The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-06-01
.AAYOR'S REASONS
Hudson Telephone Ordinance
Vetoed Because City Is
Not Protected.
COMPENSATION FOR FRANCHISE
Veto Laid Over Under the
Rules Till Next Meeting
City improvements.

Mayor Hoos yesterday sent in a COM
munication to the Street and Water
Board vetoing the second ordinance
drawn in the interest of the Hudson Teie-
phone Company. The Mayor gave his
reasons as follows
May 81, 1899.
Honorable Board of Street and Water
Commissioners
Gentlemen:-I herewith return to your
Honorable Board, without my approval,
an ordinance entitled AN Ordinance ~
authorize the Hudson TeiephoIe Sot hpraiS
10 lay conduits and cables therein
through certain streets OF jersey oi.s,
which ordinance was adopted az YOU
meeting held May q, 1899, presented ~ Anef
for my approval May "a, 1S99, ana Oh
which the enclosed is a certified copy.
In my d%isapproval of a similar orulha
ance l pointed out a way by Wnicn tnu
city could receive some compensation loa
fhe franchise which the ordinance DelofS
me gives to the Telephone Company att
most assuredly expected thal you 49,
frame an ordinance tnat Woulu u1S e,r
ideas of and court the approval % Jul
citizens and taxpayers. An ofuinanee
framed as suggested by me Woulu NJ
have been unnecessarily harsn "a anS
company. which is a home concern, anu
at tha same time would have yielded the
city an annual income. ~
The company pleads poverty ana says
it is a homs concern II ~a stock in the
same when it was started some few
years ago, avowedly for the purpose OF
reducing the exorbltant rates or q e
moor and that it has a laudaDie opJecl
in view, yet do not forgel, sehsiSnlSn,
that this mpan was VIKING 70 49,
the citv one hundred shares of us capisai
stock and pay one per cent. on aus cap-
tai stock annually and sucA aIu9dnt ~
he paid before any dividends Whatever
are paid to the stockholders. OF the CON-
pany. The shares were valued al Sio
each or 81, 900 for the one hunareu. Inis
coupled with the one per cent. on capt.
tai stock and other concessions I'm Hons
reason or other you object 10 the cl.y
taking stock and you increase the gSf
centaga from one to two out your dua,-
tion IS rather a subtraction in that, IN
nv op:nionA you will get TWO per cent. on
something or other if the company Teens
SO disposed and the ordinance happens
to hold water. For what assurance IS
there that the company will ever pay
dividends to its stockholders?
Gentlemen, 1 firmly believe in the prin,
ciple of compelling compensation Ior al q
principle which the people throughout tne
country are rightly Selling, upon ana II
should be lived up 20 by then servants.
BY reason of the granting OF this ran
chise the company Immediately secures an
asset that cannot be disputed ana the
stock receives a value which Is anything
but fictitious. If this company snoula
take a notion to sell out to the rival con-
Germ, and there is no assurance. that IT
viii not do so when it once receives the
franchise, then. gentlemen, the selling
price would forcibly impress upon your
minds the value of the franchise Whlch
you practically give away. for nothing.
Gentlemen, II is your duty TO sustain
this veto n pass ar ordinance which
shall make provisions for the immediate
payment to the city of $1,000 in cash; for
the payment to the city by the company
of one per cent. on its gross earnings for
a period of four years, two per cent. Tor
the succeeding four years, three per cent.
for next period of four years. four per
cent. for the fourth period of four years
and five per cent. for the remaining per-
iod of four years, twenty years being stlp-
ulated as the life of the franchise.
Furthermore, the company should be re-
ouired to give the city a bond witt. good
security in order to enforce the. placing of
the streets in as good condition as they
were before being torn OPEN Finally, Il IS
to be understood that the company shail
furnish the offices of the city government.
with Instrument and service tree OF
charge.
The ordinance as drawn falls to meet my
views on the subject of franchises ana 1or
the reasons above mentioned 1 refuse TO
sanction the same.
Respectfully submitted.
EDWARD H0OS.
Navnr