Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1908-01-04
VIEWS ARE AIRED
Council Hears Company Repre-
sentatives and Business Men
on Phone Ordinance.
NJ CONCLUSION REACHED
Predicament of Investors Is EXPLAINED
and Plans for improvement Are
Given in Detail.

The many phases of the appeal of
the Union Electric Telephone and Tel
egraph company for a new franchise
ordinance to afford it sufficient relief
to enable ii to continue in business in
the three cities, were thoroughly dis
cussed last night at meeting of the
council in committee of the whole.
The ordinance submitted by the Tele-
phone company was read by Mayor
Schaffer, and following this, the coun-
Gil heard representatives of the COM
pany on the proposition and the stu
alton confronting the company.
The provisions of the ordinance diff
fer from the existing ordinance in that
! the maximum rate is made $50 a year
for business phones and $27 for resi-
dence service, the two per cent tax on
gross receipts is taken off, and the
country service is not made free ser
vice under the new ordinance The Or
dinance embodies the more important
demands made on and refused by the
| Central Union company: the maximum
rate, and the recognition of union la
| Dor. In addition the ordinance pro-
vides for the levying of any general tax
which may be levied by the city on tel
ephone companies
President Heard.
! President Sucker of the company
! explained to the council that the com
! pany has an investment of about $500.
000, and that in the time it has been in
existence here it has lost between SIS.
600 and 100000. He stated that the
company is now carried by three men
where originally there were 10 inter
ested. the others having given up the
fight when the venture failed to pay
dividends. He stated emphatically
that unless relief is obtained, the com
pany will be forced to give up -ths
strife, and go out of business.
General Manager H. H. Bratt alst
spoke and explained the plans of tht
company in case the ordinance i:
granted These plans include the in
stallation of an automatic exchange
|. and this system which has heretofore
|, been extensively discussed in the Ar
gus was explained by the manager
and its advantages shown. Mr.. Brat
stated that its popularity over the man
ual sysem was in the raio of five to on
where it has been installed. He ais
/. SdiscuSSed the 2 per cent tax question
and explained the country service pre-
position, showing to the satisfaction @
those present that the imposition of
toll will tend to give a more satisfat
tory service without working any hare
ship on the telephone users.
Frank p. Welch, director of the con
q pany, explained the details of the plan
f of the company for securing funds
t make the proposed improvements i
D case the franchise is granted.
S would Be Turned Down.
d e. ]. Burns, the new assistar
> general manager off the Unto
y Electric. also spoke on the con
}, pany's behalf. explaining that the o
Il ainance proposed is one which tn
/. Central Union company never woul
: accept, because of the clauses relatiy
S to maximum rates, union labor. an
$ underground wiring. He held this
o show conclusively that there is abs
lutely no utilization between the tv
companies. Mr.. Burns discussed IL
;. matter of rates to some extent and e
- deavored to show that the rates apple
, for are not unreasonable.
=, Not Effective Now.
9 Manager Bratt explained that Il
i rates provided by the ordinance a
not to be charged until the service
changed.
is From the Users.
5e, President F. T. Myers and Ratil
ly Secretary Albert Huber of the Blu
re ness Mems association, Drs. w.
ly Ludewig and c. T. Foster James NJ
Or Namara and S. r. Kenworthy
n, cussed the proposition from the vie
D. of telephone users.
Mr.. Kenworthy held the time to