Omaha daily bee., 1912-05-05
Council Bluffs
RAISE IN TELEPHONE RATES
Advance Discussed by Council and
Officers Of Company.
MATTER GOES TO COMMITTEE
Liberalization 10 to BE Made and
Then Decision to De SUBJ
mitted as to the

The meeting OF the executive cons
mittee OF the Commercial club, which
had been called for Thursday evening.
but which failed on account Of the abb
senee OF Secretary Rowe and others.
was held at noon yesterday. II was for
the purpose OF discussing the S per cent
raise BY the telephone company in the
rentals Of phones TO meet the expense
incurred by paying the royalty to the
city. required by section Is OF the old
Independent company's charter. Mayor
Maioney. City Solicitor Stuart, Senator
c. a. Saunders. counsel for the company.
Secretary Towne. and Or. Donald Macrae
we're present. There was a general
discussion Of the matter. which led to
the decision to appoint COMMITTEES Of
three from the Commercial club TO con-
fer with the standing committee on
telegraph and telephones In the city
council.
The committee will have instructions
to make careful inquiry into the matter
with conferences with the company to
ascertain II there is any way by which
the telephone users can be relieved from
directly paying the franchise tax. The
committees may employ an attorney IL
necessary to assist In the inquiry, but
win have no power OF action. It's work
being limited entirely 70 an advisory
character.
City Attorney Stuart dissectsd the
charter carefully and declared that he
could not see where tina company in
any way exceeded It's charter rights. and
pointed out that under the conditions Of
the charter Il might have very greatly
increased its rates instead OF charging
just enough more 10 meet the franchise
tax.
1T is well known to everyons who
cares to think, that all royalties paid
by public service corporations are paid
by the users OF the service, and II makes
no difference whether II stands forth a.
a specific charge or Ia concealed" said
he. The people pay II. for there is no
other way by which II can be paid, for
the companies have no other source OF
Income except from their patrons. In
this case the telephone company Is en-
tirely within Its rights The city also
has no option In the matter OF collecting
the tar. Neglect or refusal 10 do 90
~ maifeasance. and under the cosson
law every member Of the city administra-
ton who tries to svsds collection OF this
tax may be removed from office.
The people voted this charter. II APP
pears to be mighty liberal charter. and
I want to state now that II appealed to
me a. such at the time Il was up for
consideration and l voted against 1t. and
I understand Mayor Maloney also aid. Il
was meant to give a rival company a
good deal Of edge on It's opponent. aad
now that the opponent has absorbed 1t BY
legitimate purchase there appears to bs
no Law that can be invoked to prevent
me full realization Of its benefits. The
only way the telephone users can esads
the tax Is to repeal that section Of the
charter at an election"
Senator Saunders detailed the whole
history OF the charter acquisition. and
said he advised the company when tho
matter was first agitated that II Il was
pressed into an Issue the company would
have 10 pay II TO prevent forfeiturs
Of the charter. He said the company had
shown the utmost consideration for the
patrons and used the plan that would
most evenly distribute the burden OF the
tax. II tho company had made flat
increase OF . cents q month on all
phones. which It could easily have done.
the owners OF business phones would
have emily stood an increase Of sh per
cent while the people having q party
lines would have paid Is per cent more.
Instead Of doing this the company thought
| Il wiser % tar all the even mar cent.