The Duluth rip-saw. [volume] (Duluth, Minn.) 1917-19??, 1918-01-05

regulated rates chargable for tel
ephone service.
Rates should not be changed
oftener than two times year and
changes should take effect JAN
uary l, and July 1, of each year.
The franchise provided for the
payment of one half of 1 per
cent Of the gross earnings to the
city, such payments being made
January 1 and July l, each year.
The franchise also called for
"a long distance, copper wire,
metallic system.
Sectin II of the franchise pro-
vided that the wires of the COM
pany should connect with the
wires Of other companies out
side the city if the latter so de-
sired, provided such other CON-
panies give service over their
wires on equal terms. Any dis
agreements were to be made sub
ject to arbitration.
1t was specifically required
that the company provide free
connection with the lines Of some
company in Superior, Wis, hav-
ing at least 100 telephones in op-
GRAFTON and,use in that city.
| Section Is provided that the
city should have a preferred lien
on the plant; for the payment Of
moneys accruing under the terms
Of the ordnance and franchise.
Substantial neglect to carry
out conditions should forfeit the
franchise.
April s, 1891, the city council
permitted the Telephone COM
pany to mortgage it's franchise
rights and privileges to the Min
nesota Loan & Trust company to
secure bonds in the sum of 500,
600, running 10 years, at 6 per
cent interest per annum, the
mortgage being subject to the
city's rights reserved in the fran
chise.
June 81, 1904, the city council
passed an ordinance permitting
the Zenith City Telephone COM
pany to transfer all it's assets to
the Zenith Telephone company,
on the special condition that the
Zenith Telephone company never
shall assign or transfer it's rights
or property to any person, COM
pany or corporation without the
previous consent of the city of
Duluth, duly granted by ordi-
nance.
| At the time of the assignment,
M. B. Cullum was mayor and H.
w. Cheadle city clerk.
An act Of the legislature later
on took away the right Of the
city to the one-half of 1 per cent
of the gross earnings but, it is
claimed, what the city now re-
ceives from the state tax Of 3 per
cent, is considerably in excess of
the former returns from one-half
of 1 per cent Of the gross EN-
ings.
What that legislative act was,
why, when and by whom passed,
is another story.
How and why the right cf free
service with Superior is denied
the public is something that most
of the people do not understand,
and that's another story.
Why Duluth, a city committed
to municipal ownership of public
utilities, never has set about to
acquire the Zenith Telephone
company's assets, is still another
story. .. ..
In due course, the Rip:saw pro-
poses to tell those Stories
Incidentally, it may be stated
that among Mr.. R. H. Evans as
sociates in securing the franchise
for the Zenith Telephone corn
pany there were Geo. w. Buck,
Louis and Sam Loeb, Francis De-
Groat and the late A. M. Miller,
if information is correct.
Later on, such men as DIR. Elk
lund, DR.. Tufte, q. D. Scctr, R.
| Co. Vincent, Henry Folz, C. E.
iEvens., W. M. Hubbard, Geo G..
Stone, 81. B. Knudson, Ben Mizen
and John Lutes became more or
| less prominent in the list of
stockholders.
Today, some Of the foregoing
are not credited with owning
much, if any, of the stock. The
control, so far as the common
eye can discern, seems to be held