The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-31
BIDDERS ARE SATISFIED
WORKS BOARD MAKES CHANGES IN
TELEPHONE SPECIFICATIONS.
The "$3OO,OOO Capital Stock" PrOvi-
sion MOdifi ed-NO COnfiscatiOn
at End of Franchise.

In response to the objections made by
prospective bidders, as pointed out in yes
terday's Journal, the Board of Public
Works yesterday made some amendments
to the telephone specifications adopted Mon
day. 1t was agreed by the board that in
some particulars the specifications, as
adopted, might fail to accomplish all that
was desired. In the first place. the state
ment of Mr.. Potts that the provision re-
quiring the capital stock to be $500 900 might
prevent the proposed trust from bidding,
and the objection to it made by the repre-
sentatives of the Citizens Cooperative
Company, had weight with the board. This
provision of the specifications was changed
by the insertion of the following words in
place of the words fixing the capital stock
at $500, 900: "Such corporation shall have a
capital stock sufficient. in the opinion of the
Board of. Public Works, to guarantee the
good faith of the incorporators, the owners
of which stock shall be solvent and pecu-
niarily responsible to the satisfaction of
said board"
The provision which is expected to pre-
vent the watering of the stock, which re-
quires that the capital stock shall not be in
creased without the knowledge and consent
of the board was strengthened by the lmi-
tation of the amount of capital stock. The
board inserted a clause after the above
amendment, stating that the capital stock
shall not exceed $500 600. The board be-
lieved that it would be impossible even by
subterfuge to initiate the stock to an alarm
ing extent with this limitation as it will
require the greater part of the amount OF
capitalization at the maximum figure to put
in the plant and begin operations.
Under the specifications adopted Monday
it was provided that, at the end of the
twenty-five years of the franchise, unless a
new franchise were granted to the COM
pany, the latter should be allowed three
months in which to remove its tangible
property above ground and its wires and
cables underground, and failing to take ad-
vantage of the opportunity, the property
should become the absolute property OF the
city, This part is stricken out of the spec
ifications and there is inserted provision
that the city at the end of the term of the
franchise, shall advertise the sale of new
franchise and the company receiving the
present franchise failing to receive the new
franchise. shall sell its tangible property to
tha successful bidder at a fair price, the
amonnf to be determined upon by three APP
praisers, one to be named by the reuIihs
CORPORATION, one by the successful bidder
for the new frdncnlSe anu one ny 1ho J"09O
of the Circuit Court.
This latter amendment meets the general
anproyaI of prospective bidders and seems
fairer to disinterested persons The terms
Of the original specifications would cause a
hardship both upon the corporation secul
ing the franchise, in causing 1t the loss or
its property. and upon the patrons OF the
company who might at least Temporarily
he cut off from telephone service. onuer
the terms of the amendment there Will be
no cessation in the service, ana the COM
pany, on retiring, will be PAID tar price
for. its tangible property