The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-01-30

telephones it amounts to $500 a
month, $4,000 a year or 5000 0 in
ten years. Thus 1t will be understood
that there is really a large sum at
pany. Certainly the city's authorities
should move with extreme caution.
So large a sum should not be voted
out of the pockets of the people of
Mitchell unless it is certain that the
company is fully entitled to it.
On the other hand, The Republican
speaks not only the wish OF the adj
ministration but of the people of
Mitchell as we'll when it says that
the company is entitled to a reason
able earning upon its Investment.
This concession being made, it is
really incumbent upon the
to prove its own case. Its officers
have proposed to submit invoices and
vouchers covering the installation of
the automatic plant, but it is very
difficult to ascertain the real cost OF
a plant-that is, with certainty-by
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cessions between seller and buyer in
such cases and it is not certain how
MAN.. of these the telephone comp
any would consider belonged TO it.
Again, The city has been given no
figures to show the real mount OF
earnings contributed TO this comp
any by Mitchell Upon long distance
calls. An arbitrary allowance of five
cents a call is made to the Mitchei,
exchange, but, since most of the OBJ
Grating Expense on long distance tele-
phones is confined to The points OF
origin and termination of such calls,
this can hardly be said to be any ac-
curate indication of the amount rea-
lized upon toll business. And surely
that is a part of the earnings of the
Mitchell exchange. 1t should be in
cluded in figuring out an income for
reasonable return upon it's invest
ment.
The telephone company wants to
be allowed to name the rates at
which it will begin doing business
under the new franchise, proposing
to allow a readjustment after a GER
tain length of time, If an investiga-
ton of the actual Der of opera
ton and maintenance warrant such
a reimbursement. The city, on the
other hand, wants to name the rates
at which the company will start un-
der the new franchise and TO allow
a readjustment after a time if it is
found TO be justified.
In other words, each party wants
to take the beenfit of the doubt as
to the rates to itself. And there is a
real element of doubt in the matter.
Even with the very complete esti-
mates furnished the city by an expert
engineer, there are still enough un-
certain items to make it practically
impossible to say just what the rates
shall be.
The company has indicated that it
will MOI accept the rates proposed by
the city and that, presumably, means
recourse to the courts. However. if il
comes to the matter of showing
hands. the city has the cards. For.
when all else is said and done it is
still possible for the city to own it's
own telephone plant. This is to be
avoided if possible, but knowledge
OF the fact permits the city admins
tration to regard the situation with
complacency.
@-ss@
POOR BUSINESS FOR THE STATE.
The Republican is uneualifiedly
opposed to state or government COM.
petition with private industry. Even
the socialists would not countenance
this, for they believe that ALL in
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