Jasper County Democrat, Volume 12, Number 24, Rensselaer, Jasper County, 26 June 1909 — WHY NOT HAVE A MUTUAL COMPANY [ARTICLE]

WHY NOT HAVE A MUTUAL COMPANY

Raise In Local Telephone Rates Is Not Justifiable. MUTUALS GETRATES FOR HALF Or Less, Than Rates Now Charged By Jasper County Telephone Co., and Are Making Money-Service Is Also Better Than We Are Getting.—An Example of What Mutual Companies Do Is Shown By the Brook Exchange.

Since ’ the sleet last winter which caused some loss to telephone and telegraph companies, the Jasper County Telephone Co., has been endeavoring to saddle that loss and any losses that may occur in years to come oflto the patrons of their lines. • Failing, through the efforts of The Democrat, to get through the city council a franchise for a 50 per cent raise in city rates, it has put in force a new schedule of toll rates equaling more than 100 per cent raise in some instances, and has raised the rates for country lines from $1 per month to $1.50. Whether the country line service has been improved or not we leave for the pattons themselves to answer. Some phones were taken out rather than pay the 50 per cent raise in country line rates. Others felt that they must submit to the raise as they could not get along without a ’phone, even though they did not believe the increase was justified. The service in Rensselaer since the failure to get through the holdup franchise has been worse than ever before. Whether this is intentional or not, in order to make the patrons believe they must pay more money to get decent service, we do not know, but we think the great majority of patrons will agree with us in what we say—that the service is decidedly “bum.” Now, the agitation for a raise in rates a few months ago started right here in Rensselaer, and a meeting was held at Monttcello in an effort to get the owners of other lines in this section to join with the Jasper County Telephone Co., in forcing this raise. The Monticello company seems to have been the only one to fall into the scheme, Francesville and others declining to join, declaring that their lines were making them good money and they did not think they were justified in holding up their patrons for more. When the Monticello company went before the town council with its pitiful plea for a new franchise at increased rates, a prominent gentleman representing a company having abundant capital, got-up 1 in the meeting and said that if the old company did not care to go ahead at the old rates, his company would be very glad to have a franchise there for the rates then in force, and would not only put in the metallic system —which the old company offered so do if granted the increased rate franchise—but would go them one better, and put in the automatic call or dial System, which does away with the “hello girl” altogether.

When this offer was made the old company’s representative collapsed entirely, and nothing has since been heard from it—and it is still doing business at the old stand and at the old rates. The Jasper County company has quietly gone ahead and made a big raise in rates wherever it could, and, in addition to a 50 per cent raise on country lines, has advance! toll rates in the county and to nearby towns from 25 to 125 per cent. As *»an example, the toll rates were 10 cents to any point in Jasper county. Now the rate is 20 cents to Remington and Demotte, and 25 cents to Wheatfleld, 15 cents to Fair Oaks, etc. To Brook the rate is 25 cents, but from Brook here—a mutual telephone company operates at Brook—the rate Is but 16 cents. To Mt. Ayr is now 20c; Goodland 25, Wolcott 26, Kentland, 25—a raise of 5 cents in each case, we understand. For some reason this raise seems to have been kept very quiet, and not but few business men in Rensselaer khew of the raise in toll line rates. < Novt a word about mutual companies. A gentleman who is a stockholder in the Brook exchange’and he

is in a Tositon to know what he is talking about, tells us a few facts about its workings: There are 98 stockholders in the Brook system, and they have paid in $67 each. The stockholders pay no ’phone rental at all, and the profits from the non-stockholder patrons at the rates prevailing here before the recent raise, have been sufficient in the past two years to put in about 150 new phones, new switchboard, practically all new poles in Brook and pay all operating Expenses and make payments on an indebtedness of the company incurred when the Brook exchange was bought. A superintendent is kept all the time at a salary of S7O per month and he has a helper at a sqpaller salary. A sufficient number of girls are kept in the central office to guarantee prompt and satisfactory service at all times. It has been something over two years now that this company has owned the Brook exchange—operating previous to that as a country line—and besides being owners of the system the stockholders for the small investment of $67 each get their phone rent absolutely free. The interest on the investment at 6 per cent would yield about $4 per year, and they are not only getting their phone rent for this sum but their investment is growing in value every day as heir system grows. This gentleman who gave us the Information above, is a man of means and has property interests in this county. He would like to see an effort made to organize a mutual company here, get a franchise in Rensselaer and go after the business. He w r ill take some stock, he says, and do everything he can to help the matter along. He invites a thorough inspection of the Brook plant and hopes a move will be started here that will insure a committee being sent over to Brook to investigate.

The Democrat believes the time is ripe for a move of this kind and that hundreds of farmers will gladly embrace the opportunity of subscribing for stock if the work of organizing a company is taken up. It is the universal history in different sections of the state where mutual telephone companies are in operation, that the patrons are given much better service and at a lower rate than the hold-up companies give. Besides, they are making money right along for the stockholders.

The Democrat would like to hear from some of its readers who will take stock in a mutual company in this county and would be pleased to see some active citizen of good standing make an effort to organize a company. In the meantime, let every reader who will take stock in the company, should one be organized, drop a card or a letter to The Democrat to that effect, that there may be something definite to go by in inducing someone to take the matter up and bring it to a successful conclusion.