Omaha daily bee., 1902-05-14
AGREE ON One FRANCHISE
Aldermen, Sitting as Committee of the
Whole, Approve Dubuque Proposal.
TURN DOWN JOHN H KUHNs' PROPOSITION
Objections to the Latter IL the Toll
Rate and the Fact that His Com
pnny iE Not Incorporated
In state of Iowa

The aldermen. sitting as a committee
Of the whole Monday afternoon, decided
to the ordinance submitted by
President Stevens OF the Dubuque Tele-
phone company In behalf Of the Interstate
Telephone company for a franchise to the
city council for its approval and submits
sion to the electors Of Council Bluffs.
The ordinance had been redrafted by
City Solicitor wordsworth and only a few
minor changes in the wording Of SOM of
the paragraphs were made. An important
provision Of the ordinance as 1t now stands
is one calling upon the company to file
within ten days after the electors have
approved the granting Of the franchise a
bond in the sum Of SIS, 900 as a guarantee
that 1t will carry out its contract, this
bond to be forfeited in the event OF the
company not completing and having its tel
ephone system N operation within eighteen
months from the granting OF the fran
chise.
The ordinance as II came before the COM
mittee yesterday afternoon called for the
installation Of long distance equipment
phones, which Mr.. Stevens explained
meant metallic circuit phones, but in or
der that no mistake should occur In the fu-
ture the ordinance was corrected to den
nitely name metallic circuit, Iong-dis-
lance equipment"
Asked as to whether he would agree to
furnish free telephones to the schools, Mr..
Stevens said the company had made all
the concessions II reasonably could and
that In Offering to furnish the city with
twelve phones free 1t had done all II
could In that respect. He stated that the
company expected to give a discount of 10
per cent to religious and charitable insti-
tutions. He stated further that to grant
the request Of the Board of Education for
free phones for the school houses would
mean a reduction In the percentage Of the
earnings that the company could pay the
city.
Superintendent Lane Of the Nebraska
Telephone company made a proposition to
the committee to pay the expenses of a
committee or the entire council to st. Jo-
seph to investigate conditions arising
from having two telephone systems in a
city. Attorney Wadsworth on behalf Of
the Interstate company suggested that the
council make a trip to Dubuque and In.
vestigate the conditions there, where two
telephone companies we're doing business
also, to inspect the character OF the equip
ment that the company proposed installing
In Council Bluffs in the event OF 1t obtain
ing a franchise.
Alderman Lovett urged the committee to
proceed cautiously. He said It had al
ready In the past had experience in two
competing motor lines and the granting OF
a franchise to a new telephone company
might result the same. He said that in
J his opinion the council should thoroughly
investigate the company seeking the fran
chise, even II such an investigation occu-
pied one or three months. Alderman
Lougee said that he did not question the
good faith Of the Interstate company and
1t was on his motion that the ordinance
was recommended to the council for its ap-
proval and submission to the voters.
ON converting the committee had the or
dinance submitted by ]. X. Kuhns Of
Omaha on behalf Of the international Tel
ephone Company Of America read. objec-
lions were made to the 2-cent toll for
every call on the grounds that It would
prove more expensive than possibly the ex-
listing rates, and Alderman Casper opposed
consideration Of the proposition because It
came from a foreign corporation, saying
he would never give his vote to a company
organized out Of Iowa Alderman Lougee
was also primed with a number OF objec-
lions, and the ordinance was laid on the
table. Mr.. Kuhns stated that the company
was organized in Delaware with an author
lied capital Of 5000, 900, 900.