Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1909-07-16
The Telephone War in Canton.

HE4' s'N 1N
has been some excitement and public
interest aroused in Canton and
vicinity in consequence Of the North
western Telephone Company diScOn-
Meeting with the home company and
as ZEAL as the LEADER can learn the
facts they are as follows.
In the past few weeks the great Bell
combination and trust has been buy
ing the main independent companies
in Iowa and other adjoining states,
and now the Bell companies in Iowa,
! Nebraska and South Dakota are con-
solidated into one great combine and
oflicered and managed by the same
men.
Until about fifteen years ago all the
telephone interests Of the country
were controlled by the Bell company
and telephone rents we're enormous,
more than three times what they now
are. About fifteen years ago the Bell
patents expired and then independent
factories we're installed all over the
| Idilt dilt iilSCpCiItCilO WIZ iAoaS So'i
panies were formed and telephone
| service was extended to every village
/ and hamlet at less than m third
what the Bell charged. The Bell
Telephone company is as great a
| combine and trust as the Standard
Oil Company. This combination has
succeeded in buying out some of the
larger companies in order to weaken
the independent opposition, and hav-
ing bought them this greedy octopus
has commenced a policy Of freeze out
| on the smaller local companies.
The president Of the Canton local
company is the president of the
Independent Telephone association Of
the state and in order to weaken the
power of that association the great
trust has declared war against the
Canton company, believing that if it
can drive this company out of the
field then it will be an easy matter to
dispose of the other independents in
the state. 1t is fortunate for the in
dependent interests that Mr.. Kennedy
is a good lawyer and has the courage
to demand justice from the octopus.
On the first of the month a new
law went into effect limiting the toll
companies to charge of five cents,
called a terminal fee, on both incom-
ing and outgoing messages. This
was to equalize the difference in rate
that existed before this law went into
effect as to going and coming mes
sages. 1t was the custom for the toll
companies to charge no terminal fee
at towns where they owned the local
exchange. This brought about the
result that the rate from Canton to
Sioux Falls was fifteen cents and from
Sioux Falls to Canton twenty-five cents
and so on throughout the state. In
order to equalize this rate the legisla-
ture required that the terminal fee
should be divided, and instead of the
whole terminal fee of ten cents being
paid on the incoming message and no
terminal fee on the outgoing message.
The State required that the terminal
fee should be the same at both ter
minals and could not exceed five cents.
The toll companies conceived the
idea of increasing their profit by put
ting on a terminal fee at the points
where they owned the terminal ex-
change and cutting the pay of the To-
cal company to five cents where they
did not own the local exchange. This
would be a clear gain Of five cents to
them. Before the law went into eff
feet they allowed the local exchange
twenty per cent. on the outgoing mes
sage and this they now refuse to pay.
They now offer the local or independ-
ent companies a fee that is In no
manner compensatory and If they re-
fuse they disconnect in order to exas-
perate the people and to Cypress the
independent exchanges so as to drive
them out of business or to sell to the
trust at trust figures. The North
western disconnected with the Can
ton company because it would not
submit to extortion, and without
leave or license and in total disregard
and contempt for city authority,
they attempted to put in an indie
pendent exchange.
The constitution of the state pro-
vides that no telephone company can
occupy the streets of the city without
the consent Of its local authorities.
This the Northwestern attempted to
do and the city has brought action
it and Judge Jones has grant
ed an injunction restraining the
Northwestern from taking possession
Of any more streets Of the city.
The business men of the city and
the Canton company have applied to
the railway commission to order a
connection which under the new law
required to be done. When the
railway commission acts on this mat
ter then the connection will be made
and all the phone holders in the city
will again have connection with all
parts of the country from their local
The disconnection is a great
inconvenience to the people of Can
ION but it will only be of short dura-
lion and just as soon as the railway
.Om m iSSion actS then all will no well |