The San Francisco call., 1899-04-30
FREEHOLDERS
HOODWINKED BY
THE MONOPOLY
Telephone Bug in the
New Charter.
CITY FATHERS HANDS TIED
GIVEN NO AUTHORITY TO REGU-
LATE TOLLS.
CITY FATHERS HANDS TIED
The Corporations Agents Tricked the
Peoples Representatives by
Cleverly Worded Pleas of
Injustice.

The immunity from municipal control or
interference which the Pacific Telephone
and Telegraph Company will enjoy under
the new charter, at least as far as con-
Germs the regulation of it's charges to the
taxpayer of this community, is the result
Of carefully laid plans, backed by per-
suasive arguments of representatives of
the monopoly who appeared before the
Freeholders and pleaded earnestly, almost
tearfully, that it's business would be Sc
riously impaired and the dear public
greatly inconvenienced should the city au
thorities be clothed with authority to fix
the tolls it could charge its patrons with
in the corporate limits. The telephone
company's agents did not fail to suggest
that the city fathers could not under the
constitution of the State legally exercise
such power, even if an attempt were made
to confer it upon them in the charter.
The bug in the charter, the existence of
which was pointed out by The Call, yes
terday, consists as stated of omission
rather than commission on the part of the
freeholders, chosen by the people to frame
set of Jaws for the future government
of the city. They ignored telephone tolls
in framing that valuable document, but
they did so with their eyes open and at
the urgent solicitation of the monopoly.
This is freely and frankly admitted by
the members of the Judiciary committee
of the Freeholders, which consisted Of
Henry N Clement, chairman, DR.. b. X.
Taylor and A Comte Jr, to whom the
whole matter was referred and on whose
recommendation final action was taken.
Mr.. Clement said last night that his
recollection was that the subject had
been referred by the Freeholders to the
Legislative committee of which Mr.. FL
lert was chairman, which committee re-
ported against inserting any paragraph
in the charter giving the city authorities
power to fix telephone rates because of
doubt as to its constitutionality and be-
cause of the fact that the telephone COM
panys business was not confined to San
Francisco solely, the same reasons prac-
tically as elucidated by DR.. Taylor.
ut is possible said Mr. Clement, that
the matter was referred TO my commit
The control of telephone rates by munich
pal authorities is new thing, and for
the reasons stated 1t was thought best to
leave it out of the charter. 1 was and AM
now in favor of the fixing or control of
telephone rates by the city, and If the
business of the corporation within the
limits of the municipality can be segre
gated from its outside business the char
ter can very likely be amended to meet
the requirement"
DR.. Taylor says the question was thor
oughly discussed and considered and the
members of the committee took the action
which they deemed for the best interests
of the community.
"Of course / cannot recall offhand all
that was said on the subject at the time, "
said Dr. Taylor last evening, but L know
there We're several reasons for our decid
ing not to make the fixing and regulation
of telephone rates a part Of the charter.
In the first place We doubted our consti-
tutiOnal right to do so, and in the second
place we decided that even if the rates
could be legally fixed or controlled by rep
reSentatiVes of the people, the power could
not be delegated to the city authorities
for the reason that the telephone COM
panys business is not confined to the city
but its lines extend into the adjoining
counties, and in fact all over the State.
You must remember the telephone COM
pany is not like a gas company or the
water company, whose rates are regulated
by the city In the case of the latter their
business is strictly and solely with the in
habitants of the city, and they are purely
local concerns. In the case of the tele
phone company it's business is not local
and the same rule will not apply. There
is scarcely person in San Francisco
who uses telephone, who does not at
| least once week call up some one out of
the city. The local and outside business
of the telephone company is so interviewer
that it would be extremely difficult, if
ties to properly and satisfactorily adjust
the tolls to be charged for city business,
even if they could be legally empowered
to do SO. Any such attempt would be GER
tain to result in endless confusion and
wrangling.
These matters were all presented to us
by the telephone people and taken in con-
! junction with the doubt that existed con-
| corning the constitutionality of any mu-
nicipal law to regulate telephone rates,
we decided to leave it out. OF course the
! new charter is by no means perfect, but
| if flaws are found in it, the remedy is
| very simple and easily applied We
| have managed to get along for a good
many years without municipal control of
! telephone companies in the fixing of rates,
| and don't think it will be any great
hardship for US to go year or two longer
/ if it is desired to amend the charter so as
| to have the fixing of telephone rates taken
from the hands of the telephone people. -
! Mr.. Comte, while a member of the
| Freeholders' judiciary conmittee, was not
present at the meetings when the tele-
phone matter was up for discussion and
although he said there were reasons why
/ the charter ignored the rate question he
was not prepared to saw what those rea-
sons were. ''Dr. Taylor can tell you all
about the matter" he said.
CNMpA MONS AE TILE EnR EST