The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1908-07-24

~ Xx DJIlN TX
Park Avenue, and Fourth and Fifth
streets. at right angle. where it is
necessary, and maintain the same
for a period Of twenty years, from
and after the passage and approval
lof this ordinance, for supplying the
|citizens of Mitchell, and the public in
general, facilities to communicate by
long distance telephone or other cleo
trical devices with parties residing
In, near or at a distance from
Mitchell. and all such rights to be
continued on the conditions herein
named.
The Dakota Central Telephone
Company operating a long dis
lance and local exchange in the city
of Mitchell is the successor in BUSH
ness of r. b. Elce.
F. B. Elce and his successor In
business paid to the city of Mitchell q
license of ten per cent per annum OF
the receipt over $2.40O. except for
the past two years. Being informed
that this license had not been paid,
l requested the city auditor to in
quire at headquarters of the Dakota
Central Telephone Co. the reason for
non-payment of such license provid-
led for in said franchise.
OF date June 10, 1908. city audi
tor wrote a letter to said Telephone
ICo., a copy of which is as follows:
dakota Central Telephone Co.,
Aberdeen, s. D.
lDear Sirs:
Your attention Is respectfully d.
ERECTED to that part Of ordinance No.
1876 of the city Of Mitchell, 8. D., ana
under which your company Is doing
business in the said city. calling for
the payment Of ten per cent. Of the
gross receipts in excess of twenty
four hundred dollars per annum from
the operation Of your telephone sys-
TEN in the city of Mitchell, effective
after three years from adoption and
|apprOval of said ordinance.
The administration desires to
know II this part Of your franchise
will be complied with, and IL It IL not
a fact that there Is money past due
to the city under this ordinance?
An early reply will obliged,
Yours very truly.
L. L. NESS,
City Auditor.
In response to this letter on or
about June 30, 1908. the city audi
tor received a letter in response to
inquiries, a copy Of which is as fol-
lows:
lnr. L. L. Ness. City Auditor.
Mitchell, 8. d.
Dear Sir:
I'VE acknowledge receipt of your
favor of the 10th inst, and have de-
ferred answering the same on ac-
count of the absence of Mr.. ZietlOW
from the city.
am directed to inform you that
our company are operating under
franchise No. $50 and while we -
lquired the ordinance No. 1876 in the
purchase Of the exchange from MI.
Elce, We have no use for the same
n the council are at liberty to re-
woke the same IL they SO desire.
We believe that the tax which this
company paid you in the past under
ordinance No. 1876 Is illegal and the
sums paid the city should in justice
be returned to this company as we
think the city exceeded their authori-
ty in issuing an ordinance of this
kind.
Yours truly.
DAKOTA CENTRAL TELEPHONE
COMPANY.
1t appears from this record that:
1.-Ordinance No. 1876 granting .
franchise to F. E. Elce, has never
been expressly repealed.
9 Tbot ~,1:-.-1o. - 4
100 from their titles were not in
tended to permit the local telephone
exchange within the city of Mitchell
to the Dakota Central Telephone
lines.
= 3.-That SO far as information can
be obtained there has been no ex-
press resolution of the city council
releasing the telephone company
from paying the license or tax pro-
vided in Ordinance No. 13o to F. b.
Elce.
| recommend to the city council
that such steps be taken as are prac-
ticable to ascertain the legal rights
of the city of Mitchell in those rela-
tions under these various ordinances
with said telephone company.
further state that upon a person.
al interview with j. l.. w. Zietlow,
president of the telephone company,
tnat company represents that under
the expense of the improvements
placed in the city by the company,
and the expense of operating this
plant, the company would be unable
to pay the license provided in said
ordinance No. 1876, and at the same
time make a reasonable return upon
investment in the city; and that the
company is willing to open its books
for investment to ascertain this fact.
l respectfully submit this whole
matter to the council for such action