The news-democrat. (Providence, R.I.) 1906-1909, 1907-07-01
'PHONE FRANCHISE
VETOED BY MAYOR

Win permanent prosperity anu pfosfess
OF the company. as public servant.
While Il is somewhat difficult to make
a comparison between the rates In this
city and others shown In testimony pro-
duced at hearings before the committee,
on account OF different conditions, the
reading OF the statements and report :
convince me that the rates In Providence
are too high.
The measured rate is the most equita-
BILE system yet devised In the telephone
art: under II the subscriber pays for
what he uses, and the company receives
compensation for services rendered, In
the unlimited class many pay for more
than they use. and a great many use
more than they pay for
CD The ordinance grants 10 the Tele-
phone company greater rights than under
chapter ~ OF the general laws. the city is
authorized 20 grant. This chapter pro-
vides that "such grants may confer up
on any corporation created by the gen
eral assembly Of Rhode Island. for the
purpose OF operating telephones, the ex-
elusive rights for the conduct OF the
business OF such corporation in over or
under the streets OF such town or city"
The proposed ordinance grants TO the
Providence Telephone company the ex-
elusive right TO maintain and furnish
telephone service within the city OF
Providence" This could be construed TO
prevent private telephone service being
maintained and furnished I'm stores. fac
tories and neighborhoods without using
the streets.
ORDINANCE is INDEFINITE
(D The ordinance is indefinite as TO
its duration. While a. purports 10 give
an exclusive franchise for six years
xs -. f~o. lee f..r olx aro
and six months and thereafter is con-
tinued as an exclusive franchise until
by Affirmative action of both branches
OF the city council. II shall be decided
20 give notice 10 the company TO
terminate the same. The past has
proved that IL is difficult TO obtain
this affirmative action, especially as
against the interests of powerful and
influential corporations. The votes OF
six members OF the board OF alder
men can continue the exclusive fran
chise now forming part OF said
ordinance. indefinitely. ] am of opin-
ion that the public interest in its tele-
phone service should not be left de-
pendent upon the votes OF six men.
more or less subject to political in
f1uences
The ordinance should be so framed
that the exclusive right given abso-
1utely terminates at certain time
stated. and thus leave the city and the
company TO make such terms as the
then existing conditions may seem best
for the public, bearing In mind that
all public service corporations are
created TO serve the public adequately
at reasonable rates and they In turn
are to be protected TO the extent OF
enabling them TO maintain facilities
for service OF the very best up TO date
kind. TO pay generous dividends, 10 be
able at all times to Invite investment
In its stock. as a safe and permanent
security, and provide for development
and contingencies.
In the great divergence OF opinion ms
shown by the testimony OF the official
representatives or different cities. and
citizens OF this and other cities contained
In the majority and minority reports OF
the committee, as TO the question ''Is tho
public benefited by two systems and IN
view OF the emphatic expression OF the
opinion of the majority OF the members
OF the city council on this question. what
ever might be my views on the same.
hesitate to raise any objection TO this or
dinance on that account
The Providence Telephone company
has had monopoly In this city. since It's
organization, but no exclusive rights.
IN OTHER CITIES
Experience In other cities has demon
strated that, under monopoly free from
supervision az to rates and SER
vice. the telephone field does not expand.
beyond the highest dividend paying limit
and capacity OF equipment on hand at
minimum cost. Public service at reason
able rates is not sufficiently provided for
where a monopoly exists. hence the
change wherever competition Is intro
the old companies are forced
to serve the public at reduced rates, with
Improved service. resulting In a great in
creased number OF subscribers TO all COM
petitors and the installment OF a dual sys-
tenn OF telephones In business concerns.
/ object TO any provision of said ordi-
nance containing exclusive rights beyond
a certain period. IL exclusive rights are
granted. they should terminate by lapse
Of time. without requiring affirmative ac-
tion on the part OF any elective body.
that may be subject TO political infiu-
ences.
AMENDMENTS RECOMMENDED.
II said ordinance is 10 be adopted i
its amendment by striking
out OF section ], In lines and 6 the
words maintain and furnish n telephone
service within the city OF Providence"
Also by striking out lines 10 to Is incu-
sive OF paragraph 4 in Section 2 herein
quoted.
And upon and after the first day OF De-
cember. A. ID. 1919, the said Providence
Telephone company shall continue TO fur
nish telephone service under the
same terms, conditions and re-
Quirements. and at rates not ex-
ceeding those hereinbefore specified,
and subject TO the same provisions and
limitations OF said chapter; Provided,
however. that either the Providence Tele-
phone company or the city Of Providence
may. at any time after said first day OF
December, A. ID. 1918, terminate all the
rights and requirements OF this ordinance
by giving six months previous notice In
writing TO the other party"
Also BY striking ou OF Section the
words "three per centum' and inserting
In place of same. the words FIVE per
ccntum.
am not unmindful that Il you gen.
tlemen should sustain the views. which
have here expressed. that the Providence
company would continue bust
ness under the ordinances now in force
at reduced rates with improved service,
but believe that you. as the representa-
tives OF the people of this city. elected
by rhe property taxpayers. can easily find
n way 20 require said compcny 10 pay an
adequate consideration 20 the city and AZ
the same time 10 give the people fair
OF the high rates which are now
charged