The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1904-02-19
PHONE COMPANIES OFFER COM
PENsATloN FOR CHARTERS.
RIVALS TENDER PROPOSALS
One Asks That Council Receive Com
petitive Bids-other Names
Amount 1t Will Give.

1t may be accepted as a certainty
that when a new franchise for the
right of operating telephone system
in the city of Billings is granted it
will carry with it an obligation on
the part of the holder to pay stipu-
lated amount to the city as compen-
sation for the rights and privileges
enjoyed under the concession. Will
ingness that this shall be SO has al
ready been signifled by the companies
making application for charters.
One of them, the Montana & Wyom-
ing, has announced the amount it is
willing to pay. The company's offer
is a fixed amount for each instrument
In use. 1t is contained in an amended
application for charter, submitted to
the council at it's adjourned meeting
Wednesday night. In it the company
agrees to pay the city 5 cents month
for each telephone paying rental, for
the first five years of the life of the
franchise, and 121a cents a month
thereafter until the charter shall have
expired, which is to be 20 years from
the date of issue. The increased
payment is to be made, however,
only in consideration of an exclusive
franchise and will not apply in case
a charter is granted to competing
company.
The company agrees that the maxi
mum rates or rentals of the phones
shall not exceed 81 per month for busi-
ness houses; So for offices and 50
for dwellings. Party lines are to pay
one-half of the foregoing rates, and
no more thon four instruments shall
be on any party line.
In constructing it's system the COM
pany agrees to be governed by such
regulations as the city council may
see fit to impose and is prepared to
enter into an undertaking for $4,000
to indemnify the city against all loss
and damages that may result from the
construction and maintenance OF it's
system. The city is also given the
right to purchase the system at any
time, at price to be agreed upon
or fixed by arbitration.
Free instruments are to be furnished
for the use of the city hall, fire sta
tion and public library, and the city
is to have the free use of the COM
pany's poles for stringing wires for
a fire alarm system. In case charters
are granted to competing systems
they shall have the right to connect
with that of the applicant under the
directions of the council, by the pay
ment of q reasonable compensation.
Committees Recommendations.
The application is accompanied by
a report from the ordinance commit
tee, to whom both the original and
amended request were submitted. In
the opinion of the committee further
amendments should be added to the
petition. In this respect the commit
tee reports as follows:
"That the maximum charge for resi-.
dence phones be reduced to $1.5O
per month.
"That no restrictions shall be placed
on the number of conversations OF
subscribers.
''That Mr.. Moffett agree to surren-
der the franchise heretofore granted
to him under the ordinance of the
city, numbered 1853, within a limited
period after the passage of an ordi-
nance granting franchise to the M. |
& w. Telephone company under this
application as amended.
''That said amended application I
should be further amended that the
5 cents per phone should be paid to
the city during the whole existence
of the franchise, in the event of there |,
being a competing local telephone
operated in said city, as that contin-
gency appears to be unprovided for.
''That a clause should be inserted
prohibiting this compay, under pain
Of forfeiture of its franchise. from
selling any franchise granted upon
this application to any person or cor !