Los Angeles herald., 1906-02-01
S4OME TELEPHONE
COMPANY REFUSES
TO MAKE REPORT

To the mayor and common council
of the city of Los Angeles:
The Home Telephone and Telegraph
company, reserVing all rights, and
waving none, respectfully shows:
That all of it's property and equip
ment was built and constructed and
is now operated in pursuance of a fran
chse granted by ordinance No. 1858 of
the city of Los Angeles, that said city
Of Los Angeles sold said franchise,
day of February, 1902, and the pur-
chaser thereof paid more than three
thousand dollars therefor.
That by section of said franchise
it is provided that this company shall
furnish to the city, free of any charge,
thirty telephones and connect the same
with the telephone system of this COM
pany, and said section further pro-
vides that the city shall have the free
use of one hundred and fifty pairs of
lines in it's conduit, for the fire alarm
and police telegraph system of said
city, and the free use of the top cross
arm on each of the poles erected ana
maintained under said franchise. Sec
tion II of said ordinance provides that
this company shall, during the life of
said franchise, commencing five years
after the date thereof, pay to the city
of Los Angeles two per cent of the
gross annual receipts arising from the
use, operation or possession of said
franchise. That section of said ordi-
nance provided:
THAT the rent or charge for unlim-
tied, independent, metallic circuit tele-
phone service in the system esta ablished
or maintained under said franchise so
long as said system does not connect
and exchange with more than 10000
telephones, shall not exceed $4,000 per
annum for a telephone installed in any
fINa -
when said system shall comprise more
than 10000 telephones the annual rental
or charge for the aforesaid services
shall not be increased by more than
a sum equal to $500 per annum for
each one thousand telephones in said
city connected with said telephone sys-
tenn in excess of 10000" -.
That the rate established by said
franchise was at said time lower than
any which had ever been charged for
telephones in said city. That this
company has not violated the provi-
sions of said franchise in any particu-
lar and has charged less than the rate
allowed by said franchise, at all times
That in pursuance OF said franchise and
in reliance upon the terms thereof
and particularly said provisions fixing
rates, and not otherwise, a large sun
of money has been expended by the
purchaser of said franchise and the
assignee thereof. That at the time said
franchise was granted the purchaser
thereof entered into a bond In the pena
sum of $4,000 for the performance OF
the conditions thereof.
That by section 10 1t is provided
that the owner of said franchise shall
I'm no way enter into any combination
at any time, directly or Indirectly, with
any person or persons or any corpor-
aticn. concerning the rate to be charged
FOR telephone or telegraph service.
That the reasonable value to the SAID
city OF Los Angeles of the use of said
thirty telephones provided by said fran
chise TO be furnished free OF charge
and the free use of one hundred ane
flfty pairs of lines for the fire system
and police telegraph system OF said city
and the free use OF the top cross arm
on each OF the poles erected and main