Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-06-13
TELEPHONE SALE
IS UP TO PEOPLE
Commission Tables Ordinance
Carrying Right to Transfer
Union Property.
SAY SENTIMENT is DIVIDED
Authorities Therefore DESTROYS of
Having Voters Pass Upon the
Proposition.

AIIeT OSFOIluS several uOuIS "
hearing discussion for and against
the proposition to sell the property
Of the Union Electric Telephone and
Telegraph company to the Central
Union Telephone company, the city
commission yesterday afternoon, vot-
ing on a resolution submitted by
Commissioner r. r. Reynolds, rec
commended that the Union Electric
company submit its ordinance TO a
vote of the people under the initiative
proposition
This action was taken after a
study of the situation for the last
six weeks, and in this time the COM
missioners have been unable, so they
state, to find what the real sentiment
of the people is in regard to the tele-
phone question. Some are DESTROYS
of having two system to insure good
service. Others state that one tele-
phone in the field is enough and that
laws can be enacted which shall
bring about regulation of rates and
at the same time furnish satisfae-
tory service. Now, in order to dis
pose of the Union Electric plant, &C
cording to ordinance, the owner,
Charles L. Bailey. Jr., of Harrisburg,
Pa, will have to submit the PROPOSE
ton to the people.
Commissioner Reynolds said he was
against granting the ordinance,
maintaining that to do so would
be to take down the only barrier
preventing the Central Union COM
pany from becoming an alb.
solute monopoly in this community.
He stated that the matter of COM
pensation for the privilege of selling
and sympathy for the men who had
invested heavily in the defunct plant
ought not TO be considered. He want
ed, as do all others. better service
and insisted on finding a way where
by that may be obtained.
G. H. Rottgt., superintendent of
the Illinois division of the Bell Tele-
phone company with headquarters in
Springfield, discussed the matter of
rates and probable legislation which
would soon be brought about. He
said that the state might create an
Office OF inspector and when it was
found that the company was max.
ing more money than legitimately
cred and that when it was falling
behind, the company might be per-
mitted to raise the rate. The estab-
lishment OF rates depended almost
entirely on the number of subscrib-
ers, for from them come the only
source Of revenue for the phone COM
panies. Then If the rate was high
and exorbitant, subscribers ceased to
patronize the company, the revenue
lessened and the company lost as a
result
WILLING TO PAY 100000.
Mr.. Rottger stated that it was not
the desire of the company now, as
much as two years ago, to acquire
the property of the Union Electric,
as it had already paralleled the lines
and conduits which it might then
have used. He went on to say that
his company might still be able to
use considerable of the property of
the Union Electric and therefore was
willing to pay 100000 for it, He
affirmed that the promoter was the
man who helped raise the rate, for
he obtained franchise and then sold
1t to the big company. The big COM
as the subscriber furnished the only
revenue the latter paid the promoter.
s. R. kenworthy, attorney for the
Tri-City Home Independent Tele- /
phone company, presented his views !
He spoke as a citizen, he said, and /
as representative of a company
which would within a short space of 4
time present TO the council for con- |
sideration an ordinance granting the /
right to operate telephone system !
here Il do not see how any repre- /
sentative of the people can conscien-
give TO this company (Union 1
Electric) the right 10 SELL" Mr..
Kenworthy said, for / can see no
benefit in the sale. There is no in
telligent reason for it, 1t is simply
TO give favor to some and to take
down the bars and favor others. The
effect of the sale on rates is a ques-