The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-08-23

ton of the city's right to collect IL
cense tax from the Rocky Mountain
Bell Telephone company, the corpora
ton will next Monday night ask the
city council to pass an ordinance
amending its franchise. The Bell COM
pany is willing to pay the city l per
cent of its gross earnings on condition
that the license tax, for the remaining
period of the company's right to oper-
ate. be relegated TO the background 1t
is said that the company's proposition
is substantially the same as the one
defeated six weeks ago by a vote or
eight to six.
1t is also asserted that if the council
passes the ordinance amending the
franchise the Bell company will fnd
itself in the possession of valid fran
chise, although at present, according
to the contention of the city attorney,
it has none.
The history of the Bell franchise be-
gan Sept. 8. 1879, when the council
granted William Jennings and seven
others the right to erect poles ana
maintain a telephone service. On Dec.
Is. 1880. Jennings and his associates
transferred their rights to A. ]. Patti
son and others. This transfer was rau-
fed by the council a few days later.
In 1883 the Rocky Mountain Bell Tel
ephone company was Incorporated I'M
der the laws of Utah, and acquired
control of the Montana Telephone d
Telegraph company, the Idaho Tele-
phone Company & Telegraph company
and the ogden Telephone company.
There is no record. it is claimed, that
the ADMINISTRATION franchise was
ever transferred to the Bell company.
Just how the company secured the
franchise is not to be learned from the
city records. 1t is upon this TACT tnat
those who are opposed TO the granting
of the Bell company an amended iran
chise base their contention that the
company is now operating without
franchise They insist that as IL was
necessary for Jennings TO secure the
ratification of the council when the
franchise was transferred to Pattlson,
similar action was necessary before
Pattison could pass the franchise along
TO the Bell company.
The offer of the company to pay TO
the city l per cent of its gross earnings,
it is said, would mean the paying INTO
the city treasury of about $2,40O year,
while the license tax would aggregate
about $4,000.
The proposed ordinance is as FOL
lows:
An ordinance FatllNlnS. COnllA Ihil7 anu
re-enacting certain rights and privileges
granted by the city of salt Lake, sept
| O. 1879, to William Jennings ana seven
| others, and amending the same and rat-
| fving and confirming the transfer OF sald
certain rights and privileges to the Rocky
Mountain Bell Telephone company, cor
poration of Salt Lake. Utah;
| Whereas, William Jennings and seven
others by petition addressed to the city
council Aug. 26, 1879. represented that they
were DESTROYS of forming q company 10
be known as the Salt Lake Telephone
company, for the purpose OF connecting
the principal places of business, resi-
dences. etc. by a district telephone sys-
TEN. and asked permission for themselves
and assigns TO erect the necessary poles
and run wires in and through the streets
of said city for the above purpose.
| Whereas, Said petition was received
and referred to the committee on streets;
Whereas. On the 9th day of September.
| 1879 the committee reported faVoraDiy
and recommended that the prayer OF the
petition be granted; and
Whereas Said William Jennings and
seven others on Dec. IL, 1880, duly as
signed 10 A. j. Pattison and company
| the right TO erect poles for the use of a
! telephone exchange, which assignment
was on Dec 3D. 1880. ratified in part by
said city council; and
| Whereas Thereafter said rights and
| privileges were assigned and transferred
| to the Rocky Mountain Bell Telephone
| company. a corporation duly created I'M
der the laws of the territory of Titan, to
exist fifty years from the date OF sale
| incorporation: and
| Whereas Said corporation installed IN
! Salt Lake City and continuously main
| tanned and operated telephone exchange
and telephone system from the date Of
its incorporation, and treated with ano
contracted with the city council OF sale
city relative to its business: and
| Whereas, The said city used the poles
! so erected as aforesaid by said telephone
| exchange and said companys conduits
upon and in which TO string and TO place
wires for said city's fire alarm and police
system for a long period OF years, anc
thus recognized the right or the company
! to maintain and operate a telephone sys'
tenn within said city: and
| Whereas There exists legal question
as to the extent of time the rights so ac-
ouired shall continue and a question as
| to the rights, duties and obligations OF
the said Rocky Mountain Bell Telephone
company and said Salt Lake City due tc
each other; and
whereas The said Rocky Mountain Bel
Telephone company disputes the right OF
| the CITY to collect a license tax on its
business as provided by the ordinance OF
| said city; now.
Therefore, for the purpose OF settling
and determining the questions which have
| heretofore arisen between said city anc
said company and of fixing the liability
and the duty of said company in the
premises. and confirming the rights and
| privileges acquired by said company un
| rights and privileges otherwise acquired
and in further consideration OF the said