Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1906-03-09
LITTLE PROGRESS
Council Again Meets With the
Central Union Telephone
Company.
CORPORATION STANDING PAT
Refuses to Agree to Fixed Rate for
Service or to 2 Per Cent Fran
chise Tax Asked.

After a session of several hours last
night the council adjourned without
being much nearer an agreement with
the representatives of the Central
Union Telephone company. The cor
poration stands pat and the council is
about the same, but showed symptoms
of yielding a little on some of the
points protested against and absolutely
refused by the company. The council
closed with an executive session, and
an adjournment was taken TO this af-
ternoon at o'clock. and the session
is now being continued.
submit the Ordinance.
w. ID. Mann. counsel for the COM
pany. submitted the ordinance offered
him by the city with his proposed
amendments. In short. the company
objects to furnishing and maintaining
the police patrol and fire alarm wires;
the clause fixing the rates for use of
telephones: the . per cent tax 1.-The for
fixture of all property if control of
capital stock passes 10 competing
company All OF these things were pro-
vided for in the ordinance as it was Of
feTed TO the company.
tOmprOmE>e Or
The position of the company seems
TO be that the council should compro-
mise with it inasmuch as the city
would have no better chances than the
telephone company if the matter went
into court. The representatives say
that they are willing TO stand on their
previous rights here and have them
tested in the courts. and for that rea-
son feel that the city's demands should
be more in the nature of a compromise
than enacted upon the assumption that
the company has no rights here.
Reasons for Objections.
The reasons for his objections to the
various provisions were asked of Mr..
Mann. and while most of them were
said TO be against the policy of the
company the attorney went further
and explained why il was against such
policy in some cases. The reason for
not wanting TO maintain the police pa
troll wires and fire alarm system was
on account of the liability. IL these
wires were under the company's con-
troll and operation it would naturally |
expect to assume the responsibility, |
but refused TO do so when the lines are |
in the hands of others. The city will |
be given two ducts in the underground !
system and the use of the poles for |
these wires.
General Rate Clause.
In the place of the rate provisions
of the councils ordinance. which were
a material reduction, there was substi-
tuted 4 general rate clause providing
that Rock Island should have the same
rate as other cities of the same size
and character for the same class of
service The company objected TO fix
ing the rate for such long period of
time on account of the changing condi-
tions. asserting that it would thus be
prevented from following out the prin-
cipIe in telephone business that with
the increase IN the number of phones
in the service there must be an increase
in the rate to keep up with the cost OF
operation.
Who Pays the Tax.
Hon. William McEniry. counsel for
the company. assisted Mr.. Mann in
answering some of the questions put by |
the aldermen, and after Mr.. Mann had |
told the council that his company OBJ |
jected TO the per cent tax on account |
of the high rate OF taxes it had already |
paid here, Mr. McEniry gave his opin-
ion on this point. He said that he did |
not think il an advisable thing for the |
aldermen TO urge, as the question i'm
mediately arises as TO who pays the |
tax It was his opinion that the man
who pays for the telephone pays the |
tax and the one who uses no telephone |
escapes the tax.
Control of Capital stock.
After passing the question of en-
ployment of union labor with the ex
PLANTATION that four-fifths of the men |
employed are union men and that all |
receive the union scale: the question |
of the transfer of the capital stock |
came up. The ordinance. as proposed |
by the council, provided that with the |
transfer of the controlling interest to |
any competing company the property |
here would be forfeited TO the city of
Rock Island. In giving the objection |
to that. Mr. McEniry explained that the |
one he was about to give was one that |
was applicable to some of the other OBJ !,
jections-the question of marketing the |
bonds There will be a renewal of the |
companys bonds during the proposed |
force of this ordinance and if the COM |
pany had contract in Rock Island |
with this and some of these other pro- |
visions in it, the company would be |
unable to sell it's bonds on the strength |
of it's holdings here.
This ended the open discussion and |
the council went into executive session. |