Omaha daily bee., 1902-05-22
DAY OF TALK ON TELEPHONE
Council Committee Disposes of One Franchise
and Lays Another One Over.
INTERSTATE COMMERCE GIVES CASH BOND
Several other Changes Made in the
Proposed Franchise, but Company
VIII Not COncede Free
Phones for Schools.


The aldermen sitting az a committee Of
the whole yesterday afternoon decided for
the second time within about a week upon
the character OF the ordinance granting the
Interstate Telephone company a franchise
for a telephone system which in their
opinion should be permitted to go before
the people of the city for their approval.
Several changes were made in the ordinance
as 1t was submitted to the city council
Monday night and 1t was then referred to
the city solicitor to be redrafted and pre-
scented to the city council next Monday
night for action.
At the council meeting Monday night
Emmett FINLEY, attorney for and one Of the
incorporators Of the Council Bluffs Inde-
pendent Telephone company, suggested to
the aldermen that the provision In the In
t~erstate company's ordinance requiring IL
to file a SIS 900 bond for the faithful per-
formance Of Its contract was of no force
and that the city could never recover on It
in case the company failed to install and
have In operation it's plant in the time
specified. This statement of Attorney Tin
ley evidently carried weight with the coun-
cilmen, as yesterday afternoon they de-
cided that in place Of the bond the company
should deposit with the city treasurer the
sum OF 81, 900 In cash, to be forfeited to the
city In the event of the company failing to
carry out its part Of the contract.
Declines to Pay Interest.
When this change was suggested the
committee at first insisted that the COM
pany deposit $40, 900. Mr.. Stevens on be-
half Of the company agreed to this, provid-
ing that when the money would be returned
to the company on it's fulfilling it's con-
tract It should also receive 3 per cent on
the amount of the deposit. Mr.. Stevens ex-
blamed that arrangements could be made
with the banks whereby 8 per cent would
be paid on the $40, 900 cash deposit. Objec>
tions were raised to the payment Of the in
terest and City Treasurer True declined to
be custodian Of the money on these terms.
After a lengthy discussion 1t was finally
agreed that the company should deposit
with City Treasurer True IS 900 within five
days after the passage Of the ordinance, to
be forfeited in case Of failure on the part
Of the company to carry out it's contract.
The company will not receive any interest
on this sum-.
The section requiring the company to de-
post 1900 to pay the expenses OF the
special election at which the ordinance will
be submitted to the vote of the people was
stricken out as not being a necessary part
| OF the measure. The money will have to
| be paid by the company before the mayor
will call a special election.
2 Alderman Lovett again insisted on the
| company furnishing six free telephones for
the schools and as many more as might be
| needed at half rates. Mr.. Stevens declined
to concede to this demand and a motion
by Alderman Lovett to the effect that the
company be required to furnish these free
phones for the schools and that In consid-
Grafton therefor the amount to be paid the
city by the company out Of It's gross earn
ings be reduced from 8 to 2 per cent, failed
to carry. Aldermen Lougee and Casper OPP
posed Alderman Lovettis proposition on the
| ground that such an arrangement would be
] taking part Of the revenue OF the city to
benent the schools, for the support OF
which the people we're already highly taxed.
A new condition was inserted in the ordi-
nance, requiring the company to furnish
either Individual or party line service to
any person or persons applying for same,
I providing such applicants agreed to pay
one years rental Of such service. This
provision was Incorporated, as 1t had been
suggested that there was nothing In the or
dinance to compel the company to furnish
service except such as 1t chose.
These were practically all the changes
] decided upon, although 1t is possible that
some Of the aldermen may be prepared with
other amendments when the ordinance
comes before the city council next Monday
night for action.
Home Company Asks Action.
Attorney FINLEY and several members of
the Council Bluffs Independent Telephone
company were present at the meeting and
after the Interstate company's ordinance
had been disposed Of for the time being
Mr.. FINLEY asked the committee to give his
\ company's ordinance consideration. He
said: I'VE ought to be given treatment
as business men. We are going to build
this telephone line and that Is all there Is
to IT,"
Alderman Lougee protested against taking
up the ordinance In the shape It was as
the company had done nothing in the last
four weeks to indicate that II expected or
even intended asking for q franchise. In
the face OF the proposition offered by the
Interstate company he for one would never
vote in favor Of the ordinance submitted
by the local company.
Alderman Lougee, after the ordinance
had been taken up for the purpose OF read
Ing 1t section by section. moved that all
but the title and opening section be stricken
out and amended by the insertion OF the
sections contained in the Interstate COM
pany's ordinance On being put to a vote
this was defeated by Alderman Lovett,
Olson and Huber voting against It. The
term Of the proposed franchise was then
reduced from thirty-nve to twenty-five
years and then the committee decided It did
not desire 10 spend any more time on II so