East Oregonian : E.O. (Pendleton, OR) 1888-current, 1905-11-22

Should franchise be granted the
automatic telephone people and an
other company allowed to establish
a business here? This is the problem
that now confronts members of the
city council and 1t is proving knot
ty proposition. For several weeks the
matter has been before the council,
and at the last meeting the ordinance
was read for the first time and re-
ferred to the ordinance committee,
which now has the ordinance in its
possession.
On the face of the thing 1t looks
like there should be no opposition to
the granting of a franchise to rival
company, for competition is generally
beneficial. Also, from the showing
made by the representatives of the
automatic company, 1t would seem
their phone is superior in efficiency
to that of the Bell, and this is an
added argument In favor of the
granting of a franchise.
However, the rock upon which the
hopes of the new company may be
dashed is the fact that should a
franchise be granted and an automat-
ic system established there would
then be two systems to support in
stead of one, and business houses and
residences as well would be nearly
compelled to patronize both systems.
Should both companies continue in
business here 1t is inevitable that this
situation would result and thus, in
stead of competition lessening the
cost of telephone accommodations, it
would virtually double the same.
Another point over which the COM
pany and the council may lock horns
| is that of the maximum rates to be
charged. In the ordinance as read
last meeting S4.25 for business houses
and S225 for residences were named
as the highest rates that the eompa-
ny could charge as long as the num-
ber of phones within the city is less
/ than 1000. However, Mr.. Sumner,
| president of the company, who came
over from Walla Walla this morning
stated that the number of phones
could be increased to 1000 If desired
But the above rates are higher than
those now charged by the Pacific
States company, and which the auto
matte people have stated they would
| duplicate. Whether or not the coun-
/ ell will be willing to give a franchise
containing the $4.25 and s2.25 rates
remains to be seen, but II is consider
| ed doubtful. Should such rates be
| named in the franchise and the Paci-
fic States company driven out of bus
mess here, the automatic company
could then raise their charges to the
maximum. for there would then be
no competitor left.
! However, according to F. r. Brig
/ ham, county manager for the Pacific
/ States company. it is ridiculous tc
/ think that his company would with
draw from the field. In the first
place he says that his company will
| lose but little business here, should
/ the other company be allowed to en-
| ter the field, because of the fact that
/ all business houses and most resi-
/ dences would have to have bott
( phones. Also, he says that 1t woulc
( be impossible for them to quit Pen
/ dleton because of their long distance
/ business In his opinion should :
/ franchise be granted the new compa'
| ny, the main losers would be the mer.
chants and others who would be fore
| ed to pay for two phones each month
! instead of one. Also, he holds tha
the automatic people can never NEE
the old company's rate of $1.25 pei
| month for a residence phone.
! Meanwhile. the members of the or
, dinance committee of the council
who now have charge of the measure
are putting in their time trying tt
solve the question that is befor'
them. It is not unlikely that the mat
ter may be held over for week o.
more yet.