The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-05-11
TELEPHONE VETO
Mayor Says Hudson Co. Does
Not Offer Adequate
Compensation for
Franchise.
SHOULD PAY YEARLY PERCENTAGE
Free Use of Wire to Fire
Companies Does Not Pay
for Privileges-Veto
Criticized.
SHOULD PAY YEARLY PERCENTAGE

Out certain streets IN the CITY. Inc Nhas
or's reasons for his actions are contained
in the following communication
'-May 10, 1899.
Honorable Board of Street and Water
Commissioners
Il herewith return to your honorable
Board, without my approval, an or
dinance entitled AN ordinance to
authorize the Hudson Telephone Company
to lay conduits ana cables therein through
certain streets OF Jersey City,, whlch on
dinance was adopted at your last meet-
ing, held May 2, 1899, and presented ITO
me May 5, 1898, and of which the en-
closed is a certified copy.
Il nave taken this action for the fol-
lowing reasons:-The ordinance before me
which proposes giving the Hudson Ie!e-
phone Company the right to lay condults
and cables through certain streets IN TINS
city carries with il a franchise which
should not be given away without proper
compensation to the MUNICIPALITY Inc
Company's offer to the city OF the Tree use
of said ondui for the purpose OF carry
ing the wires of any telephone or hre
lines owned or controlled by the city or
any department thereof is but a smaIl
concession and out of all proportion 10
the value of rights acquired Dy the SoM-
pany. - NV a
Tine company should yearly pay a
round sum or a certain percentage OF Inc
earnings into the c.ty's treasury, ana at
the same time furnish every department
of the city government with an instru-
ment and the use thereof free OF cnaree.
While it may be commended tnat sliultdr
franchises have in the past been gwen
away for the mere asking, l am unalter-
ably opposed to so vicious, a custom ana
am determined to let no franchlse escape
in that way if in my. power TO increase
the city's revenue from such sources.
Moreover, the fact that the streets nave
to be torn open to the great inconvenience
of property owners and residents ATOMS
the proposed line of way cannot De over
101lroJ otuirhStandin PROMISES TO DuI
the streets in as good condition as pelore
opening, it has been the experience q
the city that in every instance such
promises have never been fulfilled. RutS
and holes remain in such streets Tor
months and years or until the city
causes them to be repaired.
The ordinance before me ooes not
met my views on franchises obtained
from the city. and I, therefore, decline ID
approve the same.
.sSinc my determination to return the
ordinance in its present form 10 you
without my approval, 1 have had a con-
ference with the President and counsel
of the Hudson Telephone Company, and
they agree to offer the city the following
terms, which I am willing to accept.
'First-The compan agrees to give to
the Mayor and Aldermen of Jersey City
one hundred shares of its capital stock.
"Second-The company agrees to place
in all offices connected. with the city,
which are now established and which may
hereafter be established, telephones to be
used by the city free OF cost.
.sThird-The company agrees to give the
city l per cent. on the capital stock an
nually. such amount to be paid to the
city before any dividends whatever are
paid to the stockholders of the ompany
Il suggest that a new ordinance be
drafted Incorporating the provisions OF
the old ordinance and also the above con-
cessions which are offered by the COM
pany-
# is necessary that some. provisions be
placed IN franchises of this character 10
assure the city that the streets which are
torn up will be promptly replaced IN az
good condition as they were found. II
seems to me that the company ought moi
object that such d provision be inserted
in this ordinance.
.sIf such an ordinance is introduced and
passed by your Board, 1t will meet with
my approval.
EDWARD HOOS,.
Mayor"
The veto did not come as a surprise to
the Street and Water Board, in view OF
what took place yesterday. 1t appears
that the Mayors suggestion was that the
Board should, yesterday, meet and re-
scind the resolution giving the franchise
and thus pave the way for the drafting
of a new ordinance embracing the amount
to be received by the city for giving the
franchise to the AT the last
moment, however, soma of the Commas
sioners changed their views about re-
scinding the ordinance and no meeting
was held. The Mayor only accidentally
hecame aware of this and at once sept
in the message
There is a wide difference of opinion
among the city officials as to the ques-
ton of compensation offered by the COM
'pany and which the Mayor favors- 1t IS
doubted if the city. in the first instance,
has the power to accept stock in a pri-
yate corporation, a rival of another cor
poration in the city, and even If it were
legal. some of the Commissioners hold,
It would be a bad precedent to establish
and one not conductive to the public
benefit
st would be much better" said a prom
inent official this morning while discuss
ing the veto. ITO insert a clause charging
five per cent. of the gross receipts of the
ompany. When the concern grows ana
fourfshes-well the percentage will be very
considerable. AS to the city taking stock
in the company and thu going into BUSH
ness against others, that, to my mind. IS
a very injudicious proposition. don't
think there is any municipality IN the
land which does that"
what will the Board do with the
veto?' every one asks in the City Hall
today, and about hat there is any
amount Of guessing. The Commissioners
themselves are as mute as carps. II Is
generally believed that they will pass the
ordinance over the Mayors veto next
Tuesday afternoon. One who is an au-
thorfty on city matters said in reference
to the Veto
THE duty OF. the Street and water
Board in this matter is plain. They should
pass The ordinance over the veto. The
propositions OF the Mayor are IN my
Judgment dangerous. Then, again, 1t is
Unfair to put heavy burdens on a new
company which has for It's object pulling
prices of a trust. When some time
ago a rival company put its eonduits up
New York avenue there was nothing said
then. but here comes a struggling COM