Evening Republican, Volume 18, Number 54, Rensselaer, Jasper County, 4 March 1914 — TELEPHONE RATES HERE AND AT OTHER PLACES [ARTICLE]

TELEPHONE RATES HERE AND AT OTHER PLACES

Strange Fact That Brook Makes Lots of Money While Wolcott Runs Behind—Tolls Too High. The Democrat, which had apparently gone into the hole with* the groundhog and pulled the hole in aifter it so far as the telephone discussion was concerned, has, come out of its temporary morbid drowsiness and in the current issue presents the cause of the Jasper County Telephone Co. just as that company presented it to the commission. Evidently “the taxpayer’s friend” has deserted the cause of the people and favors the scheme to make telephone rates in Rensselaer and surrounding country higher than they are in any other city and community in Indiana. The Democrat has never said it tavored the raise, but it has never said it opposed the raise and what it has said has been mighty pleasing to the telephone company. The Democrat publishes the figures as presented by the telephone company, and the figures were evidently procured from the officers of the company after the hearing, as Editor Babcock was at the court house only a part of . the time during the hearing. The Republican is pleased to comment on the figures which the company submitted, and we believe a comparison of the experience of the Jasper County Telephone Co. and” other concerns will prove interesting. The Wolcott exchange for the past five years made the following showing: Receipts Expenses Deficit $3,643.20 $5,018.77 $1,375.57 3,676.05 4,500.27 824.22 4,299.45 3,178.99 *1,120.46 4,680.86 5,057.47 366.61 4,286.70 ~~ 5,582.69 1,295.99 ♦Balance.

The exchange at Brook is a fair comparison with the Wolcott exchange. The towns are of about the same size, Brook being a little the larger and serving about: 100 more telephones. The rates at Wolcott are $2 for business phones and $1 for residence and country phones. At Brook the rates are $1.50 for business and $1 for residences and farms. We do not have a record of the Brook exchange for the past five years, only the general statement that it has been making money all of the time. We do have a statements of the earnings for the past two years. In 1912 the company showed a net earning of $1,940. In 1913 the company showed a net earning of $1,740. The same two years that Brook earned $3,710, Wolcott lost $1,662.60. This can not be explained by the sleet storm that Wolcott suffered during 1913. That would, of course, make some difference, but the faet remains that Brook suffered almost as great damage in the storm of 1909 as did Wolcott and yet overcame the effects and made some money each year. IBrookston is another town that may favorably be compared with Wolcott in the Size of the plant. The Brookston plant belongs to Ira Bordner, J. H. Kneale and Dave Ross. They have a claimed investment of $24,000. Their rate is $1.50 for business, $1 for residence and $1.25 for farms. Free service is maintained with Chalmers. Two of the owners of the company draw salaries for services, one getting SBO per month and the other S4O per month. They are not directly engaged in the management of the plant, but hire a superintendent For the past five years the company has paid -the owners a dividend of 5 per cent on $24,000. We have spoken of the Brook exchange as a mutual company. But in the strictest sense of the word it is not a mutual company. It is rather a stock company. Originally there were 98 shareholders, but now there are less. They supply service to 460 patrons and employ a superintendent, also a secretary and the directors receive pay for each business meeting. It is probable that the Brook company can show a present physical valuation of $15,000. It is the eight-year outgrowth of a capitalization of $1,470, and Yet the company shows an earning of about 12 per cent on ten times the capital invested eight years ago. In Rensselaer the figures for five years as shown by the company are: Receipts Expenses Deficit $8,565.92 $13,107.33 $4,541.41 9,818.73 9,736.44 *82.29 10,514.75 9,602.01 *912.74 11,46126 12,120.74 659.48 12,043.41 13,201.82 1,158.41 ♦Balance. 'The figures of the company show an earning of two years and a loss for three years, the net loss for the five-year period being $5,364.27. These figures are without reference to the amount invested. They are a statement of the receipts and expenses and show that the Bens-

selaer exchange has a net loss each year of more than SI,OOO. It will be remembered that the rates dn Rensselaer are supposed to be $2 for business and $1 for residence and farms, but that about 175 people inside the corporate limits are paying 50 cents a month more than that because of the *“imp roved service of the automophones.” There are also a numbed of phones in the country that are paying $1.50. The Republican is in receipt of replies to letters sent to all parts of the state and we want to show what the rates are in several towns that may be compared favorably With this city: . Greencastle—Business $2; residence $1.25; number of telephones 850. Goshen—Business $2.25; lesidence $1.25; farms $1.25; number of triephones 1,692. North Vernon—Municipal plant; rates not furnished. Frankfort—Business $2; residence $1; number of phones 2,100. Fairmount—Business $2.25; residence $1.25; farms $1.25; number of phones 750; toll rates to towns in county 10 cents. A note says: has been heavily in debt, having outstanding bonds, but is almost paid out Jan. 1, 1914, and seem to be making a good profit.” Wabash—Business $2; residence $1.50; farms $1.50; number of phones 2,000. Note says that the company is paying good dividends. Angola—Business $1.50; residence $1; number of phones 2,850; central energy system. Albion—. Business $1.50; residence $1; farm $1; number of phones 625. Note says that company seems to be doing well and pays 6 per cent dividend. . Knox—Business $2; residence $1.50; farm $1; number of phones 600. Superintendent receives $l5O per month and note says: “Seems to be a good business proposition.” Winamac—Business $1.50; residence $1; farm $1; number of telephones 600. Toll rates to Francesville, Medaryville, Star City and Motiterey 10 cents. Note says that company is making money. Danville—Business $2; residence $1.25; farm $1.25; number of phones 1,600. Toll rate to Indianapolis, 20 miles distant, is 15 cents.' Note says that company refuses detailed statement but claims to be losing money. Rochester—Business $2; residence $1; farm $1.25; number of phones 1,000.

Ladoga—Business $1.50; residence $1; farm $1; number of phones 400. Note says: “I think they are making money.” -=== Seymour—Business $2.25; residence $125; number of phones 897; free service all over the county. Note says: “We feel sure they are making money. They paid a premium for stock to get control.” Warsaw—Business $2; residence $1.50: residence on 4 party line $1; residence on 2-party line $1.25; farm on 10-party line $1; where phone is in office or place of business and in residence the two phones for $3; number of phones 1,400; toll rate to Milford, 12 miles, Etna Green 12 miles, Silver Lake 12 miles, Leesburg 6 miles, 5 cents. The president and 6 directors each receive small salaries. Note says: “Yes, the manager told me it was making money.” Winchester—Business $2; residence $1.50 -and $1.00; farms $1; number of phones 900; toll rate to all towns in the county 10 cents. This is a central energy system and note says “Service is splendid.” Columbia City—Business $2; residence $1; farms $1; number of telephones 2,000; central energy system inside Columbia City, local battery in the country. Superintendent receives $125 per month. The company operates six exchanges. Most of the towns mentioned above are larger than Rensselaer. There are more telephones on the exchange than there are in Rensselaer and in no case are the rates nearly so high as the company wanted to impose here. In every ease the toll rates are less than they are out of Rensselaer. Every indication is that the companies are making money and in some cases the reply stated that the companies were paying good dividends. The Republican is more convinced than it was before the discussion came up that there is absolutely, no justification for the proposed increase in ratgs. We are also of the opinion that the old rates of $2 for business phones'and $1 for .residence phones should be restored without regard to the kind of a telephone in use. We are convinced that the, toll rate to all point in Jasper county should be reduced to 10 cents and to Mt Ayr 5 cents, and to Monon, Wolcott Goodland and Brook not to exceed 15 cents. The Jasper County Telephone Co. has begun this matter and the people should finish it. The most positive local proof that we know of that the telephone business is not a bad one, is the faet that John Bruner, who has 240 of the farm phones did not join in a request for a raise in rates. Mr. Bruner is ngt complaining. He is

giving the business his personal attention and is making some money. The country business is higher per substation to maintain than the phone in town and yet Mr. Bruner takes the most expensive part of the business and makes it pay. The Republican is of the belief that Rensselaer as a city can make no better investment than to buy and operate the local plant, provided it can be purchased at what it is worth. We believe that a mutual company in the country could Connect with the exchange in the city and that the entire service would be improved and the city make a fine revenue out of the business, Central Union experts to the contrary notwithstanding.