Jasper County Democrat, Volume 16, Number 91, Rensselaer, Jasper County, 14 February 1914 — HERE ARE RATES ASKED FOR [ARTICLE]

HERE ARE RATES ASKED FOR

By the Jasper County Telephone Company Through the Public i Service Commission. A copy of the petition of the Jasper County Telephone Co. for its proposed increase in telephone rates in Rensselaer and Wolcott and on its countrj’ lines, has been filed with City Clerk Charles Morlan. J The compeny sets out in its petition! that it has a capital stock of $48,000, about 1,200 phones in service and 140 miles of toll lines: that' during the past fifteen years it has declared no dividends for more than! half of that time, and never for' more than 6 per cent; that no fund has been laid aside for depreciation; | that it desires to rebuild its Rens- 1 selaer exchange and make it full! metalic service, same as the Wol-' cott exchange already has, and in' order to do so it desires to issue' $20,000 in bonds. The rates asked for in Rensselaer and Wolcott and on its country lines' pre as follows per year for each phone: Business phones $39.00 Residence phones ...... 21.00 Rural phones ........ 21.00 Residence extension .. . 9.00 Desk phones 15c per month extra.

All to be subject to a reduction of 25c per month if paid during the current month. This would bring the net amount asked for to $3 per month for business phones and $1.50 per month for reisdence phones. A minimum charge of $1 for changing a phone is also asked for, and if such Change costs more than sl, the subscriber to pay the actual cost of moving. Now, it is admitted by both the telephone company and the public

j that the Rensselaer exchange is I practically so much junk, and it seems to us that in arriving at a proper basis of rates, that the present value of the company’s property should be taken into consideration, j rather than the amount of its capital stock. Unless this is done, the subscribers would be asked to pay 8 per cent dividends and 10 per cent per annuni for depreciation—after the $20,000 in bonds have been issued and the money expended in rebuilding the plant—on $78,000 rather than on say $25,000 to $35,000, the actual value of the entire system when it is rebuilt and put in firstclass condition, and this is a point that should be taken uip with the member of the public service commission when he comes to Rensselaer on Friday, February 27. It is reported that the company does not expect to be granted as high a rate for business phones as ; that asked for, but does hope to be granted a rate of $2.50 per month I for business' phpnes and the 25 cents penalty if not paid during the current month. The latter provision is probably a just one, for no doubt unless there is some penalty of tha ; kind the company would be carrying a thousand dollars or more right along in delinquent accounts, i We have practically the same thing ! now in operation in regard to our ! electric light bills here, a 10 per { cent reduction being given if bills are paid on or before the tenth of the month. No one can seriously ob- * ject to that feature, but whether or no it is necessary to increase the rates to to the amount asked for, or I even to $1.50 and $2.50 per month, : is a disputed question.