Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1906-08-07
SEEK FOR RELIEF
Union Electric Telephone Com
pany Asks to Increase its
Rates.
DECLARE TO OPERATE
Want Burden of Franchise Tax Re.
moved Also-Ordinance is Referred
to Committee of the Whole.

council last evening, the question of
telephone rates was again presented,
when an ordinance was offered to
amend the Illinois Independent TeIe-
phone company's franchise ordinance,
under which the Union Electric COM
pany operates here. The amendment
provides for the increase in the rates
of the company's phones to a maxi.
mum of $4S a year for business tele-
phones, and $24 a year for residence
phones, and petitions the relief of the
company from the two per cent fran
chise tax of the original ordinance.
The matter was laid over until Wed
nesday evening. when it with other
matters, will be taken up in commit
tee of the whole meeting of the council
E. J. Burns, the company's local
manager. was present. and was grant
ed permission to speak in behalf of
the proposed amendments to the ord
nance. He spoke to some length on
the question of rates, presenting much
the same arguments as were pre-
scented to the council when the matter
of the rates of the Central Union COM
pany before the body some months
ago. Mr.. Burns declared that the com
pany under the present regulations is
operating as an absolute loss.
Must Expend SI5O,OOO.
In regard to the relief asked from
the per cent tax, he said that the
orders and demands now made for the
vice in the three cities, and in the new,
er territory east of Moline, are such
that in order to meet the requirements
the company must eXpend $150,O00
This, he said, could not be done under
existing conditions. and not until the
company was placed on a basis that
would show an attraction to outside
capital. The new capital and the rev
enues as well, would, he said, be en-
tirely spent within the three cities
mainly in the construction of new ser
vice.
Encourage Outside Capital.
The point on which Mr.. Burns laid
particular stress. was that Rock Island
is now seeking to bring in outside cap
ital, and that outside capital, already
interested here, should not be driven
away, but should rather be given every
encouragement, and particularly in al
instance where the investment is shown
to be a losing one. The Union Electric
Telephone and Telegraph company had
through the medium of outside capital
established here a local institution, had
built fine building, and otherwise in
Dictated it's purpose to become perma
nent factor in promoting public ser
vice and contributing to the induce
ments and advantages of the city. The
city council, the public would naturally
expect to do all in its power to enable
the enterprise to prosper, rather than
o lose money.
Mr.. Burns offered in behalf of the
company, to lay open the books and
accounts of the company to demon
strate the relation of the expenses o
operation and the income under pres
ent rates and the burden of the fran
chise tax 1t is expected that the com
mittee of the whole will delegate some
committee to investigate and report on
the business of the company.
The ordinance for the placing OF
waste paper boxes in the business part
of the city by r. H. Taylor, giving him
an exclusive right for 10 years, was
presented. and was with the telephone
ordinance referred to the committee OF
he whole.
Objections to Sidewalks.
The council heard the protest of
large proportion of the property hold
ers in the First ward against the pro
posed sidewalks, and various of the
property owners were heard in support
of the objections to the ordinance. The
prayer of the petition was granted, and
action on the ordinance deferred. This
evening the board of local improve
ments will hold an adjourned meeting
for the purpose of hearing on the
sidewalk improvement of the Secono
ward.
Alderman Smith brought up the mat
ter of the necessity of making cuts In
the streets in the Third ward. where
the sidewalks are being brought to
grade. and demanded action with 2
view to grading the streets. The mat
ter was discussed to some length, and
was referred to the street and alley