The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-18
CENTRAL UNION CLAIMS
POTTS COTERIE DISCONNECTED By A
LETTER IN ENEMY's HANDS.
Fort Wayne Situation Described by
the Central Union PeOpIe-Rates
for Service Abroad.

when representatives of the Central Union
Telephone Company appeared before the
Board of Public Works TO present its side
Of the case. City Attorney Kern and City
Engineer Jeup sat with the board Mayor
Taggart was not present A. +. Potts, w.
A. Pickens, Leon o. Bailey, 5. p. Sheerin,
L. G. Walker Jacob L. Bieler and others
who have talked about getting franchises
for new companies were interested specta-
tors.
After the representatives of the company
finished their talks they answered queS-
tons that were asked by Messrs. Potts and
Pickens To the former w. A. Jackson,
president of the company, said that he was
not authorized to say whether the Central
Union Company would consider a PROPOSE
ton to dispose Of its plant here. lie
thought however, it would hardly be worth
while for any one to entertain such an idea.
If it were a matter of disposing of its en-
tire interests throughout the country, that
was another question. He knew some men
in the telephone business who would be
glad to go into some other business. There
was considerable surprise when Mr.. jack
son read to the board a letter which had
fallen into his hands from Pickens, Cox e
Kahn, addressed to an expert i'll the tele-
phone business, asking for information as
to the cost of installing Systems. The letter
was dated March ii, a date later than the
consolidation of the Potts and Pickens in
terests and date later than postal cards
addressed to various citizens asking for an
Endorsement of the Potts plan. Mr.. jack
son made running, comments on the letter
and card, showing that he considered it
rather remarkable that it was proposed to
pay per cent. dividends on a plant, the
cost of installing which was unknown to
it's promoters. Mr.. Jackson said that he
did not feel justified in revealing the name
of the firm to which it had been addressed.
AS he had not been asked to suppress its
contents, however, he felt justified in CIV
ing the board the benefit of that letter.
LAS an evidence of good faith?" inquired
Mr. Potts in some warmth.
Eyes, as an evidence of good faith" re-
piled Mr.. Jackson
THE LETTER SHOWN.
The letter was typewriter on what pur-
ported to be a Ietter-head of Pickens, Cox Sr
Kahn. Mr.. Pickens concealed the annoy
ance he felt at the fact the letter had fallen
into the company's hands behind a smile,
but Mr.. Potts could scarcely conceal his
belief that there had been a breach of faith
somewhere. The letter read:
''Gentlemen-We represent some gentle
men who are preparing to establish a tele-
phone plant in this city If a franchise
should be obtained. We feel quite sure that
we will be able to procure the franchise be-
company will be organized as a trust COM
pany, the voting of all stock being in the
hands of board of trustees numbering five.
These trustees have been selected, and are
the most representative men in town. They
will have the power to elect all officers and
elect their own successors. The stock will
be redeemable with per cent interest, and
when the profits of the company have be-
come sufficient to pay all the stock and the
interest thereon the plant is to be operated
at cost to the telephOne users. we now
have in the city a natural gas company that
was organized on the same plan, and it has
proved very successfuli and very beneficial
to the consumers. and therefore there is
great public confidence in the plan OF our
organization, and you can readily see what
the chances would be in our favor If we
should compete with any other company for
franchise. We want a preliminary esti-
mate made of the cost of the construction
of a plant and it would probably be neces-
sary for us to have a competent electrical
engineer come here and look the ground
over and make a preliminary estimate You
understand we would not want an estimate
to build by, but simply rough estimate so
that we would feel sure that we were with
IN $2S 600 or $1,000 OF the cost OF the plant ant
tribution Of Instruments now in operation
by the present plant with sufficient accuracy
to enable engineer to make an estimate
tolerably close. Can you furnish us such a
man at once, and if so, can you give us
some notion of what the charge would be
for such preliminary estimate? We are in
much of a hurry in this matter, and an ear
ly reply would oblige u.s.
Mr.. Jackson asserted that If the company
that was asking for information as to the
cost of installing a plant were to charge
SO 1-3 per cent more for telephone service
than it proposes to do, it could not pay s
paying off its original investment He as
serted that the Central Union Telephone
s per cent. dividends. The long discussion
between the telephone men over patent in
Engagements and other phases of the ques-
insight into the situation.
THE FORT WAYNE SITUATION.
L. G. Richardson, of Chicago, the general
counsel of the company, spoke first of the
very superior equipment of the company,
developed at great expense and trouble. He
felt warranted in saying that the gentlemen
of the opposition companies would not pre-
tend that any new company can give the
good service assured by the many modern
devices, the patents of which are owned or
controlled by the Central Union Company
THE great cry against u.s." said Mr..
Richardson, ''is that our rates are too high
That claim is made by men who have abso-
maintenance of telephone plant" He said
that much stress had been laid on the work
| OF Ile independent company at EOrl wayne.
lie said that II 1t was giving acceptable
service at the low rates asserted it was los
| ing money, as it had not taken into account
maintenance and replacement OF equipment
The test Will come when they are COM
| PEELED to replace" said he. IF they have
not been putting in new money in the past
] and have not set aside part of their revenue
| for replacing WORKOUT equipment they will
| have to invest new money or raise the rates
| they charge when it comes to replacing
| He spoke of the difficulty under which the
| Central Union is placed in Fort Wayne,
| streets by the ordinance under which 1t is
| operating, so that it cannot get at one-half
! the subscribers it might have. He spoke of
| the experience of companies in other cities
| where they had started out giving low
| rates. AT Toledo $780, GOO was invested. In Il
made affidavit for a receiver, swearing that
| the company could rot pay operating eX-
| penSeS. The receiver was appointed and the
| plant that cost 100000 sold for $5,lG0. In
| Kansas City, he said, this experience was
| duplicated. He believed that history would
repeat itself III Indianapolis. He said the
! Central Union opposes an opposition plant
| because 1t 1nterfereS with legitimate bust
ness, based on legitimate figures. both by
| compelling q reduction of living rates and
placing two systems where only one is prac-
| tlcable. He recited the fact that the COM
pany had made large expenditures after its
wires We're ordered under ground two years
ago. By that act it became a resident of In
dlanapoliS and was entitled to the same
protection that any other citizen enjoys.
THE RATES ABROAD.
The attorney Went into the rates paid in
foreign countries saying that he was sur
prised at the statements made by various
telephone representatives. He had figures
xVh he I,a led cpnin fn