The Cook County news-herald. [volume] (Grand Marais, Cook County, Minn.) 1909-current, 1916-11-29
REDUCTION IN TELE-
Phone TOLL RATES

Plume TOLL RATES
Thousands Of telephone patrons in
Minnesota will obtain substantial
benefit through the new rate sche-
dulles of the two big telephone COM
panies in the state-the Northwest
ern Telephone Exchange Company
and the Tri-State Telephone & Tele-
graph Company-as the schedules
make reductions in approximately
1000 rates and effect all tolls for
distances up to and including II
miles. The new rates become effec-
tive December /, 1916. These reduc-
tions are the direct result of an in
vestigation by the Minnesota Rail-
road and Warehouse Commission of
the toll business Of the Northwest
ern Company in Minnesota, which led
the commissioners to believe that the
minimum charge of 20 cents is ex-
cessive for short haul messages. Up
on the commissions insistance that
the short haul rates be modified, the
ert,.>>stern Company reduced
thei rats to Is cents for all distan-
cesEup to and including IL miles.
The former standard minimum
rate was 20 cents for distances from
@ to II miles. Under the new sche-
dule, a 15-cent rate is established
for distances up to IL miles, the old
20-cent rate remaining in effect on
hauls between II and II miles. Of
the Northwestern rates, 1896 are ef-
fected by this reduction, and of the
Tri-State, LOTT. Every exchange and
every town in Minnesota directly
connected with either company is ef-
fected and consequently all Of their
patrons are benefited.
One result as far as the compan-
les are concerned, will be to reduce
the income from the short haul busi-
ness, because the new rate, like the
old, will include terminal charge of
five cents at each exchange and hence
the companies return will only be
five cents where they formerly re-
ceived ten cents. The terminal char
ges are based on contracts between
the toll companies and the co-opera-
ting exchanges, and are not effected
by the new rates.
TIE mileage *ilncluded in these
rates is not, as many may. suppose,
based on the length Of the pole lines
required to convey the message, but
on air line distances and in many ca
ses the actual haul will be from two
to four or five times the geographic
cal distance between points.
ut must not be assumed that the
State Railroad Commission accepts
these rates as reasonable charges
for the telephone service performed"
said Commissioner Charles E. Elm
quist, in discussing the new rates.
eve authorize them solely because
they make a substantial reduction
and will, in our opinion, prove bene-
fetal to the patrons of the telephone
companies. We expect that the
smaller toll companies will follow
suit in this matter, in fact, one COM
pany already has, made announce
ment to this effect.
eve are not in a position, as a
commission, to say what is a reason
able rate for any class of telephone
service, because we have not at our
command the facts and the data
necessary for ascertaining what
should be proper charge that the
companies could exact for their SER
vice. Steps are being taken to OBJ
tain this information, but the under
taking will be long and laborious
one, and after it has been gathered,
there will be another long task in
arranging and analyzing the statis-
tics and applying them to the prob
lem of rate making. When the work
is done however, the Minnesota Com
mission will be in a position to de-
eide whether certain rates are reas-
enable under the law and, ii neces-
sary, to make and put into effect
proper rates.
"The present reduction is in line
with the policy of the Commission
10 ot,1 EoI ~ 10