The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-03-23
ORDINANCES co THROUGH
FRANCHISES ASKED BY TELE-
PHONE COMPANIES PASSED

The Aldermen Take Up the Missis.
sippi Valley Company First and
I'm 1t, and the Mayor Says He Will
Sign It-MinnesOtn Central Peo-
pie Also Fare All Right
Ordinances granting franchises tc
long distance and local telephone ex-
changes were passed by both branches
of the council last evening by unani-
nous votes.
The franchises are granted to the
Mississippi Valley Telephone company
for local exchange and to the Mime.
sofa Central Telephone company for 6
long distance system. Both companies
are already in possession of franchises
from the council of Minneapolis and
within six months both corporations
expect to be ready for business.
When the ordinances were brought
up in the board of aldermen. that OF
the Mississippi Valley company was
first considered. Aid Lindahl suggest
ed that the board go into commit
tee of the whole and take up the
ordinance for consideration. With Aid
Sanborn in the chair this was done and
for a couple of hours the local exchange
ordinance was discussed section by
section.
Assistant Corporation Attorney Phil
lips said the ordinance of the Missis-
sippi Valley company had been re-
ferred to him with the request to ru-
port as to whether the interests of the
city were properly protected. He was
ready to say that the interests of the
city were protected
An amendment was made providino
that the company should place the
street in good condition after the lay
ing of conduits, and the district in
which wires were to be placed under
ground was extended so as to take in
Kittson street. and Fourth street as
far as Broadway.
The only discussion was over that
section which provides for the COM
pany paying gross income tax of d
per cent. This, however, was only to
be paid after the company had as many
telephones in use as the present com
pany, the percentage to be paid only on
the number in excess.
Aid. Ldndahl was of the opinion that
the company should pay on its gross
number of telephones the other COM
pany had in use. If this was not done
the city would receive nothing.
Aid. Shepard took the ground that
the company should not be burdened
with the tax as the Northwestern COM
pany was paying no such tax. The
new company was agreeing to furnish
the same telephone that the North
western was now charging $120 for at
$48 per year. No sane man or men could
expect the new company to do more
under a reduced rate than was expect
ed of the one now doing business.
Aid. SanbOrn said the very thing
the Northwestern company wanted was
to have the provision exempting the
new company stricken out. The com
pensation the citizens would derive
would be in the decrease in the rates
from 1920 to s4S per year.
The motion of Aid. Lindahl to strike
out the proviso and make the company
pay 5 per cent of it's gross earnings,
was carried by a vote of to s. those
favoring it being Messrs. Bell, Bigelow.
Kenny, Larsen, Lindah1 and Stutzman.
A. G. Wolfenbarger, representing the
new company, stated that the ordIna nee
would not be accepted unless the sec
ton was allowed to stand and the COM
pany not obliged to pay except when
1t had phones in excess of the number
operated by the Northwestern COM
pany ~l-zt
The vote was then reconsidered and
the section allowed to stand as report
ed and passed by the assembly.
Other slight changes were made and
then the ordinance recommended to
pass. The same action was taken with
the ordinance granting a franchise to
the Minnesota Central Telephone COM
pany.
The board was then called to order
and both ordinances as reported pass
ed by unanimous vote. The an
nouncement by the president that the
l,o
ceiyed with applause by about 100 citi-
zens who were present, including a
delegation from the Commercial club.
Assembly COncurs in 1t.
The assembly held a session inme-
diately after the adjournment Of the
board and concurred in the amend
ments made in the ordinances.
Mayor Doran, who was an Interested
spectator, stated that he would sign
Inc ordinances as soon as they reached
him.
The ordinance Of the Mississippi VAL
ley company grants a franchise for
twenty-five years The charges are to
be limited to $48 per year for a bust
ness telephone within two miles Of the
postofice and for a residence telephone
within the same limit $36 per year.
For each half mile or fraction beyond
the two-mile lindt an additional sum
of rs cents per month can be
charged for each telephone Three
telephones are to be given the city for
$3.50 per month; thirty-one for 81 30 Ter
month, and sixty for the use of the
police department for $3.50 per year.
In no case is the city to be charge /
more than one-half the rental now paid
for such service.
No party lines are to be used ana no
more than one set of Instruments are
to be attached to any circuit. no
stock is to be transferred, or any Of the
right granted under the ordinance to ! e
consolidated with any other company
without the consent of the council
The exchange Is not to be mortgaged
or encountered for more than IS ner
cent Of the actual value A gross
earnings tax Of per cent Is to be pald
on the excess after the number of teIe-
phones shall exceed those in use By the
other companies operating in the city
The company is to file Il bond OF
$4,000 with the city on or before sixty
days from the passage Of the ortsI-
nance conditioner that the company
shall within six months after filing the
bond expend $4,000 In construction
and within eighteen months have zoe
actual subscribers.
The ordinance granted to the Min
nesota Central Telephone company fol
long distance franchise is also fo1
twenty-five years, and provides for the
payment Of per cent gross earnings
tax on all business done In the CITY.
BEFORE THE ASSEMBLY.