The Richmond palladium. (Richmond, Ind.) 1906-1907, 1906-05-25
TO ACCEPT
A MAXIMUM RATE
Central Union Telephone Com
pany Turns Down Request
Made by the City.
MAKE A THREAT WITH IT.
OFFICIALS WHO WANT TO PUT
THEIR WIRES UNDERGROUND
SAY THEY WON'T DO IT UNLESS
THEY GET OWN WAY.

The committee appointed from
council by Mayor Zimmerman to CO.,
operate with the board of public works
in making an agreement with the
Central Union Telephone Company
for placing the Main street wires OF
the company underground. met yes
terday with the bo%l. City Attorney
Gardner Robert Cline, superintendent
of construction, General Manager
Stickney and local Manager Hutton OF
the Central Union Telephone Com
pany.
Cyy Attorney Gardner presented a
con act which was satisfactory to the,
telel people with the exception of
one article to which they entered
strong objections. This article call
ed for fixing Of maximum ri.te for
telephones used in business houses
and private residences.
Cline Absolutely Refused.
Mr.. Cline absolutely refused to &C.
cept the agreement as long as 1t con.
tanned this clause and Mr.. Gardner
was firm in his opinion that the agree.
ment should contain this clause. He
was backed in the stand he took by
the board and the council commit
tee. The result of this was that
deadlock ensued and the meeting
broke up with negotiations no further
advanced than at the beginning.
Councilman at Large Won Pein sug-
gested before the meeting adjourned
that sliding scale clause be substi.
stuffed for the maximum rate clause,
and it is possible that this arrange.
ment may be acceptable to the Cen.
trail Union Telephone Company.
They stated, however, that the matter
would be taken under consideration
before any further action on their part
was taken.
The Troublesome Clause.
The clause in the contract drawn
up by Mr.. Gardner which proved OBJ
jectionable to the telephone people.
reads as follows:
I'm consideration of the grant OF
the privileges herein contained the
said company, party OF the second part
agrees and binds itself its successors
and assigns, to furnish to the inhabit-
ants of the said City of Richmond.
first class telephone service of the
best and most modern character, at
and for not to exceed the following
rates, to wit: For business houses
and public offices, $36 per annum. For
private residences, SIS per annum.
The rates above fixed shall not apply
to party lines. Said company further
agrees to furnish said city ten tele.
phones free of charge. >"
Mr.. Gardner, in stating why the city
would insist on maximum rate said
that 1t was his belief that in the
course of the next few years there
would be only one telephone company
operating in the city Of edmond.
either the Independent Company or
the Bell company, and IL the city did
not fix the maximum rates this COM
pany would be at liberty to charge ex.
orbitant prices, a condition which ex.
listed before the Independent line was
built
Cline Gives His Views.
Mr.. Cline stated that the day for ex.
orbitant prices being charged by cor
porations had passed. giving the pres
ent general reform wave the credit
for this state of affairs. He stated
that his company did not intend to
ever ask its subscribers any higher
rates than the rates fixed in Mr.. Gard
ner's contract, but that they objected
to a maximum rate being fixed be-
cause it would furnish a precedent
and have tendency to depreciate the
value of the Central Unions holdings.
'Supposing that we accepted this
maximum rate here in Richmnd and
then, for instance, we tried to get a
franchise in some town In Massachu.
setts. They would say you accepted
contract in Richmond, Ind, with
rate clause in it, and we will demand
the same here II all our franchises
contained rate clauses in them our
holdings would not be half as valuable
as they are now
Makes Proposition.
Mr.. Cline then made a very unusual
proposition, which was turned down.
He stated that the franchise the Gen.
trail Union Telephone Company held
in this city, were perpetual, but that
If the city would cut out the rate
clause and allow them the privilege
OF placing their wires underground,
they would give up the franchise they
now hold and accept one for term
Of fifty years.
Mr. Cline stated that Ii the city
would not give the Central Union Ia
vorable contract for the placement OF
their wires underground they would
take their time in going underground
when the city passed an ordinance
compelling them to do so, and that
they would then insist on placing their
conduits where it pleased them and
mot take any back alley route" Mr..
Gardner stated that it was his belief
that IL such an ordinance was ever