Evening Republican, Volume 18, Number 39, Rensselaer, Jasper County, 14 February 1914 — TELEPHONE COMPANY SURE WANTS INCREASE [ARTICLE]

TELEPHONE COMPANY SURE WANTS INCREASE

Will Ask Commission lor Rate of $3.25 for Business and $1.75 for Residence Phones. The Jasper County Telephone Co. will make a supreme effort on Friday, Feb. 27th, to capitalize its admitted losses and boost the rates to a point that will make telephone stock worth two hundred cents on the dollar and none of it for sale The Republican said a week ago that the plan of the company would be to put in the* present plant at a valuation of $50,000 to $55,000, and add, to this from $20,000 to $30,000 for reconstruction, making a total investment of from $70,000 to SBO,OOO on which to claim the right to make interest. Mr. Thompson informed us that we had misrepresented the ease and The Republican and the -telephone subscribers in general will be pleased to learn that the company will, not try to base their claim for a raise on such enormous figures. However, they will be interested to learn that the plan is not very much Short of that estimate.

The present company is capitalized for $48,000 and the company 'proposes to issue bonds in the sum of $20,000, making the total capitalization and outstanding bonds $68,000, which is very little short of the estimate made in this paper. The rates asked by the company are:

Business phone $3.25 per month. Residence phones $1.75 per month. Residence extension 75 cents per month. Tsesk phones T 5 "cents per _ month extra. A minimum charge of $1 for changing a phone in case of removals or change from one part of the house to another and if the cost of removal is more to charge the customer with the actual cost of removal. The company proposes throwing off 25 cents from eaich telephone provided it is paid within the mopth. It will thus be seen, that the rates to be asked are 50 per cent higher than at present charged even if there are no penalties collected.

The rate of penalty for failure to pay is not contemplated under any law that we have ever heard of, and The Republican is of the opinion that it is unjust and unreasonable. Not that people Should not pky their telephones just as they do any other bills on time, but that a commission has no power and should have none to enforce' a 10 per cent penality for a month’s neglect. The Republican is carrying many (accounts and we should like to collet them, but we have no right to saddle , a ten per cent penalty and we do not believe that telephone companies Should have ahy right not delegated to persons in private business. The Republican has not changed its ideas one particle about its belief that a modem plant thoroughly equipped can be installed and operated at a profit and guarantee the dividend and the depreciation ■at the rates now being paid in this city and community. /We do believe that the increase of the price will force many people to discontinue the ues of their phones, there-, by curtailing the value of the system to all other users. We believe that this is the time to adjudicate all of the difficulties that may come up and' that the Jasper County Telephone Co. should not be granted the advance in rates, nor given any privilege by the commission provided it can be shown that an Adequate system can be installed and operated and good service returned for the present rates. The initial steps have been taken to procure information to present •to the commission. It is understood that experts are here going over the plant of the company, probably to have figures to submit to the commission. The public has interests here that it must not overlook, for if this increase is granted now, it will seal the proposition for all time to come and the public, that is the telephone users, will be paying a rate that will not only give the legally allowed interest on the actual valuation of the plant, but will virtually capitalize the losses that the company may have sustained slue* it entered business and pay 18 per cent interest on the entire amount for all time to coma 4 1 The democrat, jelly-fish fashion, seems to have fallen almost into j the lap of the telephone company, ' apd the mushy treatise given the question this week shows that the public can expect nothing from that souica The Republican, however, is in this fight to stay and ! will be on hand .with both feet and some figures the day that the commission comes for the hearing.