid, and the
subscribers of stock shall have received an
amount equal to the amount by them SUBJ
scribed and paid, with per cent. interest.
the price for service shall thereafter be
fixed at cost"
members of the Commercial Club TO be
appointed by the president two vice presi-
dents and secretary of the club. Removal
from the city of Indianapolis shall Vacate
the office of any trustee If any vacancy
shall occur in said board of trustees by
death, resignation, removal from the city
vacancy shall be filed by the appointment
of such person as shall be named by the
Board of Public Works of the city of In
dianapOlis or its successor Should the
or refuse to make such appointment for a
period of thirty days after such vacancy
surviving members of the board of trus-
tees. The report says:
VOTING THE STOCK.
Said entire capital stock shall be voted
as a unit, and in case said trustees shall
not agree as to how such stock shall be
voted the majority of them shall cast the
vote of the board. Any member of the
beard of trustees may be removed by the
Marion Circuit Court upon a showing that
said trustee is an employe or holder of any
of the securities or capital stock in any
competing telephone company, or for any
corrupt practice or any misconduct which
said court may deem detrimental to the in
terests of said company.
Said trustees shall issue a certificate of
stock to each subscriber upon full payment
by said subscriber to said company of the
amount of his subscription. No dividend
above per cent. per annum shall ever be
declared or paid upon any of the stock OF
said company All profits realized by said
company above its operating and other ex-
penses and dividends of per cent. shall be
divided annually pro rata upon the stock
issued by said company until the full
amount invested in such stock shall have
been returned to the subscriber, after which
no further dividends shall be declared on
said stock. No dividend to be paid upon any
stock not transferred on the books of the
company.
ceived the full amount invested in such
stock, with interest at the rate of per
cent, and all Indebtedness of said COM
pany has been paid, 1T shall be the duty or
the directors of said company to reduce the
rates for telephone service to cost:
said company may incur Indebtedness
for the purpose of completing, extending
and improving the system. Such obliga-
tons shall be received in payment or debt
20 the company
penses shall be contracted by the board of
directors without the consent OF the board
of trustees
Provision is made for the election by the
board of trustees and other officers. Trus-
tees shall serve without compensation.
Compensation of directors shall be fixed oy
the board of trustees after showing made
of services rendered. 1t is provided that
sem7annual statements shall be filed with
the city controller, in form acceptable to
him, showing all the transactions OF SAID
company; also, the names of all officers and
employees whose wages exceed 500 month,
and the amount paid to EACH Said report
to be approved by board of trustees:
Such statement shall also contain list OF
the stockholders and amount of stock held
by each Upon the expiration OF the fran
chise rights granted to the company, or any
renewal or extension thereof, or Of the final
closing of its business by the sale OF its
property or otherwise, 1T is provided that
All money remaining in its treasury, after
discharging its Indebtedness and liabilities,
shall be devoted to the Improvement or such
mark or parks of said city as said board of
trustees may designate, under the super
vision of the officer or officers of said city
having charge of the Improvement or the
parks thereof at the time.
w c. Bobbs and Thomas G. Day. sub
committees reported that the financial plan
of the organization was sufficient to install
and operate a plant for three thousand sub
scribers Messrs. Davis, Brown. Fishback,
Ayers and Finch reported that there are no
legal obstacles to the plan. list OF names
suitable for trustees and directors was sub
mitted, but are not made public. From this