The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1898-03-19
DOESN'T WANT OPPOSITION
NORTHWESTERN TELEPHONE
COMPANY WANTS THIS FILED

/
Streets the Objections to Granting
| the Mississippi Valley and Minnc-
sofa Central a Franchise.
| The committee on streets from the
board of aldermen met last evening
to consider the franchises proposed to
| be granted to the Mississippi Valley
| and Minnesota Central Telephone COM
! panies.
There were sixty persons present. in
Guiding many interested in the grant
ing Of the franchises.
The entire session was devoted to
listening to a talk made by C. p VAIN
man, superintendent of the North
western Telephone company. who stat
| ed that he was opposed to the granting
| of the franchise to the Mississippi Val
! ley company.
He questioned the benefits the city
| and the telephone subscribers would
| secure, even If the proposed company,
by reason of capital or experience was
! able tc carry out the provisions of the
| ordinance.
One of the provisions was that the
city would secure ninety-four tele-
phones at a cost Of $3.50 per year.
There was nothing said about any free
| phones. The Northwestern company
now furnished the city with twenty
| phones free of charge Under the pro-
posed ordinance, the new company
would furnish the ninety-fOur phones
| for just s.. so less than the present COM
pany was charging.
| The new company agreed to give the
police and fire departments conduit ca
! BILE and pole service free. The North
| western company now did this, and the
change would simply mean an expense.
The price for purchase of the plant,
if, at the end of four years, the city
so desired, read all right. but the pro-
vision was such that the city would
have to pay the value of the plant
and the issue of bonds and mortgages
which were allowed up to IS per cent
| of its cost.
The section relative to the payment
of 5 per cent of it's gross earnings
would net the city a neat sum, but
| further on it developed the earnings
were only to be paid when the company
had phones in excess of the number
! in use by other companies.
Less than 2 per cent of the citizens
had telephones, and if the number
of subscribers was increased to 900,
! less than 3 per cent would be benefited
| by the new company
| If the number of subscribers in the
city was equally divided between two
companies, a subscriber would have to
| have both instruments, and, if the
| Northwestern should reduce it's rates
! to $4S per year, subscribers would have
| to pay So per month and be annoyed
| With two sets of instruments.
| The rates charged in ST. Paul were
! less than in New York Philadelphia,
St. Louis, Boston, Brooklyn, Cincinnati
| and Milwaukee for the same service.
| The basis of charges was fixed by
the amount of service rendered. The
Northwestern company had finished
| plans for introducing the measured
| service system in Minneapolis and st.
! Paul, which would result in subscribers
who used the telephone but little
would not pay as much as those who
| used it a great deal, as was the case
| at the present time.
| The records of the ST. Paul office
showed that in 1889 the calls per sub
scriber per day was five and one
| fourth, and the rate charged then was
$3.58 per 100 calls. In 1897 the calls per
| subscriber per day had increased to
| g 65-100, and the rate had decreased to
| $1.93 per 100 calls. This showed that
| the subscriber had twice the amount
| of service than nine years ago, and the
! charge was the same.
! two years ago, without any benefit
| tc the company, a branch exchange
was built on st. Anthony hill at a cost
| OF $4,000, and the renta. If telephones
| by this expenditure hac been reduced
| from so cents to 50 per month. When
| ever enough subscribers were secured
in any district, the company would
! operate other branches. The company
had so reduced rates that it was pos
! sible for two parties using one phone
| to secure it for $3.50 per month or
! 1925 EACH A reduction had also been
made in the tolls charged for lorg-dis-
| lance service. The company was ex-
! pending in Minneapolis $150,000 in in
CfD 1tr,Cr
| that was com3leted a like amount
| would be spent in st. Paul.
The Mississippi Valley company had
| incorporated Feb. 20 in Minnesota, with
| a $1,000,000 capital. The incorporators
were ]. G. Kubruger. of Keokuk; V. M.
| Hubruger his wife, who had no prop
erty in her own name; a bookkeeper at
salary of SIS per month; a man who
| formerly drove a street car and was
| now clerk at $50 per month. This
| was the five who had incorporated the
| 100000 company.
! None of the commercial bodies Of the
city had asked that the franchise be
| granted with the exception o the board
| of trade.
Aid. Kenny questioned whether the
Northwestern company could not re-
! duce it's rates now just as we'll as to
wait until the new company came in.
| Mr.. Wainman explained that the meas
| uIeu SERVICE system would De fnau-
| gurated soon, and this would consider
| ably reduce the cost to those who did
| not use the telephone much.
In reply to questions by Aid. Lin
| dahl, it was stated by Mr.. Wainman
| THAT the measured service would go
! into effect about June 1. and with this
| for the use of a phone for 600 calls
! per year, the cost would be about one
| half the present unlimited service
| Aid. Shepard inquired if the North
| western company was not charging
| double what the new company would
! under the ordinance.
Mr. Wainman answered in the affirm
| alive by saying that no company could
| do business at the rate which the new
company proposed.
Assemblyman Albrecht inquired if the
Legislature of Indiana had not fixed
the rate for telephone service at $3.50
per month in that state. and the su-
preme court had not decided that this
sum was a reasonable rate.
Mr.. Wainman denied this and ex-
planned at length the facts in the case
J. II. Beck was anxious to refute Mr.
Wainman's arguments, but as he said