City Council Faces Telephone Monopoly Fight

The franchise committee has shifted the responsibility of dealing with the Independent telephone franchise to the council. It is now up to that body to bring the new company into Tacoma or keep it out. At the committee meeting last night, the franchise was carefully read, and after making a few changes at the suggestion of Chairman Lamborn, the franchise was referred to the council without recommendation. Before the committee took action, Councilman Read said: 'It has been stated that this company has no financial backing and merely wants the franchise to trade on. To give these people an opportunity to show that they are acting in good faith, I suggest that we raise the $1,000 deposit to $2,500, and increase the amount to be spent here the first six months after the franchise is accepted from $50,000 to $75,000, and increase the amount to be spent the second six months from $75,000 to $100,000.' Councilman Read's suggestion was adopted. Regarding rates, the franchise provides that the maximum rate for business phones shall be $5 per month, and for residences $2.75 per month, until the company shall have secured 6,000 subscribers. Some committee-men thought the rates too high, but Mr. Martenis explained that the company would need to keep rates low enough to compete with the existing company.