Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-07-31
THE TELEPHONE SETTLEMENT

OF the Tri-state company and consolidate it with. its own.
The arrangement made appears to have been the best
tnat couid nave been reached, and there is every reason
to believe that the public viii be benefited by rece,v,ng
lmore satisfactory service and by a lowering Of cost. The
telephone service is the one Of all the lines in which the
public is served in which competition. in the very. nature
of things. is detrimental to the public, because competi-
ton necessarily involved divided service, and the tele-
phone service. to be ideal, must be a Unit It makes prac-
tically no difference to the individual whether or not his
acquaintances patronize the same grocer, tor travel over
the same railroad. or buy their coal from the same dealer:
1t does made q very decided difference to him whether
or not they use the same telephone that he uses, because
If they do not they cannot communicate with him con-
yeniently. The dual telephone system here has cost many
thousands of dollars a year to those who are SO situated
that they must use both lines, and it has resulted in I'M
told Inconvenience to those who have BEEN restricted to
ones The consolidation Of the two systems will be a dis
tinct advantage, therefore, in relieving a great many of
our citizens of an unnecessary burden of cost, and it will
every other subscriber.
The terms Of the agreement which have been per-
fected are, in substance. that the Tri-State property will
be taken over as soon, as practicable by the Northwestern,
and will be operated by the latter company until complete
consolidation can be effected, which. it is estimated, will
require about a year and a half; that the two per cent on
receipts which is now paid by the Tri-state will continue
to be paid during that period; that in lieu of this tax for
the remaining three and a half years which the franchise
will have to run, the city shall be supplied with 21 tele-
phones free Of cost; that the city valves its right to pur-
chase the property of the Tri-State company at the ex-
piration of its franchise five years hence.
No changes are made in the Northwestern franchise.
The, city retains the right which it has under the present
franchise Of that company to use its poles and conduits
for its light and other wires. The regulation of rates
and conditions of service will remain, as at present, with
the state railway commission. .
Certain points are to be recognized in order that there
may be a clear understanding of just what the arrange
ment means. .
First, the city, in waving its right to purchase at the
expiration of the Tri-state franchise is not surrendering
anything Of value. The franchise has five years to run.
There is not the remotest possibility that at the end of
five years the city would desire to go into the telephone
business, as to do so would involve the outlay of a large
sum of money, the assumption of a business entirely for
eign to the practice Of any Of our cities. and the absence
OF the long distance connections which constitute one OF
the chief values of a telephone service.
Second, in receiving the use Of 21 telephones free the
city will be receiving more value than the amount Of the
tax which it reltnquishes. .
Third, the city is not abandoning any regulation Of
rates. as it has never regulated rates. The Tri-state
franchise provides that rates above q certain maximum
shall not be charged until the system has 1000 or more
subscribers. As a matter of fact the company has never
charged that maximum, and on the basis of its present
clientage it could act Independently of the maximum
prescribed in the franchise, as no limit is placed on the
charges which may be made after the number of 1000
subscribers has been reached. To increase it's rates the
company must go to the railway commission, which is
Just what the Northwestern company must do.
Fourth, the city has, under the Northwestern fran
chise, all the rights az to the use Of poles, conduits, aid
so forth, that it has under the Tri-state franchise, there
fore, il it desires to do so. it can continue to use the Ia
cilities Of both companies just as it can at present.
Fifth, in entering into this agreement the city is not
making any concessions to the Northwestern with refer
ence to its franchises, nor is it relinquishing any rights
which it may have under those franchises. For instance.
it has been maintained on behalf of the Northwestern
that its franchise is perpetual: This has sometimes been
disputed, but the question has never been determined in
court The present settlement does not affect this ques-
ton in any way. The rights of the respective parties re-
main exactly as they were before.
Sixth, the usefulness Of the Fri State company to
Grand Forks as a separate organization has been destroy
ed by the order Of the Minnesota public service authori-
ties directing the withdrawal OF the Tri-state company
from northern Minnesota. That leaves. the local COM
pany isolated, and, had the consolidation not been au-
thorized, the local concern could not have been expected
Yo do more than go through the forms Of doing business
until its franchise expires five years hence, when It cousd
have withdrawn legally.
Lastly. the federal government is about to take over
all telegraph and telephone lines on August /. n ,. .
Fquestion whether or not the granting to the city Of free
telephone service would have been authorized by the fed
eral authotities had the matter been postponed. Al Il
is, they will undoubtedly recognize and carry out the con-
tract which has been made.
THE COUNTY SERVICE FLAG
On the afternoon OF Sunday, August 4, the Grand
Forks county service flag will be dedicated at exercises
which VIII be held in the city Of Grand Forks. This is in
accordance with q resolution adopted by xhe Board OF
County Commissioners. and is in line with the plan al
ready followed. by several other counties OF the state to