Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1906-07-03
PHONE MEN BEFORE COUNCIL
Two Independent Concerns ttats Their
Proportions for a Franchise.
no ACTION TAKEN BY THE COMMITTEE
one Protector only wants n Perpetual
. Lehse ON the city, while the
other win rake Limited
Contract.


inning before the general council com !
mittee yesterday afternoon The merits |
Of the proposition made by the Helm /
Parmeie- Pollock interests were eNpounSed
BY Judge Ben Baker. and those made ny /
Albert Won Hoffman by Attorney Ed. p |
Smith. and Mr.. Won Hoffman himself.
y. W. Judson OF the home company said Z
the members of the proposed concern !
most actively Interested were out Of the /.
city and asked for a week for the pre-
sehtation OF it's case. The time was
granted.
Il "If Joseph Helm Of Kansas City says
he will build a plant II will be built.
said Judge Baker. so far as his name
and obligations are concerned, as is we'll
known in this city no bond is needed o
guarantee that he Will do the things ne
promises SO far Mr. Psrmeie and Mr..
Pollock are concerned they are the fathers
Of the independent telephone system of
this state. They have the money and the
brains behind them to successfully tight
the Bell company in this state. They
have succeeded up to our city limits, pos
sessing franchises in many towns. are I'm
position to connect with many others and
own a franchise even in South Omaha
Under our very nose
Not . Speculation.
''The franchise they are asking for is
not wanted to sell, but because they need
Il in the extension Of their business. Mr..
Helm and MT. o. J. Snyder, who is as
ISOLATED with him In Kansas City, have
a plant there not surpassed by any other
in the country and exchanges in many
neiEhboring cities. Entrance and estab-
hshment In Omaha are necessary to round
out the system and make 1t complete. II
you will grant them the privilege they
win build here a telephone system of the
highest. best and most modern type and
they win do II Just as soon as men can
build II.
I'VE agree to deposit $4,000 cash
bond to be. forfeited II the plant Is not
built and the terms of the ordinance COM
\ Piled with. As opposed to the applica-
tiofs of two other interests would call
your attention to the fact that Mr.. Par
mele. and Mr.. Pollock own franchise
in South Omaha and when the home COM
pany promises Interchange ~of business
&tyh that city IL is offering something IT
does not possess and may not be able
TO obtain would reason that 1t will be
a dIfhcult matter for anyone to obtain
;. third franchise in South Omaha and
that Is what this company would have TO
do to give you local service there.
THE Home company has copied our or
dinanoe In form, but II has not been will
ing TO meet our figures on rates With
1900 telephones the rates Of the Home
company would mean S1S2,OO0 more an
nualIy to the subscribers than our rates.
1t would require 5000 instruments in use
before we could charge the rates offered
by the Home company for less than half
as many. >7
AS to the proposition of Mr.. Won Hoff-
"a - ra.,II - cal MI inn
10 the fact that the franchise proposed
calls fora perpetual franchise with a mu-
nicipal purchase clause after twenty-five
s.ysars.S .~..ean- - a.lI d.. - .a-,sa
80 Smtth Explains His Case.
=. MT Smith merely explained the terms
of the Won Hoffman franchise ordinance
and advised the council TO take it's time
in awarding the concession. He said he
should like to have II thoroughly dis
cussed by the Commercial club, Real Es-
tate exchange, Central Labor union and
other bodies and the best proposition
adopted; or. IN case none was good, all
rejected. He said Mr. Won Hoffman had
come TO him strongly recommended by let
ters from residents OF Milwaukee and
that they had devoted considerable time
TO framing the ordinance.
The latter, the attorney explained. pro-
vided for underground wires within a
radius Of one and one-half miles from the
business center; offered TO deposit $500
cash bond to guarantee beginning con-
struction OF the plant within sixty days
| and to spend 10000 the first year; as &c
rates provided nothing should be charged
until 5000 bona hde subscribers were Sc
cured and equipped. and after that 81 a
month for business phones and 81 for sin
gle-line residence and $3.50 for two-party'
line residence service; all up to 5000 sub
scrbers when l2h cents per month woulo
be added TO the rates for every Loo
phones added 10 the system, Measured
service would be at the rate of 81 a month
for business and 90 cents month for resi-
dence service incoming messages free anC
outgoing messages at the rate OF cents
each. these charges to remain fixed. Al
to royalties. / per cent on gross receipts
would he paid the first three years; 2 pc
cent the next hve, and 3 per cent there
after. All the books and records must b
kept In Omaha and open TO inspection o.
the city at all times. City hall phones
would be free and other city phones at thu
rate OF $3.50. a month. Connections mus
be made with all independent lines build
ing to the city limits as favorabl,
terms as could be found in any city o
the United States OF 10000 people will
similar service, under penalty OF FORFEITURE
OF franchise.
Mr.. Smith said he would be willing I,
amend the ordinance to provide that a ma
jority OF the board OF directors be lOca