The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1908-07-24
WILL IT HAVE TO PAY

Dakota Central Telephone Co. De.
clines to Pay Money Alleg-
ed Due on Franchise.
AT a recent meeting of the city
council Mayor Hitchcock presented a
statement to the members of that
body with reference to the money
that is due the city from the Dakota
Central Telephone company under
the ordinance which granted a fran
chise to f. B. Flee and whereby he
was to pay the city ten per cent. of
h gross receipts when they were in
excess of $4,000. Mr.. Elce and the
Dakota Central people did this until
the past two years, when the compa-
ny declined to make further payment
under the ordinance which it was
granted to come into Mitchell with
its long distance lines.
+, Mayor Hitchcock has been looking
into the matter and several letters
AA&s PoooSN OSIWCSA kAS duOkLO duu
the company concerning the question
of payment of the fee. The mayor
presented the entire situation to the
city council to acquaint the members
, with what is before them and for
them to take such action as they
saw fit.
, The entire matter was referred to
City Attorney Miller for investiga-
ton to report on at a future meeting
of the council.
The following is the statement
made by the mayor and the letters
which passed between the city audi
tor and the telephone company:
Honorable City Council of the City of
1 Mitchell, South Dakota:
Gentlemen:
Permit me to report to you as fol-
lows:
4 That of date May 11th. 1898, an
t%ordinance was passed and approved
by the city council of Mitchell, known
as ordinance No. 1876, granting to j..
lB. Elce. a franchise from the city of
Mitchell to operate a local telephone
exchange.
' That Section 4 of said franchise
reads as follows:
' That in consideration of said city
of Mitchell grating to the said F. B.
Elce, his associates, heirs and assigns,
the right and privilege to use the
streets. alleys and public grounds of
the said city of Mitchell, for the cree
ton and maintenance of a public
telephone system, the said f. B. Elce,
his associates. heirs and assigns shall
erect and maintain three telephones
at such places as the city council
telephones shall be furnished to the
said city of Mitchell; provided, also,
that at any time after three years
from the adoption and approval Of
this ordinance that the gross receipts
of the said telephone system for any
M year shall be in xcess of the sum
of two Thousand four hundred dollars
($2,4OO), the said F. B. Elce, his
associates. heirs and assigns, shall
pay to the city'of Mitchell ten per
cent. of the amount in excess of two
thousand four hundred dollars ($2,-
1000, received as gross receipts from
the said telephone system, which said
sum shall be paid to the city at the
end Of each and every year, and the
city council shall have the right and
privilege to examine the books of the
said telephone system for the pur-
pose of ascertaining the gross earn
ings of the said telephone system.
OF date March 21st, 1904, the city
council passed a franchise known as
No. Iva, and the same was approved
by the mayor in favor Of the Dakota
Central Telephone lines.
The title and section 1 of said
franchise reads as follows:
An ordinance to grant permission
to the Dakota Central Telephone
lines, CInc.) their successors or as
signs, the right to rec poles and
fixtures, and to string wires, for the
purpose of operating long distance
telephone lines, within and through
the city of Mitchell, South Dakota.
BE it ordained by the council of
the city of Mitchell, S. D.
Section 1.-That there is hereby
granted the right and privilege given
to the Dakota Central Telephone
lines. tlnc.) their successors and. as
signs, to erect poles, and string wires
on any Of the streets, alleys and pub
lie highways OF the city of Mitchell,
excepting Main street. Park Avenue,
Fourth street and Fifth street, and
maintain the same for a period Of
twenty years, from and after the pas
sage and approval of this ordinance,
for supplying the citizens of Mitchell
and the public in general, facilities
to communicate by long distance
telephone or other electrical devices
with parties residing near or at a
distance from Mitchell, and all such
rights to he continued on the condi-
lions herein named.
OF date June 10th. 1904, the city
council of Mitchell passed an ordi-
n granting a franchise to the Da-
kota Central Telephone lines. which
was approved by the mayor of the
city.