The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1901-11-01
'THElSSUE is DEFINED
ISSUED TO TELEPHONE
COMPANY
SO SAYS ATTORNEY GR1GGs
Contends Application Must Be De-
MED TIL Company Accepts
Gross Earnings Tax, or
Courts Decide.

Pending acceptance of the per cent
| gross earnings provision of the new
| charter, or some satisfactory interpreta-
| ton by the courts of the citys authority
| to demand the same, no more permits for
| street construction purposes will be
! granted to the Northwestern Telephone
| company.
Assistant CORPORATION Attorney Griggs
so instructed City Engineer Claussen late
yesterday afternoon, and it is presumed
| will be obeyed to the letter. Mr.. Grlggs'
| letter to the engineer is as follows:
Herewith please find returned Applica-
| ton No. 1880, by the Northwestern Iele-
| phone Exchange company, for the Issu-
| ance out of your department OF per-
! NIT for the use of Burns avenue, from
/ Earl street to Hester avenue, for the
| purpose of erecting line of poles in ac-
| cordance- with. the provisions of Board
File 1900 This application is dated Oct.
| %, 1901, and have been given TO under
| stand that the condition of things re-
|. quires an immediate answer to your IN
| curry as to whether or not you nave any
| authority, to issue the permit itself. In
! reply, I beg therefore to advise you that
the question has arisen in, various forms
| as to whether or not this particular
| franchise corporation, the Northwestern
| Telephone Exchange company. is SupJect
| in the extensions which it may desire to
make to its telephone exchange system
4
| present charter as to the occupancy of
1 streets by franchise holders, and, With
out at this time expressing a denn.te
| opinion in answer to this suggested IN
| curry the the question is, in my Judg-
| ment, Of sufficient Importance in its
| bearing not only upon your duties IN the
premises, but upon the rigs OF the
common council and the incident dutieS
| of this department, to require that 1t DC
| definitely determined as soon as posi-
ble Unless, therefore, the Northwestern
| Telephone Exchange company IS Wiling
| to admit its liability to the REQUIREMENTS
| as outlined in the charter or june i,
| 1900, the view Of this department is tnat
| the matter should De brought to the at
| tention of the courts as carly as posi-.
| bic in order that some definite judicial
EXPRESSION NAV be given by which the
| action of the municipal authorities WIFI
be guided in the future. In view OF the
| fact ..at many of our citizens who at
| present lack telephone facilities are as
much interested in the immediate solu-
| ton of this question as is the present
/ applicant for permit, ana furtner, u.
| view of the fact that with the approach
| of the winter season scarcely any work
of construction will be undertaken, the
| d, esent is, perhaps, the best time TO nave
| the matter determined. For the purpose
| of the present inquiry. however. it would
| seem that this department ought 10 ~
/ wise you that any action taken py the
common council, BY way OF fesoi I PIE
| L
comply with the requirements OF the
| present charter, are invalid and lneffeet-
| i've for any purpose, ana that they do not
confer upon you any authority to Issue
nerInits for the use Of the streets con-
| templated by them. You are therefore
| advised that you are wi,nout authority
| to issue the permit in question.
Extensions VIII Be Prevented.
This line of action, which our present
imperative duty seems to require, we
q o.
nhone extensions by the present appli-
cant until it has either admitted its ha-
bility to- a gross earnings provision, or
until the courts have denied 1t IN terms.
IF if shall result that this company Is
subject to- a. gross earnings tax. the eN-
listing franchise of its competitor. the
Twin City Telephone company, contains
a provision which SUBJECTS II ais1 70 aiiv
charter viii then have been accomplish
cd as TO both telephone companies now
operating within this city.
AS will7be seen by Mr.. Griggs' letter OF
Instructions, even the council is pfohlpft-
ed fromTagranting the company conces-
sions. unless it agrees to comply with
the charter. The opinion is not exactly
couched in this language, but it is plain
lust the same. If such are passed, Mr..
Claussen is instructed to ignore them to
the extent ofNrefusing the permit.
AppeaI to Courts Necessary.
The only solution of the difficulty now
&c an appeal to the courts. and this will
necessarily have to be brought by the
company if it desires to continue the eX-
tension of it's system. Should the COM
many remaia passive in the matter ana
fieure that the further extension of its
lines would not pay for the trouble ana
expense involved, then it would be up to
some intending patron to demand that
ne he served The legal department fig
,1res that it holds the winning hand and
is content to be patient and allow the
controversy to straighten itself out.
While the Twin City Telephone COM
many is subject to the tax provision, yet
so far it has failed in any way to con-
tribute to the city exchequer. The COM
pany was granted a franchise before the
charter became effective and the agree
ment made was that when the company
exceeded in number the phones in use by
connecting companies, the tax would be-
come operative on the excess.
The Twin City company so far has ex-
pressed willingness to place itself en-
tirely under the operations of the char
fer and should the Northwestern be
taxed it would also have to submit.
Said City Engineer Claussen last night:
r have received Mr.. Griggs opinion and
will see that the instructions he gives are
obeyed I have been looking for this
step all along. I do not think the COM
pany WIN go to the courts for relief
There is no money in those small extern
sions that it is continually making and
| it is not anxious to tie itself up in con-
troyersy that may last almost indefinite
to be By. the city. The Northwestern
--~.11 1,.,,-lxs m fia driver, tn If