Evening star. [volume] (Washington, D.C.) 1854-1972, 1900-03-03
Business Citizens Appear and Make
Statements
QUESTIONS BY COMMITTEE MEMBERS
The Cost Of Establishing Plant
Discussed
WAS POSTPO ED

\ to incorporate the Washington Telephone
| Company and authorize it to operate a
telephone system in the District of Co
| lumbia.
A committee from the Business Mems As
sociation consisting of Messrs. H. F. Wood
ard, Mitchell Dyrenforth, Samuel c. Palm
er, V. Baldwin johnson, Jesse Ergood, Bar
| ry Bulkley. William Hahn, Henry Getz and
VIM. W. Danenhower, appeared before the
committee to indorse the bill.
The bill has been published in full in The
Star heretofore, as well as the amendments
proposed by the subcommittee, except in
this particular that the rate of taxation
has been fixed at 11a per centum of the an
nual gross receipts of the company in lieu
of all tax on personal property A pro-
vision has also been inserted requiring the
company to make annual report of Its
earnings expenses and financial condition
in every detail.
Mr.. Daniel for the Columbia Company.
Mr.. T. C. Daniel appeared before the COM
mittee in behalf of the bill for the Colum-
bia Telephone Company, which has also
been introduced in the House. Mr.. Daniel
said he wished to avoid the appearance OF
opposing any project which would give
Washington a new telephone company. He
called attention to the stock and bond fea-
lures of the two bills.
Mr.. Rabcock said it unnecessary to
discuss the general features of the bills.
The measure before the committee had
been prepared with care and was about as
well guarded possible. The only ques-
ton was as to who should be named as in
corporators.
the stockholders should be Washington
people. He said the franchise would be
worth quarter of a million dollars.
Would you be willing to pay that amount
for it?" asked Mr.. Babcock
Mr.. Daniel said that he could not indi-
vidually answer that question nor bind
others. At any rate, he thought the bill to
be reported should limit the amount of
bonds and stock to the actual cost of the
road. and no stock to be issued until the
bonds were paid off.
Mr.. Babcock called attention to the fact
that there was limitation in the Wash
ington Telephone Company's bill upon the
issuance of bonds and stock.
Mr.. Smith asked Mr.. Daniel IL he would
give 100000 for the franchise. AS one
member Of the committee he would hesl-
tate to give away this charter If there is
any around who is willing to give
100000 for 1t.
Mr. Daniel wanted time to consider this
phase
Mr. Babcock said 1t might be better to re-
duce the rates to s24 and $36, and then the
charter would not be SO valuable.
Mr. Daniel said that new telephone sys-
TEN could be constructed for 100000, and
he wanted a limitation put upon the issue
of stock and bonds. 1t might be thought
desirable at some future time for the city
to purchase the plant, and provision to
authorize such action ought to be moor
porated in the bill. However, he was not
present to obstruct the movement for a
new telephone company.
Mr.. woOdard's Statement.
Mr.. H. F. Woodard as chairman Of the
committee from the Business Mems Asso-
ciation. then addressed the committee. He
said the association had considered both
bills. and had directed the committee to
appear and announce the Endorsement Of
the Washington Telephone CompanIs bill
by the Business Mems Association.
He said he took 1t for granted that the
wishes of SEQ representative business men
would be taken into consideration in grant
ing this franchise. The incorporators of the
bill well-known citizens of Washington.
We are entirely satisfied with this bill
and the incorporators of it, said Mr..
WOOdard and we sincerely hope there will
be no delay in acting upon the bill"
Mr. V. Baldwin Johnson addressed the
committee on behalf of the Business Mems
Association. He said he a member of
committee appointed by the association
at meeting of the board of directors last
night to indorse the Washington Telephone
Company's' bill.
action because the proposed Incorporation
had made good business proposition. The
business men do not care anything about
the personnel of the incorporators, but the
men concerned in this bill are in position
to do what they promise.
We believe, after examining this BILL"
said Mr.. Johnson, that it will give us the
quickest relief and that the men back of 1t
will carry out their contract"
Cost to Establish the Plant.
Mr. George r. Webb, one of the incor-
porators of the Washington Telephone Com
roll ho ba he mi
ton of the stock issue to 100000 would
make the bill valueless.
1T will cost over 81 600, 900 to install this
plant" said Mr.. Webb. 1T is nonsense to
talk of putting 1t up for 5000
Mr.. Babcock said the House would GER
tainly put on an amendment requiring the
capital stock to be paid up in cash.
Mr.. Webb was questioned by members OF
the committee upon the capitalization Of
the company. He said it was absolutely
necessary to use some stock for the benefit
of the men who purchase the bonds, but
not all the stock would be SO used. Some of
ii will be retained for extension of the lines.
Mr.. Jno. j. Hemphill, who was present in
behalf of the Telephone Subscribers Asso-
citation. said the plant of the Chesapeake
and Potomac Telephone Company cost
about S5SO,OO0. Mr. Hemphill said the
court here had decided that 1t costs $71
year to operate a telephone. These people
propose to operate it for $4S and $36 year.
Now, in order to do so, he thought they
should be given a little leeway in the mat
ter of stock. He was opposed to watered
stock but he believed it was to the interest
of the public and the company to give the
company a fair capitalization.
At this point Mr.. Meyer of the committee
asked about the personnel of the proposed
Columbia Telephone Company, and Mr..
Daniel proceeded to tell about the men
named in the charter.
Action Postponed.
The committee considered the Washing
| ton Telephone Companys bill in executive
session for short time. but decided to
postpone action until next Wednesday,. in
| order to permit any one WHO might desire
/ to submit views upon either bill to do so
| IL is believed that the Washington Tele-
| phone Company's bill will be reported at
| Wednesdays meeting.
L Eehruarx Rcceinfs In Philinnines