The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1898-03-22
PREPARING FOR BIDDERS
WORKS BOARD CONSIDERING THE
TELEPHONE SPECIFICATIONS.
Changes i'm the Trust Plan of Or
ganizatiOn-LOw Monopoly
Rates at Toronto.

The Board of Works Yesterday consid-
cred in secret session the specifications upon
which it expects to ask for bids for new
telephone franchise. The specifications were
drafted in the rough by City Attorney Kern
and presented to the board for modifica-
tons. In it's deliberations the board was
assisted by Controller Johnson and Engi-
neer Jeup. Mr.. Kern was also present and
kept the others within the pale of legal
safety in the questions discussed and in
She changes made. 1t is the intention of
the board to ask the three companies now
knocking at the municipal door for admit
lance to submit bids under the specifica-
lions when they are complete. Other COM
panies, if there be any who would like to
serve the people of Indianapolis in compe-
tition with the Central Union Company,
will be invited to enter bids. The three
companies already in the field are the Citi-
Zens' Cooperative Company, the New Tele-
phone Company and the Peoples Telephone
Company.
The first two of the three companies
named already have organizations and are
said to be ready to begin work at once If
they should get the franchise. The Peoples
company is the one proposed to be organ
lied the Potts plan. 1t is believed by
those at the head of this movement that
there will be no trouble getting citizens to-
gether on the question of raising the money
after the manner the money was raised for
the Consumers Gas Trust Company, and
apply it to supplying telephones at rate
slightly above actual cost. There have been
some serious objections to the plan of the
Consumers Gas Trust Company, and 1T is
the intention of the promoters of the Peo-
pies Telephone Company to overcome them
by modification of the old plan. Expert
ence has shown that the old plan has weak
spots. One Of the objections to the plan of
organization of the Consumers Gas Trust
Company is the self-perpetuating right of
the board CT trustees. When the term of
Office of a member of the board, as the plan
is carried out in the gas company, expires,
either by limitation, resignation or death,
the surviving members have the sole right
to name his successor. The stockholders
have practically nothing to say about 1T.
1t is proposed, under the modification of the
plan as proposed for the telephone COM
pany TO have the first set of trustees elected
of them, and one will be elected for a period
of one year, one for two years, one for three
years, one for four years and one for hve
years. When the term of one expires for
any reason the judge OF the Circuit Court
shall have the appointing power ana snail
name the successor for a PERIOD Oh nve
y
in the hands of responsible and judicial
public official.
Another great objection to the plan as
followed by the Consumers Company is
the lack of information to be obtained by
the general public and the stockholders OF
the business transactions and dolngs or the
men in actual control of the affairs of the
company. During the fight Of the gas COM
panies for meters, several years ago, these
subjects were freely discussed by the people,
and it was openly charged that a favored
few who were permitted to know the In
side facts, controlled the price of the stock
and were able to turn a profit out of 1t
that the stock could not be said to have any
market price for no two of the innocent
stockholders could agree on the value OF It,
Some people were frightened into the pc
lief that the supply of gas was about ex-
hauSted and rushed to those who were on
the inside and disposed of their stock at
ridiculously low prices. 1t was charged that
into the hands of these favored few and the
purpose of the company was destroyed Tor
it no longer was a cooperative concern, but
q money-making institution for the few who
became possessed of the stock.
To remedy this evil and insure that the
company shall carry out its purposes--name-
w. to return to the stockholders out of the
then to give to the public the telephone
service at actual cost--it is proposed that
reports shall be made to the Circuit Court
seni-annually showing the transactions of
the company and giving a list OF the STOCK
holders and the amount of stock held by
each. The publication of the names OF the
stockholders and the amount OF their STOCK,
it is thought, will give everybody the same
chance to know the trend of the market,
and hence the value of their stock