The Indianapolis journal., 1898-04-19
THE NEW TELEPHONE BID
BOARD OF WORKS WILL AWARD
THE COMPANY AlFRANCHIsE.
Bid Embraces the Substance of
Boards SpecifcatiOns-AD Deposit
EWnf0 bWU
of $4,000 in Cash.

phone franchise When the Board of Works
met to receive bids yesterday morn
ing L. o. Bailey, attorney for the
Automatic Company, presented COM
munication, but no bid. The New
Company accompanied its bid with
certificate of deposit for $4,000, but this was
withdrawn and cash substituted There
was little of public Interest in the bid in adj
dition 10 what has been heretofore pub
lished. The company proposes to furnish
business telephones for $40 a year and resi-
dence phones for $24 year within a ra-
dius of two miles frofh the monument An
additional charge Of $3.50 a.. year will be
made for each additional quarter of mile.
Nothing is said as to what amount of cash
the company will pay the city annually.
Instead the company stands by the citys
specifications on that point, which provide
for the pament of 5000 year so long as
there are less than 6,O0o telephones in op-
Grafton. For each additional telephone the
company is to pay the city 81 annually. The
annual payment of $1,000 is to be made i'm
two instalments, the first falling due July
/, 1899
The board did not award the franchise to
the New Telephone Company yesterday, but
that will doubtless be done to-day or to-
morrow. M. A. Downing. president of the
board. seemed to think that the franchise
would be granted in time for the contract
between the city and company to be drawn
up and signed by the end of the week, in
order that it might be sent to special
meeting of the Council, to be called most
likely for next Monday night AS soon as
the Council ratifies the contract the COM
pany will be required to deposit $4,000 more
cash to guarantee good faith and the carry
ing out of the contract. Portions of this
money are to be returned TO the company
as the work OF putting in a plant pro-
crosses.
Under the published specifications of the
city, which are made part OF the bid by ref
mence the work of putting in plant within
sixty days after the contract is ratified by
the Gonnc the entTf int plant 1900 must gd 9e teor IN
is provision for a forfeit of $50 day to
the city for every day thereafter that the
work remains uncompleted.
NEW COMPANY MEANS BUSINESS.
The city officials seem to be satisfied that
the company is acting in good faith, and
that it is in earnest about furnishing the
city lower telephone rates. Mayor Taggart
said that casual examination of the bid
seemed satisfactory. He said that it would
be taken up and compared with the pub
lished specifications to-day and, if found
to meet the requirements, he did not see
how the city could well do anything than
grant the company a franchise. The fact
that the company deposited $4,000. cash
went a good way towards convincing the
city officials that it means business
accompanying the bid was an affidavit by
A. II. Nordyke, president of the company,
to the effect that there had been no com
blnation nor coliusion With any other bid
articles Of Incorporation and the list of
stockholders, with the amount of capital
stock each had takeineI The entire capital
stock is $350,0O0, of which $250,000 has been
subscribed. Of the, stock 800 coo is pre-
ferred, on which dividends of s per cent
holders and the number of 500 shares, held
by each is as follows: Harry b. Gates, 250
shares; VIM. N. Gates, $50: NJ. B. Wilson,
I, G; Walker 671a; A. H, Nordyke, $50 D.
NJ. Parry, 250; Pierre Gray, 125; Walter
Kessler, 125: s. p. sheepln3 80; A. l.. Mason,
250. There letter attached to the ar
ticles of Incorporation stating that the in
formation contained therein was for the
board and not for publication in the news
papers. Mayor Taggart was consulted
and he decided that the subject was proper
ly one for publication, as the public is in
terested in the granting of the franchise,
and he considered it has right to know
who the stockholders are.
By the terms of the specifications. which
are to be embodied in the contract if the
company does not operate a telephone plant
In indianapolis the cash deposited becomes
forfeited. OF the $250O0 cash deposit ($15 900
to be made after ratification by the Coun-
ciD $4,000 is to be refunded to the company
when the ducts and underground work is
completed, 5000 when the poles and aerial
work is completed, s. 900 when the exchange
has been in operation for thirty days and
the remaining $1,000 after 1t has been in sat-
isfactory operation for four months.
THE COMPANY'S. ACCEPTANCE.
After recitng the Incorporation of the
company Jan. % 1898, with an authorized
capital of $3.50, OOO and asserting that said
corporation has been Incorporated in good
faith for the purpose of constructing, oper-
ating and maintaining a telephone plant in
said city upon the granting of a franchise
for that purpose b and setting out a
schedule of prices, given as above, the bid
contains the following:
"Seventh-The said company will accept a
franchise granted by the Board of
Public Works if the same is in con-
formity with the specifications hereto
fore referred to, prepared by
said board, and if in accordance with
the terms and conditions herein imposed;
provided that the same is granted promptly
and approved by the Council as granted by
the board, without any delay, as the season
for active work has arrived, and as work in
the construction of the telephone plant in
fall and winter adds largely to the expenses
in the construction thereof: and provided
further. that no increased burdens, eXpendi-
lures or requirements are imposed by said
contract of franchise than as specifically
stated in said specifications of said board
and this bid; and provided. further. if said
franchise is not granted to said company,
said sum of money is to be returned to such
company by said Board of Public Works
The said company further agrees that
it will accept said franchise, If so granted,
and within ten days from the date of such
acceptance enter into a written contract
with the Board of Public Works. embody-
ing the provisions stpulatons and require
ments in said specifications, and as herein
contained.
Eighth-'rhis company agrees to furnish
modern appliances that are approved in use
and to furnish service equal to the best and
most efficient and in order TO be able to
secure such results, il reserves to itself the
right TO select the switch-boards, telephones
and appliances to be used to produce such
results"
Leon o. Bailey. attorney for the Citizens
Cooperative Telephone Company, appeared
before the board with a long communica-
ton, setting out on what terms that COM
pany would make bad. There was also a
letter from the Home Automatic Com
pany complaining that the specifications un-
der which bids were to be received were Vir-
tullly prohibitive The board considered it
too late to talk about specifications and
took no action on the communicat tiOnS.
--
INCREASE IN PARK PRICES.
aaNNa fInsnv.