Brookings weekly register. (Brookings, Brookings County, S.D.) 1898-1903, 1903-04-02

this franchise is granted upon the
express condition that the city may
become the purchaser and owner of
said franchise, poles, wires, fixtures
and appliances and other property
used In and about said telephone ex.
change, at its option, upon the pay
ment OF the reasonable value OF said
rights and property, said value, In
case of disagreement, TO be fixed by a
| board Of arbitration to consist OF one
chosen by the city, one by the tele-
phone company and third by these
two, whose decision shall be final and
binding upon the parties to this ordi.
nance"
The right, therefore, of the city to
purchase the telephone system would
hardly seem open to dispute, as the
telephone company accepted their
franchise upon that express condition
and it is not to be presumed that the
gentlemen composing the telephone
company will even attempt to repudi
ate the terms of their contract with
the city.
The right of the city to issue bonds
to the amount Of 200, the amount
to be voted upon at the coming cleo
| tion, would seem to be equally clear
l learn from the city treasurer that
there are now outstanding against the
city $4,000 in bonds issued for fire ap-
paratus, S., 600 issued for electric light
plant and $63,000 issued for water
works. No mention is made Of the
amount of school bonds outstanding
for the reason that the city is not
liable for the school bonds, the school
corporation being distinct corpora
tion, The only bonds then outstand
ing issued by the city under its gen.
eral authority to issue bonds is 81 ,500.
under special authority to issue bomb,
for that purpose. For general pur
poses the city is authorized to issue
bonds to the amount Of five per cent
of its assessed valuation. The assessed
valuation of property within the city
is $64S, 900, and it can therefore issue
bonds to the amount Of $32, 400 for
general purposes, and as the bonds
outstanding amount to only $500
issued for general purposes, it can
still issue bonds to the amount Of
$24 300.
Upon the question of the advisa-
bility of making the purchase, people
may differ. In my opinion it is a
plain business proposition. Taxation
is higher than it ought to be and some
means should be devised to reduce it.
But the city cannot get along without
revenue, and If the city takes over
the telephone system there is no
doubt in my mind but what it would
be revenue producer at the rates
charged by the present company. The
officers Of the company make no
secret Of the fact that it always has
been and is now paying institution.
The secretary Of the company stated
publicly in my presence few days
ago, that, commencing with the first
day of May next, the company expects
net annual revenue of $4,000. The
interest upon 5000 in bonds at five
per cent would be 5000, which deducted
from the earnings, $4,000, would still
leave 81, 100 revenue, or $500 more than
could be realized by licensing three
saloons.
Some people no doubt believe that
the city ought to complete the water
works system before expending any
money in purchasing the telephone
plant. AS business proposition the
waterworks ought, Of course, to be
completed, and have no doubt that,
If the city so desires, it will be able to
purchase the telephone plant and
complete the waterworks this year.