New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1904-03-09

pointed out to the councilmen that his
company had compelled the North
western company to reduce its charges
from 81 for business and SO for resi-
dence phones to $3.50 and $3.50 re-
spectively, but he failed to explain
to them that the conditions are en-
-tirely dissimilar. When the Mankato
people built their line they entered in
to competition with a concern that
was charging ruinous prices and even
then there was no vast improvement
for their commercial interests. It is
true that they forced the cut, as stated,
but there was little money saved for
the business houses. original Man
kato merchant with an instrument at
his store and one in his home paid ST
monthly. Now he is compelled to put
in both lines, paying for the North
western So for two 'phones and for the
Citizens $50 at his store and $3.50 at
his residence. His bill, therefore, re-
mains at 81 and the only benefits he
receives are that he is given larger
clientele by the combined companies,
the advent of the Citizens having acted
as a great stimulus to the telephone
business. During a visit to Mankato
last week a Review representative
found considerable dissatisfaction
among the merchants. of that town,
who regarded the double system as an
unmitigated nuisance, 4~...
Were a competing line to be built
into New Ulm rate-cutting would not
remove the curse of the invasion, for
there would be no material reduction
made. At present the charges of the
Minnesota Central are: business hous-
es, $3.50; offices, $500; residences,
81. 90; and when a business man has a
'phone at his home he is given both
instruments for $500. The Citizens
exacts: stores and offices, $3.50; resi-
dences, $3.50; showing that the New
Ulm rates are now lower than those of
Mankato. How the Citizens could
slash with consistency does not ap-
pear, but it is within the bounds OF
possibility, as it's record is not con-
Sistent. When it was first organized
it's promoters are said to have secured
their franchise upon the condition
that they were to make residence
| phones l.25 per month. This agree
| ment was carried out until the bulk OF
the Mankato business had been &C.
CURED, when it is alleged they again
went before the council, three of whose
members were stockholders in their
company, and secured the passage Of
an ordinance allowing them to in
srease the amount to $3.50, $1.75 OF
even a greater sum-and this bit O.
aldermanic legislation is still in force
After considering the matter in al
its phases this paper is of the opinion
that the request should be refused anC
that it will profit New Ulm better il
the end to support the company tina
has grown up with the city. Inciden
tally, that company has an interesting
history. Started as a private line
with thirteen 'phones all on the sam
circuit, it was purchased and improv
ed by the firm of Wagner & Savereil
and then passed into the control Q
the New Ulm Telephone company
formed with local capital. Reorgan
} lied as the Southern Electric company
these men built the Sleepy Eye an
. Hanska lines and remained ia poss
: ession until something over two year
ago, when the exchange was merge
with the Minnesota Central Telephon
! company. During these years th
I system has at all times given satisfat
tory service and this spring will pr
$40, 900 Or $4,000 into improvements
! an expenditure that will give Ne
! Ulm one of the best exchanges in th
, state. Rates here are not exhorb
) tant, in fact are very reasonable, an
: the company is entitled to assistane
!. and not hindrance.
!. Another consideration is that at tt
Z time the consolid alton with the Mimi
: sofa Central was effected the loo;
: shareholders exchanged their stoc
!. for that of the larger company.
!. may be said to be as much of cit
: zens' organization as at any tin
3 since it started, for all of it's stoc
. holders still retain their holding
4 For this reason any action taken /
s the council which might tend to d
+ preciate the value of their proper
s would be initiating against their i
8 terests and against the interests
6 the city.
= COLONISTS RATES TO WASHINGTO
: OREGON, Ere.
The Minneapolis & ST. Louis r.