The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-07-21
COUNCIL HANGS
BIG "23" SIGN
On PHONE DEAL
City Attorney Is Instructed to
Collect Licenses as Pre-
Scribed by Law.
ORDINANCES LOOK QUEER
TO SEVERAL COUNCILMEN
ALLEGED SCHEME OF BELL CON-
PANY TO SECURE FRAN
CHISE FRUSTRATED.

If the Bell and Independent Telephone
companies do not pay their license tax
they VIII be forced to resort to the
courts for relief. as the council last
evening, by vote of 10 g. instructe
the CITY attorney to proceed against
these companies a once. The result
is declared To mean that the scheme
of the Bell company to secure a fran
chise for nothing is frustrated.
The action means further that the
city will probably recover the unpaid
license taxes fG-' two years back, aud
also the tax for 1908. the total amount
ing to about $4,000
The vote on the motion of Council
man j. j. Stewart to sidetrack the
franchise ordinances and enforce sfhe
law as it now stands was as follows:
Ayes-Cowbur Hodgson. Hall. Muir
doch. O'Donnell, Raybould, Reedall.
Stewards.
Noes-Black Fernstrom. HolIey. Mar
tin. Wood, President Davis-6.
The vote was not obtained until
considerable time had been spent in
discussion, during which those in favor
of the franchise ordinances were asked
some embarrassing questions as to their
attitude.
Black submitted a proposition to the
municipal laws committee from the
companies which was reported favor
ably to the council by that committee.
This recommendation was to the ef-
feet that the Bell company should be
given a franchise by the council and
should in return pay into the city l
per cent of it's gross earnings in lieu
of the license tax. Another ordinance
was prepared which provided that the
independent company should be eXemp-
ted from its license tax, as II already
paid / per cent of its gross earnings
by the terms of its franchise secured
/ four years ago. This would put boih
companies on the same basis and tl>
/ city would secure forty free phones
| from each concern for the use OF the
! various departments.
II was these ordinances which came
up last evening. and storm OF protest
against their passage WIS raised by
! Stewart and others
Companies Anxious.
/ Stewart stated that the anxiety of
/ the companies TO enter into this agree
ment was apparent. The Bell company
/ has no Franchise. according to the city
| attorney, and the Independent COM
pany would in the event of the pas
sage of the ordinances pay no. more
! than il does now. If the license tax
were enforced the city could collect
/ il for two years back. He stated that
the revenue from the gross earnings
tax would not amount TO more than
s.. 900 d year. and that the license tax
would bring in $4,000.
| When | signed the report of the
committee on municipal laws ] did not
understand that the Bell company was
TO have a franchise declared Council
| man Murdoch Il don't like the way
this thing is being rushed through. and
it is certainly contrary to my under-
standing of the agreement. Let the
franchise question come up when the
Bell company asks II. We are no'
forcing franchises on people and giving
away valuable rights for nothing.
Martin replied by stating that the
Bell company really had a perpetual
right to operate in the streets OF the
CITY. and that the franchise limited
them to 1888 This argument was pu'
to the bad by Councilman Stewart. VINO
said that the corporate existence oi
the Bell company expires on that date
and that il has no rights after tha'
period unless il secures them by ne
gotiatiOns with the council.
Too Deep for O'DonneII.
Il can't understand" said O'Donnell
. ..whv the franchise question should b'
brought into this controversy l don
see the use of it. We should not give
the Bell company franchise for noth
ing and really deprive ourselves or
lust revenue from the license tax an'
accept a lower revenue from the gros
earnings tax by doing so. 1t doesn
look right to me-
, Fe1nstrom explained that the com
/. PAW would add the license tax to tn
, price of the telephones If the hcens
were enforced and that if the fran
chise were passed there would be n
increase in rates
But you have nothing about rate
in this franchise" declared Presiden
l Davis.
e Fernstrom had to acknowledge TINS
S but insisted that the company woul
not increase the rates.
BLACK was for the franchise ordl
= napces and extolled them in CLOWN
terms.
Councilman Hall made strong tai
in favor of enforcing the ordinance
now existing
X I'VE should collect the tax or repea
e the ordinance" he said. These com
; panies have been allowed to have thei
Continued on PAGE 2.