The Butte inter mountain. [volume] (Butte, Mont.) 1901-1912, 1901-12-05
CHANGES ARE MADE
COUNCILMEN AND LEAGUERS
TALK TELEPHONE FRANCHISE.
DEBATE WAS WARM AT TIMES
Municipal Ownership Men Opposed the
Granting of the Proposed Right
Unless the City Could Event.
ually Acquire the Plant.

The committee of the city council. to
which was entrusted the matter of pass
ing upon the franchise for new tele-
phone system which a company headed
by H. H. Stewart of West Superior de-
sires to establish in Butte, held meeting
yesterday afternoon and listened to a
warm presentation Of the various phases
of the situation.
Several members of the municipal
league were present and participated in
the debate, among them being Charles NJ.
Parr and Green Majors. who are firm
believes in municipal ownership.
Thomas S. Hogan, formerly secretary
Of state, represented Mr.. Stewart and the
new company.
Ownership by City.
Mr.. Majors said the league desired that
the city should eventually own it's own
telephone system and requested that in
the event of a franchise being given the
new conner that it be so worded that the
city could buy the line at the expiration
of certain period.
Competition in the shape of another
telephone company would be no advant-
age to the city, he said
Rates might be reduced for a time, but
the war would result in the defeat of the
weaker company and g combination
would be effected with the result that
rates would go higher than ever.
The league has no enemies to punish
or friends to reward; it merely considers
this good opportunity for the city to
make start towards the ownership of
public utilities.
''The city should have the privilege Of
taking the system from the hands of the
company at tht expiration of a certain
time by paying for it fair price,"
The Cost Discussed.
Mr.. Majors asked Mr.. Hogan what it
would cost to establish the system and
the latter replied $225.00Q.
Mr.. Majors expressed the belief that
the company would make 20 per cent on
dts investment and at the. end of %
years would have been paid the amount
of its investment five times over. which
he considered sufficient profit.
He thought the city should acquire the
plant at the expiration of the franchise
without cost and that the company
should be compelled to furnish an indem
nifying bond to keep the system in good
repair
He considered the provision allowing
the city Is telephones free of charge out
of trim and added that the city should
pay for its telephones the same as in
dividuals do.
In reply Mr.. Hogan said that every
concession that could be made by the
company had been made.
1T must be understood" said he that
tn
field already occupied and that no con-
cessions and restrictions We're asked of
the old company"
Question of Per Cent.
He thought that instead of 20 per cent
the company would do we'll if it made
10 or 1912 per cent on It's investment.
He asked that action by the committee
be speedy as the matter had already
been under fire two months.
Asked by the chairman of the league
why the company proposed to charge
twice as much for telephones as it
charged in West Superior, Mr.. Hogan
answered that in West Superior labor
ers could be had for 1925 per day of 10
hours while in Butte it was necessary
to pay them 81 for eight hours work.
In West Superior telephones girls
We're glad to get $50 per month. while
in Butte they were paid $50.
Mr.. Parr asked that action on the
franchise be deferred a few days as he
desired to get some figures to show that
the cost Of establishing the system would
not be as much as Mr.. Hogan had rep
resented.
Best Citizens Of Butte.
The league, he said, was composed OF
some of the best citizens Of Butte and
they had a right to be heard. He
thought he could have the figures in
eight or nine days.
Mr. Hogan said the figures would not
be worth anything when Mr.. Parr got
them. I'VE are trying to get into Butte
for the purpose of creating competition
and lowering rates." said he land you
would impose upon us conditions which
no company could accept.
The established company had no such
conditions with which to contend. II
does not have to turn it's franchise over
to the city after it has operated few
years or give royalty to lay it's wires
underground
After the debate the committee went
into executive session and made three
changes in the franchise, after which II
announced that it would favor its
passage with amendments.
One of the amendments provides for
the donation of a royalty of per cen
OF the gross receipts to the city: an
other that the franchise must be &C.
cepted by the company within GO days
and the third makes more clear the
clause relating to the manner in which
the city can acquire the property at the
end of 10 years.