Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1911-03-28
WARM WORDS ON
PHONE QUESTION
Promoters Of Third Company
Charged With Dealing in
Hot Air.
TWO ATTORNEYS HEARD
Claim Only Offer Has Been Second
Mortgage Bonds Finally Re
ferred TO Commission.

fore the city council on the telephone
question last evening, when PROPOSE
ton was submitted by the Union Elec-
trio Telephone & Telegraph company
for the sale Of it's plant to the Central
Union Telephone company. The dis
cussion was opened by Alderman Mar
tin McNealy, who read the old ordin-
ance of the Union Electric company.
Leroy Wolf. an attorney for the COM
pany. stated that IL was desired to sell
ont the plant in the tri-cities TO the
Central Union. His company would be
willing 70 pay $500 or $3.50 for the priv
ilege of selling.
Alderman G. L. Schmid, who has ia
vored selling to any parties except the
Central Union. asked why the Union
Electric would not consider the offer
Of the Tri-City Independent Home Tel
ephone company of s250,00o and later
of $290,000. He answered his own
question by the statement that the
Central Union offered 100000 At this
juncture Sam Ransom. representative
OF the third company in the field, ask
ed for permission to speak. After he
was heard, Alderman c. L. Thompson
asked why the representatives, Of the
new company continually bobbed up
when they were not considered, and
had no money, and could not buy any
thing II II were for sale for 25 cents, in
stead of so many thousands. This sort
of reused Mr.. Ransom's ire, and he
asked Alderman Thompson the ques-
Alderman
Thompson replied that he was con
trolled by the taxpayers.
PEOPLE UNGRATEFUL.
Alderman Schmid then received rec
ognition from the chair. and he stated
that he was a representative of the
people and had always been; that he
knew of no graft Il am here for the
people" he said, but they didn't know
1t. They do not consider a man when
he is working for them and doing his
best to serve them. No. Sir, they turn
him down. I know what these teIe-
phone people want The Central Union
wants to acquire the Union Electric
plant here so that it will have no COM
petition, and 'can then charge what it
likes for service of any kind
Alderman John Holzhammer, after
listening patiently for a while, jumped
to his feet and said, I'm tired of lis
tening to all this talk. and | move that
we lay it over TO the commission"
Alderman Schmid seconded the motion.
Ferd l.. Beattys of New York city.
representative of the owners of the
Union Electric properties in the tri-
cities, asked permission to present
to the council a letter his people had
received from L. W. Stanton. promoter
of the Tri-City company, and which
bore the date of April, 1909. He stated
before reading the letter that this was
the last OFFER his clients had from the
promoters. The letter contained an Of
fer from the people whom Stanton rep
resents. The letter offered the COM
pany second mortgages on the prop
erty. and few of these, as the plant
had value only as the real estate which
II owns. has value. and that the para
phernalia was nothing but a pile of
worthless junk" The letter went on
to state that the stock would be in
creased, and the old owners would re-
ceive their second mortgages" on that
stock
BAD FAITH CHARGED.
Mr.. Beattys. in reading the letter
told what his clients thought of the
proposition. He said It was not made
in good faith, and that the company
would receive In payment. not cash.
which was what was wanted, but sec
ond mortgages on plant which fl now
owned. He said 1t was the final offer
from the people whom Mr.. Stanton rep
reeents, and that IL contained nothing
which would be considered for a mo- /
ment. He presented to the council two
circulars which had been spread broad
cast by the independent people. One
OF these was distributed In the tri-cities
and wac an attack upon the Central I
Union company. The other was an at 4
tack on the rate commission in the
state OF Ohio, and was for the most |
part Identical with the circular which /
was distributed here. Mr. Beattys said
that his people were victims of circun-
stances here, and had no fight with the
last company to enter the field. He
said that It 60 happened that his com.
psny was placed between the two here.
and was the butt Of the entire fight
He explained that the property had a
value as plant, and that its conduits,
poles, wires, ETC., could be used by the
Central Union people to advantage and
that the Central Union could save time
and money By purchasing the equip
uent. and save time and labor which
would be necessary 70 lay the same.
The motion OF Alderman HOLMAN
ner 70 refer the whole question to the
incoming commission finally was
brought 90 q vote and was carried,
20 8.
SEWER CONTRACT SIGNED.
The mayor reported that the Sew
smith ward sewer contract had been
signed and that the D. z. Keelsr
company would be ready TO begin
The work within the present week.
4. Z. Huntington. manager OF the
Postal Telegraph company asked
permission 20 operate q peanut and