The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-06
POTTS TELEPHONE PLAN
HE SUGGESTS OWNERSHIP ON CON-
sUMERs' TRUST LINES.
Board of Works Presented with This
scheme-AutOmatic Company's
Representative Heard.

for the solution of the telephone question.
He urged that when a franchise is granted
to a new company that provisions shall be
made for a peoples cooperative concern
similar to the Consumers Gas Trust Com
pany. Mr.. Potts said that the company
should not be allowed more than per cent.
interest on its investment in addition to
reasonable sum to be set aside to wipe out
the debt. In eight years, he said, the en-
tire investment would be paid for, the in
vestors would have received a fair return
for the time and trouble they had been to,
with fair interest on their investment mean
time. Telephones after that time should be
furnished at actual cost, which, he said,
ought not to exceed 81 a month.
No objection to this plan was raised by
the Citizens Cooperative Company. In
presenting the claims of the company Leon
0. Bailey said that Mr., Potts had come to
him with the suggestion that steps be taken
for cooperative organization with 5000
or 1000 stockholders instead of ten or TWEEN
ty. I'VE shall be glad to meet and confer
upon these lines or upon any lines that
will ultimately give service at practical
cost, saving of necessity such margin of
gain to the owners of the device adopted
as may be reached after the fullest negotia-
tions." said Mr. Bailey. Mr. Bailey said he
was much impressed on Thursday with the
demands made by the independent telephone
companies of the State for admission to the
city. I'VE are heartily in accord with their
Efforts" said he. Their fight is our fight"
He said that the outside companies were
not committed to any particular company,
their only aim being to get into the city.
He said that the best and surest policy and
cities of Indiana can be brought into union
with Indianapolis people is the automatic
telephone system. He contrasted the auto
matte with manual telephone systems,
showing that the former is operated at
scarcely any cost, while the manual systems
would require from one hundred to $50 en-
ployes on an exchange of 5000 phones. He
said that the saving in maintenance in favor
OF the automatic system is from $ldO to $500
a day, an item of $4,000 to SIS, 900 per an
mum. This Is why, said he, 1.-THE auto
matte system occupies a vantage ground so
high and formidable as to enable it to sue
cessfully cope with the giant monopoly rep
resented by the Bell interests. BY its use
absolute secrecy is obtained, delays avoided,
interruptions impossible, a service offered
at all hours of day or night, low rental
secured and absolutely no more than one
tenth or the time required in its use than
is now demanded from subscribers by any
He declared the system was up to date, its
patents infringed on none, as contrasted
with manual systems, where, he said, 1t is
conceded the Bell monopoly Is the owner of
patents controlling the most devices.
SWITCHBOARD RIGHTS.
He said that no manual company beside
the Bell, has the right to use q switchboard
reaching or exceeding 1000 subscribers, and
after this limit litigation is inevitable. lie
explained that the automatic people do not
sell their instruments, but place them in
city operated by a local company. and its
sole return Of profits depends on the eff
cheney Of the service. He said policy had
been adopted by which a vast system of ex-
change was being inaugurated. He spoke of
the difficulty independent companies would
have in giving long-distance service be-
cause Of the contracts between the Bell and
Central Union companies. Back of the
Citizens Company stands the parent Au-
tomato Company, controlling every other
automatic plant in the country, with
capital of 100000 invested and 50, 100000
more to be invested in the establishment
lin many of the larger cities of the coun-
try over $1,000 telephones" Through this
MISUNDERSTANDING, he said, Indiana towns,
exchange here would be in direct communi-
cation with the world. He asserted that,
like the New Company, his people We're
He took exception to the contention that
home capital only should be encouraged.
He said that on Thursday Judge Walker
representing the New Company, always
able and courteous, was, perhaps, immoder-
ate when he sought, in words altogether too
broad, to inSinuate that companies other
than the one he represents We're but stool
pigeons for the Bell people. Indeed he had
not well measured the position he occupies,
for his clients, If the board please, APP
peared before you with what? A list of
stockholders and nothing more. They are
gentlemen of honor and responsibility, we
c cor but when they. eau attention h,n 10
more which the board wants than list of
stockholders who will be willing to lend
themselves to dividend-paying enterprise.
They have concealed the important point
and the vital point in this inquiry, namely,
the thing, the system the service which
grant of power. They ask you for every
thing: they promise you nothing"
He said his company courted the fullest
investigation as to its hackers and support
braces the names of ex-Mayor Caven, Peter
f: Bryce, Henry Schnull, James r. Roos,
Charles Lauer, Capt. j. l.. Bieler, G. G.
Barrett of Knightstown, ]. v. Mitchell of
Martinsville, and others. OF the old stock
holders, he mentioned John w. Schmidt,
James r. Carnahan, Louis Hollweg, Henry
Schnull and Fl. c. G. Balls as men who
might CONTINUE with the new company.
THE AUTOMATIC EXCHANGE.
Colonel fryer, of Washington, general
manager of the Automatic Company, which
proposes to furnish the instruments and
half of the investment, explained the de-
tails Of the symtem's working. In answer
to a question by NJ. A. Downing, president
of the Board Of Works, he said that the
largest number OF telephones they had in
operation at any one place was SIS, in
Augusta, GA There they started year
ago with 300. AS to their long distance ia
cilities, he read list Of towns in which
exchanges are already in operation. viz:
s. C.; Trinidad. Col; Rochester. Mimi;
Marysville, Kan; Perry, n. Y; Laporte.
Ind. Manchester, Ia; Auburn N. Y; Ge-
neva, N. Y: Amsterdam, n. Y; Worthwhile,
N. Y; Albion, n. Y; Oneida, n. Y;
Princeton. n. Y; Tuscola, ILL.,; Coudersport,
Pa; Albuquerque, N. NJ; Albert Lea Mimi.
would be a good while before the COM
panys long-distance service would reach
very widespread field. He was also ques-
toned pretty closely about litigation pend
ing in the United States Court on account
of infringements. He explained that the
main questions involved had been virtually
settled, and that the company would not
have much trouble, if any trouble, on that
score, as 1t has acquired every patent de-
vice in any way effecting the automatic
telephone business. I'VE are monopoly"
said he; I'VE know it, and are going to give
the people the benefit of our strength"
J. l., Beiler finished the argument for the
company. He said the members were be-
fore the board meaning business. Referring
to a remark l. c. Walker, of the New Com
pany, made on Thursday, when he warned
the board to inquire carefully into the
antecedentS of anonymous companies that
might represent Bell and Central Union in