Rensselaer Semi-Weekly Republican, Volume 41, Number 133, Rensselaer, Jasper County, 28 December 1909 — IS IT “FRAMED UP”? VERY STRONG EVIDENCE [ARTICLE]

IS IT “FRAMED UP”? VERY STRONG EVIDENCE

A Franchise That is Worth Getting One Way is Worth Getting Another, and “Why Not” ?

MEANS INCREASED RENTALS A Attend the Council Meeting This Monday Night and Help Defeat the Proposition, Unless You Favor the Increase. —r From Monday’s Evening Republican. This issue of the Republican is given over largely to the discussion of the telephone franchise ordinance that will be acted upon tonight. Without prejudice and solely in the interest of the people of Rensselaer, upon whom will fall the hardship of an unreasonable rental price for telephones we are devoting so much space in the hope that enough people will be aroused to the importance of the pending legislatibn to urge their councilman to oppose it and defeat it. To this end we are speaking pointedly, disregarding personal friendships amj the interests of business associates and endeavoring to impress the citizens of Rensselaer with the situation that confronts them.

To the best of our belief and this has been formed by the most complete chain of circumstantial evidence, supported occasionally by more tangible testimony, the Republican is convinced that this franchise is a “frame up” between the Jasper County Telephone Co., the operating company, and the Home Telephone Co., the paper company. A brief history of the conditions that led up to the present effort may be cited by way of introduction. Early last February a sleet storm done serious damage to the physical property of the telephone company. Delos Thompson, as manager, mafie an effort to have a new franchise passed granting his company an extension of ten years at an increase of and business phone rentals from SI.OO and $2.00 to $1.50 and $2.50 respectively. After considerable agitation the project Was defeated; that is, it never was placed to a vote because it was evident that the council would not pass it. The telephone company was unable to do anything in the city toward increasing telephone rates, but undertook to advance the rentals in the country. In July the organization of the Home Telephone Co. was begun and after a considerable delay for want of enthusiasm a few men, largely farmers, and practically all democrats, organized and elected directors. A charter was procured from the state at a cost of SSO and that represented practically all the money paid in to the concern. Some of the subscribers for stock thought it looked a good deal like putting the cart before the horse to spend SSO for a charter with less than one-fourth enough stock subscribed to meet the construction expense. Other disappointing things

in connection with the organization coupled with the appearance of spite in the inspiration of the company, caused many stock subscribers to. practical lj r withdraw and even directors to lose interest. Yet a franchise was asked for a period of 30 years at the SI.OO and $2 rates.

When the franchise was introduced members of the old company were on hand and others who opposed the granting of a franchise that would, make two systems possible. Various changes were suggested that were calculated to make operation difficult eyen if the franchise was passed, and these were adopted by the council. One of these changes was made on the suggestion o: Attorney Moses Leopold and made into a motion by Councilman Irwin. It Was that the p’ant of the new company be the “common battery” kind, a superior system. Another change v.’as a graduating scale of prices. It was proposed that until the company had in 200 telephones they only be allowed to charge 50 cents and $1 respectively for residence and business phones. These changes completely disconcerted the promoters and they determined that it would be useless to undertake construction upon the conditions proposed.

In the meantime negotations were begun for the purchase of the Jasper County Telephone Co.’s plant by the new company. Warren Washburn, of Goodland, was anxious to become the new manager and he conferred with the directors of the new company. The Jasper County Co. offered to sell for 75 cents on the dollar, while part of the stock was offered at 70 cents on the dollar, taking the stock at the capitalization claimed by the company without regard to the real value of the present plant. Slyly the directors conceived the idea that they might work up an organization that would buy the plant on an 80 per cent basis and thus make for the directors five and ten per cent for the sale. They started out their solicitors but they could find no buyers.

Both companies were getting together. There was no love between the present operators and the promoters but both love the almighty dollar and don’t mind a little matter like mixing smiles with snarls if there is a mutual advantage. There was no chance to get the stock subscribers at the present rate of rentals. There was no chance of the present or the succeeding council granting a better franchise to the Jasper County Telephone Co. during the tenure of office of the new council the franchise under which the Jasper County Telephone Co. is now operating. The situation was becoming desperate. Can you add two and two? Delos Thompson can. So can F. E. Babcock. Why not have the franchise granted

to the Home Telephone Co.? Happy thought and worth a trial. It the public was caught napping and the councilmen were not suspicious of a “frame up” it would appear that? the franchise to a paper company that would never erect a plant would not hurt any one. But the Republican has Information that It is not at liberty to state the source of that there is a “frame up;” that contracts have been drawn up and signed by the leaders of both companies by which the Home Telephone Co. will absorb the Jasper County Telephone" Co., with all the present Jasper County Co.’s stockholders retaining their stock and that operation under the provisions of the new franchise would begin just as soon as the changes in the system can be made.

This would mean that the rates would be boosted from $1 and $2 to $1.50 and $2.50 and that this rate would prevail for the next twenty years. This would mean that a few of the Home Telephone Co. promoters would get in on the ground floor and become stockholders in a fat. dividend corporation and that the other well meaning men who trusted in a scheming promoter will be left out in the cold after serving the purpose of “cat’s paw" for a “good thing” deal. Since the Republican first suggested this “frame up” not a word of denial has come from any source. The last two issues of«jthe Jasper County Democrat, published by F. E. Babcock, the secretary of the new company, have not had a word about the matter. Councilman C. G. Spitler, who favored the franchise for the Jasper County Telephone Co., and who put many hindrances in the pathway of the new company, is reported to have changed base and to have stated that “to be consistent” he will have to vote for the revised franchise. Councilman Eli Gerber, who opposed the franchise to the Jasper County Co., on the grounds of excessive and exhorbitant rates, is pledged to (support the new franchise because it is democratic. George F. Meyers, who opposed the of the increased rate franchise to the Jasper County Co., and who favored granting a franchise to the new company, will prove his consistency by opposing this franchise because of its objectionable amendments. Councilman H. L. Brown, who opposed the increase last spring, is undecided, but will heed the demands of his constituents if they will get busy this evening and see him.

Councilman J. F. Irwin is inclined to laugh at the inconsistent position of F. E. Babcock in asking for himself a franchise he so bitterly fought for another and should be counted upon to help defeat it. But the quiet and retiring attitudes •of the leaders of both concerns forbodes evil, and the deal and steal may be fixed. But the saddling of a franchise of this ktpd on the city of Rensselaer would be the most fathomless outrage and shameless perfidy ever committed, for it would be accomplished in the face of the fact that every telephone user in Rensselaer outside of those interested in the financial affairs of the old company and in the grafting possibilities of the new, are opposed to any increase in rates. This is the last we can say to oppose it. It is up to the people and their representatives. If you don't want your telephone rates raised then tell your councilman what you think about it. Go to the council chamber tonight and show where you stand.