Virginian-pilot. (Norfolk, Va.) 1898-1911, 1900-10-06
THE CITY AND THE BELL
COMPANY LIABLE
UNDER THE LAW.

In August OF 1895 the City Councils of
Norfolk granted a franchise to the
Southern States Telephone Company.
BY this franchise the telephone com
pany was required to furnish free ser
vice to the city. to pay per cent of its
gross rentals to the city as tax, etc.
In return. the Councils put the follow
Ing clause in the company's franchise:
Section Sin consideration of The fore
going the city Of Norfolk ,riH not grant The
right 10 any other person or corporafion TO
erect. build or maintain a telephone system
e5ecpf as horeinbeforo named and described,
that is TO say the ,pircs shall be placed
underground and be subject to The same reg-
niotions as are required of the said Bromn
and Heipin and associates, aud The persOn
or company operating the same shall nav 10
the city the same consideration for the pripi-
lc0e aud DC subject Ocnerdiiy TO the same re-
strictions as the said Brown aud Heirim
and associates"
In short the city entered into a con-
tract. for Consideration" with the
States Company TO subject any other
telephone company. that might ask for
franchise. to the same conditions.
regulations and restrictions. in every
particular. as the States Company. One
OF the restrictions placed upon the
States WAS that i should not CtIurgc
over S3S per year for business. and SIS
per year for residence, phones.
In April, 1898. the Councils granted
to the Southern Bell Telephone Com
pany a franchise. in section of which
the Bell Company was required Ito
,,tr
to indemnify and save harmless
said city from damages for which il
may become liable to the Southern
States Telephone Company in conse-
quence Of this CBell franchise) being in
conflict with the ordinance" granting a
franchise to the Southern States In
other words. the City. through the
Councils, deliberately Ui0iatcd its plain
contract 10Th the STATES Company for The
benefit Of the Bell Company, which latter
company was required to give $780,
900 bond. with security. to protect the
city from the consequences OF such VIC
lation. II may we'll be doubted that the
annals of legislation show any greater
freak than this. For more than two
years this violation has stood-exempt-
ing the Bell from the restrictions, con-
ditions. pains and penalties imposed by
Its franchise upon the States. This
franchise to the States Company
(Which Councils violated in granting
the Bell franchise), was not merely an
ordinance intended to benefit the States
Company: 1t was intended to conserve
the rights and protect the interests of
the citizens OF Norfolk. individually and
collectively. 1t is not the States Com
pany alone that is privileged to be a
PLAINTIFF against the city. therefore. but
each and every citizen of Norfolk who
has suffered by reason of this violation
or who may suffer hereafter; and
against the citizens who have been dam
aged, the $4,000 bond of the Bell Com
pany only does not protect the City.
But this violation Of the Southern
States franchise is not the only partic-
ular in which the City has been remiss;
nor is It the only one in which It Is liza
BILE. 1t has, not compelled the Bell Com
pany to live UP to the chief or only re-
striction placed In it's franchise-that
IS the provision forbidding 1t to under
cut any other company inits rates. For