The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1899-05-10
Council Is Not Owned by Bell
Telephone Company.
Franchise Given to the Phoenix
Corporation.
THIS is REFORM.
Privileges In Topeka Must Be
Paid For Hereafter.
New Concern Must Pay Three
Per Cent.

The Topeka city council has refused
to accept the dictation of the Bell Tele-
phone company and has given the
Phoenix Telephone company the right
to do business in Topeka.
The new company will be required to
pay into the city treasury per cent
on the gross receipts for the first nine
years of it's existence. At that time
the franchise of the Bell company VIII
expire and both companies will be COM
PEELED to pay at the rate of 10 per
cent.
The Bell company insisted that the
new company should be taxed at the
rate of per cent from the first. The
city council reduced the rate to per
cent and 5. J. Bear, manager of the
new company announces that the fran
chise will be accepted with the condi-
lions.
The ordinance provides that the COM
pany must deposit with the city treas
urer 81, 500 as an earnest of good faith
to be forfeited to the city if the com
pany fails to complete its plant This
money must be deposited within 20
days
The company must give a $4,000
surety company bond that the streets
will be properly repaired and that it
will make good any damages resulting
from construction of the plant.
The lines in the business portions of
=
conduits.
The company cannot charge a higher
rate than S24 for business houses and
SIS for residence telephones.
The company must make quarterly
reports of it's earnings.
The company must pay the city 3 per
cent on its gross earnings for the first
nine years of its franchise and 10 per
cent for the eleven remaining years
When the franchise was called up it
was read by sections and no changes
were suggested until the reference to
the amount to be paid the city was
reached. Then Councilman Elliott
moved to insert per cent in place of
five.
Councilman Dickinson said: These
gentlemen have conceded every point
but this one and it seems to me that it
is putting the new company at a dis
advantage with the old company which
now has the people by the throat.
The five hundred people who have
signed the lists for the new telephones
surely know what they want. They are
not children. I understand that this
company is willing to pay 8 per cent
for the first nine years and leave the
rate for the last eleven years to the
judgment of the council only put them
on the same basis as the old company.
These people are ready to spend $50, 900
an our town, the most of it with our
laboring men and 1 am in favor of al
lowing them to do SOL
Councilman Warner: This council
has had this matter up for a long time
and it has been the sentiment that the
city ought to get something out of
franchises Corporations are pretty
much alike and this one will be just
like the rest if it comes here and will
insist upon every right under their
franchise. If we reduce this rate to 8
per cent and they have 700 phones we
will get the magnificent sum of $3.50 a
year, which will not pay for fixing the
streets The old company is here and
if We made a mistake in granting it a
franchise there is no use to repeat the
mistake"
S. J. Bear. manager of the new COM
pany, made a brief talk. He said that
the company could not accept the fran
chise on per cent basis.
Gen j. w F. Hughes of the Sixth
ward said; Il have been paying money
for telephones for ten or twelve years
Telephones are no longer luxuries but
necessities to business men. 1 believe
that the city will profit by allowing this
company to come into Topeka Oul
rates are high as I have found by com
pairing them with rates in other cities
AT Fort Scott they pay 81 a month. Al
Ottawa as cents, and the same in Atch.
ason. At my old home in Tennessee the
Fate is only 80 cents a month. This Bel