The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-05-15
BELL FRANCHISE
IS QUESTIONED
CounCiImen Believe Company
Is Operating Without
Any Legal Right.
MURRAY DISPUTES STORY
SAYS IN EFFECT IT'S ONLY A
MARES NEST.

That the Rocky Mountain Bell Tele-
phone company is, and has been. Operat-
ing IN Salt Lake for years without d
franchise of any kind was charged in
the council license committee last even
ing, when the protests of that concern
ana the Independent company against
paying the license tax required bv I0rdi-
nance were considered
Councilman FernstrOm brought the mat
Ter up tlrst. and his opinion was subse-
| quent4y assented to, in part by p J.
DAILY, assistant city attorney
D.&S. Murray, general manager of the
Belly company, stated that Fernstrom is
wrong and that he has in his office a
cerufied copy of all the records in the
recorders office bearing on the fran
chise.
Fernstrom, however. stuck to his point
ana IN support of his contention cited the
revised ordinances of 1903.
What Ordinances Show.
These ordinances show that on Aug. 26
1879. William Jennings and others nett
toned the council for permission to use
the streets and alleys of the city to erect
| the necessary poles for the purpose of in
staining telephone company. On mo-
| ton of Councilman Raleigh this was re-
ferred TO the committee on streets and
alleys. and on Sept. the petition was
granted, This was on motion of Coun-
Gilman Ball. On Dec. % 1880. this grant
was transferred to A. ]. Pattison & Co.
by the grantees, L. S. Hills, II. w. Law
renee, Charles E Pomeroy. B. G. Raw
60uld. William Jennings, James Sharp
Philip PuSsiey and H. S. Eldredge This
was said to be the only transaction on
the records which gives the present com
! pany any authority TO do business here.
ana there is nothing. it was stated to
snow legal transfer of the license or
franchise from the Pattison company to
/ the present owners.
! FernstrOm also asserted that the fran
/ chlse granted the company Aug 2 1884,
I n q T1r~aCy r.1s-r
/ formally accepted as provided for by its
! terms, and therefore is of no legal effect
/ today The franchise provides that il
shall be of no effect unless accepted with
! IN sixty days after its passage. and there
/ Is no apparent record of such accept
! ance.
Murray Disputes the Story.
Mr.. Murray stoutly disputed the con-
! tentions of Mr.. FePnstrom, but he could
! not Dudge the councilman from his stand
/ altnough he offered to show him certi-
| fled copy of the record giving a clear
/ and perpetual right of way to the Bell
| company.
| The main object of the meeting. how
i ever. was TO consider the ordinance re-
qulring all telephone companies to paw
/ a license of 80 cents year on each
/ phone earning less than $780, and 81 on all
| phones on which the charge is above that
| amount.
The Bell company submitted compro-
| mise proposition. stating that in lieu of
| the license it was willing to give the city
! forty-three free phones, the number used
/ al present.
| The Independent company argued that
| the license was unjust and asked the
| council to amend the ordinance.
! p. J. DAILY, assistant city, attorney, put
quietus on the compromise offer by
/ stating that ii was not legal and that
| the city should either enforce the law to
| the letter or amend it. He said that in
| this respect the proposition of the In
! dependent company should be considered
| by the committee or the council, but that
/ the Bell company had no standing in
/ court with its suggestion.
| Blacks Plan of Attack.
| The committee after arguing for time
submitted to the city attorney a sugges-
| ton made by Councilman Black He said
| that. in view of the fact that the indie
| pendent company paid 1 per cent on its
gross earnings to the city every year.
/ and the Bell people paid nothing some
/ effort should be made to make the license
| uniform. He declared that this could be
/ done by compelling the Bell company to
pay its tax and then letting the CITY
/ pay for all the telephones it cares to
use and which are now furnished free
/ To equaize matters with the Indepen-
| dent company he would have them also
pay their tax and then deduct from that
/ amount the gross earnings tax. BY the
! provisions of the latters franchise it must
/ furnish forty free phones to the city
Before the meeting adjourned Mr. DAILY
/ said that, in his opinion. the tax was en-
| wtthstanding the opinions of the attor-
. he lrTfNf mil