The times. [volume] (Washington [D.C.]) 1897-1901, 1900-03-20

bond within the time herein specified the
rights and franchises hereby granted shall
cease and determine. The plans in this
section required TO be submitted to the
Commissioners of the District of Column
bit shall be acted upon by said Commits
sionefs at the earliest practicable date
after their submission. in order to enable
said company to carry out speedily the
provisions OF this act"
Mr. Pearre then passed to sections IL
and u, which follow:
Sec. IL That the capital stock of said
company shall be S750,GOO. and said com
pany shall have power to issue bonds and
sacure the same by mortgage Of its
entire property, rights, privileges. and
franchises in an amount equal TO the
capital stock outstanding at any time.
Sec u. That there shall be reserved
in the cCnduits constructed under the 2u-
thority Of this act one duct for the free
use OF the District of Columbia for the
wires Of its fire alarm and police patrol
system
Penalty Clause.
Mr. Green of Pennsylvania put some
questions to Mr.. Pearre concerning the re-
sponsibility of the incorporators.
Mr.. lands of Indiana asked if the Dis
trict Committee would be willing to insert
in the bill an amendment providing in ex-
press terms that the maximum charge OF
S36 a year for residence phones should
be made for single telephones on single
wires Mr.. Cowherd of Missouri said that
he had already prepared an amendment
of this character.
Mr.. Pearre addressed himself to section
II Of the bill. which provides:
That should the property, rights. and
franchises of the Washington Telephone
Company be at any time hereafter acquired
by any other corporations or person or per-
sons, said corporation, person, or persons
shall take said property. rights. and fran
chises subject TO all the restrictions. liza
bilities. and penalties Of this act; and by
the acquisition of the property. rights, and
franchises Of the said Washington Tele-
phone Company said purchasers snail
thereby subject to the liabilities penalties,
and restrictions of this act any other tele-
phone plant or properties then or hereafter
owned or operated by said purchasers"
MIR. Green said that he had no guarantee
that the franchise which might be obtained
by the new company would not be sold to
the old company. He said he thought this
might be the purpose of the present bill.
Mr.. Pearre then passed to sections 15
l6. and Il, which provide:
Sec. 10. That said company shall pay an
annual tax equal TO enc and one-half per
centum of the gross receipts OF said COM
pany in the District of Columbia in lieu
Of all tax on personal property.
Sec. 16 That the said Washington Tele-
phone Company shall on or before the first
day of February in each year. make report
TO each the Senate and the House of Repre-
sentatives, which report shall be sworn to
and signed by the president and treasurer
OF the said company. and shall cover the
period Of one year ending the 3lst day Of
nAr o1xarr IL, Iata - 1T
the report. Such report shall state the
amount of capital stock, with list of the
stockholders and the amount of stock held
by each; the amount OF capital stock paid
in: the total amount of funded debt; the
amount of floating debt; the average rate
per annum OF interest on funded debt; the
amount of dividends declared; cost OF
equipment, including land and buildings;
cost of general superintendent, salaries
of officers. clerks. and office expenses; water
and other taxes; total expense of operating
its plant; rent; payment for maintenance
and repairs; payments for interest: pay
ments for dividends on stock, amount and
rate per centum. and total payments during
the year; receipts from all sources, specify
ing what
"sec. Il. That Congress reserves the right
to alter, amend, or repeal this act"
MIR. Penrre's Plea.
In conclusion, Mr.. Pearre made plea
for the passage of the bill. saying that
il was endorsed generally by the citizens
Of Washington.
Mr.. Moody of Massachusetts took eI-
ception to the provision of section Z,
which reeites that leach subscriber shall.
at the time of subscribing. pay in cash 1a
per centum OF the amount subscribed by
him. otherwise the subscription shall be
null and void" Mr.. Moody thought this
invited stock watering. Mr. Pearre re-
piled that the existing company with
a basis of $l0O. 900. had issued on that
s75O.Oe in stock and 100000 in bonds.
or the s750,000 in stock only s77, 900 was
paid in.
Mr.. Hepburn insisted that he thought
it would be better to bring the existing
company TO terms than to incorporate a
new company. He said the interests of
The citizens could not be best served by
the existence of two independent compa-
nies.
Mr.. Hepburn came in conflict with Mr..
Babcock Mr. Cowherd, and Mr. Pearre
in his proposition that Congress could
prescribe regulations for the government
of the old company.
The streets do not belong to the pres
ent corporation is what l am trying to
hammer in your heads said Mr.. Hep
burn.
Mr.. Hepburn pointed out other objec-
tions 10 the bill. 1t would not necessarily
cheaper rates. because il was not ex-
pressiiy provided that the telephones
should be on a single wire. 1t was not
sufficiently guarded. There could be no
effective service with two competing COM
panies.
Mr.. Mann of Illinois attacked the bill
1t permitted the proposed company. he
said, to tear up The streets, for which
the people OF the United States pay one
half. II the proposed company began op-
erations it would be necessary, he said
for business men to have two telephones.
Mr. Mann asked IL there was gentle
man on the floor so guileless as to think
thar the promoters OF the new company
would not sell out to the old one. "The
Only capital which the new company is
required TO invest is SIS, 900. Will the old
company permit itself to be run out of
business by a SO. 900 plant?"
Ar. Dolliver asked II the gentleman from
Illinois had any suggestion; to offer where
by the citizens might be relieved from ex-
tortion.
Mr.. Mann said there was no city in the |
country in which the people were not cry |
ing out against extortion in one form or |
another. He thought a satisfactory tele- |
phone service could not be furnished at |
lower rates than at present charged.
Mr.. Burke asked: why is it that s3G |
year gets a good telephone service in |
other cities?"
At this point Mr. Mann made an attack
on the authorship of the bill saying that |
he MANN was not practicing law in |
Maryland for clients in the House Of Rep
resentatiYes-
sharp Exchange of Words.
Nfr Dec hi